Insurance news

• Founder Hayley Parsons pockets £44m from Gocompare sale

  08-12-2014 18:53
  Parsons makes fortune from business she started at kitchen table eight years ago
  
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• UK Treasury pledge pleases London market

  08-12-2014 18:48
  Trade bodies from around EC3 have responded positively to a
  pledge from the UK Chancellor of the Exchequer to ensure the
  country's tax and regulatory regime doesn't inhibit the
  reinsurance sector's growth potential.
  In his autumn statement, released on 3 December, George Osborne
  said the government would "explore options to ensure that the
  UK's regulatory and tax regime is as competitive as possible to
  attract more reinsurance business to the UK".
  Welcoming the news, Da
  
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• Tria reauthorisation deal expected soon

  08-12-2014 18:48
  The long-awaited renewal of the US Terrorism Risk Insurance Act
  (Tria) should be confirmed ahead of the 31 December deadline,
  according to sources.
  A six-year reauthorisation deal between the House of
  Representatives and the Senate is expected to be announced in the
  coming days, with the programme trigger likely to double to
  $200mn.
  The existing taxpayer-funded backstop has a trigger of
  $100mn.
  Last week, 45 members of the House of Representatives urged
  speaker John Boehner and majority leader K
  
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• Towergate starts selling spree with Hayward Aviation

  08-12-2014 18:48
  Debt-saddled UK intermediary Towergate has sold its aviation
  broker Hayward Aviation to JLT for a consideration of £27mn.
  
  
  The deal is the first in what is expected to be a series of
  disposals by Towergate, as it attempts to get its £1bn of debt
  under control.
  
  
  Towergate has three tranches of paper in the debt markets:
  £305mn of senior 10.5 percent bonds, due February 2019;
  £234mn of senior secured 8.5 percent bonds, due February 2018;
  and £396mn in senior secured...
  
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• P&C stocks outperform wider market

  08-12-2014 18:48
  The Insider 30 - our index of publicly listed P&C
  (re)insurance carriers - edged up by 0.69 percent last week,
  outperforming the benchmark performance of both the FTSE 100 and
  S&P 500.
  Hedge fund reinsurer Greenlight Re posted the largest gains last
  week, with the company's shares climbing by 5.2 percent.
  Other big risers include AmTrust, whose share price rose by 4.88
  percent over the same period, while shares in Bermudian (re)insurer
  White Mountains increased by 3.83 percent.
  In co
  
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• NFL settlement objectors turn the screws

  08-12-2014 18:48
  A number of former American football players have upped the
  pressure on a US court to block a proposed settlement between the
  National Football League (NFL) and more than 5,000 former
  players.
  The former players are objecting to a partly insurance-funded
  proposed settlement that would offer compensation to players
  suffering from neurological problems as a result of alleged
  negligence.
  Dubbed "the next asbestos" by some in the legacy
  industry, chronic traumatic encephalopathy (CTE) is c
  
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• Nephila puts $19mn into Universal

  08-12-2014 18:48
  Nephila Capital has taken a $19mn stake in Universal Insurance
  Holdings (UIH), which the Florida-based insurer says will allow it
  to further reduce its use of quota share reinsurance.
  In a statement, UIH said it had sold 1 million treasury shares
  for $19 each to Nephila affiliate Ananke Catastrophe Investments,
  in a privately negotiated transaction.
  And the insurer said it will use the proceeds to accelerate its
  expansion outside of Florida and further reduce its quota share
  reinsurance.
  Its cha
  
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• LMA warns of cost implications of Insurance Bill

  08-12-2014 18:48
  The Lloyd's Market Association (LMA) has warned the UK House of
  Lords of the industry's "grave concerns" about the
  cost implications of elements of reform to the Insurance Bill.
  Speaking at a committee hearing last week, Kees van der Klugt,
  director of legal and compliance at the LMA, said that he supported
  the core reforms on proportionate remedies for non-disclosure, on
  banning basis clauses, on warranties becoming suspensory and on the
  provisions relating to fraudulent claim
  
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• Insurers urge court to drop Amtrak damages bid

  08-12-2014 18:48
  A group of insurers that have been sued for refusing to pay
  $1bn+ of Superstorm Sandy claims by US rail operator Amtrak have
  filed a partial motion to dismiss a bid for consequential damages.
  
  
  Defendant PartnerRe is additionally looking to have all claims
  against it dropped on the basis that Amtrak is not party to the
  reinsurance contract it issued with Amtrak's captive.
  
  
  The US state-funded rail operator sued its insurers in September
  for failing to fully pay insurance losses...
  
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• Insurers are the second line of cyber defence: Hiscox

  08-12-2014 18:48
  The insurance industry should act as the second line of defence
  behind IT security measures in protecting companies against cyber
  attacks, Hiscox honorary president Robert Hiscox has said.
  
  
  Speaking at the 2014 CFC Cyber Symposium in London on 4 December,
  Hiscox explained that cyber insurance was a crucial opportunity for
  insurers to innovate and provide much-needed coverage.
  
  
  "It's a whole new area, which should be welcomed by us as
  a chance to innovate, be there and create policies
  
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• Demand for Tramline narrows pricing by 5%

  08-12-2014 18:48
  Investor demand for Amlin's new high-risk Tramline Re II cat
  bond led pricing on the deal to fall by 5 percent, sister
  publication Trading Risk reported last
  week.
  Amlin expanded its target size from $150mn to $200mn, with the
  insurance-linked premium now expected to settle between 975 and
  1,000 basis points (bps), sources said. This is below the original
  forecast range of 1,000-1,075 bps.
  Tramline offers one of the highest absolute coupons among this
  year's new cat bond issuances. Just.
  
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• Crop insurers suing Fed for $200mn over rating change

  08-12-2014 18:48
  Thirteen US crop insurers are suing the Federal Crop Insurance
  Corporation (FCIC) for more than $200mn following claims that the
  government body made a "wholesale change" to its rating
  methodology, driving down premium income.
  The insurers, which include some of the market's big hitters
  such as Ace and Great American, have accused the body of lowering
  premiums by up to 32 percent, despite repeated reassurances that it
  would not change its rating methodology.
  The FCIC sets the rates
  
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• Campofrio hit by factory fire

  08-12-2014 18:48
  A meat-processing facility belonging to Spanish food giant
  Campofrio Food Group was razed to the ground during a fire that is
  likely to cost insurers EUR250mn, sister title Inside
  FAC reported.
  
  
  The initial loss reserve was set at EUR250mn on 16 November, but it
  is now understood that the loss is likely to hit the EUR300mn
  ($370mn) policy limit for property damage alone.
  
  
  The facility in Burgos, northern Spain, has a total combined limit
  of EUR400mn for property and machinery...
  
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• Aviation exposure to hit $1trn by 2015: AGCS

  08-12-2014 18:48
  Potential maximum losses related to airline fleets are set to
  surpass $1trn within the next five years, if not before, according
  to a report on global aviation safety.
  
  
  Since 2000 exposure has grown by more than 50 percent due to
  increases in fleet values and passengers, taking the overall figure
  from $576bn to $896bn.
  
  
  And by 2050 it is estimated that around 16 billion
  passengers will fly annually, an anticipated increase of 384
  percent from 2014.
  
  
  Overall, the report, produced...
  
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• Autumn statement reveals new Pool Re income

  08-12-2014 18:48
  The UK Treasury has detailed the fiscal impact of the fivefold
  increase in fees it will receive from state-backed terrorism mutual
  Pool Re from 1 January 2015.
  Under the new calculations, published in the Treasury's
  autumn statement on 3 December, the UK government said it expected
  to receive an extra £50mn for this fiscal year (2014-15), and
  £175mn more for each year after that.
  The details follow the negotiations between the Treasury and
  Pool Re, which came to a head...
  
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• AJ Gallagher enters Chinese market with JV

  08-12-2014 18:48
  Broking heavyweight Arthur J Gallagher is set to enter the
  Chinese insurance market after signing a joint venture agreement
  with Jiang Tai Insurance Brokers.
  
  
  The deal is understood to be the first joint venture insurance
  broker launched in the China (Shanghai) pilot free trade zone.
  
  
  Under the terms of the agreement, Gallagher will take a 24.9
  percent share of ownership and establish a new Shanghai-based
  operation, subject to regulatory approval.
  
  
  Jiang Tai Insurance Brokers was established
  
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• AIG lifts Tradewynd target to $500mn for higher-risk layer

  08-12-2014 18:48
  American International Group (AIG) has lifted the target size of
  its new Tradewynd Re cat bond deal from $300mn to $500mn, sister
  publication Trading Risk has
  reported.
  It comes as AIG plans to add cat bond cover to a lower layer of
  its reinsurance programme,
  
  Meanwhile, pricing guidance on the Tradewynd deal narrowed to the
  middle of initial forecast ranges.
  The cat bond will cover multiple US perils for personal and
  commercial property risks as well as some specialty business...
  
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• Aggregation management vital for cyber risk: Bolt

  08-12-2014 18:48
  Controlling aggregation of exposure is key to writing
  "interesting" cyber business, according to Lloyd's
  performance management director Tom Bolt.
  
  
  Speaking to delegates at the 2014 CFC Cyber Symposium in London on
  4 December, Bolt explained that while it was important for carriers
  to be innovative and write cyber risks, it was also necessary to
  carefully monitor aggregation for the benefit of both individual
  syndicates and the whole of Lloyd's.
  
  
  In a light-hearted exchange,
  
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• $213mn Saudi bakery fire to impact Swiss Re

  08-12-2014 18:48
  A bakery owned by Saudi Arabian dairy company Almarai was
  significantly damaged by a fire likely to cost insurers 800mn riyal
  ($213mn).
  
  
  Sources told sister title Inside FAC that
  the impacted programme was written by domestic insurer Arabian
  Shield, with Swiss Re leading the facultative cover on the policy
  with a 20 percent line.
  
  
  The loss is thought to be split equally between property damage and
  business interruption, with the ground-up initial loss estimate set
  at 800mn riyal.
  
  
  However, on
  
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• Insurers challenge 'wait and see' image and take action on technology

  08-12-2014 16:45
  
  Francesca Nyman Postonline
  
  
  Insurers are increasingly looking to invest in or acquire digital start-ups to provide the expertise they need to pursue their ambitions in this sector, according to market insiders.
  
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• Clive Adamson exits FCA in reshuffle

  08-12-2014 16:40
  New strategy designed to give regulator ‘sharper focus’
  
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• FCA to change strategy and structure

  08-12-2014 16:22
  Clive Adamson, director of supervision at the FCA, set to leave.
  
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• Alway upbeat over Jelf numbers

  08-12-2014 16:11
  Bolt-on acquisitions planned for 2015.
  
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• US commercial prices rise 3% in Q3: Clips

  08-12-2014 15:26
  US commercial insurance prices increased by a modest 3 percent
  during Q3 2014 compared to the prior-year period, according to
  Towers Watson.
  In the aggregate, price changes remained at the same level as Q2
  2014, after five consecutive quarters of moderation in the rate of
  increase.
  The firm's latest Commercial Lines Insurance Pricing Survey
  (Clips) also reported a continuing moderation in workers'
  compensation, and that some of the specialty lines surveyed were
  offset by a stabilisation
  
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• Blagrove Underwriting launches commercial product

  08-12-2014 12:46
  Insurer expands into the commercial combined market with new product for SMEs.
  
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• LV extends Nationwide motor contract

  08-12-2014 12:37
  
  Mark Sands Postonline
  
  
  LV has completed a deal to further extend its partnership with building society Nationwide on car insurance products.
  
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• London Market takes its case to Parliament

  08-12-2014 12:08
  
  David Worsfold Postonline
  
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• Ageas UK and Tesco extend partnership

  08-12-2014 12:04
  Ageas teams in Eastleigh and Gloucester continue to support Tesco Underwriting.
  
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• Insurance profits rise 69% at Jelf

  08-12-2014 12:03
  Client base investing and expanding, broker says
  
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• LV= extends car insurance deal with Nationwide

  08-12-2014 11:53
  Insurer has been exclusive provider of Nationwide’s car cover since 2008
  
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• Esure buys remaining half of Gocompare for £95m

  08-12-2014 11:24
  Founder and chief executive Hayley Parsons to leave the company following the deal.
  
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• Quindell hires PwC to review its accounting policies

  08-12-2014 11:23
  Board says it is ‘satisfied’ with trading performance despite recent upheaval
  
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• Gallagher enters China with 24.9% stake in Shanghai broker

  08-12-2014 11:23
  The new venture will trade as Jiang Tai Re and will focus on reinsurance and specialty lines
  
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• Gallagher enters China with 24.9% stake in new broking venture

  08-12-2014 11:23
  The new venture will trade as Jiang Tai Re and will focus on reinsurance and specialty lines
  
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• Fraudster given ten months suspended jail sentence

  08-12-2014 10:58
  A con-artist has been convicted of two counts of fraud after staging two separate accidents.
  
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• Blog: I believe in fairies but not insurance

  08-12-2014 10:52
  
  Stephanie Denton Postonline
  
  
  When Post editor Stephanie Denton had her first experience of making a claim, her faith in the insurance industry was left more than a little shaky...
  
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• Towergate sells Hayward Aviation to JLT

  08-12-2014 10:43
  Troubled UK intermediary Towergate has sold its aviation broker
  Hayward Aviation to JLT for a consideration of £27mn.
  The deal is the first in what is expected to be a series of
  disposals by Towergate, as it attempts to get its £1bn of debt
  under control.
  Hayward is a specialist general aviation broker operating in the
  UK, Europe and South Africa, focused on helicopters and private and
  corporate fixed-wing aircraft for high-net-worth individuals and
  small and mid-sized commercial aviat
  
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• Esure agrees buy remainder of Gocompare

  08-12-2014 10:43
  Motor insurer Esure has announced its intention to acquire the
  remaining 50 percent of UK price comparison site Gocompare that it
  does not already own.
  In a statement to the London Stock Exchange this morning (8
  December), Esure said the deal was agreed for a consideration of
  £95mn, subject to approval from the UK competition
  authorities.
  This represents a multiple of 7.3x 50 percent of Gocompare's
  2013 Ebitda, valuing the firm at £190mn overall.
  Jon Morrell, current deputy chief o
  
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• Quindell appoints PwC for independent review

  08-12-2014 10:18
  UK insurance services outsourcer Quindell has appointed
  PricewaterhouseCoopers (PwC) to conduct an independent review of
  the company, following a raft of board changes.
  David Currie, interim non-executive chairman, said the
  appointment was "the natural next step to give additional
  support to the board's confidence in the business" and
  would "assist the company in assessing its future strategy and
  outlook".
  PwC's review follows the exit of founder Rob Terry, finance
  di
  
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• AJ Gallagher signs joint venture with Chinese broker

  08-12-2014 10:18
  Arthur J Gallagher has announced its intention to enter the Chinese
  market after the company signed a joint venture agreement with
  Jiang Tai Insurance Brokers.
  The agreement sees Gallagher take a 24.9 percent share of
  ownership and establish a new Shanghai-based operation, subject to
  regulatory approval. Other terms of the transaction were not
  disclosed.
  Expected to launch in the first half of 2015, the new operation,
  trading as Jiang Tai Re, will focus on reinsurance and specialty
  lines. Jiang
  
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• Jelf Group post-tax profits soar by 40%

  08-12-2014 10:18
  Broking division also delivers substantial profit and revenue growth in annual results.
  
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• Couple jailed for 12 months for £70,000 insurance fraud

  08-12-2014 10:18
  Jeremy and Sally Anne Jones received AIG payout after claiming bicycle accident left their son blind in one eye.
  
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• Towergate and JLT confirm Hayward Aviation deal

  08-12-2014 10:13
  Business ‘does not align with our core strategic focus’, says Towergate chairman
  
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• Bluefin adds to Edinburgh team

  08-12-2014 10:06
  Robert Morris joins from Marsh.
  
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• Ageas UK and Tesco Bank extend underwriting partnership

  08-12-2014 09:50
  
  Katie Marriner Postonline
  
  
  Ageas UK and Tesco Bank have extended their Tesco Underwriting partnership with Ageas UK CEO Andy Watson saying the commitment underlines the strength of the collaboration.
  
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• Towergate sells Hayward Aviation to JLT for £27m

  08-12-2014 09:34
  Deal should be completed in early 2015
  
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• Ageas and Tesco Bank extend underwriting JV for seven years

  08-12-2014 09:31
  Tesco Underwriting now serves 1.2 million customers
  
  Read more

• Esure buys remaining Go Compare stake for £95m

  08-12-2014 09:30
  
  Katie Marriner Postonline
  
  
  Esure has purchased the remaining 50% stake in aggregator Go Compare for £95m giving the price comparison website a valuation of £190m.
  
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• Esure to buy remaining 50% of Gocompare for £95m

  08-12-2014 08:52
  Founder Hayley Parsons to leave, and Esure’s Jon Morrell will run business  
  
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• It’s the slippery slope for winter travellers as insurers try to slide out of injury claims

  08-12-2014 07:59
  
  Holidaymakers are fighting back as more claims are rejected. Rosie Murray-West reports on that crucial small print in policesSkiiers and other winter sun-seekers, who find themselves in the unfortunate position of having to claim on their travel insurance, should be prepared to dig their heels in as the Financial Ombudsman Service is seeing a “disappointing number” of claims being wrongly turned down.It currently receives 40 complaints a week about travel insurance, with around a quarter re
  
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