Insurance news

• XL to pay $25mn in Lac-Mégantic settlement

  19-01-2015 19:49
  A $175mn settlement plan to compensate victims of the catastrophic
  Lac-Mégantic oil train derailment and fire in 2013 has been
  filed in a Quebec court.
  The 12 January filing in the Superior Court of Canada cited
  total settlement funds of $175mn (C$209.8mn) to be paid by the
  Canadian arm of Montreal, Maine & Atlantic Railway (MMA) as
  well as other named defendants and MMA's liability insurer XL
  Insurance.
  The settlement includes a C$25mn ($20.8mn) indemnity payment
  from XL as well...
  
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• Willis sues former executive director for £1.25mn over 'secret commissions'

  19-01-2015 19:49
  Willis is suing one of its former executive directors for
  £1.25mn for allegedly receiving "secret
  commissions".
  The global broker has applied to the UK Commercial Court to
  force its former employee Simon Higginson to return the money it
  claims was taken.
  In a court filing lodged last year and obtained by this
  publication, Willis said Higginson received money from "secret
  commissions" and the "diversion of sums" from the
  company.
  Higginson left Willis in 2013 to
  
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• Willis launches new business segment Willis GB

  19-01-2015 19:49
  Global broking group Willis has announced that it has
  restructured into four operating segments from its original
  three.
  The move, which took effect at 1 January, divided the previous
  Willis Global, Willis North America and Willis International units
  into four separate divisions: Willis Capital Wholesale and
  Reinsurance (WCWR), Willis North America, Willis International and
  Willis Great Britain (Willis GB).
  The broker said that Willis North America and Willis
  International - which will continue
  
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• UK regulators consult on reduced FSCS levy limit

  19-01-2015 19:49
  The Financial Conduct Authority (FCA) and the Prudential
  Regulation Authority (PRA) have launched a consultation into a
  reduced management levy limit for the Financial Services
  Compensation Scheme (FSCS).
  The UK regulators said today (19 January) that the proposed
  management expenses levy limit would be set at £74.4mn for
  2015/16, down 7 percent from the previous year.
  The figure consists of a minimum levy of £69.1mn - down 7.4
  percent from 2014/15 - to cover staff and building costs,
  
  Read more

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• Swiss central bank stuns Zurich and Swiss Re shares

  19-01-2015 19:49
  The Swiss National Bank (SNB)'s surprise decision to abandon
  the peg tying the country's currency to the euro triggered a
  sharp drop in the share prices of Zurich and Swiss Re on 15
  January.
  Zurich's share price fell 14.5 percent from
  SwF321.70 to SwF275.30 in the initial aftermath, before recovering
  to SwF295 at the close of business.
  Swiss Re's stock fell 12.7 percent initially from SwF85.85
  to SwF74.95, before recovering to SwF80.40 by the end of the
  day.
  As of...
  
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• SII delegated acts come into force

  19-01-2015 19:49
  The delegated acts for the European Union (EU)'s capital
  regime Solvency II officially entered into force on 18 January,
  following publication in the official journal of the EU the day
  before.
  The acts contain rules relating to Solvency II implementation,
  including the valuation of assets and liabilities, the level of
  capital to be set, and the management of insurance companies.
  According to the European Commission (EC), the delegated acts
  aim to set out more detailed requirements for indivi
  
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• QBE's outlook revised upwards by AM Best

  19-01-2015 19:49
  Rating agency AM Best has revised its outlook for QBE from negative
  to stable and affirmed its financial strength rating of A.
  The agency also affirmed its issuer credit rating of a for QBE
  and its key operating subsidiaries, including QBE Insurance
  (Europe), QBE Re (Europe) and QBE Insurance (International).
  In addition, AM Best revised the outlook for pooled and
  reinsurance members of QBE North America to stable.
  The agency said that the revision reflected QBE's return to
  a strong...
  
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• Payton joins Capsicum Re

  19-01-2015 19:49
  Capsicum Re is poised to enter the facultative reinsurance
  market with the hire of GC Fac's London head Malcolm Payton,
  sister title Inside FAC revealed last week.
  Sources said that Payton, who tendered his resignation on 12
  January, will take charge of a new limited liability partnership
  (LLP) or "cell" within Grahame "Chily"
  Chilton's start-up broker later in the year.
  No details of further hires have yet emerged, but it seems
  likely that other GC Fac brokers will f
  
  Read more

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• Insurers lose $64mn battle over shipping loss

  19-01-2015 19:49
  A number of Lloyd's insurers have lost a $64.4mn UK Commercial
  Court battle over a shipping loss that has been linked to the
  murder of a British loss adjuster.
  The four-week trial in the UK court related to the loss of the
  Liberia-registered MV Brillante Virtuoso in 2011, following an
  apparent boarding and attack by pirates off the Somalian coast.
  Its then owner, Marshall Island-registered Suez Fortune
  Investments, claimed a fire started by the pirates led to a total
  constructive...
  
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• Insurers fight on flood and occurrence in $1bn Amtrak case

  19-01-2015 19:49
  Insurers in the $1bn+ Superstorm Sandy suit brought by Amtrak
  have filed motions opposing the US railroad operator's request
  for summary judgment on the definition of "flood" and
  Sandy's status as a single loss occurrence.
  In the 8 January filings to the Southern District Court of New
  York, defendants argued that the flood definitions in Amtrak's
  motion encompassed damage caused by storm surge.
  The Amtrak insurance cover has a $125mn programme-wide sublimit
  for flood damage
  
  Read more

• Industry responds to diverted profits tax consultation

  19-01-2015 19:49
  Insurance industry representatives have met with Her
  Majesty's Revenues and Customs (HMRC) to discuss the potential
  implications of the new diverted profits tax, which is due to come
  into force on 1 April 2015.
  Delegates from the Association of British Insurers were among
  those who met HMRC employees last week to discuss the proposed 25
  percent tax rate.
  As currently drafted, the so-called Google tax will target large
  multinational enterprises with business activities in the UK that
  avoid a
  
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• Hyperion-RKH targeting February deal agreement

  19-01-2015 19:49
  Hyperion and RK Harrison are looking to strike a final agreement on
  their proposed deal by mid-February, The Insurance
  Insider understands.
  Sources said that the deal will be effected by a scheme of
  arrangement rather than a sale and purchase agreement.
  
  It is understood that the companies are hoping to apply to the
  courts to sanction the scheme within the next month.
  Once the papers are filed the scheme process takes around six
  weeks.
  The Insurance Insider revealed in early...
  
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• Howden dismisses Hyperion IPO suggestion for 2015

  19-01-2015 19:49
  David Howden, CEO of Hyperion, has ruled out the possibility of
  an initial public offering in 2015, saying the company was instead
  focused on generating growth.
  Speaking to The Insurance Insider following the release of
  Hyperion's full-year results this morning (19 January), Howden
  said an IPO was "just a stepping stone" along the
  insurance group's long-term growth plans, and that
  "it's not on the cards" for 2015, adding: "You
  won't see it happen this yea
  
  Read more

• Hiscox adds $300mn to Kiskadee ILS funds

  19-01-2015 19:49
  Hiscox said that assets under management in its Kiskadee funds
  management division had grown to more than $400mn at 1 January, up
  from $110mn at the start of 2014.
  Hiscox originally seeded the Kiskadee platform with $50mn of
  capital but the reinsurer confirmed that the new capital was all
  from third parties.
  The unit also has firm commitments of additional capital to be
  deployed between now and the mid-year renewals.
  The capital will be split roughly equally between Hiscox's
  two...
  
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• Cooper Gay wields axe after international squeeze

  19-01-2015 19:49
  Private equity-owned insurance broker Cooper Gay has begun a
  cost-cutting programme that will make a number of senior staff
  redundant as it looks to reverse a drop in profitability,
  The Insurance Insider has learned.
  John Flanagan, chief administrative officer and one of the
  executive board members of Cooper Gay Swett & Crawford, is
  understood to have left the company and a number of his direct
  reports have been made redundant.
  Cooper Gay's issuer credit rating was downgraded by Standard
  
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• CatCo fund gains 14% in 2014

  19-01-2015 19:49
  CatCo recorded 14 percent growth in net asset value (NAV) last
  year for its London-listed fund, even after reserving for a small
  US storm loss.
  The Bermudian fund manager said its US storm losses are expected
  to amount to about 1 percent of NAV - approximately just under $4mn
  - but it has set aside reserves of up to 3.5 percent of NAV in a
  new side-pocket.
  The company said it did not expect to have to pay losses from...
  
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• Brokers forecast $8bn 2015 for cat bonds

  19-01-2015 19:49
  Cat bond sponsors may push for broader coverage in 2015 as
  insurance-linked securities (ILS) broker-dealers said that they
  expected ILS market volumes to continue expanding.
  A group of brokers surveyed by sister publication
  Trading Risk predicted that cat bond
  issuance would hit about $8bn this year.
  This would more than replace the almost $6.5bn of
  bonds maturing in the year ahead but would mean a slower rate of
  overall growth than last year, when only $4bn rolled off risk.
  It...
  
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• Aon Benfield takes senior Willis Re marine broker

  19-01-2015 19:49
  Aon Benfield has hired Linley Ah-Chung, one of the most senior
  marine and energy brokers at Willis Re, The Insurance
  Insider can reveal.
  The appointment comes 18 months after a number of high-profile
  staff moved the other way.
  Ah-Chung is understood to have been one of the key lieutenants
  of Graeme Moore, executive chairman of Willis Re's global
  specialty practice.
  The managing director is understood to have worked on accounts
  including Catlin, QBE, Hannover Re and Torus as well contributing
  
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• AmTrust fights back in class action suit

  19-01-2015 19:49
  AmTrust has launched a strongly worded response to a class action
  suit brought by a number of shareholders after its stock plummeted
  in response to a critical note from a short seller.
  The class action suit accused AmTrust of overstating its
  underwriting income by $289.9mn between 2010 and 2012.
  "AmTrust accomplished this fraud by making knowingly
  unrealistic actuarial assumptions as to the amount of expected
  future losses from insurance policies it wrote," the second
  amended complaint
  
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• 2014 ILS returns hit 6% as margins thin

  19-01-2015 19:49
  Data from Lane Financial showed that the average
  insurance-linked securities (ILS) spread is now 2.36 percent above
  a 2.24 percent expected loss - the thinnest margin since the
  company began tracking records in 2002.
  The company's ILS rate-on-line index dropped 7 percent in
  2014 after a 27 percent fall in 2013.
  Rates-on-line remain 15 percent above the lowest levels seen in
  the cat bond market's pre-Katrina soft phase in early 2005, but
  the market was taking on less risk in...
  
  Read more

• Aviva unveils plan to axe 1,500 jobs

  19-01-2015 17:35
  Five per cent of headcount to be cut if Friends Life deal goes ahead
  
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• Biba urges FCA to be more proportionate in manifesto launch

  19-01-2015 17:04
  Ten point plan aims to cut the cost of regulation and provide more value for money for brokers
  
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• Biba Manifesto 2015: Breaking news

  19-01-2015 16:00
  
  Stephanie Denton Postonline
  
  
  From 4pm the Post team brings you the breaking news on the British Insurance Brokers' Association's Manifesto 2015 as it is launched at parliament.
  
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• Yutree MD Kevin Hancock steps down as chair of Biba small brokers board

  19-01-2015 15:41
  Mason Owen Financial Services managing director Andrew Gibbons will become new chair
  
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• Carrot teams up with Fiat to launch young drivers product

  19-01-2015 15:30
  
  Callum Brodie Postonline
  
  
  Telematics provider Carrot Car Insurance product director Ed Rochfort believes the convergence between manufacturers and the provision of insurance “will continue to gather pace” after unveiling a new product alongside Fiat.
  
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• Broker fee for running FSCS to halve

  19-01-2015 14:47
  But for insurers will have to pay 30.5% more towards the scheme’s running costs
  
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• Hyperion and R K Harrison merger talks still ongoing

  19-01-2015 14:39
  Hyperion chief executive David Howden said its a sizeable merger and will take time.
  
  Read more

• Hyperion to focus on organic growth as it ‘beds down' acquisitions

  19-01-2015 13:09
  
  Katie Marriner Postonline
  
  
  Hyperion is to focus on organic growth in 2015 as it concentrates on integrating the 12 acquisitions completed globally in 2014, according to CEO David Howden.
  
  Read more

• Video: Preparing for the Insurance Bill

  19-01-2015 12:59
  
  Stephanie Denton Postonline
  
  
  Last year the government introduced the Insurance Bill to Parliament, with the aim of supporting the growth of Britain’s insurance industry and helping customers by updating the 100 year-old rules governing contracts between businesses and insurers.
  
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• Pool Re reportedly weighing business interruption changes

  19-01-2015 12:38
  
  Mark Sands Postonline
  
  
  UK terrorism insurance scheme Pool Re is reportedly evaluating changes to business interruption cover in the aftermath of the Charlie Hebdo killings in Paris.
  
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• FCA suggests FSCS management levy to drop 7.4%

  19-01-2015 12:06
  
  Katie Marriner Postonline
  
  
  The Financial Conduct Authority is consulting on the Financial Services Compensation Scheme's proposed management levy for the next financial year which would see an overall 7.4% reduction in expenses.
  
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• Hayes Parsons founder sells Bristol broker

  19-01-2015 12:05
  Management buy out team takes reins at broker
  
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• Hayes Parson founder sell Bristol broker

  19-01-2015 12:05
  Management buy out team takes reins at Bristol-based broker
  
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• Management team buys Hayes Parsons

  19-01-2015 12:01
  Managing director James Woollam plans to grow the business further in its specialist fields.
  
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• Hyperion chief: RK Harrison merger will be biggest focus of 2015

  19-01-2015 12:01
  But David Howden insists his strategy is not driven by acquisitions
  
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• Blog: In out, in out shake it all about

  19-01-2015 12:00
  
  Stephanie Denton Postonline
  
  
  Post editor Stephanie Denton reveals the third chapter of her epic kitchen floor leakage saga...
  
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• FCA consults on FSCS management levy

  19-01-2015 11:58
  FCA proposes management costs of £74.4m for Financial Services Compensation Scheme.
  
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• Insure the Box sale highlights threat of manufacturers to motor insurers

  19-01-2015 11:54
  
  Francesca Nyman Postonline
  
  
  Motor manufacturers are primed to “take the motor insurance market by storm”, according to market insiders, who have highlighted the sale of Insure the Box as a wakeup call to the threat manufacturers represent to insurers.
  
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• NCI takes sales chief from Broker Network

  19-01-2015 11:49
  Two new starters tasked with pushing growth plans including schemes with brokers.
  
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• Hyperion increases revenue by 19% to £199m

  19-01-2015 11:48
  Company is still in advanced merger talks with R K Harrison.
  
  Read more

• Broker Network head joins NCI

  19-01-2015 11:34
  Towergate-owned network sales head quits to build north-east broker’s affinity business
  
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• Solvency II Delegated Acts brought into force

  19-01-2015 11:33
  
  Katie Marriner Postonline
  
  
  The Solvency II Delegated Acts were entered into force on 18 January a move Insurance Europe has called an important step forward in the implementation of the regulatory regime.
  
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• ABI pushing for annual £1bn flood defence spend in new campaign

  19-01-2015 11:16
  
  Katie Marriner Postonline
  
  
  The Association of British Insurers is calling for an annual £1bn investment in flood defences by 2025 as part of its Flood Free Homes campaign, launching tomorrow (20 January) at Westminster.
  
  Read more

• IFoA suggests ABSs could replace CMCs in driving claims costs

  19-01-2015 11:09
  
  Callum Brodie Postonline
  
  
  The number of claims management companies operating across the UK has decreased by 35% over the past year, according the Institute and Faculty of Actuaries.
  
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• R&Q acquires $4.7mn Scandinavian marine run-off

  19-01-2015 10:52
  Legacy-to-live carrier Randall & Quilter (R&Q) has
  acquired a 30.1mn Danish krone ($4.7mn) book of Scandinavian marine
  liabilities from Danish insurer Tryg.
  The Tryg book, which was put into run-off in 2010, contains
  marine liabilities dating back to 1998 and provided cover to
  policyholders in Denmark, Sweden and Norway.
  The assets have been transferred to R&Q's platform in
  Malta but claims will be handled locally by R&Q Triton AS, its
  office in Oslo.
  Paul Corver, head of M&a
  
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• Howden: no Hyperion IPO in 2015

  19-01-2015 10:52
  David Howden, CEO of Hyperion, has ruled out an initial public
  offering in 2015, saying the global intermediary was instead
  focused on generating growth.
  Speaking to The Insurance Insider
  following Hyperion's full-year results, released this morning
  (19 January), Howden said an IPO was "just a stepping
  stone" along the insurance group's long-term growth plans,
  and that "it's not on the cards" for 2015, adding:
  "You won't see it happen this year, I promise
  
  Read more

• Optimism falls amongst brokers and insurers

  19-01-2015 10:20 via insuranceage.co.uk
  Financial services survey shows optimism is down but business volume and profitability is up.
  
  Read more

• Motorists will still be responsible for driverless cars

  19-01-2015 10:00
  Motorists will be penalised for drinking or using mobile phones even if the computer is in control
  
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• Human motorists will still be responsible for driverless cars

  19-01-2015 10:00
  Motorists will be penalised for drinking or using mobile phones even if the computer is in control
  
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• Hamilton appoints Dermot O'Donohoe

  19-01-2015 09:58
  Bermuda-headquartered insurance group Hamilton has hired Dermot
  O'Donohoe to lead its Lloyd's operations.
  The former CEO of Torus's international operations will be
  appointed as CEO of Sportscover Underwriting, the managing agency
  of Syndicate 3334 that Hamilton struck a deal to buy in November
  2014.
  Prior to joining Torus in 2009, O'Donohoe worked at XL
  Group, holding the roles of president and CEO of XL Europe and CEO
  of XL Insurance while he was there.
  Hamilton also announced
  
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