General Insurance Newsletter Friday 3rd May 2024
Insurance NewsUS property and casualty (P&C) insurers are facing rising challenges due to social inflation, a phenomenon marked by increased litigation, more substantial damage awards, and broader legal interpretations, according to the latest insights from Moody’s. These factors are notably impacting commercial auto and general liability lines, with heightened social inflation expected to continue, prompting insurers to augment reserves and elevate pricing strategies. In 2023, the US P&C industry witnessed a downturn in favourable reserve developments, with only $2.3 billion recorded, contrasting with a total industry reserve of $901 billion. The report notes that this reduction stems primarily from a modest deficiency in long-tail casualty lines noted at year-end. (Kenneth Araullo, 2/5/2024, Insurance Business UK, 'Social inflation to drive higher losses for US P&C re/insurers – Moody’s')Peak Reinsurance Company (Peak Re) has reported record net profits for 2023, totaling $200 million despite the year's significant market challenges. This performance marks a notable improvement, supported by a turnaround in reinsurance underwriting and asset management, which drove the company’s total equity up by 14.3% from 2022, reaching $1.28 billion. The company also maintained a strong solvency ratio of 305%. (Kenneth Araullo, 2/5/2024, Insurance Business UK, 'Peak Re reports growth amid challenging times in Q1 financials')Oman Re, the sole reinsurer in the Sultanate of Oman, has reported a significant increase in its net profit after tax for the first quarter of 2024, recording OMR977,000 (US$2.5 million). This figure represents an 83% rise from OMR534,000 (US$1.4 million) during the same period in the previous year. According to insights from Moody's, this growth has been fueled by a strong underwriting performance and a robust investment portfolio, with reinsurance revenue for Q1 2024 maintaining at OMR10.1 million (US$26.3 million), consistent with the first quarter of 2023. (Kenneth Araullo, 2/5/2024, Insurance Business UK, 'Oman Re highlights surge in profit in Q1 results')American International Group (AIG) has published its earnings report for the first quarter of 2024 – a period in which the insurer saw a massive climb in net income attributable to common shareholders. According to the insurance group, the surge in its attributable net income was mainly due to net realised gains on Fortitude Re funds withheld embedded derivative, versus net realised losses in the same quarter in 2023. (Terry Gangcuangco, 2/5/2024, Insurance Business UK, 'AIG enjoys surge in attributable net income')Markel Group, the parent company of insurance brand Markel, has released its financial results for the first three months of the year. Of the group’s insurance operating income Q1, US$107.31 million came from the insurance segment, US$12.01 million from reinsurance, and US$16.51 million from other insurance operations. (Terry Gangcuangco, 2/5/2024, Insurance Business UK, 'Markel Group reports Q1 earnings')Managing general agent Yutree, known for assisting brokers and their media and entertainment clients over the past 12 years, has partnered with AXA to help tackle the market’s underinsurance problem. The partnership is aimed at boosting coverage for media and entertainment clients under the MGA’s BIBA-endorsed (British Insurance Brokers’ Association) scheme. With the tie-up, Yutree increased its coverage limits. “This new partnership with AXA will enable us to continue to support brokers and their media and entertainment clients with specialist cover, competitive rating, and limits that will not restrict us in the UK market,” Yutree Managing Director Laura Hancock said. (Terry Gangcuangco, 2/5/2024, Insurance Business UK, 'Yutree, AXA team up')Enstar Group has announced that it has finalized a loss portfolio transfer agreement through one of its wholly-owned subsidiaries with a subsidiary of SiriusPoint. The agreement involves reinsuring a $400 million workers' compensation portfolio covering underwriting years from 2018 to 2023. Per the terms of the reinsurance agreement set to take effect at closing, SiriusPoint will cede net reserves totaling approximately $400 million. In response, Enstar’s subsidiary will provide an excess cover of about $200 million over the ceded reserves. Additionally, claims management responsibilities will transition to Enstar. (Kenneth Araullo, 1/5/2024, Insurance Business UK, 'Enstar inks portfolio transfer deal with SiriusPoint')RenaissanceRe Holdings has reported its financial results for the first quarter of 2024, highlighting significant developments in its operations. The company's property segment saw a combined ratio of 42.9% and a 44.9% increase in gross premiums written, amounting to an additional $585.7 million. This rise was largely attributed to a $412.5 million increase in catastrophe premiums, spurred by the renewal of business from the Validus acquisition and the retention of legacy lines at the start of the year. (Kenneth Araullo, 1/5/2024, Insurance Business UK, 'RenaissanceRe publishes Q1 2024 results')SiriusPoint has disclosed its financial results for the first quarter ended March 31, 2024, revealing shifts in core premium volumes and core results. In the first quarter, SiriusPoint experienced a decrease in gross premiums written by $179.5 million, or 16.9%, totaling $880.7 million, down from $1,060.2 million in the comparable period of 2023. Net premiums earned also fell by $32.9 million, or 6.0%, to $517.8 million. (Kenneth Araullo, 1/5/2024, Insurance Business UK, 'SiriusPoint discloses first quarter financial results')Legal expenses insurance and assistance provider ARAG UK, part of German group ARAG SE, has announced its financial results for 2023. In the past financial year, during which the process of integrating acquired business DAS UK into the managing general agent began, ARAG UK posted its 14th successive year in the black. ARAG UK’s profit in 2023 amounted to £0.8 million, an increase from £0.5 million previously. (Terry Gangcuangco, 1/5/2024, Insurance Business UK, 'ARAG UK reports 14th profitable year in a row')Aviva has teamed up with RiskEye to add online risk and reputation support as a standard feature of its cyber insurance offering. According to an Aviva poll, approximately 28% of businesses in the UK have already experienced reputational harm due to negative posts, while 33% feel unprepared to handle a malicious cyber incident. Additionally, negative online reviews rank as the sixth most significant risk for UK firms. In response, Aviva brought in RiskEye to safeguard businesses from various online threats, including ad scams, impersonation, fake reviews, and other forms of misinformation and disinformation. The round-the-clock support spans crisis management, preventive advice to avoid future attacks, as well as platform monitoring and access to legal notice templates. (Terry Gangcuangco, 1/5/2024, Insurance Business UK, 'Aviva adds RiskEye service to cyber insurance proposition')Arch Capital Group has released its financial results for the first quarter of 2024. Of the group’s GWP in the first quarter, US$2.1 billion came from the insurance segment while the reinsurance segment contributed US$3.5 billion. Both units posted increases in gross written premium in Q1. The mortgage segment, which saw a slight dip, brought in US$341 million. (Terry Gangcuangco, 30/4/2024, Insurance Business UK, 'Arch Capital Group unveils Q1 earnings')Global underwriter Everest Group has published its earnings report for the first three months of 2024. GWP for the group’s reinsurance and insurance segments grew by 21.2% and 10.1%, respectively. (Terry Gangcuangco, 30/4/2024, Insurance Business UK, 'Everest reports financials for first quarter')Jensten Group's Coversure Network has set a record as it reported its highest gross written premium (GWP) in history, totalling £12.2 million for the month of March. The brokerage notes that this highlights the growing impact and potential of the Coversure Network and its franchise partners, particularly noting the significant contributions from the new franchisees who have joined within the past 18 months. The network comprises over 90 independently operated franchises under the Coversure brand. Jensten has touted the Coversure model as one that provides insurance professionals the chance to start and expand their own brokerages, backed by an established team and business framework. (Kenneth Araullo, 30/4/2024, Insurance Business UK, 'Jensten's Coversure Network touts record-breaking month')Howden has expanded further in Wales with a new office in Cardiff. The new office at Regus House, Malthouse Avenue, in Cardiff Gate Business Park, is set to house six brokers who will help drive the growth of Howden’s UK corporate & commercial offering. According to the global insurance intermediary group, more brokers are set to come on board in the coming months. (Terry Gangcuangco, 30/4/2024, Insurance Business UK, 'Howden expands further in Wales')In its latest trading update, the specialist Beazley said it has demonstrated a consistent start to 2024. For the quarter ending March 31, 2024, Beazley saw its gross written insurance premiums climb to $1,483 million from $1,384 million in the same period last year, a 7% increase. Net written premiums also rose significantly by 11% to $1,239 million from $1,118 million the prior year. (Kenneth Araullo, 29/4/2024, Insurance Business UK, 'Beazley highlights "solid start" to 2024')Aon, which recently completed its swoop for middle-market property & casualty broker NFP, has published the group’s financial results for the first quarter of 2024. Broken down, US$1.81 billion of the total revenue came from commercial risk solutions; US$1.17 billion from reinsurance solutions; US$733 million from health solutions; and US$370 million from wealth solutions. (Terry Gangcuangco, 29/4/2024, Insurance Business UK, 'Aon publishes Q1 numbers')Mergers & AcquisitionsAcrisure has announced the acquisition of WH&R McCartney, a Scottish insurance brokerage established in 1932 and based in Motherwell. This acquisition marks a significant expansion of Acrisure's presence in Scotland, following the earlier purchase of Glasgow-based Affinity Brokers Limited (Affinity) in 2023. WH&R McCartney, under the leadership of Graeme Robb and Alan Kirkwood, specialises in general commercial SME insurance. Both Robb and Kirkwood will join the new management team and play pivotal roles. As part of the transaction, the firm will continue its operations in both Glasgow and Motherwell, with all current staff retaining their positions. Yvonne McKnight, Acrisure Managing Partner and a board member of WH&R McCartney, will also maintain her role at Affinity. (Kenneth Araullo, 2/5/2024, Insurance Business UK, 'Acrisure expands in Scotland with SME broker acquisition')Brookfield Reinsurance, along with American Equity Investment Life Holding Company, announced that their anticipated acquisition deal is slated to finalize after market close on May 2, 2024. The deal, initially publicized on July 5, 2023, marks a significant expansion for Brookfield Reinsurance in the U.S. financial sector as it is set to acquire the American Equity Investment Life Holding Company (AEL). A crucial step toward the acquisition was completed earlier this month, with the Iowa Insurance Division holding a regulatory hearing on April 5, to discuss the terms and implications of the acquisition. This meeting paved the way for the final stages of the deal. (Kenneth Araullo, 1/5/2024, Insurance Business UK, 'Brookfield Reinsurance sets closing date for AEL acquisition')The Ardonagh Group has announced its intention to acquire Mansutti S.r.l, a branch of the Italian insurance broker Mansutti S.p.A., focusing on commercial lines, as the brokerage marks another step in its expansion in the European market. Founded in Milan in 1925, Mansutti SpA has been a family-run entity for nearly a century, primarily servicing personal clients and larger corporate entities. It currently operates under the leadership of Tomaso Mansutti. Mansutti S.r.l oversees a portfolio including liability, property, employee benefits, automotive, and marine, accounting for €45.5 million in gross written premium. It currently serves 8,000 customers and employs a team of 30. (Kenneth Araullo, 30/4/2024, Insurance Business UK, 'Ardonagh inks deal for Italian commercial lines business')MoversAllianz Commercial has appointed Faith Kitchen to the position of Head of Client Relationship Management for mid-market. Faith has more than 25 years’ experience in the insurance industry. She joins Allianz from Ecclesiastical where she most recently held the position of Customer Segment Director. Prior to this, she spent 16 years at Zurich in a variety of roles across underwriting, product design and client relationship management. (Allianz, 2/5/2024, youTalk Insurance, 'Allianz Commercial appoints head of client relationship management for mid-market')In further news...Allianz has appointed Carolyn Rich as Director of Brand in the UK with immediate effect. Since joining Allianz in 2013, Rich has ascended through various leadership roles within the brand and marketing function. She most recently served as Head of Market Management for Allianz Commercial. Outside Allianz, Rich’s credentials include time spent founding and managing Enrich Communications, a marcomms consultancy, and occupying marketing positions in the non-profit sector, notably with Barnardo’s. (Terry Gangcuangco, 2/5/2024, Insurance Business UK, 'Allianz names UK brand director')Specialist re/insurance broker BMS has announced the establishment of its new global healthcare liability division, appointing Rob Wendin as Managing Director. This division aims to support healthcare providers and their insurers by offering access to BMS’s range of insurance, reinsurance, and risk management services and products. Wendin joined the company in December 2023, and brings over four decades of experience across insurance, reinsurance, and healthcare sectors. His previous roles include Managing Director of healthcare at Guy Carpenter, Senior Partner at JLT’s Healthcare Risk Partners, and Managing Director at Marsh’s EMEA Healthcare Practice. Known for expertise in healthcare liability and risk management, Wendin has also established and led the European Healthcare underwriting platform at Allied World. (Kenneth Araullo, 2/5/2024, Insurance Business UK, 'BMS establishes global healthcare division')Claims management specialist Sedgwick has announced Alex Nicoll as the new head of its media and entertainment claims division in the UK. Nicoll brings an expansive background as a former Hollywood Producer/Director and trained Barrister, with substantial experience on TV and film sets. His career has also spanned roles as a Media Insurance Broker and in claims management, notably overseeing injury claims involving A-list celebrities and complex claims related to delays in major TV and film productions. His expertise and industry knowledge previously earned him a position with the UK Government's Department of Digital, Culture, Media and Sport, where he played a key role in managing the post-pandemic Film and TV Production Restart Scheme. (Kenneth Araullo, 2/5/2024, Insurance Business UK, 'Sedgwick appoints UK head of media and entertainment claims division')Arch Insurance International has announced the appointment of Barbara Rizzi as Chief Claims Officer, effective immediately. Rizzi, a seasoned professional in claims management and legal practice, joined Arch in 2013 and most recently held the position of Head of Third-Party Claims. Her career spans over two decades and includes stints at prominent law firms such as Clyde & Co LLP and Kennedys Law LLP, where she specialised in insurance law. She is a qualified Solicitor in both England & Wales and Italy. Additionally, Rizzi is active in internal leadership as the Co-Chair of Arch’s UK Women & Allies Network. This group promotes the career advancement of women within Arch by providing networking opportunities, mentorship, and sponsorship. (Kenneth Araullo, 1/5/2024, Insurance Business UK, 'Arch Insurance International names new chief claims officer')MIB (Motor Insurers’ Bureau) has announced that it has tapped Harkamal Phagura to join its executive team as Interim Chief Finance Officer. Phagura, who is a fellow of the Chartered Institute of Management Accounts, previously worked with RAC, Aviva, Cap Gemini, Restore and more recently Maxxia UK and brings a strong background of both strategic planning and financial acumen to MIB’s executive team. (Mia Wallace, 1/5/2024, Insurance Business UK, 'MIB welcomes interim chief financial officer')Global reinsurer SCOR has named Claire McDonald as its new CEO for SCOR Business Solutions (SBS), previously known as SCOR Specialty Insurance, the group’s large corporate risks insurance unit. McDonald's extensive career spans several integral roles within the insurance industry. Most recently, she served as Vice President at the Insurance Institute of London and Chair at the International Underwriting Association of London. McDonald's background also includes significant stints at HDI Global SE, where she was an executive board member and CUO for property, engineering, marine, and risk engineering. Additionally, she has held leadership positions at Allianz Global Corporate & Specialty in various capacities, ranging from Global Head of Operations to Head of Energy at the chief underwriting office. (Kenneth Araullo, 30/4/2024, Insurance Business UK, 'SCOR names new CEO for corporate risks unit')Hamilton Insurance Group has announced the appointment of Athena Tolosa as the new Chief Financial Officer of Hamilton Re, the company's Bermuda-based insurance and reinsurance underwriting division. She has over 18 years of experience in the re/insurance sector prior to her new role. Most recently, Tolosa served as Senior Vice President, Head of Finance - Reinsurance at RenaissanceRe, where she spent five years in senior positions. Prior to her tenure at RenaissanceRe, she was at Tokio Millennium Re (now part of RenaissanceRe) for 11 years, holding various senior finance roles in Bermuda and Switzerland, with her final position being Vice President, Finance. Earlier in her career, she worked at EY in Bermuda and PwC in the Philippines. (Kenneth Araullo, 30/4/2024, Insurance Business UK, 'Hamilton Re names new chief financial officer')Specialty re/insurance broker Consilium has announced the appointment of Lucy Moore as Head of Technical and Operations within its Delegated Risk Solutions division. Moore brings eight years of experience in delegated underwriting authority (DUA) to her new role. She joins Consilium from Aon, where she served as a DUA Client Account Manager. Prior to Aon, Moore held positions at Convex as Deputy Delegated Underwriting Manager and at The Channel Syndicate as senior DUA analyst. Her career began at JDX Consulting, where she worked as an Associate Consultant. (Kenneth Araullo, 30/4/2024, Insurance Business UK, 'Consilium snaps up ex-Aon hire as new head for delegated risk solutions')Lloyd's global re/insurer MS Amlin has announced the appointment of Catherine Healy as the firm’s new Head of Property & Crisis Management Claims. Healy brings over 20 years of experience in the Lloyd's and London Market, where she has managed delegated authority accounts and complex claims across multiple jurisdictions, including the UK, North America, South America, Europe, and Australia. Before joining MS Amlin, Healy held the position of Delegated Authority Claims Manager at HDI Global Specialty, handling a diverse claims portfolio that covered property, casualty, cyber, and accident & health. Her previous roles also include as Claims Manager for specialty programs at Brit Global Specialty and, following that, a stint at Accelerant Insurance Limited in 2019, where she managed claims for property and liability accounts. (Kenneth Araullo, 30/4/2024, Insurance Business UK, 'MS Amlin bolsters claims proposition with new head')QBE Insurance Group Limited (QBE) has appointed Nicola Schroder as its new Group Head of Sustainability. Schroder brings two decades of experience in various sectors, including insurance, engineering, property, and banking. During her tenure at QBE, she has advanced its sustainability agenda, most recently as Head of Environment and Transition, where she developed a net-zero operations roadmap. (Roxanne Libatique, 29/4/2024, Insurance Business UK, 'QBE bolsters sustainability leadership with new group head')All information provided in this Market Digest has been gathered from Insurance Business UK and youTalk Insurance.
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