Insurance news

• Validus plucks cyber underwriter duo from Nationwide

  22-02-2017 23:13
  The insurance arm of Bermudian Validus has hired two US-based
  cyber underwriters from the excess and surplus lines division of
  mutual insurance giant Nationwide.
  The pair will write on behalf of the Validus Lloyd's
  syndicate Talbot and its insurance division Western World, the
  company said in a statement. Both will be based in New York.
  Jackie Lee will become vice president of the newly established
  team within Validus Specialty Underwriting Services, having
  previously been associate vice preside
  
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• Mutual insurer M&A expected to heat up in coming years

  22-02-2017 20:43
  Mergers, acquisitions and capital raises in the mutual insurance
  market are expected to accelerate over the next three years,
  according to an analysis from boutique investment bank Stonybrook
  Capital.
  After decades of relative stagnation, "the mutual insurance
  company space has been anything but quiet over the last few
  years," said Joe Scheerer, the New York-based firm's
  principal and managing director.
  Predicting an uptick in activity, the investment banker said the
  shift was partly driven by t
  
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• HCI shares climb 6% on earnings beat

  22-02-2017 18:43
  HCI Group led a mini-bounce in Florida stocks after the
  company's earnings beat received a positive response from
  analysts, despite underwriting challenges in the state.
  Although the homeowners' writer reported a 105 percent
  combined ratio for the fourth quarter, operating earnings per share
  of $0.19 were significantly better than the Wall Street consensus
  forecast of a $0.17 loss.
  The carrier's shares were trading up more than 7 percent in
  mid-morning trading before edging back before noon to $
  
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• Aquatic market hit by $45mn of fish losses

  22-02-2017 18:43
  A spate of algae infestations that killed millions of salmon and
  tuna will see London market underwriters take a share of a $45mn
  bill, The Insurance Insider understands.
  A trio of losses originated in Mexico and Chile as a result of
  harmful algal bloom events, where algae populations quickly
  accumulate and generate toxins that can kill off entire fish
  farms.
  A portion of the losses were reinsured into Lloyd's through
  an Alwen Hough Johnson consortium called Global Aquaculture
  Insurance and...
  
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• 'Heat is on' to be Europe-friendly ILS hub

  22-02-2017 17:04
  
  Global insurance centres are under competitivepressure to be a Europe-friendly base for insurance linked securities, said PWC's Marta Abramska
  
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• Chubb to create European hub for global accounts

  22-02-2017 16:08
  Global insurer Chubb said it will establish a European global and
  large account operation to serve big clients and those with complex
  needs, and has reshuffled two senior managers to accommodate the
  change.
  Suresh Krishnan, who is currently vice president for overseas
  general insurance operations within global accounts, will take the
  new role of head of the global accounts division, Europe.
  He will be based in London, reporting to Jeff Moghrabi,
  continental European president, and to David Robin
  
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• Ironshore raises terrorism and sabotage capacity

  22-02-2017 16:08
  Ironshore International has boosted its terrorism and sabotage
  capacity to $400mn, effective immediately.
  The insurer, which operates in Lloyd's via Pembroke
  Syndicate 4000, raised its terrorism, sabotage and political
  violence limit from a single source by $25mn.
  Ironshore underwrites war and terrorism cover worldwide and
  provides cover for damage to commercial and residential property,
  including business interruption costs, resulting from attacks.
  Optional policy extensions can respond to loss
  
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• AJG pursues Scottish broker for breach of contract

  22-02-2017 16:08
  AJ Gallagher (AJG) has launched proceedings against Graham
  Hudson, the former director of its Aberdeen office, accusing him of
  client solicitation during a restricted period.
  AJG took the issue to court last year, and two Scottish judges
  have since denied attempts by Hudson's new employer, GS Group,
  to throw out the case.
  The company alleges Hudson has broken the terms of his contract,
  which contained covenants barring him from soliciting and dealing
  with clients during a mutually agreed period.
  
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• Broking success: Ashley Peters, Staveley Head

  22-02-2017 15:47
  
  Motoring along: Staveley Head’s MD on how niches and specialisms have helped fuel growth and why the broker decided to build its own software
  
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• E-trading disruptor gears up for launch

  22-02-2017 15:22
  
  New e-trading disruptor promises enhanced functionality
  
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• Suncorp challenges Fairfax for Tower

  22-02-2017 13:33
  Suncorp subsidiary Vero has made a competing bid of NZ$1.30 a
  share for 100 percent of New Zealand insurer Tower, less than two
  weeks after Tower accepted a NZ$1.17 per share, or NZ$197mn
  ($141mn), offer from Fairfax Financial.
  Tower said earlier today that Suncorp had initially sought to
  buy up to 19.99 percent of the New Zealand carrier, with a view to
  escalate that to 100 percent of the shares. The bid would value
  Tower at NZ$219.3mn, based on the...
  
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• Opinion: Floridian AOB pain

  22-02-2017 13:33
  If it was needed, there was plenty more evidence of the
  pressures facing Florida homeowners' carriers as three of the
  sector's big guns reported fourth quarter results at the start
  of the week.
  And assignment of benefits (AOB) - along with the litigated
  water claims the practice has spawned - was once again a key
  culprit in deteriorating underwriting results.
  With their relatively large balance sheets, United, HCI,
  Universal and the other two publicly traded Floridians yet to
  report appear...
  
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• Nephila and Greenlight write 20% United QS

  22-02-2017 13:33
  United has bought a new 20 percent quota share cover from
  Nephila Capital and Greenlight Re, the Floridian insurer said on an
  analyst call after the release of its fourth quarter results.
  The carrier placed the 20 percent quota share in December to
  help its United P&C subsidiarywithstand increasing claims as Floridian insurers fight a rise
  in litigated claims activity in the state.United had earlier reported a spike
  in fourth quarter losses, which totalled $98.7mn including
  $17.0mn of...
  
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• Higher claims push IAG HY profits down 6%

  22-02-2017 13:33
  Increased natural catastrophe losses caused IAG to report a 6
  percent drop in insurance profits to A$571.0mn ($438.8mn) for the
  second half of last year.
  In its half-year results, the company said it had suffered
  natural peril losses totalling A$420mn - A$80mn greater than its
  allowance.
  Approximately A$117mn of this figure was attributable to the
  Kaikoura earthquake that struck New Zealand in November, with
  Adelaide and New Zealand storms adding another A$86mn.
  Attritional loss activity was als
  
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• Cyber controls are 'not fit for purpose'

  22-02-2017 12:55
  
  Organisations' cyber controls are not fit for purpose, including those recommended by government, according to research from the University of Oxford and Novae.
  
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• Towergate unit senior hire from rival broker will 'rejuvenate' division

  22-02-2017 12:47
  
  Towergate unit senior hire signifies commitment to revenue growth for partnerships arm
  
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• Three ex-RSA Ireland executives punished for 'serious failings'

  22-02-2017 12:25
  
  Fines and sanctions for ex-RSA Ireland executives
  
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• Gallagher confirms suing former employee and Scottish broker

  22-02-2017 12:19
  
  Case has been opened in Aberdeenshire.
  
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• InsurTech Futures: Broker launches insurtech incubator

  22-02-2017 12:14
  
  Worry + Peace teams up with digital technology provider to support broker start-ups.
  
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• Ocaso joins Open GI’s Powerplace panel

  22-02-2017 11:56
  
  The insurer has joined the Open GI platform and provides non-standard household insurance.
  
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• Steadfast H1 earnings increase as SME rates rise

  22-02-2017 10:58
  Steadfast has reported a 13 percent increase in first-half net
  profit to A$30mn ($23mn) for the first half of the year as revenues
  ticked up 8 percent to A$243.3mn.
  Underlying Ebitda also rose, by 11 percent to A$66.7mn, while
  earnings per share increased by 12 percent to 4.01 cents per
  share.
  The Australian insurance broker and underwriting agency said
  gross written premiums placed by its Steadfast Network Brokers unit
  rose by almost 13 percent to A$2.5bn, due to both organic...
  
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• Scor Global P&C operating profit beats consensus

  22-02-2017 10:58
  Scor Global P&C reported a fourth quarter operating result of
  EUR177mn ($187mn), down 4 percent on the same period of the
  previous year but 20 percent better than the analyst consensus
  forecast.
  Analysts had predicted a P&C operating result of EUR147mn
  for the period.
  Helvea equity analyst Daniel Bischof said the "strong"
  Q4 P&C performance was driven by a low attritional loss ratio,
  a low natural catastrophe burden and higher-than-expected
  investment income.
  Scor Global P&C repo
  
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• Opinion: Florida carriers in the spotlight

  22-02-2017 10:58
  If it was needed, there was plenty more evidence of the pressures
  facing Florida homeowners' carriers as three of the
  sector's big guns reported fourth quarter results at the start
  of the week.
  And assignment of benefits (AOB) - along with the litigated
  water claims the practice has spawned - was once again a key
  culprit in deteriorating underwriting results.
  With their relatively large balance sheets, United, HCI,
  Universal and the other two publicly traded Floridians yet to
  report appear...
  
  Read more

• Former RSA Ireland CFO admits misconduct

  22-02-2017 10:58
  Rory O'Connor, the former CFO for RSA Insurance Ireland, has
  admitted misconduct and agreed to fines and other sanctions
  following an investigation by the Financial Reporting Council
  (FRC).In the first sanctions imposed on actuaries under the FRC's
  actuarial scheme, two former RSA Insurance Ireland actuaries also
  face penalties.The FRC investigated financial irregularities that occurred at
  the company in the year ended 31 December 2012, and before.The FRC said today that O'Connor had admitted th
  
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• Ex-Zurich investigations chief and fraud author joins Cotswold Group

  22-02-2017 10:35
  
  fraud investigationsFraud expert has written books and lectures on the topic across Europe 
  
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• Former RSA Ireland CFO fined and banned for misconduct

  22-02-2017 10:24
  
  The former chief financial officer and two former actuaries of RSA Insurance Ireland have admitted misconduct and agreed to fines following a Financial Reporting Council investigation.
  
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• Lloyds Banking Group's GI division takes hit from softening home market

  22-02-2017 10:01
  
  Lloyds Banking Group’s general insurance division saw gross written premiums fall by 3% in 2016, to £1.1bn from £1.14bn in the previous year.
  
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• Soft home rates and expenses hit Lloyds Bank’s GI unit

  22-02-2017 09:19
  
  Underwriting performance also deteriorates at Lloyds Bank’s GI unit
  
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• Suncorp buys 11% of New Zealand's Tower following Fairfax bid

  22-02-2017 08:16
  
  Australian giant Suncorp has bought 11% of listed New Zealand general insurer Tower through its subsidiary Vero and is offering A$204m (£126m) for a full acquisition of the firm.
  
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• Social media libel: Keyboard warriors

  22-02-2017 08:00
  
  Social media grants people the ability to broadcast their opinions to a wide audience. What coverage can insurers provide against libel?
  
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• Interview: Jim Bichard, PWC

  22-02-2017 08:00
  
  When the referendum result came in on 24 June last year, there was a moment of disbelief in the market. Many business leaders were forced to re-examine what exposures they faced and what steps they needed to take next.
  
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• Soft home market hits Lloyds Bank GI

  22-02-2017 07:30
  
  Underwriting performance also deteriorates at Lloyds Bank GI unit
  
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• IAG's first half pre-tax profit dips 6.4%

  22-02-2017 02:59
  
  Australian giant IAG saw pre-tax profit fall to A$571m (£351m) in the first half of the 2017 financial year compared with A$610m in H1 2016.
  
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• Universal posts a Q4 profit despite Florida pressures

  22-02-2017 01:29
  Expansive Universal Insurance Holdings showed the benefits of
  its well-established and geographically diversified platform as it
  became the first of the publicly traded Floridians to report a
  sub-100 combined ratio for the 2016 fourth quarter.
  After United and HCI revealed underwriting losses for the
  period, Universal delivered a combined ratio of 95.1 percent and
  posted pre-tax profit of $22.7mn.
  The ratio was significantly higher than the 75.8 percent
  reported in Q4 2015, however, with the com
  
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• Tornadoes blast San Antonio leaving $120mn in losses

  22-02-2017 01:29
  At least four tornadoes ripped through sections of San Antonio,
  the second-largest city in Texas by population, over the past
  weekend. Together with rain and hail that swept a 350-mile arc
  through the state, insurers are expecting losses to reach some
  $120mn.
  At least 100 homes and other structures were damaged or
  destroyed in San Antonio late Sunday, where Mayor Ivy Taylor
  declared a disaster after the storms, which also left parts of the
  city flooded Monday morning.
  Golf-ball sized...
  
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• PartnerRe profit drops 32% reflecting Matthew loss

  22-02-2017 01:29
  PartnerRe profit fell in the fourth quarter on losses from
  Hurricane Matthew and lower additions from favourable prior-year
  reserve development, the Bermuda-based Exor unit said today in a
  regulatory filing.
  Matthew losses totalled $45mn and added 4.6 points to the
  combined ratio, which deteriorated to 89.6 percent from 86.5
  percent in the year-earlier period, the company said. PartnerRe
  also said mid-size loss activity was lower in the most-recent
  quarter.
  Operating profit slid to $125mn in the
  
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• HCI combined ratio climbs to 105% on cats and AOB

  22-02-2017 01:29
  HCI Group has joined fellow Floridian United Insurance in
  reporting a fourth-quarter underwriting loss as the impact from
  Hurricanes Hermine and Matthew combined with adverse reserve
  development associated with the assignment of benefits (AOB) crisis
  in the state.
  The carrier, which operates in Florida through its Homeowners
  Choice subsidiary, reported a combined ratio that increased to
  104.9 percent in the most recent quarter from 74.3 percent in Q4
  2015.
  Hurricane Matthew accounted for around
  
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