Insurance news

• UPC falls to underwriting loss on adverse development and cats

  01-11-2016 23:29
  United Insurance Holdings third-quarter profit missed Wall
  Street expectations as cat losses and non-cat adverse development
  sent the Florida-based carrier to an underwriting deficit.Weather events drove an increase in claims for the St.
  Petersburg-based company in the period compared with a year
  earlier, pushing the combined ratio to 101.4 percent from 91.5
  percent in the 2015 quarter.
  While gross written premiums surged 24.6 percent to $194.3mn,
  net income fell about 58 percent to $3.4mn.
  Earn
  
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• CNA expects up to $70mn of Matthew losses

  01-11-2016 20:39
  CNA Financial could face claims of up to $70mn tied to Hurricane
  Matthew, which glanced the southeast coast of the US last month.
  Investors were told pretax losses could be "really
  anywhere" between $20mn and $70mn following the storm, which
  will be reflected in its fourth-quarter financial report.
  Speaking on CNA's third-quarter earnings call with analysts,
  Craig Mense, the company's chief financial officer, said the
  actual loss was likely to be at the "mid or lower end of that
  range.&...
  
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• Aspen acquires Puerto Rico marine MGA Blue Waters

  01-11-2016 20:39
  Bermudian Aspen Insurance has purchased a marine specialist
  managing general agency (MGA) Blue Waters Insurers, based in San
  Juan, Puerto Rico.
  The financial terms were not disclosed.
  Blue Waters, founded in 2007, provides product and policy design
  and development services in Puerto Rico and across the Caribbean
  basin.
  The company will become part of Aspen Insurance's global
  marine operation,
  Blue Waters President Eugenio Rosas will remain in his current
  role, reporting to Patrick Hickey, Aspen'
  
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• New CII strategy focuses on building public trust in insurance

  01-11-2016 19:17
  UK-headquartered industry professional body the Chartered Insurance
  Institute (CII) today launched a Strategic Manifesto, which laid
  out a five-year plan on how it will modernise and work with the
  profession to build public trust.
  Speaking at the central London manifesto launch CII CEO Sian
  Fisher told a packed room of senior insurance executives that
  despite being a "tremendous force for social good"
  unfortunately insurance did not benefit from the trust of the
  public at large.
  "Today we lack p
  
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• CII unveils five-year plan in manifesto launch

  01-11-2016 18:10
  
  The CII wants to modernise and work with the profession to build public trust
  
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• CII launches strategic manifesto

  01-11-2016 17:59 via insuranceage.co.uk
  
  Manifesto sets out roadmap for next five years and follows an internal review.
  
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• Esure CEO Stuart Vann to gain £1.5m from Go Compare demerger

  01-11-2016 15:55
  
  Esure CEO Stuart Vann will get £1.5m and CFO Darren Ogden will get £1m as a result of the Go Compare demerger, now confirmed for Thursday.
  
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• Turkish cat pool gets 10%+ rate reduction

  01-11-2016 15:52
  The Turkish Catastrophe Insurance Pool (TCIP) was able to secure
  rate reductions of just over 10 percent on a risk-adjusted basis as
  it consolidated layers on its core cat treaty, The
  Insurance Insider can reveal.
  According to sources, the vehicle bought EUR2.4bn ($2.6bn) of
  core cat cover in excess of a EUR850mn retention that was EUR20mn
  lower than last year's 1 November-incepting tower.
  Market watchers always carefully scrutinise the TCIP deal for
  early guidance on the forthcoming internation
  
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• Swiss Re reinsures $350mn Guangdong cat scheme

  01-11-2016 15:52
  Swiss Re is the sole reinsurer involved in a new catastrophe
  insurance scheme in the industrial Chinese province of Guangdong,
  the carrier announced.
  The scheme has already made its first payout as a result of
  Super Typhoon Haima, which made landfall in Shanwei on 21
  October.
  The cat scheme is the second local government pool Swiss Re has
  helped to reinsure in the country, following a $348mn cover created
  for the rural Heilongjiang province in August this year.
  The Guangdong...
  
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• Senior roles go as XL Catlin restructures leadership

  01-11-2016 15:52
  XL Catlin's revamp of its P&C operations will see around
  50 staff leave, including a number of senior executives,
  The Insurance Insider understands.
  As announced last week, the Bermudian carrier has
  "realigned" its operating model into four distinct
  business groups, effective 1 January. Reinsurance CEO Greg Hendrick
  will lead group P&C operations, which is divided into global
  lines, international insurance, North America insurance and global
  reinsurance.
  The shake-up has changed the role
  
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• RLI share plunge highlights investor reserving focus

  01-11-2016 15:52
  Shares in RLI, which opened the third quarter US P&C
  reporting season with an earnings miss, fell to their lowest level
  in more than a year last week as investors focused on unfavourable
  reserve developments and analysts cut their profit estimates for
  the carrier.
  While the adverse development in prior-year loss reserves - the
  company's first such adjustment in more than a decade - drove
  the shares lower, analysts argued that the correction was
  overdone.
  Travelers was also punished by...
  
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• Pockets of hardening, but softness to continue into 2017: Willis

  01-11-2016 15:52
  Even as carriers faced a continued soft US insurance market
  overall, Willis Towers Watson has forecast pricing gains in several
  casualty markets next year, particularly those covering large
  retailers' cyber risks and some parts of the environmental
  liability market.
  However, further declines are expected in property lines,
  especially in aerospace and catastrophe-exposed lines.
  "In property, rates will likely continue
  to drop, though no more or less steeply than before," said
  Matt Keeping, head o
  
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• P&C pressure moves rates nearer inflection point

  01-11-2016 15:52
  After enjoying its best three-year stretch of combined ratios
  since the early 1970s, there are early signs that the US P&C
  industry is heading towards a change as underwriting deteriorates
  and returns on equity (RoEs) trend down towards unsustainable
  levels.
  The first two weeks of the third quarter earnings season for the
  US P&C sector have delivered a mixed bag of results.
  More Bermudians and US carriers have outperformed Wall Street
  analysts' forecasts than come in below them, reflecti
  
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• October ends with double-digit changes

  01-11-2016 15:52
  Starting with Hurricane Matthew and closing
  while third quarter results disclosures were in full swing, October
  brought significant stock price movements for P&C carriers.
  Florida homeowners' insurance companies Heritage and United
  were at one end of the scale with monthly share price decreases of
  18.9 percent and 18.0 percent respectively, due to their Hurricane
  Matthew exposures.
  But RLI suffered the month's largest drop, as it reported
  its first reserve deterioration in more than a decade
  
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• Nephila's retro writer to step down

  01-11-2016 15:52
  Nephila portfolio manager David Long is standing down from the
  Bermudian firm at the end of the year, Trading
  Risk revealed last month.
  Long, known colloquially in the market as Pongo, is one of
  Nephila's most senior specialists in the retro market.
  The reinsurance industry veteran had worked with the ILS fund
  manager for more than a decade, joining in 2004.
  Before that, he spent nearly 20 years as a treaty underwriter at
  Sphere Drake, which was bought by Fairfax...
  
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• Insider View: The XL Catlin restructure

  01-11-2016 15:52
  In overhauling the business, McGavick has come up with a
  finished product that looks a little more like the old XL than it
  does like legacy Catlin.
  The new operating model is a victory for XL's line of
  business approach to management structures, moving away from legacy
  Catlin's preferred regional structure.
  Meanwhile, it's not difficult to see that legacy XL
  executives have taken the lion's share of the shiny new roles.
  Only Doug Howat, former group underwriting director at Catlin,...
  
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• Harrington increases Axis fee income

  01-11-2016 15:52
  Axis reported $8.1mn of fee income from "strategic capital
  providers" in the third quarter, up fourfold from $2.1mn a
  year earlier, after it established casualty underwriting vehicle
  Harrington Re with Blackstone.
  The Harrington Re cessions more than offset a decline in
  premiums transferred to "other strategic partners", and
  led Axis Re's Q3 net written premiums to almost halve
  year-on-year to $162.3mn.
  However, during an earnings call CFO Joe Henry explained that
  the metric should even out to s
  
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• Frankland hire continues talent war

  01-11-2016 15:52
  The departure of Guy Carpenter Emea CEO Nick Frankland to Aon
  Benfield has placed the spotlight firmly on reinsurance
  brokers' continued efforts to lure senior talent away from
  their competitors.
  The Insurance Insider revealed late
  last month (31 October) that Frankland had resigned his position at
  Guy Carpenter to become UK CEO at arch rival Aon Benfield.
  He will head up the company's Global ReSpecialty,
  Specialties and ReSolutions divisions, as well as the UK and
  Ireland broking teams, and wil
  
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• Commercial auto a 'black eye': CNA

  01-11-2016 15:52
  US commercial auto business is still a "black eye" for
  the insurance industry, despite rising rates, CNA Financial CEO
  Thomas Motamed has said.
  Speaking to analysts during the firm's Q3 earnings call, the
  executive said that while rates had continued to harden in
  commercial auto business, loss trends were not "very
  favourable" in terms of claims severity or frequency.
  The latest commercial P&C rate survey by the Council of
  Insurance Agents & Brokers found commercial auto to be one of...
  
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• Axis unveils $550mn preference share offering

  01-11-2016 15:52
  Bermudian carrier Axis has announced an offering of 22 million
  Series E preferred shares totalling $550mn.
  The shares each represent a 1/100th ownerships interest in a
  share of its 5.5 percent Series E preferred share representing par
  value of $0.0125 per share and a liquidation preference of $2,500
  per share equivalent to $25 per depositary share.
  Underwriters of the offering have also been granted a 30-day
  option to purchase up to 2 million additional depositary
  shares.
  The offering is expecte
  
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• AIG to drop energy QS at 1 January

  01-11-2016 15:52
  AIG has surprised the market by indicating that it will drop its
  major energy quota share reinsurance deal, one of the biggest
  treaties in the space, at 1 January.
  The Insurance Insider has learned that
  AIG's 50 percent quota share of an inwards upstream energy book
  estimated at $100mn of premium will be discontinued, sucking
  substantial demand out of the market.
  It is understood that some of the exposures may be wrapped into
  a separate aggregate cover.
  The treaty had...
  
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• A postcard from PCI

  01-11-2016 15:52
  The reinsurance industry may at long last be close to an
  inflection point, but for the first time in a while the talk in
  bars at the annual Property Casualty Insurers Association of
  America (PCI) conference was not restricted merely to rates and
  broadening terms.
  In recent years, industry conferences have at times looked like
  nothing more than a propaganda war between brokers and
  reinsurers.
  The intermediaries use the opportunity of having the
  market's collective ear to talk down expected...
  
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• New course addresses impact of flooding on children

  01-11-2016 15:42
  
  The British Damage Management Association has launched a new training course to improve the experience of children & young people after flooding.
  
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• Esure demerger rewards concern some shareholders

  01-11-2016 15:15
  
  Esure shareholders approve Gocompare demerger but some vote against award scheme
  
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• Manufacturers should pay out for faulty automated cars, says Allianz

  01-11-2016 14:31
  
  Allianz will head up the consultation on automated vehicles in order to expand on the potential that automated vehicles could bring to the industry.
  
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• US commercial P&C rate declines slow: CIAB

  01-11-2016 14:20
  There was a modest easing of US commercial P&C rating pressure
  in the third quarter, according to the latest survey conducted by
  the Council of Insurance Agents & Brokers (CIAB).
  The survey found that rates decreased by 3.2 percent on average
  in the third quarter, marking a slight slowdown from the 3.9
  percent reductions it recorded in Q2, but a marginal deterioration
  on the 3.1 percent cuts seen in Q3 2015.
  "Rate decreases have been moderate but steady throughout
  2015...
  
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• Third Point investments sour in October

  01-11-2016 12:32
  Third Point Re's investment management arm Third Point LLC
  has reported a negative investment return of 1.1 percent for
  October.
  The result marks the first negative return posted by the firm
  since February and its second worst performance in the year to date
  following a 3.3 percent loss in January.
  The negative return also compares to a positive result of 0.9
  percent in September, and 4.6 percent a year ago.
  Despite the drop, investment returns remained positive for the
  year...
  
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• Markel International buys marine PI MGA

  01-11-2016 12:32
  Markel International has entered the marine professional indemnity
  (PI) market with the acquisition of MGA Galleon, it announced
  today.
  London-based Galleon specialises in marine professional
  indemnity and cargo liability business, writing on Lloyd's
  paper as an approved coverholder.
  The deal consideration was not disclosed.
  The business will become part of Markel's marine, energy and
  property division headed by divisional managing director Paul
  Jenks.
  "The acquisition continues our strategy of
  
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• Chinese insurer profits fall 35% on investments

  01-11-2016 12:32
  Weaker investment returns prompted by continued low interest rates
  and market volatility has caused Chinese insurers' profits to
  fall 35.7 percent to 156.96bn yuan ($23.2bn) year to date.
  According to the China Insurance Regulatory Commission (CIRC),
  the investment yield on industry funds declined 1.97 percentage
  points to 3.95 percent, while overall returns dropped 19.1 percent
  to 482.9bn yuan compared to the prior-year figure.
  Despite pressure on profitability the sector continued to expand
  du
  
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• Canterbury earthquake claims hit NZ$19bn

  01-11-2016 12:32
  Paid claims for commercial and residential losses stemming from the
  Canterbury earthquakes in New Zealand in 2010 and 2011 have reached
  NZ$19bn ($13.6bn), according to the Insurance Council of New
  Zealand (ICNZ).
  Around NZ$9bn of the total was paid for domestic claims, with 94
  percent of residential property claims and 95 percent of commercial
  claims settled.
  This figure represents 21,859 over-cap and 63,739 out-of-scope
  properties under the New Zealand Earthquake Commission (EQC)'s
  state liabil
  
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• CII launches Strategic Manifesto following internal review

  01-11-2016 12:06
  
  The Chartered Insurance Institute launched its Strategic Manifesto, with a focus on re-establishing public trust in the insurance sector.
  
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• PIB buys Carmichael & Partners

  01-11-2016 12:03
  
  Acquisition is PIB's fifth purchase in a year.
  
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• PIB buys Aberdeen-based commercial broker

  01-11-2016 11:56
  
  Consolidator PIB unveils fifth deal since Carlyle investment
  
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• Markel enters marine PI market with Galleon deal

  01-11-2016 11:39
  
  Markel International has acquired specialist marine MGA Galleon for an undisclosed sum.
  
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• Markel International enters marine PI with acquisition

  01-11-2016 11:24
  
  Insurer buys London-based underwriting agency
  
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• Hastings continues to see revenue growth

  01-11-2016 11:10
  
  GWP and live customer policies are also up at the broker.
  
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• Axa completes SunLife sale to Phoenix Life

  01-11-2016 11:02
  
  Axa has completed the sale of its UK life and savings businesses.
  
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• Axa completes Sun Life sale to Phoenix Life

  01-11-2016 11:02
  
  Axa has completed the sale of its UK life and savings businesses.
  
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• Hastings increases GWP to 26%

  01-11-2016 10:59
  
  Hastings has seen gross written premiums up by 26% from the same period last year.
  
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• Markel buys Galleon MGA

  01-11-2016 10:56 via insuranceage.co.uk
  
  The London managing general agent specialises in marine PI and cargo liability.
  
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• Power hour: Delivering D&O

  01-11-2016 10:30
  
  With only a quarter of small businesses buying directors’ and officers’ (D&O) cover, our panel of experts discuss how to sell it to SMEs and what the industry can do promote best practice
  
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• Industry voice: helping clients protect their property in winter – part two

  01-11-2016 10:30
  
  Part two of the bespoke series of articles from Samantha Miles, sales director at Vasek Insurance, investigates the crucial topic of keeping property safe in winter.
  
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• Broker Expo Coventry - nine days to go

  01-11-2016 10:30
  
  The event where brokers do business returns to Coventry with a packed programme.
  
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• Investor boosts stake in former Quindell

  01-11-2016 09:15
  
  Investment house buys more shares in Watchstone Group
  
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• Hastings growth continues with GWP jump

  01-11-2016 08:37
  
  Hastings to update financial targets
  
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• Closing the claims liquidation loophole

  01-11-2016 08:04
  
  Regulatory powers to crack down on rogue claims management companies are to bepassed to the Financial Conduct Authority
  
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• Rising Star: Annie Robertson, ERS

  01-11-2016 08:00
  
  Annie is portfolio underwriting manager for bespoke motor at the insurer
  
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• Members reveal attitudes to broker networks in new poll

  01-11-2016 07:30
  
  Consulting firm unveils results of broker networks poll
  
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• AXA completes sale of UK units

  01-11-2016 06:56
  
  Insurer finalises exit from UK life and savings businesses
  
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• Chinese P&C insurers see profits decline 29% in first nine months

  01-11-2016 06:49
  
  China's P&C insurers saw profits fall 29% to 48.2bn yuan (£5.8bn) in the first nine months of the year compared with the same period in 2015.
  
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