Insurance news

• Validus hires hedge fund re expert Maries

  27-06-2016 20:01
  Validus is expected to hire former Enstar executive Scott
  Maries, sister publication Trading Risk
  revealed last week.
  Maries will be taking a corporate development role at Validus,
  sources said.
  It is understood the executive left Enstar a number of months
  ago and his exit will not impact development of the carrier's
  total return reinsurer project, Aligned Re.
  The joint venture with asset manager UBS O'Connor began
  fundraising earlier this year and was targeting a $700mn capital
  raise.
  Enstar ha
  
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• Solas introduction to affect cargo insurance

  27-06-2016 20:01
  The international Safety of Life at Sea (Solas) regulations due
  to come into force this week (1 July) will likely disrupt the cargo
  insurance sector in the short term despite the perceived long-term
  benefits.
  According to the International Union of Marine Insurance's
  political chair Helle Hammer, the change to the regulations that
  govern the mandatory container weight verification requirements on
  vessels will create disruption as companies acclimatise, with terms
  and conditions likely to be affe
  
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• Sirius looks to expand with BDA reinsurance subsidiary

  27-06-2016 20:01
  Sirius appears to be laying the foundations for further
  expansion with the conversion of its Bermuda branch to a separately
  capitalised operating subsidiary.The move comes after the (re)insurer was bought by China
  Minsheng Investment Corp (CMI) for $2.59bn in a transaction that
  closed in April this year.The new Bermuda class 3A reinsurance entity will start
  underwriting next month, and is initially expected to assume a 25
  percent quota share of business written by the group's Swedish
  operating c
  
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• London lags behind in data analytics and cost efficiency

  27-06-2016 20:01
  The London insurance market is at risk of losing relevance to
  clients as it falls behind in the areas of data analytics,
  innovation and cost efficiency, market executives said at the
  Reactions London Market Conference last week (23
  June).
  James Few, global managing director of reinsurance at MS Amlin,
  said that while the London market has 350 years of history to be
  proud of, it has to accept it may not be as successful in future
  because of wider changes...
  
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• London ILS products 'not reliant on single market'

  27-06-2016 20:01
  A project to attract more insurance-linked securities (ILS)
  transactions to London should not be held up by the Brexit vote,
  according to Malcolm Newman, sponsor of the London Market Group
  (LMG)'s ILS Working Group.
  Newman pointed out that ILS products are reinsurance solutions,
  meaning clients could sponsor or purchase them from London without
  requiring access to the EU single market.
  "The business case for London entering the ILS market is
  clear and the government continues to support this by
  
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• Legal bedlam greets insurers following Brexit vote

  27-06-2016 20:01
  The legal ramifications of the UK's vote last week (23 June)
  to leave the European Union (EU) are likely to severely impact
  insurers, as companies face a legislative quagmire and loss of
  access to the single market.Law firms in the UK have said the insurance sector will undergo
  "seismic" upheaval as a result of "Brexit",
  with many raising concerns over loss of passporting rights,
  increased regulatory and compliance burdens and questions over
  London's future as a global centre for...
  
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• Insurers to withstand Brexit volatility

  27-06-2016 20:01
  Rating agencies have agreed the impact of a UK exit from the
  European Union (EU) will be limited for European insurers, despite
  the credit implications for the broader economy.On the day of the result (24 June), Standard & Poor's
  (S&P) said it viewed the insurance sector as the least exposed
  to a Brexit compared with the rest of the UK financial sector."While representing about one-third of the UK's very
  substantial financial services net export surplus, the insurance
  sector...
  
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• Insider 30 down for fourth week in a row

  27-06-2016 20:01
  In a week that ended with the UK electorate voting
  to leave the European Union, the Insider 30 slid to a loss for the
  fourth successive week.
  London carriers enjoyed the most positive share price reaction,
  collectively increasing by 2.31 percent.
  This was driven by a push into the Lloyd's carriers, seen as
  a defensive play by many investors, in the run-up to the
  referendum, which meant that even after the markets sell-off on
  Friday (24 June) London was ahead...
  
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• Fed Nat shares slide after CFO departs

  27-06-2016 20:01
  Shares in Federated National slid by 9.3 percent last week after
  the Florida homeowners' insurer announced last week (21 June)
  that its CFO had resigned with immediate effect.
  The firm revealed last week that Peter Prygelski had left to
  pursue other opportunities and that Erick Fernandez, previously
  vice president of corporate accounting and reporting, had taken the
  position on an interim basis.
  Commenting on the departure, Keefe, Bruyette & Woods analyst
  Arash Soleimani described Prygelski
  
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• Cooper Gay moves to address cost base and spin off LatAm

  27-06-2016 20:01
  Cooper Gay is looking set to make 70 of its 400 London-based
  staff redundant and is close to spinning off its Latin American
  operations, as new CEO Steve Hearn continues to implement radical
  changes to turn around the broking outfit.The Insurance Insider has learned that
  Cooper Gay placed all of its 400 staff - including Hearn - under
  consultation last week to facilitate contract harmonisation, with
  employees informed earlier today (27 June) that just over 70 roles
  were under...
  
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• Charges dropped in Aon Romanian cat scheme case

  27-06-2016 20:01
  Charges brought against Aon for withheld commissions on a
  Romanian compulsory insurance scheme have been dropped.Eastcap Limited, which offers agency and consultancy services in
  Romania, had taken the broker to court in the UK, claiming it was
  owed EUR5.4mn in commissions arising from Aon Benfield's
  participation in the Romanian Catastrophe Insurance Scheme.Eastcap alleged Aon's reinsurance arm would not have been
  able to secure that business had it not been for the introductions
  it had set up b
  
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• CEA saves after multi-year renewals

  27-06-2016 20:01
  The California Earthquake Authority (CEA) managed to expand its
  traditional reinsurance programme by more than $400mn to $4.51bn in
  the January and April renewals for less premium than it paid in
  2015.The organisation was able to secure significant savings at the
  renewals, as some multi-year deals written back in 2014 expired,
  sister publication Trading Risk reported today (27 June).Overall, the CEA will pay $182.5mn in premium this year for the
  $4.51bn package, compared to the $189.1mn budgeted
  
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• Brexit to hit solvency ratios and portfolios

  27-06-2016 20:01
  The economic fallout of the "Brexit vote" on 23 June
  is likely to result in a 10 percent decline to European
  carriers' solvency ratios and a sizeable impact on investment
  portfolios.
  Keefe, Bruyette & Woods (KBW) was among the analysts and
  market commentators to suggest a 10 percentage point decline in
  solvency ratios was probable, but noted that this would still leave
  them comfortably above any binding constraint from a Solvency II
  perspective.
  Those carriers with exposures to European gove
  
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• Blue Capital fund reports May cat loss

  27-06-2016 20:01
  The Endurance-owned Blue Capital Global Reinsurance Fund
  reported a 1.84 percent drop in its net asset value in May due to
  catastrophe events in the US, Japan and Canada.
  This led the London-listed fund to revise its expected 2016
  returns to between 5 to 9 percent, down from the 7 to 12 percent
  guidance range given in the first quarter.
  Over the year to date the fund's net asset value has fallen
  0.66 percent.
  After the June renewals, Blue Capital...
  
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• Axa targets growth with 4-year strategic plan

  27-06-2016 20:01
  Axa has set its sights on earnings growth as it unveiled its
  four-year strategic plan, Ambition 2020, at an investor day in
  Paris on 21 June.
  Under the new plan, Axa will target underlying earnings per
  share (EPS) growth of 3 to 7 percent and adjusted return on equity
  (RoE) of 12 to 14 percent.
  By comparison, the company reported underlying EPS growth of
  2.17 percent and an adjusted RoE of 14.1 percent for full-year
  2015.
  In order to boost...
  
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• Armour run-off acquisition liquidated by regulators

  27-06-2016 20:01
  Excalibur Reinsurance Corporation, a company owned by run-off
  acquirer Armour, has been placed into liquidation in a development
  never seen before by the legacy market.
  According to US court filings, Excalibur Reinsurance
  Corporation, formerly known as PMA Capital Insurance Company, was
  placed into liquidation on 17 May by court order, following a
  petition from the Pennsylvania Department of Insurance.
  The firm, which predominately wrote commercial auto, general
  liability, product liability, wor
  
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• AOB crisis sends Citizens rates up 6.8%

  27-06-2016 20:01
  The assignment of benefits (AOB) crisis that impacted
  negotiations at the 1 June Florida reinsurance renewal has helped
  drive 6.8 percent rate increases at state-backed carrier Citizens
  for 2017.
  The residual insurer's board approved the state-wide rate
  hike for personal lines policyholders next year as it cited rising
  non-weather water losses and AOB abuse.
  The carrier had previously warned that the growing AOB crisis
  could send rates higher in the short-term and leave homeowners
  facing price h
  
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• AM Best affirms Ironshore before IPO

  27-06-2016 20:01
  Ironshore received a significant boost on Friday (24 June) after
  AM Best affirmed its ratings and removed them from under review
  with negative implications.
  However, the agency assigned all ratings a negative outlook. AM
  Best said this reflected "the drag related to the credit
  profile and high debt leverage measures of Ironshore's ultimate
  parent, Fosun International Ltd".
  A negative outlook is a longer-term measure of likely direction
  of travel than the more immediate "negative implications"
  mo
  
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• Aviva stresses it is 'resilient' as shares crash 22%

  27-06-2016 17:47
  
  Aviva’s share price has tanked 22% since Friday, one of the biggest victims of voters’ call to exit the EU.
  
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• Woman sentenced over income protection fraud

  27-06-2016 17:40
  
  A 45-year-old woman has been sentenced to eight months’ imprisonment, suspended for two years after making fraudulent claims on her employer’s income protection insurance policy.
  
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• QBE outlines the Brexit paths ahead for insurance

  27-06-2016 16:59
  
  The last few days have shown that British business is ill-prepared for Brexit.
  
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• Bluefin vs Mike Bruce and GRP trial to start

  27-06-2016 16:26
  
  Trial to be held at the Royal Court of Justice.
  
  Read more

• Businessman jailed for £114,000 insurance scam against NFU Mutual

  27-06-2016 15:01
  
  A kitchen business salesman has been jailed for three years after using fake documents to defraud NFU Mutual in a £114,000 insurance claim.
  
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• Ehic applications unavailable – but NHS says it's nothing to do with Brexit

  27-06-2016 13:54
  
  The website and phone number for European health insurance card registration is expected to be unavailable until Monday afternoon, leaving last-minute applicants in the lurchHolidaymakers trying to apply for their European health insurance card (Ehic) have been alarmed to discover that the online service is “currently unavailable”.
  However, the NHS, which runs the service, told the Guardian that it was almost certainly a technical glitch rather than “anything to do with the ref
  
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• Insurers see shares fall on second day of post-Brexit trading

  27-06-2016 13:50
  
  The country’s top insurers saw shares fall on the second day of trading following the Brexit vote, despite efforts to calm the market.
  
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• Hiscox launches renovation and extension product

  27-06-2016 13:44
  
  Hiscox has launched a new renovation and extension insurance product, which protects homeowners undertaking sizeable building works on their property.
  
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• Hiscox launch renovation and extension product

  27-06-2016 13:44
  
  Hiscox has launched a new renovation and extension insurance product, which protects homeowners undertaking sizeable building works on their property.
  
  Read more

• Grimsby businessman jailed over £114k insurance scam

  27-06-2016 13:43
  
  A businessman has been jailed for faking and forging a number of invoices and documents as part of a £114,000 insurance fraud linked to his kitchen sales business.
  
  Read more

• Gibraltar market facing domicile move after Brexit: CBL

  27-06-2016 13:08
  Gibraltarian carriers are facing a domicile shift as the local
  market will not be able to sustain their operations following the
  UK's vote to leave the European Union (EU), according to CBL.
  The New Zealand-based credit and financial risk (re)insurer said
  while the UK domestic market could continue to survive on local
  business, Gibraltar insurers enjoyed no such equivalent support and
  would have to move their entire domicile to continue operating.
  CBL managing director Peter Harris did, however,
  
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• Hiscox launches renovation and extension insurance product

  27-06-2016 12:59 via insuranceage.co.uk
  
  The offering can be added to an existing policy while works are taking place.
  
  Read more

• Insurance saleswoman sentenced for fraud

  27-06-2016 12:52 via insuranceage.co.uk
  
  Former Simplyhealth employee pleads guilty to fraud by abuse of position following £31,500 commission scam.
  
  Read more

• QBE: Brexit may require “revised approach” for £500m of premium

  27-06-2016 12:41
  
  QBE has warned that it may have to take a “revised approach” to around £500m of the insurance and reinsurance premium it sources from the EU following the UK’s decision to leave the bloc.
  
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• Brexit: Regions respond to 'out' vote

  27-06-2016 12:16
  
  Brokers say they will rise to the challenge as concerns over passporting and government funding are raised amid confusion about the future.
  
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• CDL's post-tax profit down but turnover up in 2015

  27-06-2016 12:10 via insuranceage.co.uk
  
  Software company's operating profit also rose.
  
  Read more

• Brexit will have no significant impact on business, says Aviva

  27-06-2016 12:01 via insuranceage.co.uk
  
  The insurer insists its capital position is "resilient to market stress".
  
  Read more

• Brexit dominates the news; Axa can meet new COR target says Blanc and Lloyd's gets up to speed on digital

  27-06-2016 12:01
  
  The important insurance news and Post exclusives of the past week, in case you missed them.
  
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• QBE prepared to renew EU premiums outside UK

  27-06-2016 11:51
  Sydney-headquartered carrier QBE Insurance Group today (27 June)
  warned it may ultimately need to renew some £500mn ($683mn) of
  (re)insurance premium currently sourced from EU member countries
  outside the UK if passporting rules are not preserved.
  Following the UK's decision to leave the EU in a referendum
  last week, there is still substantial uncertainty around whether
  the country will still be able to passport its services to the EU
  post-Brexit.
  Should EU passporting rules not be preserv
  
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• Markel International simplifies structure in Spain

  27-06-2016 11:51
  Markel International has restructured its underwriting
  operations in Spain into just two units and appointed Jaime Romero
  as its most senior underwriter, the carrier announced today (27
  June).
  Previously, the division consisted of directors' and
  officers' (D&O), professional indemnity, general liability,
  medical malpractice and personal lines segments.
  The business will now consist of two divisions, with the
  personal accident unit led by Luis Bodaño and Adrián
  Benito heading up
  
  Read more

• #Insagepeople: 27 June-3 July

  27-06-2016 11:41
  
  Keep abreast of the movers and shakers in the broker world this week.Please bear with us, the component can take up to 30 seconds to load.
  
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• Insurance saleswoman faces jail for £31k commission fraud

  27-06-2016 11:09
  
  A saleswoman at health insurer Simplyhealth has been sentenced to nine months’ imprisonment for a £31,500 mis-selling scam.
  
  Read more

• QBE attempts to reassure investors following Brexit

  27-06-2016 11:00
  
  QBE Insurance Group attempted to calm investors ahead of the opening of the Australian stock exchange this morning with a statement claiming they do not anticipate any material impact on their day to day operations following the UK’s vote to leave the EU.
  
  Read more

• Aviva fights back amid wave of consolidation

  27-06-2016 10:52
  
  Aviva is investing heavily in smaller independent brokers in an effort to stave off the lure of the consolidators who are on a buying spree.
  
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• Products round-up: A cyber and tech-heavy month

  27-06-2016 10:35
  
  The industry has been hard at work introducing new cyber covers to the market
  
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• Review: Looking after landlords

  27-06-2016 10:30
  
  Home and Legacy Ultra Landlord. This product has been reviewed by brokers and rated from one to five stars, based on the policy’s key benefits. * = Poor ** = Average *** = Good **** = Very good ***** = Excellent
  
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• Aviva upgraded after insurer moves to quell investor concerns post Brexit vote

  27-06-2016 09:38
  
  Investment adviser Macquarie has lowered its price target for Aviva to 442p from 502p and upgraded the stock to 'outperform' from 'neutral' following the UK’s vote to leave the EU last week.
  
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• Moody’s will cut UK rating if it loses core of Single Market access

  27-06-2016 09:27
  
  Moody’s has will downgrade the UK’s debt and issuer ratings if it fails to preserve “core elements” of its access to the EU Single Market following the country’s decision to exit the EU.
  
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• Gibraltar insurer Elite considering new European unit post-Brexit

  27-06-2016 09:00
  
  Gibraltar-based insurer Elite is considering setting up a new company so it can continue writing mainland European business after the UK leaves the European Union.
  
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• UK faces future from "position of strength", says Osborne

  27-06-2016 08:57
  
  Chancellor George Osborne has said there are no immediate plans for an emergency budget and that he will stay on in his role.
  
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• Aviva reassures market on solvency amid Brexit turmoil

  27-06-2016 08:37
  
  Aviva said this morning that its Solvency II coverage ratio “remains close to the top of its working range” of 150% to 180% despite market volatility triggered by the UK’s decision to leave the European Union.
  
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• Trade Voice: CILA's Malcolm Hyde on Christmas and New Year with Desmond, Eva and Frank

  27-06-2016 08:00
  
  For some, Christmas and New Year can be a stressful time. Add storms Desmond, Eva and Frank into the mix and the festivities become a seemingly endless time of misery.
  
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