The majority of large US P&C insurers have failed to make money
on underwriting over the past five accident years, with just 40 of
the top 100 companies reporting such profits during the period,
according to Guy Carpenter.
In a report released yesterday, the reinsurance broker said that
in a "challenging operating environment" the biggest
areas for profitable underwriting were general liability lines,
special property and products liability coverage.
By contrast, most carriers reported under
- Marsh is understood to be in discussions with Axa about buying the
French insurer's UK broker network Bluefin.
According to Sky News, Axa is in advanced talks to offload the
unit in a deal worth around £300mn ($367mn). The terms are yet
to be finalised.
If the transaction goes through, ownership of Bluefin's
network of 40 offices and 1,400 employees would transfer from Axa
to the US broking giant.
Other brokers, including Aon, are also understood to have
- Brokers and insurers have highlighted the growing necessity for cyber cover following Friday’s high profile cyber-attack.
- Role became available after Charles Roxburgh was named as second permanent secretary to the Treasury
- Developing technologies, rather than traditional market
mechanisms, will be the future drivers of growth in the
(re)insurance industry, according to Munich Re.
Speaking at its Baden-Baden press conference today, Munich Re
board member Ludger Arnoldussen said (re)insurers must partner with
nascent technology start-ups to take advantage of phenomena such as
big data if they want to continue to grow.
Arnoldussen explained that while traditional business was still
a "value generator" for Munich Re,
- The Financial Services Compensation Scheme said it will protect consumers affected by the Gable administration, should the firm become insolvent.
- Branching out: From property owners to PI, SJL Insurance’s principal Simon Lancaster is focused on growing the broker and wholesaler organically with the help of his team
- The Financial Conduct Authority has confirmedthat five firms were unable to submit reports following a system outage last month.
- James Trainor most recently led the cyber division at FBI’s headquarters
- The decision to lift the most stringent sanctions on Iran may have been greeted by celebration, but many insurers are finding the remaining restrictions still make doing business there an unattractive proposition.
- The board of the Placing Platform Limited (PPL) has announced that
directors' and officers' (D&O), financial institutions
and professional indemnity business will go live on the London
market electronic trading platform from 7 November.
The Insurance Insider first revealed
June this year that D&O and financial institutions were the
next lines to be put on the platform.
And in August, this publication reported that marine was likely to
become the next class for the PPL, following the r
- Aon Risk Solutions has hired James Trainor, leader of the cyber
division at the US Federal Bureau of Investigation (FBI), as senior
vice president of its cyber solutions group.
In his new role, Trainor will help shape Aon's overall cyber
strategy, working across technology, system integration, risk
transfer and advisory.
"As the FBI's foremost expert in cyber security, Jim
brings unparalleled experience and knowledge that will be
invaluable to clients as they evaluate and address their cyber
- Kinetic was bought by Torlea Group in the beginning of October
- Dwayne Hunt has agreed to join Neon's Bermuda office as
senior vice president, property insurance, the carrier announced
Hunt will begin his new role on 1 December. He joins from Chubb
Bermuda, where he was senior vice president and property manager,
with responsibility for the firm's mature excess global
property book of business.
Prior to Chubb, Hunt held underwriting roles at Arch Insurance
and XL Insurance in Bermuda, with a focus on the North American
- Don Allard has joined Everest Re's primary subsidiary
Everest Insurance as head of professional liability, the carrier
announced on Friday (21 October).
Allard joins from QBE, where he served as senior vice president
and head of specialty programmes. In this role he was responsible
for a portfolio that included professional liability products for
realtors, accountants, insurance agents and public entities.
He has also previously worked as chief underwriting officer for
the select professional di
- Asia Pacific Re backer China Oceanwide has agreed to acquire all of
the outstanding shares of US life insurance specialist Genworth for
a total transaction value of approximately $2.7bn, or $5.43 per
share, in cash.
The offer is 4.2 percent higher than Genworth's closing
price of $5.21 on 21 October. China Oceanwide plans to let
Virginia-based Genworth operate as a standalone company after the
takeover, with its senior management remaining in place.
The acquisition will be completed through Asia
- Zurich is looking to bring a string of European legacy books to
market worth upwards of $1bn in liabilities, The
Insurance Insider has learned.
The Swiss-headquartered insurance giant plans to dispose of four
books in total, including a £200mn ($246mn) book of UK
construction warranty and builders' liability business for
which Armour is thought to be the frontrunner.
The UK book is in the most advanced stages of disposal, with the
others queued up behind it, and the divesture efforts...
- Peter Scales' start-up Blenheim Syndicate 5886 has been granted
permission by Lloyd's to underwrite for the 2017 year of
This allows Syndicate 5886 to quote on business incepting on or
after 1 January, 2017. It's understood the bulk of the
syndicate's £150mn ($195mn) capacity will be used to write
property treaty and property direct and facultative (D&F)
Blenheim managing director John Lynch said: "We are very
grateful to Asta for the expertise and resources that the
- There was evidence from carriers in the early third quarter result
releases that the deteriorating underwriting results seen at AIG
and Zurich in recent quarters might be spreading across the US
P&C sector, particularly in casualty lines.
RLI and Travelers are typically seen as bellwethers for the
specialty market and broader industry.
So when RLI opened up the reporting season for carriers with an
earnings miss that included its first prior-year reserve
deterioration in more than a decade,
- There are signs of a shift in strategy among larger primary
carriers to purchase reinsurance to protect against earnings
volatility in addition to safeguarding their balance sheets.
The trend over the last decade had been for such buyers to
utilise reinsurance as a capital management tool to eliminate peak
risks and optimise balance sheets as they typically retained more
Indeed, in the last few years the move to higher retentions has
combined with centralisation and consolidation of reinsur
- After threatening a potential knockout punch to Florida's east
coast, Hurricane Matthew in the end delivered little more than a
But although a sub-$10bn insured loss is unlikely to turn the
property reinsurance market on its own, the psychological impact
should be sufficient to at least further slow the softening, or
even stabilise rates in the US at 1 January.
Another mid-sized loss in a year of uncorrelated mid-sized
losses means that underwriting results are set to suffer...
- Zurich global corporate Emea CUO Matthias Horntrich has left the
carrier as CEO Mario Greco's senior executive cuts programme
gains steam, The Insurance Insider can
Sources added the company's former global corporate CEO
Thomas Hurlimann, who is currently working on special projects for
Greco, is likely to exit in the coming months.
Horntrich joined Zurich as Emea CUO in 2014, having previously
served as CUO for international property business at XL Catlin in
London for two years from 20
- Beach Group and Turker Re have agreed to form a strategic
partnership in Turkey and the Middle East.
The two firms worked closely together earlier this year as they
won a request for proposal (RFP) to be sole reinsurance broker for
the Turkish Catastrophe Insurance Pool (TCIP).
And now reinsurance broker Beach and Istanbul-based Turker Re
have teamed up in the region in a bid to offer an alternative to
the global brokers.
In a statement, the companies highlighted Turker...
- US (re)insurers have found themselves in limbo ahead of the major 1
January renewal for German cedants' business, following a rule
change by German regulator BaFin.
In January 2016 the new German Insurance Supervision Act came
into force, which details the rules for reinsurers from countries
outside the European Economic Area (EEA) without Solvency II
But in August BaFin issued an update which clarified that
so-called third countries would be prohibited not just from writing
- Broker will migrate between software providers over the coming year.
- Axa will merge its life, health and general insurance businesses in Singapore from 1 January 2017.
- Deal is rumoured to be worth £300m.
- Bluefin purchase would boost Marsh’s market position
- Keep up to date with all the latest people moves.
- Friday’s attack on the internet highlights need for cyber insurance
- News broke recently that the Ministry of Justice has no appetite to go ahead with proposed whiplash reforms at the moment.
- The International Union of Marine Insurance is set to open an Asia office in Hong Kong.
- Chinese investment firm China Oceanwide Holdings has bought struggling US mortgage and life insurer Genworth Financial for $2.7bn (£2.2bn) in cash.
- Investors awaiting guidance on further charges for PPI claims at Barclays, Lloyds and RBS as analysts brace for Brexit impactFurther charges for the payment protection insurance mis-selling scandal and details of the impact of Brexit will be in the sights of investors when the high street banks report their third-quarter results this week.
The financial services industry has already incurred £37bn of costs associated with PPI and is now expected to face an even bigger bill after the Financ
- Mitsui & Co has acquired a 15 percent stake in New Ocean
Capital Management and committed an initial $100mn of investment
funds to the asset-management platform majority owned by XL
About a fifth of the funding, $21mn, has already been invested,
Mitsui said in a statement. The Tokyo-based company said it would
strive to supply additional capital to New Ocean by 2020.
After purchasing the stake from existing investors, a Mitsui
representative will join the board of New Ocean,...
- Liberty Mutual has emerged as the frontrunner to take out Ironshore
with a full sale by owner Fosun now looking the likeliest outcome,
The Insurance Insider can reveal.
Sources said that Liberty Mutual is one of the companies that
has been in late stage talks with $2.1bn+ equity Ironshore, having
twice bid for the company before, including at the point the
business sold to Fosun last year.
Ironshore is believed to have come close with The Hartford
earlier this month,...
- Somerset Re increased its common share capitalisation to $375mn
following investments by several strategic investors, including
German reinsurer Hannover Re, the Bermuda-based company said.
The life and annuity reinsurer also listed financial services
investment fund Atlas Merchant Capital, which is based in New York
and London, as one of the investors. In addition, the company said
it received investments from a number of high net worth
Somerset plans to collaborate with Hannover t
- The Caribbean Catastrophe Risk Insurance Facility (CCRIF) has now
completed payments totalling $29mn to member governments affected
by Hurricane Matthew.
The payouts were made within 14 days of the event to the
governments of Haiti, Barbados, Saint Lucia and St Vincent &
the Grenadines under one or both of the tropical cyclone and excess
Hurricane Matthew swept through the Caribbean earlier this
month, cutting through Haiti and Barbados before weakening after
- US broker Capacity Group is set to launch an exclusive program
for real estate owners and managers with policies underwritten by
Hamilton Specialty on a non-admitted basis, The
Insurance Insider can reveal.
The initiative - Prominent Properties - has been put together by
the group's Capacity Excess division and uses a self-insured
retention (SIR) mechanism instead of the traditional first dollar
approach in the US market in a bid to attract and reward better
The program is targeti
- Arcus has appointed former Aon Benfield property broker and client
manager Katie Higgon as an underwriter.
She will report to Syndicate 1856 active underwriter Nicky
Higgon joined Aon Benfield's graduate programme in 2011 and
worked primarily on the North American property team.
The hire marks the Barbican-managed company's first
expansion in staff numbers since its launch at the beginning of the
The business, backed by Credit Suisse, has £90mn of stamp
capacity and focuses pr
- Successor will oversee completion of RSA’s claims transformation programme
- RSA’s Bill Paton is to step down as claims director for the UK, Western Europe & Middle East at the end of April 2017. He will be succeeded in the role by Zurich's Karl Helgesen, pictured.
- RSA’s Bill Paton is to step down as claims director for the UK, Western Europe & Middle East at the end of April 2017. He will be succeeded in the role by Karl Helgesen.
- Current Zurich chief claims officer Karl Helgesen will take up the position.
- Hyperion's retail broking arm Howden is to bring together its
UK operations under a single management structure.
Howden's UK professional indemnity (PI) and general
insurance divisions will be combined, and run under Howden UK.
In addition, all of Hyperion's recent UK acquisitions,
including the UK retail portion of RK Harrison, Powell Bateson,
Perkins Slade, PI specialist Windsor and care sector specialist
CHIS will also come under the new division.
From 1 November, Simon Lakey, managing direct
- A 400% rise in pet insurance fraud means that insurers need to share data over claims, a software company has warned.
- A 400% rise in pet insurance fraud requires an integrated approach with insurers using software and data sharing, the Insurance Fraud Taskforce has said.
- In this tech-driven day and age, one of the most striking relics of days gone by is the bordereau system. Although they may be computerised, bordereau reports tend to be about as high-tech as an Excel spreadsheet.
- Catastrophe risk modelling firm RMS has estimated US insured losses
from Hurricane Matthew will fall between $1.5bn and $5bn, it
In the Caribbean, RMS projected insured losses would fall
between $1bn and $3bn with the largest proportion of the losses
emanating from the Bahamas.
The announcement follows The Insurance
Insider's story yesterday, whichrevealed details of a confidential RMS client advisory,
detailing the loss expectations.
The figures make Matthew the costliest Atlan
- Police say that since IFED was set up it has investigated 86 cases as it announces crackdown on ghost broking activity.
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