Insurance news

• XL-Catlin: pig-headed dilution or strategic master plan?

  22-12-2014 20:14
  XL's decision to lodge a $4.2bn bid for Lloyd's
  blue-chip Catlin caught the market almost completely by surprise
  when it was announced last week on 17 December, but as much as it
  caught practitioners unawares it has also divided them.
  As of close today (22 December), there has been no
  follow-up announcement that terms have been agreed, which suggests
  reports yesterday (fuelled by the Sunday Times claiming
  that an agreement had been reached) were premature at the very
  least.
  Nonetheless,.
  
  Read more

• XL-Catlin approach fuels growth in Lloyd's stocks

  22-12-2014 19:53
  P&C (re)insurance stocks rebounded last week,
  with our Insider 30 index recording a 2.77 percent
  gain.
  This was driven by our composite of Lloyd's carriers, with
  the peer group's share price rising on average 7.77
  percent.
  This uplift was primarily fuelled by Catlin, whose share price
  shot up by 12.4 percent last week after investors reacted
  positively to news that the carrier had been approached by XL group
  in a possible £2.7bn M&A bid.
  Meanwhile, there wasn't as much j
  
  Read more

• Tria non-renewal threatens workers' comp capacity crunch

  22-12-2014 19:53
  The expiration of the Terrorism Risk Insurance Act (Tria) is
  likely to have a significant impact on the workers'
  compensation market, with buyers facing a potential capacity crunch
  if Congress fails to act swiftly on a renewal of the US government
  terrorism backstop in the New Year.
  As the P&C industry recovers from the shock of the
  Senate's failure to renew the programme before adjourning last
  week (16 December), it is expected to be business as usual across
  most lines...
  
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• Standalone terror demand up on Tria block

  22-12-2014 19:53
  The US Senate's failure to re-authorise the Terrorism Risk
  Insurance Act (Tria) before its year-end 2014 expiry date is
  causing an uptick in submission flow for standalone terrorism
  cover.
  Terrorism underwriters in the London market said insureds were
  lining up their options, given that they will be left without
  terrorism protection on 1 January following the Senate's
  failure to approve the $100bn government backstop.
  "[Insureds] have loan covenants they have to comply with.
  It'
  
  Read more

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• Soros-backed Vibe leads capacity growth in 2015

  22-12-2014 19:53
  Vibe Syndicate 5678, the live underwriting start-up backed by
  billionaire George Soros and private equity house Pine Brook, has
  topped The Insurance Insider's growth
  league table after increasing its capacity more than six-fold for
  2015.
  The syndicate was originally founded in 2007 under
  the name RITC and operated exclusively as a Lloyd's legacy
  business. However, earlier this year it was rebranded to Vibe after
  gaining approval to write live business from 1 July.
  Vibe 5678 had a stamp c
  
  Read more

• Slow-down in start-ups

  22-12-2014 19:53
  Just two new start-up syndicates will begin operating in 2015,
  half the number that launched throughout 2014.
  The new syndicates will be backed by the Standard Club and China
  Re - the latter graduating to full syndicate status three years
  after establishing a special purpose syndicate (SPS) with Catlin in
  2012.
  This model is one that other new SPS entrants for
  2015 will be hoping to emulate. Three new SPS vehicles are being
  launched, the same as in 2014.
  As...
  
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• RSA puts German P&C business into run-off

  22-12-2014 19:53
  UK insurance group RSA has put a sizable chunk of its
  underperforming German operation into run-off as CEO Stephen Hester
  continues to streamline the business and its balance sheet,
  The Insurance Insider has learned.
  The carrier stopped writing German property, casualty,
  engineering and construction business in September and will not be
  renewing such business at the 1 January renewals.
  It said it had taken the decision following "several
  years" of "extremely tough market condition
  
  Read more

• Quindell law firm attracts almost 350 potential claimants

  22-12-2014 19:53
  A claimant law firm touting for Quindell investors that suffered
  losses following the UK insurance services firm's catastrophic
  share price falls this year claims it has received
  "almost" 350 responses.
  The law firm, Your Legal Friend, has accused Quindell's
  board of negligence, alleging it made "significant
  mistakes" that caused its share price to fall 97.5 percent
  from a year-to-date high of 682.5p to a year-to-date low of
  17p.
  The call to arms has attracted "a
  
  Read more

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• Large UK homes will now be included in Flood Re

  22-12-2014 19:53
  The criteria for properties eligible for inclusion in Flood Re
  have been widened to include band H, the highest property tax band
  in England and Scotland.
  The Department for Environment, Food and Rural Affairs (Defra)
  and the Association of British Insurers (ABI) announced last week
  (18 December) that high-value homes would now be included as part
  of a new agreement on the UK state-backed flood reinsurer, after
  they were initially excluded.
  "The insurance industry has provided assurances th
  
  Read more

• LA apartment block fire to cost up to $60mn

  22-12-2014 19:53
  A major fire that destroyed over two-thirds of an apartment
  block under construction in Los Angeles is likely to cost insurers
  in the range of $40mn-$60mn, sources told sister publication
  Inside FAC.
  The seven-storey Da Vinci apartment complex was damaged in the
  fire on 8 December, despite the efforts of more than 250
  firefighters to extinguish the blaze.
  Insurance capacity for the construction project is understood to
  have been sourced via Technical Risk Underwriters (TRU), Ryan
  Specialty Group
  
  Read more

• Industry 'stunned' by Tria lapse: McGovern

  22-12-2014 19:53
  The insurance industry has been stunned by the US Senate's
  failure to reauthorise the Terrorism Risk Insurance Act (Tria),
  Lloyd's chief risk officer and general counsel Sean McGovern
  has said.
  McGovern noted that because the reauthorisation of Tria had
  already received widespread congressional support, it was
  disappointing the bill had not been enacted.
  "I think it's fair to say the industry is stunned.
  Everyone's got to dust themselves down now and work out what
  the next l
  
  Read more

• 'Immature' syndicates continue build-out

  22-12-2014 19:53
  Despite the overall Lloyd's market reducing in size,
  capacity behind young syndicates has expanded by more than 20
  percent for 2015 as new players enter the market and some recent
  start-ups continue to expand.
  These 11 "immature" syndicates - which are
  defined as those that have entered Lloyd's in the last five
  years - account for around £1.1bn, or 4.1 percent, of the
  market's £26bn 2015 stamp capacity.
  Just two new fully-fledged syndicates have been approved to o
  
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• IAIS begins consultation on global capital standard

  22-12-2014 19:53
  The International Association of Insurance Supervisors (IAIS)
  has launched a public consultation on the development of a global
  insurance capital standard (ICS).
  The ICS will apply to around 50 of the largest internationally
  active insurance groups (IAIGs) from 2018.
  According to the IAIS, the consultation marked the first step in
  a multi-year process to develop and finalise the ICS.
  It will seek feedback from members and stakeholders on aspects
  such as valuation, qualifying capital resources an
  
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• Hannover Re, RGA source life cover from capital markets

  22-12-2014 19:53
  Hannover Re has structured and placed an extreme mortality swap
  with capital market investors, the German carrier announced.
  The swap will provide one of the world's largest reinsurers
  with an index-linked hedge against a severe increase in mortality
  rates from pandemics in the UK, Australia and the US.
  The reinsurer did not disclose the size of the private
  transaction but said it had placed $160mn of such hedges in the
  past two years. This deal is the second of a...
  
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• Fourth-quartile syndicates expand as market capacity falls

  22-12-2014 19:53
  In one of the most striking observations, our survey has
  revealed that while overall Lloyd's capacity has dipped
  slightly, the market's weakest underwriting performers have
  been approved to grow in 2015.
  According to our analysis, the combined stamp
  capacity for syndicates ranking in the bottom 25 percent or fourth
  quartile in terms of underwriting performance has risen by 6.4
  percent year-on-year.
  This is in stark contrast to the top 75 percent of the market,
  which have collectively see
  
  Read more

• Campofrio fire loss up to $400mn

  22-12-2014 19:53
  The loss estimate for the fire that razed the Campofrio
  meat-processing factory last month has increased by 30 percent to
  $400mn, sister title Inside FAC
  reported.
  The initial loss reserve for the fire at the facility in Burgos,
  northern Spain on 16 November was set at EUR250mn ($307mn), market
  sources said.
  The policy for the factory is understood to have a total
  combined limit of EUR400mn ($491mn) for property and machinery
  damage, loss of goods and loss of profit, with...
  
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• Barbican-Credit Suisse hope to build partnership

  22-12-2014 19:53
  Barbican group CEO David Reeves said the Lloyd's insurer and
  the Credit Suisse insurance-linked securities (ILS) team hope to
  develop their partnership further and may aim for full syndicate
  status for special purpose syndicate (SPS) 6120.
  Barbican will remain manager of the newly approved syndicate, as
  it looks to build up a source of risk-free income via management
  fees.
  "We're very keen on corporate partnerships of this
  type," Reeves noted.
  From the investor side, the CEO sa
  
  Read more

• AmTrust sues short-sellers for defamation

  22-12-2014 19:53
  Earlier this month, AmTrust filed a defamation suit against short
  sellers and an equity research firm accusing the defendants of
  attempting to manipulate the Nasdaq-listed insurer's stock
  price by publishing "false and misleading" statements.
  AmTrust has asked the New York Supreme Court to put an
  injunction in place to prevent short seller Alistair Capital
  Management, its manager Casey Nelson, and research firm
  GeoInvesting from issuing further statements or research on the
  company
  
  Read more

• American Strategic cat bond nears trigger point

  22-12-2014 19:53
  American Strategic Insurance (ASI) has added to its estimated
  losses for the first 10 months of 2014 to take the total to 90
  percent of the trigger point for its $200mn Gator Re bond, sister
  publication Trading Risk revealed last
  week.
  Sources said that the total losses for the year to the end of
  October have risen to $135.5mn from $113mn in an updated report
  outlining new incurred-but-not reported (IBNR) reserves. This has
  brought them closer to the attachment point...
  
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• Catlin to net £85mn from Box stake sale to Aioi

  22-12-2014 18:36
  Catlin has agreed a deal to sell its investment in Box Innovation
  Group (BIG) to Aioi Nissa Dowa Insurance Company of Europe,
  generating £85mn of cash proceeds.
  The (re)insurer said last Wednesday (17 December) it was in
  advanced negotiations to sell its interest in BIG, which owns
  telematics auto insurance specialist Insure the Box.
  Catlin revealed the potential sale as it confirmed it was also
  in talks over a £2.5bn takeover by XL Group.
  And in a statement today, the...
  
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• Catlin sells £85m stake in Insurethebox to Japanese insurer

  22-12-2014 18:12
  Japanese insurer MS&AD has bought a 75.01% stake in Insurethebox for £105m
  
  Read more

• Catlin agrees to sell Insure The Box stake to Aioi Nissay Dowa

  22-12-2014 17:57
  
  Francesca Nyman Postonline
  
  
  Catlin Group has agreed to sell its stake in Box Innovation Group, to Aioi Nissay Dowa Insurance Company of Europe, a subsidiary of Japanese insurance giant MS & AD.
  
  Read more

• Home and motor premiums continue to fall shows Biba price index

  22-12-2014 16:35
  
  Francesca Nyman Postonline
  
  
  The cost of home and motor insurance has continued to reduce in the last year, figures from the British Insurance Brokers' Association and Acturis Insurance Price Index show.
  
  Read more

• Home and motor premiums continue to fall - Biba/Acturis

  22-12-2014 16:16
  In the mid-market commercial businesses saw an increase of 1.6% in Q3 2014 compared to Q3 2013
  
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• Staysure to recruit 50 new staff in 2015

  22-12-2014 15:59
  Company is looking for full- and part-time sales and customer service staff to meet demand.
  
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• Devitt launches caravan and motorhome dealer product with LV=

  22-12-2014 15:56
  Expansion from motor trade insurance
  
  Read more

• Devitt teams with LV on caravan dealer insurance

  22-12-2014 14:42
  Deal marks second partnership between insurer and broker in a month.
  
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• Simply Business edging toward 300,000 customers

  22-12-2014 14:35
  Jasper Martens shares his overview of 2014 and takes about how the line between broker, aggregator, and insurer is blurring.
  
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• Insolvency Service investigating conduct of Drive Assist directors

  22-12-2014 14:23
  
  Francesca Nyman Postonline
  
  
  The Insolvency Service is believed to be conducting an investigation into the behaviour and transactions of the directors of credit hire firm Drive Assist, according to the company’s liquidator Zolfo Cooper.
  
  Read more

• Plowman appointed chair of Older Drivers Task Force, which will seek evidence in New Year

  22-12-2014 14:05
  
  Stephanie Denton Postonline
  
  
  The Road Safety Foundation has confirmed that its trustee and former civil servant John Plowman will chair the Older Drivers Task Force.
  
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• Easy Jet renews travel insurance contract with Allianz

  22-12-2014 12:20
  
  Stephanie Denton Postonline
  
  
  Allianz Global Assistance in the UK has secured a three-year contract renewal with low cost airline Easy Jet.
  
  Read more

• Helios boosts capacity with Nameco acquisition

  22-12-2014 12:15
  
  Francesca Nyman Postonline
  
  
  Helios Underwriting has agreed to acquire Nameco (No 311), a limited liability member of Lloyd's, for a total consideration of £1m in cash.
  
  Read more

• Blog: how to find the balance between customer expectations and indemnity leakage

  22-12-2014 12:00
  
  Simon Penny Postonline
  
  
  The key to handling claims effectively centres around people, processes and systems, according to Simon Penny, head of insurance, business process solutions, DST
  
  Read more

• A Christmas Q&A with Brian the Robot

  22-12-2014 12:00
  
  Rachael Adams Postonline
  
  
  As the festive season approaches, Post spoke to the industry's favourite robot to talk festive socks and Santa conquering aliens
  
  Read more

• Doctors urged to submit applications for Medco portal

  22-12-2014 11:45
  Francesca Nyman Postonline
  
  
  Doctors wishing to provide medical reports under the new civil procedure rules have been asked to complete an expression of interest survey on the Medco website by 4 January 2015.
  
  Read more

• Tesco fraudster sentenced to three years after Operation Catcher sting

  22-12-2014 11:15
  
  Stephanie Denton Postonline
  
  
  A fraudster who staged accidents with Tesco delivery vans has been sentenced to three years in prison.
  
  Read more

• Stackhouse Poland bosses complete MBO

  22-12-2014 10:19
  High net worth specialist chiefs backed by Synova Capital.
  
  Read more

• Absolute Partnership commercial director departs

  22-12-2014 09:52
  Marc DonFrancesco leaves anti-fraud agency after two years
  
  Read more

• Telematics made its mark in 2014

  22-12-2014 09:29
  Michael Blaney, Autoline managing director, talks about the impact of technology in 2014.
  
  Read more

• Stackhouse Poland completes private equity backed MBO

  22-12-2014 09:21
  Synova Capital backs high net worth specialist
  
  Read more

• FCA’s Green: Consumer confidence in the insurance industry is ‘shocking’

  22-12-2014 08:41
  Disconnection between industry and customer expectations
  
  Read more

• Moorhouse motor MGA targets £45m GWP with new hires

  22-12-2014 07:30
  Xbroker’s new underwriters can trip business from existing broker relationships - Lyndon Wood
  
  Read more

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