Insurance news

• XL Catlin starts $600mn Alloy Re capital raise

  02-02-2016 21:24
  XL Catlin and alternative fund manager Oaktree have begun
  fundraising for a $600mn total return reinsurance business known as
  Alloy Re, The Insurance Insider can
  reveal.
  According to a confidential presentation obtained by this
  publication, Alloy Re will be an unrated Bermuda-domiciled
  reinsurer and retrocessionaire that assumes all of its business
  from XL Catlin.
  Former XL Re CEO Jamie Veghte will head up the new business,
  which is expected to be licensed by the Bermuda Monetary Authority
  as a
  
  Read more

• UK insurers must be consulted on floods

  02-02-2016 21:24
  Insurers have to be brought into flood prevention discussions if
  the UK is to avoid future flooding disasters, according to former
  Aviva and Suncorp CEO Patrick Snowball.
  Speaking to The Insurance Insider,
  Snowball said that mitigation was key and that it was "no good
  for insurers to just be expected to pick up the claim" as it
  would ultimately lead to higher premiums.
  "There has to be a public debate and recognition that
  insurers can help," he said. "Where we...
  
  Read more

• Two private equity firms and BB&T serious contenders in Swett battle

  02-02-2016 21:24
  Two private equity firms from a longlist of Crestview Partners,
  Kelso & Co, Thomas H Lee Partners and Kohlberg & Co remain
  as serious contenders along with trade buyer BB&T in the final
  stage of the sale process for Swett & Crawford, The
  Insurance Insider understands.
  According to multiple sources, final bids for the US wholesaler
  are due in mid-February and will have to demonstrate there is
  committed financing in place for a deal.
  BB&T-owned CRC Crump is still believed...
  
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• Regulators fine firms £18mn after insurer collapses

  02-02-2016 21:24
  The UK financial regulators have handed down fines of over
  £18mn ($26mn) after "significant integrity and competence
  failings" caused three firms to fold.
  The Financial Conduct Authority (FCA) imposed a total of
  £15.5mn in fines to three companies and four individuals
  following a joint investigation with the UK Prudential Regulation
  Authority (PRA) in 2013 into the validity of solicitors'
  professional indemnity (PI) insurance.
  The majority of the fines were directed at Israeli busine
  
  Read more

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• O'Neill may be latest to go in Marketform cull

  02-02-2016 21:24
  Former CEO John O'Neill looks likely to become the latest
  executive to leave Marketform as his successor Martin Reith
  continues to overhaul management at the underperforming Lloyd's
  business, The Insurance Insider can
  reveal.
  O'Neill moved to become head of claims when former Ascot
  chief Reith was parachuted in as CEO in October last year, and has
  now been told that his role is at risk.
  A number of high-profile figures are likely to leave the
  business in the coming weeks...
  
  Read more

• Market whispers plague Generali

  02-02-2016 21:24
  Italian insurer Generali's share price fell by
  almost a fifth last month as investors responded to rumours that
  its CEO was set to depart for rival Zurich.
  The market speculation reached fever pitch on 10 January
  following a SonntagsZeitung report that the Swiss carrier
  was close to naming Mario Greco as its new CEO.
  After markets opened the next day, Generali shares traded down
  almost 3 percent to close at EUR15.41.
  Following another day of speculation on 26 January, shares...
  
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• Markel agrees second Riverstone deal for US liabilities

  02-02-2016 21:24
  Markel has transferred a portfolio of long-tail liabilities from
  its various US units to legacy specialist Riverstone,
  The Insurance Insider can reveal.
  According to sources, the transaction was agreed in the fourth
  quarter of 2015 and is thought to include asbestos and
  environmental exposures.
  The portfolio transfer is the second the US insurer has agreed
  with the Fairfax Financial run-off subsidiary in a year.
  In its full-year 2014 results Fairfax revealed that Riverstone
  had entered into an a
  
  Read more

• Insurers face D&O suit over Gardner Denver action

  02-02-2016 21:24
  Arch, CNA and Chubb are facing a legal dispute over a $30mn
  directors' and officers' claim after they allegedly denied
  coverage in a class action dispute despite actively participating
  in the mediation and consenting to the settlement offer.
  The class action followed Kohlberg Kravis Roberts & Co's
  $3.74bn distressed acquisition of New York-listed industrial
  machinery manufacturer Gardner Denver in 2013.
  The private equity player bought the firm after Gardner
  Denver's stock price plunged 9 pe
  
  Read more

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• Hedge fund reinsurer evolution continues with Alloy Re

  02-02-2016 21:24
  XL Catlin's move to establish Alloy Re with asset manager
  Oaktree has underlined that the next iteration of total return
  reinsurers is likely to see unrated, captive vehicles created in
  the form of joint ventures by major cedants.
  The first generation of total return reinsurers - the
  "hedge fund" reinsurers - were created by fund managers
  in conjunction with underwriting management teams as tax-efficient
  vehicles to move money offshore.
  In the 2004 to 2012 era when such vehicles were viewed...
  
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• Flood Re completes £2.1bn retro

  02-02-2016 21:24
  Flood Re, the UK's government-backed reinsurance scheme, has
  secured the final tranche of its retrocession cover, taking its
  reinsurance limit to £2.1bn ($3bn).
  The carrier's three-year programme is one of the five
  largest natural peril reinsurance deals struck globally and the
  second biggest in Europe.
  Brendan McCafferty, CEO of Flood Re, commented: "Securing
  £2.1bn in annual protection is an important milestone towards
  Flood Re being ready to accept policies for flood risk househol
  
  Read more

• Exploring capital efficient equity investing

  02-02-2016 21:24
  Equities may only make up a small proportion of most
  insurers' investment portfolios, but the punitive charges for
  holding them under the new Solvency II rules is causing chief
  investment officers to re-evaluate allocations.
  Under the new regime, the solvency capital requirement (SCR) for
  equity ranges between 29 and 59 percent, depending on whether the
  equity is a type one or type two asset, meaning that retaining
  these risk assets has become an expensive business.
  Furthermore, the regulator's
  
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• Catco returns 12% in 2015 after flood and tornado claims

  02-02-2016 21:24
  The Catco Reinsurance Opportunities Fund delivered an 11.58
  percent gain for 2015, as it recorded a 1.75 percent impact from
  reserves for UK flooding and US tornadoes.
  This was slightly down from the 14 percent return recorded in
  2014. The manager had been targeting an annual return of 9-12
  percent above Libor rates, net of fees.
  Catco had created side pocket reserves for potential claims
  worth about 5.5 percent of net asset value or roughly $24mn by
  year-end, with a...
  
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• Cat bond market to maintain slower growth in 2016

  02-02-2016 21:24
  Insurance-linked securities (ILS) brokers are expecting about
  $7bn of new volumes on the cat bond market in 2016, sister
  publication Trading Risk reported.
  This would match the sector's growth in 2015, which slowed
  down following a fast-paced 2014.
  However, ILS dealers noted that they expect strong activity in
  the collateralised reinsurance and the private bond market.
  Relative pricing attractiveness may become more of
  an issue for potential cat bond sponsors after ILS spreads
  stabilised in 2015
  
  Read more

• Brit and QBE liable in $73mn E&O claim

  02-02-2016 21:24
  Both Brit and QBE could find themselves liable in a complex
  professional negligence claim after a 480mn yuan ($73mn) investment
  went awry.
  The two insurers were on the second excess layer of the errors
  and omissions policy for a Cayman Island-based investment group,
  Arc Capital Partners.
  The group lost the money in a 2010 Chinese property deal that
  backfired, costing it $73mn of investor funds.
  Its financial backer PAG Holdings then brought legal proceedings
  against the fund manager accusing it.
  
  Read more

• Besso auction launches

  02-02-2016 21:24
  London-headquartered independent wholesaler Besso has kicked off
  its strategic process two months after it awarded the advisory
  mandate to Canaccord Genuity Hawkpoint, The Insurance
  Insider understands.
  Sources said that non-disclosure agreements were sent out to
  interested parties late last month, with an investor memorandum set
  to be circulated over the next week or 10 days.
  The Insurance Insider revealed in
  December that the broker's board had decided to launch a
  strategic review that was lik
  
  Read more

• BB&T pulled out of Miller deal to avoid 'control'

  02-02-2016 21:24
  BB&T's planned strategic investment in London wholesaler
  Miller was dropped after a US regulator insisted the minority
  buy-in was equivalent to a controlling interest, given the broader
  trading relationship between the two companies, The
  Insurance Insider understands.
  Sources explained that the proposed 16.9 percent buy-in would
  have brought Miller under the purview of US regulation as a
  controlled business, imposing additional regulatory cost and
  complexity.
  When the transaction was inked,
  
  Read more

• AIG update a 'missed opportunity': Bernstein

  02-02-2016 21:24
  Despite applauding several elements of AIG's strategy update
  - including a commitment to return $25bn to shareholders by 2017 -
  Bernstein analyst Josh Stirling said the insurer had "missed a
  more major opportunity".
  The analyst, a bull on the stock but a bear on AIG
  management's efforts to turn the company around, reiterated his
  view that the insurer must pursue a path to de-Sifi as an
  "urgent strategic priority".
  "We struggle to understand this posture from the company,
  since we...
  
  Read more

• Penny Black's Social World - 4 February

  02-02-2016 18:37
  
  Stephanie Denton Postonline All the latest from the world of social media.
  
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• Career development: Inside the mind of the insurance executive

  02-02-2016 18:19
  
  Matthias Oberholzer Postonline Insurance executives in 2016 face a host of daunting challenges.
  
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• Cyber: A cyber game changer

  02-02-2016 17:33
  
  James Tuplin Postonline The European General Data Protection Regulation is approved and poised to bring new responsibilities that insurers must prepare for.
  
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• Climate Change: The future is in our hands

  02-02-2016 17:18
  
  Edward Murray Postonline The Paris climate change summit is over – and now the work begins. What response will the insurance sector provide?
  
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• Microinsurance: From little acorns

  02-02-2016 17:02
  
  Peta Fuller Postonline Microinsurance is expanding but it needs to grow beyond just provision of life cover – what are insurers’ strategies in these vast and largely untapped markets?
  
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• C-Suite - Insurer: Brexit: what could it mean?

  02-02-2016 16:45
  
  Bill Cooper Postonline Uncertainty over the UK’s membership of the European Union is causing discomfort at senior level.
  
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• RMS launches cyber accumulation management tools

  02-02-2016 16:14
  RMS has launched a suite of products designed to manage cyber
  risk accumulation, it announced today (2 February).
  The RMS Cyber Accumulation Management System includes a new
  software system and framework for cyber exposure reporting, in
  addition to a suite of cyber catastrophe scenarios for loss
  modelling.
  It was developed in collaboration with the Cambridge Centre of
  Risk Studies and a consortium of cyber underwriters and brokers,
  including Amlin, Aon Benfield, Axis Capital, Barbican, Canopius,
  
  Read more

• Pexton named future Beaufort chairman

  02-02-2016 16:14
  Munich Re-owned Lloyd's managing agent Beaufort has appointed
  Richard Pexton to the board as a non-executive director.
  He will succeed Richard Carter as chairman in June upon
  Carter's retirement.
  Beaufort is the managing agent of MSF Pritchard Syndicate 318 at
  Lloyd's.
  Lloyd's veteran Pexton is joins from mid and high net worth
  underwriting agency Horizon Ltd, where he is founder and
  chairman.
  Pexton served as CEO of listed Lloyd's insurer Omega
  Insurance Holdings and is a former active underwri
  
  Read more

• Icahn to name alternative AIG board

  02-02-2016 16:14
  Activist investor Carl Icahn is to propose an alternative board
  membership for American International Group (AIG) after failing to
  be impressed by the carrier's restructuring plans unveiled on
  26 January.
  Speaking to Bloomberg, Icahn said he would propose his list by
  the end of next week.
  Icahn has repeatedly called for AIG to be split up into life,
  P&C and mortgage units, and has accused AIG's current
  management of not taking sufficient action to address
  underperformance.
  He has also accuse
  
  Read more

• Flood Re retro reaches £2.1bn

  02-02-2016 16:14
  Flood Re, the UK's government-backed reinsurance scheme, has
  secured the final tranche of retrocession to take its backing to
  £2.1bn ($3bn).
  The three-year programme is one of the five largest natural
  peril reinsurance deals in the world and the second biggest in
  Europe.
  Brendan McCafferty, CEO of Flood Re, commented: "Securing
  £2.1bn in annual protection is an important milestone towards
  Flood Re being ready to accept policies for flood risk households.
  The reinsurance programme has
  
  Read more

• Elite Insurance withdraws from solicitors’ PI market

  02-02-2016 16:06 via insuranceage.co.uk
  
  Insurer cites unsustainable premium prices, fraud and proposed legal changes as factors in the decision.
  
  Read more

• Swinton hires CDL to replace legacy systems in IT upgrade

  02-02-2016 16:02
  
  The ongoing contract and relationship that Swinton has with SSP will continue for the foreseeable future
  
  Read more

• Swinton confirms swap from SSP to CDL

  02-02-2016 15:36
  
  Some legacy systems “not fit for purpose” – CDL roll-out to start this year with end of 2017 completion.
  
  Read more

• Small claims reform sparks unrated insurer Elite's solicitors’ PI exit

  02-02-2016 15:16
  
  Gibraltar-based firm blames falling rates and increasing fraud for withdrawal
  
  Read more

• Icahn says he will propose alternate AIG board

  02-02-2016 15:13
  
  Activist investor says AIG’s restucturing plan is ’inadequate’
  
  Read more

• Canopius UK retail boss Tim Rolfe to depart

  02-02-2016 15:00
  
  March departure ends five-year stint at Lloyd’s insurer
  
  Read more

• £15.5m FCA fine highlights brokers’ widening accountability

  02-02-2016 14:47
  
  Biba is also concerned that members will continue to pick up bill from FSCS 
  
  Read more

• Elite to stop writing solicitors' PII as falling rates take a toll

  02-02-2016 14:46
  
  Callum BrodiePostonline Unrated carrier Elite Insurance is withdrawing from the English and Welsh solicitors’ professional indemnity insurance market.
  
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• FCA regulation of insurance sector is 'not cost-effective' - MP

  02-02-2016 14:31
  
  Funding model suggests that UK firms are paying for supervision of other non-insurance broker entities - MP Craig Tracey
  
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• Tim Rolfe to leave Canopius at the end of March

  02-02-2016 14:00
  
  Rolfe has held the retail CEO position for more than five years.
  
  Read more

• Canopius retail boss Tim Rolfe to step down next month

  02-02-2016 13:57
  
  Callum BrodiePostonline Canopius retail CEO Tim Rolfe is to depart the specialist Lloyd’s market company at the end of March after more than five years in the retail hot seat, Post can reveal.
  
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• MP criticises distorted FCA funding in Parliament

  02-02-2016 12:57
  
  Former broker Craig Tracey MP says FCA regulation of the insurance industry is not proportionate.
  
  Read more

• QBE rugby model predicts Ireland to win 6 Nations

  02-02-2016 12:55
  
  Actuarial model has 83% forecast success rate, but England’s fiery new skipper may be too unpredictable
  
  Read more

• XL completes acquisition of Allied International

  02-02-2016 12:39
  XL Group has completed its takeover of US specialty insurer THE
  Insurance Company and Allied Specialty Insurance parent Allied
  International Holdings.
  THE Insurance Company generated approximately $70mn of gross
  written premium in 2014, and provides general liability,
  workers' compensation, inland marine, auto liability and
  certain property insurance to clients in the amusement and
  entertainment industry.
  XL CEO Mike McGavick said Allied's underwriting expertise in
  this niche specialty risk busi
  
  Read more

• Validus CEO speaks out against London broker facilities

  02-02-2016 12:39
  London broker facilities are inconsistent with prudent underwriting
  and "a way for brokers to offload their expense problem onto
  underwriters," Validus chairman and CEO Ed Noonan has claimed.
  During a fourth-quarter earnings call on 29 January, Noonan
  spoke of "fundamental headwinds" seen at its London
  operation Talbot, driven in part by the increasing use of
  facilities.
  The ongoing trend of brokers bundling up their business and
  charging higher commission for facilities was creating a difficult
  
  Read more

• Bowring Marsh names new CEO

  02-02-2016 12:39
  Marsh has promoted Tom Davies to global CEO of international
  wholesale arm Bowring Marsh, effective immediately.
  Davies previously led Bowring Marsh's hub in the UK and
  Ireland, the company said yesterday (1 February).
  He will replace Andrew Chester, who moves to a senior global
  placement role at Marsh.
  In his new role, Davis will be responsible for Bowring
  Marsh's key placement hubs in the UK and Ireland, continental
  Europe, Asia, the Middle East, Latin America, US and Bermuda.
  Davies has...
  
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• AJ Gallagher's McGurn steps aside

  02-02-2016 12:39
  The chairman of international broker Arthur J Gallagher's
  wholesale business Dave McGurn is set to step aside, the
  intermediary announced yesterday (1 February).
  It said the executive would "step away" from his daily
  responsibilities as chairman of its wholesale arm Risk Placement
  Services (RPS) in favour of a new position as a special
  adviser.
  He will be replaced by Joel Cavaness, who currently serves as
  president of the division.
  The broker said he would report directly to group CEO Pat...
  
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• Insurer savings predicted as report dispels poison gas concerns

  02-02-2016 12:22
  
  Callum BrodiePostonline The insurance industry and the credit hire sector look set to resume hostilities following an independent study that found insurers are spending millions on credit hire and repair claims for vehicles that are perfectly roadworthy.
  
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• Swinton to move from SSP to CDL for retail business

  02-02-2016 11:38
  
  Timings still to be confirmed.
  
  Read more

• Pen Underwriting enhances delegated commercial business

  02-02-2016 11:36 via insuranceage.co.uk
  
  Key areas to undergo improvement include compliance and governance and technical support.
  
  Read more

• FCA, FOS, FSCS branded “not fit for purpose”

  02-02-2016 11:05 via insuranceage.co.uk
  
  MPs raise Early Day Motion in Parliament.
  
  Read more

• Blog: Disruption in insurance is a force for good

  02-02-2016 10:30
  
  Robin Reames Postonline Insurers have driven down costs in roadside recovery and the end result for customers is poor service - is it time for a rethink?
  
  Read more

• Axa CEO de Castries warns UK against 'serious consequences' of EU exit

  02-02-2016 10:20
  
  Callum BrodiePostonline Paris-based Axa CEO Henri de Castries has issued a stark warning ahead of a UK referendum on EU membership by stating that an exit would spark “very serious consequences” for the City of London.
  
  Read more

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