Insurance news

• State Auto beats Street view on fourth-quarter profit

  14-02-2017 20:18
  State Auto surpassed the fourth-quarter profit estimates of Wall
  Street analysts by posting operating earnings of $0.46 a share even
  as drag from its auto lines held back its overall performance.
  The consensus among analysts called for $0.33 per share,
  according to Arash Soleimani of Keefe Bruyette & Woods and
  Larry Greenberg of Janney Montgomery Scott.
  State Auto reported operating profit of $19.2mn for the fourth
  quarter, up from $300,000 in the fourth quarter of 2015.
  While its combined r
  
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• Orchid targets admitted homeowners' market with Spinnaker

  14-02-2017 20:18
  US coastal wind-focused managing general agency (MGA) Orchid
  Underwriters has teamed up with programme insurer Spinnaker to roll
  out admitted residential homeowners' coverage in the US.
  The partnership will initially offer the admitted product line
  in Alabama early next month, before expanding into other states
  through the rest of 2017.
  Other states thought be targeted for this year include Florida,
  Mississippi and Virginia.
  In a statement, Orchid said the admitted homeowners'
  coverage written o
  
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• RMS appoints McKinsey's Pritula as president

  14-02-2017 18:27
  Risk modelling agency RMS has appointed Mike Pritula as
  president, with effect from 1 March.
  Pritula will lead RMS' client service and market development
  initiatives.
  He will also join the firm's executive committee alongside
  CEO Hemant Shah, CFO Peter Eidelman, chief risk modelling officer
  Mohsen Rahnama, general manager of platform and software Eric Yau,
  and global head of solutions Michael Steel.
  Pritula is a 35-year veteran of consultancy firm McKinsey, where
  he was a director in the New Yor
  
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• Allied World hires Australia onshore construction head

  14-02-2017 18:27
  Allied World Global Markets has appointed Karsten Buescher as
  assistant vice president for onshore construction business in
  Australia.
  Buescher will report to Clifford Scott, the company's head
  of onshore construction in the Asia Pacific region.
  The assistant vice president has held roles at companies
  including FM Insurance Company and Munich Re and has two decades of
  experience in engineering, underwriting and risk engineering,
  Allied World said.
  According to his LinkedIn profile, Buescher will
  
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• MS Amlin joins Flood Re scheme

  14-02-2017 18:25
  
  Global speciality insurer MS Amlin has joined Flood Re with accessibility for the renewal of new business beginning 1 March 2017.
  
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• Risk managers and business leaders must be 'cyber savvy'

  14-02-2017 18:24
  
  The UK’s business leaders and risk managers need to be ahead of the curve when it comes to cyber risk, said Julia Graham, technical director at the Association of Insurance and Risk Managers.
  
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• FCA issues warning over unauthorised insurance firm

  14-02-2017 17:11
  
  Consumers have been warned to be “especially wary” over an insurance company which may have been selling services without authorisation.
  
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• WTW restates 2016 cash flows

  14-02-2017 16:23
  Global broker Willis Towers Watson has restated 2016 cash flow
  figures to reflect a $47mn reduction in net cash from operating
  activities compared to the figure reported in its fourth quarter
  results.
  The company said the restatement means net cash from operating
  activities came in at $920mn, down from the $967mn it reported on 9
  February.
  Willis Towers Watson also lowered the free cash flow figure to
  $702mn from $745mn.
  Among the changes detailed in the filing, the broker said...
  
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• Nichols resigns as Axis Re CEO

  14-02-2017 16:23
  Axis Re CEO Jay Nichols has stepped down from his role, the
  company announced today.
  Axis Capital said Nichols had agreed to remain with the carrier
  in a transitional capacity until 31 March.
  Axis Re Europe president and chief underwriting officer Jan
  Ekberg has been named as Nichols' successor on an interim
  basis.
  Ekberg has been with the company since 2004 and will report
  directly to group president and CEO Albert Benchimol.
  Nichols said the time had come for a...
  
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• MS Amlin joins Flood Re

  14-02-2017 16:23
  MS Amlin has signed up to take part in UK government-backed
  flood insurance scheme Flood Re.
  Flood Re aims to deliver more affordable insurance for
  households in areas at high risk of flooding.
  The scheme, which was launched last year, will be accessible by
  all MS Amlin brokers and coverholder partners for new business from
  this month and for renewal business from 1 March.
  Martyn Dolan, leading class underwriter for household at MS
  Amlin, said the company's entry into the...
  
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• Wholesale brokers are here to stay: AmWins CEO

  14-02-2017 14:25
  AmWins CEO Steve DeCarlo has given a wide-ranging defence of the
  role of the wholesale broker, as the sector continues to look for
  signs of a credible disrupter.
  Speaking at The Insurance
  Insider's InsiderScope conference, DeCarlo said
  he had "no fear" that technology would remove the need
  for intermediaries in the insurance market.
  After walking the audience through a range of different
  companies and their divergent distribution strategies, the AmWins
  CEO said: "It is a very complicated structu
  
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• UK government raises automated vehicle cover concerns

  14-02-2017 14:25
  The UK Department for Transport (DfT) has highlighted the
  insurance implications of driverless cars.
  In a report released last week about the introduction of the new
  technology, the government said that the projected entry of
  automated vehicles (AVs) into the UK in five to 10 years posed a
  challenge for UK motor insurance law.
  Under the current UK motor insurance regime, drivers are covered
  rather than vehicles - as is the case elsewhere.
  As a result, driverless vehicles would create...
  
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• Tokio Marine international profit surges on HCC expansion

  14-02-2017 14:25
  Specialty insurance growth at Tokio Marine HCC contributed to a 22
  percent increase in nine-month non-life international profits at
  parent company Tokio Marine, according to company filings.
  The international segment overall - which comprises reinsurance,
  Europe, North America, Asia and Middle East and South and Central
  America - reported non-life profit of 117.0bn yen ($1bn) for the
  period.
  The North American business, which includes recently acquired
  Tokio Marine HCC, reported a profit of 88.8
  
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• Sompo Canopius net income flat as premiums fall

  14-02-2017 14:25
  Nine-month net income from Sompo Canopius was flat year-on-year
  at 4.2bn yen ($36.9mn), according to filings from parent company
  Sompo Japan Nipponkoa.
  Net written premiums (NWP) at the Lloyd's business fell by
  11 percent to 95.1bn yen for the same period.
  Sompo said both the underwriting and investment profits at Sompo
  Canopius were in line with its plan.
  For the full-year 2016, which ends on 30 March 2017, Sompo
  forecasted NWP of 118.3bn yen and net income of 5.4bn yen...
  
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• RMS hurricane model update shows lower losses

  14-02-2017 14:25
  Modelling agency RMS has said that annual average losses for US
  hurricane activity will come in notably lower under the 2017 update
  to its medium-term storm model.
  The agency updates the near-term models every two years and the
  latest projection takes into account the quiet seasons that took
  place during 2011-2015.
  As a result, the model will show a 16 percent drop in annual
  average losses for US storms, as sister publication
  Trading Risk reported last week - a
  development...
  
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• New law raises prospect of claims disputes

  14-02-2017 14:25
  Insurers have less than three months to fine-tune their claims
  handling procedures before legislation which could land them with
  new liabilities takes effect.
  On 4 May, the UK Enterprise Act will make insurers liable for
  additional losses if claims aren't settled within a
  "reasonable" period of time. The law does not specify
  what reasonable means.
  The measure was pulled from the Insurance Act after extensive
  insurance industry lobbying, and the government's decision to
  reinstate it in the far br
  
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• NAIC RBC changes could favour higher-rated reinsurers

  14-02-2017 14:25
  Proposed changes to the credit risk charge in the National
  Association of Insurance Commissioners (NAIC)'s risk-based
  capital (RBC) calculation could give the highest-rated reinsurers a
  competitive advantage.
  The US regulatory body's current RBC model requires insurers
  to hold capital equal to a flat 10 percent charge on reinsurance
  recoverables irrespective of the reinsurer's rating or whether
  it is collateralised or not.
  But proposals expected to come into effect between the 2018 and
  2019 repo
  
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• Insider View: Bolt and BHSI

  14-02-2017 14:25
  Tom Bolt, Berkshire Hathaway Specialty Insurance's UK and
  Southern Europe CEO, has access to the biggest insurance balance
  sheet in the world and the mandate to build a sizeable specialty
  insurance business in London.And he isn't taking his pen out; or if he is, it is sparingly
  at most.Which tells you everything you need to know about rate adequacy in
  London market insurance lines.Bolt has spent the last eight years with the best possible vantage
  point on...
  
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• Floridians act to avert Demotech downgrades

  14-02-2017 14:25
  Around half a dozen Florida homeowners' insurers are taking
  action to shore up their capital and surplus position ahead of
  submitting their final 2016 financial results, according to
  Demotech.
  The carriers are responding to thethreat of a downgrade below the crucial A rating by the firm
  after it pulled guidance on the sector in Florida, citing a changed
  operating environment in the state, primarily because of the
  assignment of benefits (AOB) crisis and adverse judicial
  rulings.
  Demotech offered
  
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• Ed hires Gulsun to head international P&C

  14-02-2017 14:25
  Ed has hired Willis Towers Watson's direct and facultative
  (D&F) specialist Namik Gulsun, the broker announced today.
  Gulsun will become head of international property and casualty
  at Ed, and will work alongside James Venton, head of US property
  and casualty.
  He will take up his role with immediate effect and will report
  to Chris Bonard, CEO of specialty at Ed.
  Prior to his new role, Gulsun was an executive director at
  Willis Towers Watson and head of Central and Eastern...
  
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• Analysts focus on Arch mortgage growth

  14-02-2017 14:25
  Arch Capital Group benefited significantly from its mortgage
  business in the fourth quarter as it reported consensus-beating
  profits of $1.13 a share.
  In its Q4 results released yesterday, Arch's existing
  mortgage segment reported strong top and bottom line growth, as
  gross written premiums climbed 50.7 percent to $138.3mn and
  underwriting income jumped 139.7 percent to $42.3mn.
  BMO Capital markets analyst Charles Sebaski said the mortgage
  business had improved the overall Arch accident year und
  
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• A 12-year fight

  14-02-2017 14:25
  Friday night (10 February) brought a spectacular end to probably
  the most important insurance dispute of a generation as New
  York's Attorney General (AG) announced that former AIG boss
  Maurice "Hank" Greenberg had admitted to involvement in
  two fraudulent transactions during his decades-long tenure.
  After a prosecution that had lasted almost 12 years, the
  statement from Eric Schneiderman initially appeared to end the war
  of words between his office and Greenberg. But it immediately
  prompted the
  
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• Technology tops InsiderScope agenda

  14-02-2017 14:25
  The threat - and opportunity - of technology for the
  (re)insurance market was a consistent theme during discussions at
  The Insurance Insider's
  InsiderScope London event last week, as executives called
  for the market to embrace change wholeheartedly.
  More than 330 delegates attended the event on 9 February, where
  XL CEO Mike McGavick, Arch Capital president and CEO Dinos Iordanou
  and Amwins CEO Steve DeCarlo were among the speakers.
  Technology and disruption topped the agenda at the event, with
  A
  
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• MS Amlin boosts MS&AD net premiums

  14-02-2017 14:25
  Group profits at MS&AD rose by 21.7 percent to 318.8bn yen
  ($2.8bn) for the nine months to 31 December, driven by profits in
  the domestic non-life business.
  Net income increased by 22.8 percent year-on-year to 209.6bn
  yen.
  The nine-month report includes the results of MS Amlin, which
  MS&AD acquired on 1 February 2016.
  The international business generated a third-quarter profit of
  35.2bn yen, up 5.4 percent on the prior-year period. Earnings at
  the domestic non-life business were up 46.5
  
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• InsiderScope London panellists demand market discipline

  14-02-2017 14:25
  Speakers at InsiderScope London called for market discipline from
  carriers and brokers, as the panel acknowledged the industry was
  treading on thin ice when it came to profitability.
  Arch chairman and CEO Dinos Iordanou said (re)insurers
  traditionally had "not done well in managing, financing and
  transferring risks for our clients in a smart and consistent
  way".
  The industry has also not been pricing risk consistently, he
  added. The executive pointed to US P&C pricing on large
  accounts, whic
  
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• Cincinnati Insurance expands collateralised re placement

  14-02-2017 14:25
  Cincinnati Insurance expanded a collateralised reinsurance deal to
  $200mn in size after its $100mn Skyline Re cat bond matured, the
  company said on an earnings call.
  The firm's broker JLT Capital Markets subsequently clarified
  that $180mn of the limit was placed as a private cat bond, with a
  further $20mn of three-year collateralised reinsurance cover
  topping up the insurer's earthquake protection.
  Skyline Re 2017-1 raised $180mn of indemnity limit split into
  two sections, sister publication Tra
  
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• BHSI opts for measured growth in Europe

  14-02-2017 14:25
  Berkshire Hathaway Specialty Insurance (BHSI) will not try to
  grow its business rapidly in Europe and will favour a slow and
  steady approach instead, according to UK and Southern Europe CEO
  Tom Bolt.
  Speaking to The Insurance Insider,
  Bolt said that BHSI was in the market to build long-term
  relationships with brokers and insureds gradually.
  "I think it was [BHSI CEO] Peter Eastwood who said that we
  have to earn our business, and that takes time," Bolt
  said.
  The executive...
  
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• Adnic returns to profit in 2016

  14-02-2017 14:25
  The Abu Dhabi National Insurance Company (Adnic) has reported net
  profit of 205mn ($55.8mn) dirhams for full-year 2016, marking a
  turnaround from the 334.5mn dirham loss the previous year.
  The preliminary financial results also recorded a vast
  improvement in Adnic's net underwriting, moving from a loss of
  228.9mn dirhams in 2015 to a 342.6mn dirhams gain in 2016.
  Net investment income was broadly flat at 102.4mn dirhams.
  Gross written premium was 2.4bn dirhams, up by 3.9 percent,
  while premium r
  
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• Markerstudy promotes Ross Barrington to retail MD

  14-02-2017 13:02
  
  Richard Morley also promoted to operations director for Markerstudy's retail business.
  
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• Ed hires Gulsun to head P&C

  14-02-2017 12:28
  Ed has hired Willis Towers Watson's direct and facultative
  (D&F) specialist Namik Gulsun, the broker announced today.
  Gulsun will become head of international property and casualty
  at Ed, and will work alongside James Venton, head of US property
  and casualty.
  He will take up his role with immediate effect and will report
  to Chris Bonard, CEO of specialty at Ed.
  Prior to his new role, Gulsun was an executive director at
  Willis Towers Watson and head of Central and Eastern...
  
  Read more

• Argo beats consensus despite cats lowering Q4 profit

  14-02-2017 12:28
  Argo Group International became the latest Bermudian to beat
  Wall Street forecasts despite a dip in fourth-quarter profit that
  included a cat-driven underwriting loss at its Lloyd's
  platform.
  The company reported adjusted operating profit of $19.8mn, down
  19 percent on the prior-year period. But the $0.65-a-share result
  produced a modest beat on the consensus analyst forecast of $0.62 a
  share, according to six estimates compiled by MarketWatch.com.
  For the full year, however, profit climbed 12 p
  
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• FCA issues warning over Halifax and Penn

  14-02-2017 12:05
  
  Regulator says the Yorkshire-based travel, car, life and home insurance provider is “unauthorised”.
  
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• Hiscox launches two new PI products

  14-02-2017 12:04
  
  Policies target the media and creative industries.
  
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• Law firm to pay insurer huge bill for 'inflating costs'

  14-02-2017 11:59
  
  Law firm Asons was hit with the huge bill after AXA discovered it had been ’falsely inflating legal costs’
  
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• Law firm to pay AXA huge bill after 'falsely inflating legal costs'

  14-02-2017 11:59
  
  Lawyers Asons were hit with the huge bill after AXA said it discovered they had been ’falsely inflating legal costs’
  
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• Caravan Guard selects Arc Legal for motorhome legal cover

  14-02-2017 11:40
  
  The broker has ended its relationship previous provider with Albany Assistance.
  
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• Henderson reveals turnover rise to £30m

  14-02-2017 10:26
  
  However profits for the year ended 30 April 2016 were slightly down.
  
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• Warburg Pincus and Aquiline among CFC bidders

  14-02-2017 10:21
  First-round bids in the auction of specialist MGA CFC
  Underwriting were submitted last week, with submissions coming
  solely from private equity houses, The Insurance
  Insider understands.
  Market sources suggested that the company could trade at a
  valuation upwards of 12x forward Ebitda of £15mn ($18.7mn),
  equating to £180mn+.
  Warburg Pincus, Lightyear Capital and Aquiline are understood to
  have submitted indicative proposals, but it is not clear yet
  whether they have been selected to
  
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• ICA puts NSW bushfire losses at $15.3mn

  14-02-2017 10:21
  The Insurance Council of Australia (ICA) declared an insurance
  catastrophe for bushfires that swept across parts of the state of
  New South Wales over the weekend.
  As of Tuesday morning, local time, the ICA estimated insured
  losses were at least $20mn ($15.3mn).
  It said the figure would likely rise as residents return to
  their homes and businesses to assess the damage.
  In the statement ICA CEO Rob Whelan said: "At least 30
  homes and other properties have been lost, and...
  
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• AIG Japan to merge two local units

  14-02-2017 10:21
  AIG Japan said it will consolidate two wholly owned subsidiaries
  into a single company by next January.
  The Japanese division of the American carrier said it would
  complete the merger of AIU Insurance Company and The Fuji Fire and
  Marine Insurance by 1 January, with the companies consolidating
  operations under a "pre-merger structure" from April.The US carrier, which today releases its fourth-quarter results,
  will call the merged entity AIG General Insurance.AIG General Insurance will be led by
  
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• Axis Insurance and RCG sign deal over renewables

  14-02-2017 10:20
  
  Renewables Consulting Group has signed a consulting deal over renewable assets with Axis Insurance.
  
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• Palomar enters private flood market in California

  14-02-2017 08:05
  Palomar Specialty became the first admitted carrier to launch a
  stand-alone residential flood insurance cover in California,
  offering a supplement to the US government's National Flood
  Insurance Program (NFIP).
  Developed using flood models provided by AIR Worldwide and
  distributed through insurance agency Prospect General, the
  programme offers limits of as much as $5mn per dwelling, compared
  to the NFIP's $250,000 cap.
  The Palomar programme also offers as much as $1mn in personal
  property cover
  
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• NY cyber security rules pose added D&O risk: Fitch

  14-02-2017 08:05
  Forthcoming cyber security regulations from New York state's
  Department of Financial Services may heighten the stakes for
  directors and officers (D&O) coverage providers while
  potentially spurring demand for insurance against cyber risk for
  banks and other institutions, according to Fitch Ratings.
  The rules, set to take effect on 1 March, require an executive
  or a director at a covered firm to annually certify compliance with
  the rules, which apply to a variety of financial services
  business
  
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• What US sanctions may look like under the Trump administration

  14-02-2017 08:00
  
  There is quite a bit of uncertainty regarding the direction of US sanctions policy under president Donald Trump's administration. Various forces drive in different directions.
  
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• Legal Update: Motor's waiting game

  14-02-2017 08:00
  
  The motor claims market is currently sitting in that state of indecision that business - and pilots - like to call ‘a holding pattern' as it awaits three major government consultations. These, to push the aviation analogy to its fullest, are hovering like unauthorised drones over the airfield, stopping the holding pattern coming to an end.
  
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• Blog: What US sanctions may look like under the Trump administration

  14-02-2017 08:00
  
  There is quite a bit of uncertainty regarding the direction of US sanctions policy under president Donald Trump's administration. Various forces drive in different directions.
  
  Read more

• Japan's AIU and Fuji Fire announce merger date and name

  14-02-2017 03:45
  
  Two large AIG wholly owned general insurers in Japan will complete their proposed merger, first announced in 2013, by the end of the year.
  
  Read more

• Argo beats despite cats lowering Q4 profit

  14-02-2017 02:03
  Argo Group International became the latest Bermudian to beat
  Wall Street forecasts despite a dip in fourth-quarter profit that
  included a cat-driven underwriting loss at its Lloyd's
  platform.
  The company reported adjusted operating profit of $19.8mn, down
  19 percent on the prior-year period. But the $0.65-a-share result
  produced a modest beat on the consensus analyst forecast of $0.62 a
  share, according to six estimates compiled by MarketWatch.com.
  For the full year, however, profit climbed 12 p
  
  Read more

• Arch Capital Q4 profit easily tops Street estimates

  14-02-2017 02:03
  Arch Capital Group breezed past Wall Street estimates by posting a
  fourth-quarter profit of $1.13 a share.
  Analysts had estimated profit of $0.96 cents a share for the
  just-ended quarter, according to a poll of 15 analysts by
  MarketWatch.com. The company said operating income available to
  common shareholders slipped 1.4 percent to $141.5mn from almost
  $143.6mn in the year-earlier quarter.
  "It was another solid quarter and we expect shares to have
  a modest positive bias in trading tomorrow," said
  
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• AIG to unveil 'critical' Q4 results

  14-02-2017 02:03
  AIG is expected to address key questions from investors, analysts
  and ratings agencies when it reports fourth-quarter results
  tomorrow followed by its earnings conference call on Wednesday
  morning.
  Since its huge reinsurance play with Warren Buffett's
  Berkshire Hathaway last month, the most prominent question is how
  big a Q4 reserve charge the New York-based insurer will take.
  AIG officially has said only that the charge will be material
  against property casualty results for the quarter.
  That co
  
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