Insurance news

• RSA names commercial lines division heads

  07-02-2017 22:58
  RSA has selected three senior commercial lines executives,
  Gareth Hilton, Richard Tuner and Gary Long, to lead parts of its
  restructured specialty business.
  All three will report to Hayley Robinson, managing director, RSA
  Global Risk Solutions.
  Hilton will head London market construction and engineering,
  renewable energy, marine and wholesale international property and
  casualty.
  Turner will take on Europe specialty lines and marine insurance,
  including Scandinavian hull. He will also be responsi
  
  Read more

• Scor secures 5.4% premium growth at 1.1

  07-02-2017 20:13
  Scor expanded its renewal book by 5.4 percent to EUR3.2bn
  ($3.4bn) of premium at 1 January, it announced today.
  The global reinsurer said risk-adjusted pricing declined by 0.6
  percentage points year on year at the renewal date, when it renews
  around 65 percent of its total P&C book.
  The pricing of proportional business remained relatively stable,
  while non-proportional business was more resilient than in previous
  renewals, Scor said.
  Treaty P&C business, which represented 71 percent of t
  
  Read more

• Reinsurers showed discipline at 1.1: Peignet

  07-02-2017 20:13
  The 1 January renewals showed signs of "reasonably good
  discipline" from lead reinsurers, according to Scor Global
  P&C CEO Victor Peignet.
  Speaking to The Insurance Insider,
  Peignet described the latest round of renewal negotiations as
  "tough", with discussions taking shape relatively late in
  the year and a lack of visibility on the part of buyers.
  "People were very hesitant to be the first one to jump in,
  so it delayed the whole process," Peignet said. "But this
  year there was...
  
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• Pool Re CEO argues for new 'terror' definition

  07-02-2017 20:13
  The head of UK government-backed terrorism insurance scheme Pool
  Re today suggested the insurance sector's definition of a
  terrorist attack was outdated.
  At a conference to mark the publication of its second Threat
  Report, Pool Re CEO Julian Enoizi noted that in several recent
  attacks assailants haven't actually belonged to proscribed
  organisations, meaning the events didn't meet Pool Re's own
  definition of terrorism.
  He said: "A lot of these guys are 'inspired by' and
  they are not a member of..
  
  Read more

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• 'Perfect storm' hurting offshore market: IUMI

  07-02-2017 20:13
  The combination of low oil prices, strong competition and
  alternative capital is creating a "perfect storm" in the
  offshore energy market, according to the International Union of
  Marine Insurers (IUMI).
  Speaking at the trade body's annual press conference in
  London today, IUMI president Dieter Berg said despite the
  challenges there were signs the situation had improved as the price
  of oil had begun to stabilise.
  He said: "Still there is some hope as the oil price has
  seemed to have...
  
  Read more

• OneBeacon Q4 profits dip as underwriting improves

  07-02-2017 20:13
  OneBeacon reported a near-22 percent decline in fourth-quarter
  operating profits as investment losses eroded earnings at the White
  Mountains-backed group.
  Operating income fell to $20.6mn, or $0.22 per share, compared
  to the $26.3mn, or $0.28 per share, disclosed a year earlier. The
  earnings per share figure exceeded the $0.16 consensus forecast
  compiled by Zacks Investment Research.
  The company reported a total return on invested assets of -0.2
  percent for the period, resulting in net investmen
  
  Read more

• Argo keeps Ariel brand as Mather made reinsurance head

  07-02-2017 20:13
  Argo will retain the Ariel Re brand as it announced that the CEO
  of the newly-acquired firm will become group head of
  reinsurance.
  Ryan Mather, who was headed Ariel Re before it was bought out,
  will now lead all reinsurance operations for Argo globally.
  The Insurance Insider understands that
  the existing president of Argo Re Matthew Wilken will take the
  number two slot within the reinsurance division.
  Mather will report directly to Jose Hernandez who heads up
  Argo's international business....
  
  Read more

• AJG launches $200mn manufacturer cyber risk product

  07-02-2017 20:13
  AJ Gallagher (AJG) has developed a cyber insurance product designed
  to protect manufacturers.
  The product offers capacity of up to $200mn and is led by
  Brit.
  AJG's manufacturers' cyber policy indemnifies against
  property damage and bodily injury exposures resulting from a
  control system interruption, which is typically excluded from other
  cyber policies.
  The policy also offers bespoke cover for increased cost of
  working, contractual penalties and contingent direct supplier
  interruption from a cy
  
  Read more

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• AJG acquires Lewis & Associates

  07-02-2017 20:13
  Acquisitive broker Arthur J Gallagher (AJG) has purchased
  California-based retail broker Lewis & Associates.
  The terms of the transaction were not disclosed.
  Lewis & Associates is a retail broker and employee benefits
  consultant that primarily operates in central California.
  It specialises in retirement communities, including assisted
  living, independent living and skilled nursing facilities.
  The company's employees will continue to operate from their
  current location in Visalia, Califor
  
  Read more

• Address Hotel fire loss climbs to $330mn

  07-02-2017 20:13
  Emaar Properties, the property manager for the Address Downtown
  Hotel complex in Dubai, has signed an agreement with its insurer to
  recover 1.22bn dirhams ($330mn) in relation to a fire at the site
  in December 2015, it announced today.
  Emaar's primary insurer is Orient Insurance. Sources told
  The Insurance Insider that Orient had a 36 percent share of the
  cover, but was heavily reinsured by a panel including Ace, Chubb
  and QBE.
  Zurich is understood to have a 30 percent...
  
  Read more

• Why the mariners have mutinied over PPL

  07-02-2017 17:04
  Placement Platform Limited (PPL) is "open to serious abuse
  and misuse" according to a letter from marine market
  representatives that detailed 10 objections to the long-awaited
  system as it stands.
  The letter, obtained by The Insurance
  Insider, represents a wide-ranging critique of PPL
  and comes amid concerns that the system may not yet be entirely fit
  for purpose. The document, dated 10 January, includes candid
  feedback from Atrium Underwriting - writing on behalf of the
  practitioner group - on
  
  Read more

• Uncertainty over smaller Floridians as Demotech acts

  07-02-2017 17:04
  Florida's assignment of benefits (AOB) water claims deluge
  has left a number of its smaller homeowners' insurers facing an
  uncertain future after Demotech signalled a round of downgrades
  early next month.
  In a broad statement bemoaning the current operating environment
  for carriers, the ratings agency said it would suspend guidance for
  Florida property insurers because industry claims procedures and
  protocols had been reversed in the state.
  Demotech
  reported that every Florida property writer it
  
  Read more

• Thirsty cat bond market could challenge records

  07-02-2017 17:04
  Cat bond market conditions are extremely favourable to sponsors
  and it would not be surprising to see a record volume of deals this
  year, Swiss Re Capital Markets said in its annual insurance-linked
  securities (ILS) review.
  This comes as investor demand is sharpened by a record
  "wall of maturities" due in the cat bond market over the
  first half of 2017.
  The volume of maturities could result in the cat bond market
  shrinking temporarily, but "market conditions are extremely
  favourable...
  
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• RenRe expands Upsilon retro vehicle

  07-02-2017 17:04
  RenaissanceRe reported a $92mn net increase in the size of its
  retro-focused Upsilon collateralised funds at 1 January, as CEO
  Kevin O'Donnell said new demand helped create an opportunity
  for the reinsurer to grow its book.
  O'Donnell said on an earnings call that retro prices in the
  January renewals were down "somewhat less" than the 5
  percent rate reductions that prevailed for US cat reinsurance,
  having been supported by the new demand for cover.
  Even though RenRe expanded its catastrophe...
  
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• R&Q weighing managing agency divestiture

  07-02-2017 17:04
  Randall & Quilter (R&Q) is exploring the sale of a
  majority stake in its managing agency arm and is in discussions
  with a number of parties about a potential transaction,
  The Insurance Insider can reveal.
  Sources told
  this publication that the Aim-listed business has retained
  experienced sell-side boutique Kinmont to advise it on its
  strategic options.
  Gavin Kelly's corporate finance business has been working
  with R&Q for over a year, it is understood, but efforts to seal
  a deal are.
  
  Read more

• PPL to make adjustments after marine revolt

  07-02-2017 17:04
  Placing Platform Limited (PPL) will introduce more radical
  changes to its insurance exchange software than originally planned,
  after a group of marine underwriters refused to take up the
  computer system in its current form.
  PPL has signalled a willingness to improve its responsiveness to
  the market after it ran into the opposition.
  Marine had been scheduled as the next class for the rollout of
  the electronic placing platform, with the end of the first quarter
  targeted.
  However, after testing the
  
  Read more

• PPL binds 1,600 risks in first seven months

  07-02-2017 17:04
  Two-thirds of the open market financial and professional lines
  risks placed by 10 key brokers are being transacted via Placement
  Platform Limited (PPL), the project's chairman David Ledger has
  told The Insurance Insider.
  Over 1,600 risks have been bound via PPL since it was launched
  in July 2016. This includes over 1,000 financial and professional
  lines risks and 300 terrorism risks, according to data provided by
  the London Market Group (LMG) and Ledger.
  The LMG added that 2,672 endorsements hav
  
  Read more

• Most carriers beat market expectations in Q4

  07-02-2017 17:04
  The majority of carriers under our coverage that have disclosed
  so far have exceeded equity analysts' expectations for fourth
  quarter earnings.
  Out of the group of 14 P&C (re)insurers, only two fell short
  of consensus estimates. The outperformance included 10 carriers
  that bested analyst forecasts by more than 10 percent and six that
  were more than 20 percent ahead of that mark.
  The Hanover
  brought up the rear among early reporters, as a headline loss of
  $0.46 per share was...
  
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• Mark-to-market losses squeeze book values in Q4

  07-02-2017 17:04
  There was a spike in US bond yields in the three months to 31
  December triggered by the presidential election, which translated
  into mark-to-market losses for P&C (re)insurers.
  The 10-year US Treasury bond yield closed the fourth quarter at
  2.45 percent, up from 1.88 percent before the election.
  This drove
  down the price of outstanding bonds and consequently shrank
  realised gains or even caused unrealised losses on companies'
  balance sheets, sapping book values for all firms accounting under
  
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• Litigation ongoing over $1.3bn SBM claim

  07-02-2017 17:04
  London market carriers are embroiled in a legal fight over a
  $1.28bn claim on a construction all risks policy in relation to
  physical damage at a North Sea mobile offshore production unit
  (MOPU) in 2012.
  According to court documents, the insured, Single Buoy Mooring
  (SBM), is seeking indemnity for damage to the Yme MOPU unit in the
  Norwegian sector of the North Sea after the discovery of a
  deficiency in the structure prompted its removal.
  SBM is claiming a constructive...
  
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• InsurTech fund targets $150mn and 25% returns

  07-02-2017 17:04
  Recently announced venture fund InsurTech Venture Partners is
  targeting minimum investments from carriers of $15mn, according to
  a prospectus obtained by The Insurance
  Insider.
  The document details the investment strategy and outlines the
  structure of the company, whose launch was announced in November
  last year.
  It is headed by former Direct Line COO Damian Arnold, who will
  serve as the fund's operating partner.
  He is accompanied by former Goldman Sachs executive and FinTech
  entrepreneur Nabil
  
  Read more

• Insider View: Primary pricing

  07-02-2017 17:04
  After two years of steady softening there are tentative signs
  that pricing in the US commercial P&C market might be heading
  to an inflection point, where price falls decelerate and the curve
  begins to tilt upwards towards positive territory.
  Unsurprisingly, there has been little consensus or consistency
  to be found in listening to Q4 earnings calls over the last couple
  of weeks.
  At this stage in the cycle there are plenty of moving parts,
  with companies' experience bound to vary...
  
  Read more

• Insider View: PPL's marine fracas

  07-02-2017 17:04
  Speak with anyone that has to transact business via Placing
  Platform Limited (PPL) and you will quickly realise that the system
  is not perfect.
  The friction between PPL and certain market practitioners is not
  just because underwriters are conservative and set in their ways -
  although many clearly are.
  PPL plainly has its failings as a system. To use the web
  developer lingo, the user experience - or UX - is poor. And it
  sounds like some of the core...
  
  Read more

• Insider View: London rate slowdown

  07-02-2017 17:04
  That London market rate reductions are slowing is a clear
  positive for the market.
  But the development needs to be placed in perspective - because
  when has offering the same cover for 7.5 percent less ever been
  something to get excited about?
  After years of softening, these rate reductions are compounding
  and many classes must now surely be priced to breakeven, or even at
  a loss. At best, pricing adequacy is marginal.
  Big ticket business - especially in specialty lines...
  
  Read more

• Insider View: InsurTech Venture Partners

  07-02-2017 17:04
  The response of the traditional (re)insurance industry to the
  rise of InsurTech has been varied.
  While many companies have taken a proactive approach and
  established internal divisions to either research or invest in the
  burgeoning technology, others have chosen to reserve judgement.
  In other words, while everyone in the industry is talking about
  InsurTech, and some have chosen to jump on this particular
  bandwagon now, the response has been far from homogenous.
  There remains an undercurrent of o
  
  Read more

• Hannover adds aggregate deal to expanded retro covers

  07-02-2017 17:04
  Hannover Re placed a new EUR100mn ($108mn) aggregate
  retrocession cover at the 1 January renewals as it also expanded
  the size of its K-Cession sidecar.
  The reinsurer confirmed to sister publication
  Trading Risk that it had bought $550mn of
  retro limit for 2017 through its K-Cession quota share, up from
  $500mn last year.
  The vehicle now provides cover for almost 45 percent of the
  relevant subject business, up from 40-41 percent in 2016.
  As in previous years, the sidecar provides...
  
  Read more

• Big ticket rate declines moderate amid profitability pressures

  07-02-2017 17:04
  After years of persistent softening, rate reductions on open
  market insurance business are slowing on Lime Street as carriers
  start to push back.
  A wide canvass of senior underwriting executives conducted by
  this publication suggested the London market had largely shaken off
  the double-digit reductions that have plagued big ticket business
  for a number of years, with rates now trending down by between 5.0
  and 7.5 percent in a number of core lines.
  It is still a far cry from...
  
  Read more

• BHSI enters London finpro market

  07-02-2017 17:04
  Berkshire Hathaway Specialty Insurance (BHSI) has launched a
  London-based management liability unit, sister title
  Inside FAC revealed on 6 February.
  The specialty carrier hired Patrick Brown in January as head of
  executive and professional liability for the UK and Southern
  Europe, and plans to recruit more people as it makes a major play
  for the space.
  Brown has nearly a decade of experience in directors' and
  officers' (D&O) and other financial and professional lines
  (finpro) business, both
  
  Read more

• Bermudians, Hannover Re signal slowing rate declines

  07-02-2017 17:04
  Renewals commentary from Validus, Axis and RenaissanceRe, and
  detailed information from Hannover Re, provided further evidence
  that a four-year decline in reinsurance rates is slowing.
  However, executives highlighted international property and
  property catastrophe lines as trouble spots.
  The three Bermudian carriers and the German group delivered
  bulletins that broadly reflected JLT Re's assertion last month
  that reinsurance rating pressure abated at the renewals, with JLT
  Re's global property c
  
  Read more

• Iprism teams up with Qatari Insurance Company to replace Gable capacity

  07-02-2017 16:47
  
  The move affected construction, property and casualty business.
  
  Read more

• Berkshire Hathaway Specialty to open London office

  07-02-2017 16:43
  
  Berkshire Hathaway Specialty Insurance is to open an office in London and has appointed executives to its property lines, executive and professional liability and claims divisions.
  
  Read more

• ABI and Apil give evidence in parliament over whiplash

  07-02-2017 15:47
  
  Insurers and lawyers went head to head over whiplash reform at a Parliamentary committee hearing this afternoon.
  
  Read more

• US Risk gets Carter

  07-02-2017 14:40
  Wayne Carter III has been named as president of US Risk
  Underwriters, the carrier said. Carter was president of Berkley
  Program Specialists, a WR Berkley subsidiary, until August 2016.
  Carter will assume senior management responsibilities for US
  Risk's in-house insurer, a division that sits alongside the
  Dallas, Texas, conglomerate's MGA, brokerage and consultancy
  arms.
  US Risk is America's fifth-largest property and casualty
  wholesale insurer and managing general agency.
  Carter began his career
  
  Read more

• CNA expense ratio a 'competitive disadvantage': Robusto

  07-02-2017 14:40
  CNA Hardy's comparatively high expense ratio compared to its
  peers is putting the company at a "competitive
  disadvantage", according to recently appointed CEO Dino
  Robusto.
  Speaking on an analysts' conference call to discuss
  fourth-quarter results yesterday, Robusto said CNA will remain
  focussed on the expense issue into 2017.
  He said: "I believe fostering a culture of disciplined expense
  management, which includes continuously challenging where and how
  we spend, in table stakes or ensuring valu
  
  Read more

• BHSI opens London office

  07-02-2017 14:40
  Berkshire Hathaway Specialty Insurance (BHSI) has established an
  office in London and appointed executives to its property,
  executive and professional liability and claims divisions for the
  UK and Southern Europe.
  The London office will cover the UK, Ireland, Spain, France and
  Italy.
  BHSI named Richard Nathan as head of property lines, Patrick
  Brown as head of executive and professional liability and Andrew
  Walker as head of claims.
  Nathan joins BHSI from Allied World, where he was corporate
  pro
  
  Read more

• Hiscox backs cyber capacity for Towergate MGA Fusion

  07-02-2017 14:40
  
  Towergate-backed managing general agent Fusion has launched a cyber and data product offering limits of up to £5m.
  
  Read more

• Ex-Autofocus employees accused of 'industrial scale' perversion of justice

  07-02-2017 14:34
  
  Seven former employees of Autofocus were accused of doctoring credit hire rate evidence to defend insurers in court.
  
  Read more

• RSA introduces new structure for Global Risk Solutions

  07-02-2017 14:08 via insuranceage.co.uk
  
  Insurer claims the new model will help it trade more collaboratively with brokers.
  
  Read more

• FSCS refunds 75% of Enterprise customers

  07-02-2017 14:07
  
  Three out of four former policyholders of Enterprise have been compensated by the Financial Services Compensation Scheme.
  
  Read more

• PPI complaints account for half of FOS’ workload

  07-02-2017 13:00
  
  The ombudsman opened 36,065 new PPI cases between October and December last year.
  
  Read more

• Pool Re flags political violence protection gap

  07-02-2017 12:36
  Pool Re has warned of coverage gaps in both political violence and
  cyber insurance as it pledged to quantify the gulf between economic
  and insured losses after recent European terrorist attacks.
  The UK government-backed terrorism insurance scheme made the
  comments in its second Threat Report.
  Pool Re has already conducted a preliminary assessment of the
  attacks in Europe in 2015 and 2016, including the Paris shootings
  in November 2015, events in Brussels last March and the truck
  attacks in Nice.
  
  Read more

• PE sets heady pace for US broker M&A

  07-02-2017 12:36
  The first month of 2017 brought no shortage of deal activity in
  the distribution space, with AJ Gallagher announcing three
  acquisitions and Marsh swooping in on J Smith Lanier.
  And plenty more transactions are in the pipeline, according to
  AJ Gallagher CEO Patrick Gallagher."Normally we see a lull in activity during the first
  quarter but that has not been the case so far in 2017," he
  told analysts last month. "We've already closed five
  mergers for about $32mn of...
  
  Read more

• Markel International names external reinsurance head

  07-02-2017 12:36
  Markel International has promoted Warren Towner to head of
  underwriting management and reinsurance placement, according to a
  statement from the company.
  Towner was previously general manager of the carrier's
  reinsurance operation. He will take on responsibility for all of
  Markel's outbound reinsurance.
  He will report to Jeremy Brazil, director of underwriting.
  Brazil said: "This is an important role in bringing
  together the underwriting operations to support our underwriting
  divisions and corpor
  
  Read more

• Hiscox provides cyber capacity to MGA Fusion

  07-02-2017 12:36
  Towergate-owned UK managing general agent (MGA) Fusion has entered
  the cyber insurance market offering a limit of £5mn ($6mn) for
  any one risk, with capacity provided by Hiscox.
  The standard commercial cyber insurance product covers data
  breach, business interruption, cyber extortion, third party privacy
  protection and hacker damage, with the option to extend for cyber
  crime and phone hacking.
  The cover is available as a standalone product or in conjunction
  with other financial lines produ
  
  Read more

• Half of businesses unprepared for cyber attack: Hiscox

  07-02-2017 12:36
  More than half of businesses in the UK, US and Germany are
  ill-prepared to deal with cyber attacks, according to Hiscox.
  In the company's Cyber Readiness Report 2017, released
  today, it said 53 percent of 3,000 businesses surveyed were
  unprepared for an attack, while just 30 percent qualified as
  'expert' in the overall cyber readiness.
  US firms were the best prepared, with 49 percent of the
  'expert' rated companies based in the country.
  German firms were the least prepared, making...
  
  Read more

• Dual renews £300mn financial lines binder

  07-02-2017 12:36
  Hyperion's managing general agent (MGA) arm Dual has renewed
  the cornerstone capacity on its £300mn ($370.5mn)
  international financial lines binder with an unchanged panel,
  The Insurance Insider understands.
  Sources told this publication that the seven biggest capacity
  providers had all put down lines for another year on the deal,
  which incepts at 1 February.
  It is understood that the paper providers that have renewed are
  Liberty, Arch, Everest Re, Allianz, Chubb, CNA Hardy and Tokio
  Mille
  
  Read more

• Argo completes Ariel Re deal

  07-02-2017 12:36
  Argo has closed its acquisition of Lloyd's (re)insurer Ariel
  Re, it announced late yesterday.
  In November,Argo confirmed previous reports by this publication that it was to
  buy 100 percent of Ariel for a cash consideration of
  approximately $235mn, valuing the business at 1.25x forecast
  year-end tangible book value.
  Ariel Re was jointly owned by Banco BTG Pactual and the Abu
  Dhabi Investment Council.
  The combined Ariel Re and Argo Re entity will be led by Argo
  Group's head of...
  
  Read more

• Munich Re sees profits slip owing to major losses

  07-02-2017 12:26
  
  Munich Re has seen full year profits decline by 16% owing to storm and earthquake claims in the last quarter.
  
  Read more

• Insurers must promote terrorism insurance outside of cities: Pool Re

  07-02-2017 12:25
  
  Insurers must promote terrorism insurance to small and medium size enterprises and those outside of London, according to the latest threat report from Pool Re.
  
  Read more

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