Insurance news

• Title insurers ride US mortgage demand to 2016 gains

  21-02-2017 23:40
  Property title insurers had a good year in 2016, with the four
  largest carriers reporting an aggregate operating profit margin of
  11 percent, according to Fitch Ratings.
  Summing up 2016 results for the four largest carriers, Fidelity
  National Financial, First American Financial, Old Republic
  International and Stewart Information Services, Fitch said they
  collectively posted a 20 percent gain in profits on a 7 percent
  rise in revenue.
  Title insurance, routinely required by US mortgage lenders,
  pr
  
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• AmTrust ANV unit taps Pittinger for underwriter role

  21-02-2017 23:40
  ANV Global Services named James Pittinger to the role of
  underwriting director for the AmTrust-owned North American Managing
  General Underwriter.
  Pittinger, whose appointment was announced with immediate
  effect, will lead the unit from a New Jersey base as it focuses on
  management liability and professional lines, the company said.
  Pittinger joined the AmTrust unit from the Starr Companies run
  by Maurice "Hank" Greenberg. Pittinger was a vice
  president and financial lines division manager for St
  
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• Data capture crucial to Tom success: LMA

  21-02-2017 21:22
  The Lloyd's Market Association (LMA) has said linking data
  capture with the placement platform (PPL) project should be the
  "highest priority" for the London market reform
  process.
  Speaking to a gathering of CEOs from Lloyd's managing
  agencies today, LMA CEO David Gittings said that integrating one
  touch data capture with PPL should be at the top of the agenda for
  the Target Operating Model (Tom) reform process.
  Gittings told The Insurance Insider after the meeting that
  "structured data capture i
  
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• United Insurance shares drop on Q4 earnings miss

  21-02-2017 19:07
  Investors punished Floridian carrier United Insurance Holding's
  greater-than-expected fourth quarter loss as its shares fell more
  than 9 percent in early trading in New York.
  The stock fell to as low as $14.40 shortly after markets opened
  in the US following the President's Day holiday yesterday, when
  the Florida carrier reported its latest quarterly results.
  United lost $17.6mn before taxes in the last three months of
  2016 because of increased catastrophe claims and adverse reserve
  development,
  
  Read more

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• Axis adds Brown for MGA push

  21-02-2017 19:07
  Axis Insurance has hired Julian Brown as a vice president and
  underwriter to grow its London market managing general agency (MGA)
  business.
  Brown will work alongside Axis London MGA senior vice president
  Paul Cullum and a team of underwriters that currently write
  property and liability business on the platform.
  He joins from Beazley, where served as international focus group
  leader with responsibility for teams in London, France and
  Singapore during his 16 years with the company.
  Before joining
  
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• Carnegie-Brown to step down from JLT board

  21-02-2017 16:53
  Bruce Carnegie-Brown will step down from his role as a
  non-executive director of JLT Group, as the next Lloyd's
  chairman scales back his other City commitments.
  Lloyd's confirmed on Monday that Carnegie-Brown, the former
  Marsh Europe CEO and Aon UK chairman, will follow John Nelson as
  chairman in June.
  In a statement on Tuesday, JLT said that Carnegie-Brown is to
  step down from his non-executive role on 28 June.
  The former broking chief, who also sat on the board of...
  
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• La Playa gets Lloyd’s status

  21-02-2017 15:15
  
  The firm is now a registered broker with access to Lloyd’s of London capacity.
  
  Read more

• The stats: March 2017 - The Acturis Premium Index

  21-02-2017 15:01
  
  The end of 2016 was a near horror story for brokers
  
  Read more

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• Zurich leads $120mn Ukraine civil war loss

  21-02-2017 14:33
  Zurich is the lead insurer on a $120mn political risk claim
  caused by the conflict in Ukraine, The Insurance
  Insider understands.
  The insured is food conglomerate Cargill, one of the world's
  largest privately held corporations.
  Cargill had to abandon a sunflower crushing plant near Donetsk,
  Ukraine, in July 2014, and the site was occupied by armed intruders
  shortly afterwards.
  In August 2014 there were reports that the facility was damaged
  by a missile strike.
  Sources said that the impacted poli
  
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• Steep cut in Ogden rate would cost £4.9bn: Willis

  21-02-2017 14:33
  A 3 percentage point cut in the UK's Ogden discount rate for
  personal injury compensation would lead to a one-off reserve charge
  for the insurance industry of about £4.9bn ($6.1bn), according
  to Willis Towers Watson.
  The broker's worst-case estimate assumes the Lord Chancellor
  agrees to a demand from the Association of Personal Injury lawyers
  to cut the rate to minus 0.5 percent from 2.5 percent, something
  that few analysts are predicting.
  A cut of that magnitude would also add about...
  
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• Q4 results bode ill for Lloyd's FY numbers

  21-02-2017 14:33
  The profitability of the London market showed a marked
  deterioration in the fourth quarter, with several Lloyd's arms
  of international carriers posting combined ratios of over 100
  percent.
  Argo Syndicate 1200, Navigators' international business and
  Validus Lloyd's arm Talbot all reported an underwriting loss in
  the fourth quarter, as increased loss experience pushed carriers
  into the red.
  The unfavourable results are a bad sign for Lloyd's
  full-year disclosures, which are due to be posted on 30
  
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• Motor insurers braced for Odgen rate change

  21-02-2017 14:33
  Insurers could face additional earnings pressure and further
  reserve strengthening as a result of a cut to the so-called Ogden
  rate, which is expected to be announced later this month.
  The UK government is expected to slash the 2.5 percent discount
  rate that is shaved off lump-sum personal injury compensation, with
  an announcement by Lord Chancellor Liz Truss due imminently.
  The expected change has been long-delayed owing to an ultimately
  unsuccessful legal challenge from the Association of Brit
  
  Read more

• London market expenses 'unsustainable': Galanski

  21-02-2017 14:33
  The high level of commissions and operating costs in Lloyd's
  and the London market are unsustainable and put carriers at a
  "competitive disadvantage", Navigators CEO Stan Galanski
  has claimed.
  Speaking on a fourth quarter results analyst call, Galanski said
  the level of commissions being extracted from the London market
  were at unprecedented levels.
  "Frankly, they are unsustainable," he said,according to a Seeking Alpha transcript .Coupled with high operating costs and the "excessive
  regulatory
  
  Read more

• Kinesis income stable for Lancashire

  21-02-2017 14:33
  Lancashire recorded a minor dip in income from asset management
  platform Kinesis in 2016, but the company's chief financial
  officer Elaine Whelan said the unit made a stable contribution to
  the group's return on equity (RoE).
  Kinesis generated 0.8 percentage points of the insurer's
  annual 13.5 percent RoE.
  Lancashire earned more income from its 10 percent stake in funds
  managed by Kinesis in 2016 than the year before, but lower fee
  income reduced the carrier's annual total profits from the...
  
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• Investigators probe Torrance refinery fire: report

  21-02-2017 14:33
  Authorities in California have reportedly started investigating
  a fire at the Torrance oil refinery in Los Angeles that came two
  years to the day after a previous explosion at the plant.
  South Coast Air Quality Management District, the LA smog
  regulator, said on 20 February it was "very disappointed"
  with the record of fires and explosions at the refinery, local news
  outlet FoxLA.com reported.The explosion and fire on 18 February caused minor damage to the
  plant, which had to...
  
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• Independent future now a possibility for Sompo Canopius

  21-02-2017 14:33
  After looking set for a merger with Endurance following its
  parent's agreed $6.3bn acquisition of the Bermudian
  (re)insurer, Sompo Canopius may now continue as a standalone
  entity.
  Last week, this publication revealed the Lloyd's carrier
  was in discussions with a small number of potential financial
  backers to gather the funding for a management buyout (MBO),
  led by chairman Michael Watson.
  It is understood that
  parent company Sompo may be open to agreeing such a transaction
  following its $6.3bn
  
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• Citizens to target up to $1.3bn reinsurance for 2017

  21-02-2017 14:33
  Florida Citizens Property Insurance is planning to spend under
  $100mn to buy just $1.1bn to $1.3bn of total reinsurance limit in
  the mid-year renewals.
  CEO Barry Gilway outlined the targets - which were in line with
  previous budget estimates released by the company - when speaking
  at the Florida Chamber of Commerce insurance summit this month.
  The $1.3bn total reinsurance would include any cat bond cover,
  as the organisation evaluates whether to make an early redemption
  of its $300mn Everglades.
  
  Read more

• Carnegie-Brown's chairman challenge

  21-02-2017 14:33
  With Bruce Carnegie-Brown's appointment as Lloyd's
  chairman confirmed this week, the focus shifts to the tests he
  faces, which dwarf anything the Corporation has confronted since
  Reconstruction and Renewal.
  On Thursday evening (16 February)this publication revealed that the former JP Morgan banker and
  ex-CEO of Marsh Europe and the Middle East had been chose n by
  the Lloyd's Nominations Committee to replace John Nelson,
  following a nine-month search.
  The Council confirmed Carnegie-Brown's appoin
  
  Read more

• Bruce Carnegie-Brown: Cool under fire

  21-02-2017 14:33
  New Lloyd's chairman Bruce Carnegie-Brown proved his calibre
  handling the fallout from New York Attorney General Eliot
  Spitzer's investigation of contingent commissions while he was
  CEO of Marsh Europe and Middle East, according to multiple
  well-placed market sources.
  "He is calm under fire," one source said. "He
  didn't panic during Spitzer."
  Another source echoed the
  sentiment and the phraseology: "He's cool under
  fire."
  A third said: "He did a very good job from a
  London/European perspective i
  
  Read more

• Allianz would still consider M&A after buyback: CEO

  21-02-2017 14:33
  Allianz CEO Oliver Bäte has roundly rejected suggestions his
  firm's EUR3bn ($3.2bn) share buyback means it is no longer
  considering M&A deals, and claimed the carrier had the
  financial strength to do both
  During a press conference following the company's fourth
  quarter results, the CEO said Allianz still had the funds for
  inorganic growth, even after the share buyback.
  "There is no trade-off between share buyback and external
  growth," he said. "We are so strong financially we could
  do b
  
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• AIG share price makes modest recovery

  21-02-2017 14:33
  AIG stock plummeted almost 10 percent following the publication
  of the company's Q4 results last week as investors punished a
  $5.6bn reserve charge.
  The shares fell as low as $60.41 on 15 February, having closed
  the previous day at $66.89.
  The stock has recovered
  slightly since the initial drop, rallying by 3.5 percent to close
  last week at $62.50.
  Volume spiked as investors scrambled to review their position on
  the company, with 38 million shares changing hands on 15
  February....
  
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• AIG drops down cat reinsurance cover

  21-02-2017 14:33
  AIG has taken steps to increase its reinsurance protection against
  catastrophe volatility in the past year after it halved the trigger
  point of its US property catastrophe reinsurance programme.
  The insurer disclosed in its fourth quarter results that the
  attachment point of the treaty had dropped from $3bn to $1.5bn.
  The carrier said this was part of "transformational
  changes" to the reinsurance arrangements protecting its
  commercial insurance arm last year.
  As well as dropping the retention po
  
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• ADC 'transforms' reserve risk profile: AIG

  21-02-2017 14:33
  AIG's mammoth $5.6bn
  reserve charge dominated headlines last week, but there was also
  significant disclosure on the insurer's landmark adverse
  development cover (ADC) with Berkshire Hathaway in its fourth
  quarter earnings presentation.
  And while there continue to be justifiable questions about the
  credibility of AIG's reserving practices, there is no doubt of
  the crucial role the National Indemnity (Nico) deal will play in
  its fortunes.
  As previously reported, the ADC provides 80 percent protect
  
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• Aon demands $54mn in Alliant poaching dispute

  21-02-2017 14:33
  Aon is seeking $54mn after a raid by rival broker Alliant reduced
  its central California team of more than 80 people to just seven
  almost overnight.
  The international broker claimed that in the 72 hours following
  the 2014 raid, it lost 51 pieces of business in what it alleges was
  the culmination of a six-month-long conspiracy.
  "Armed with 75 former Aon employees, Alliant began a
  full-scale assault on Aon's clients, ultimately taking over
  1,000 pieces of business with them and...
  
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• Analysts question AIG management after Q4 reserve charge

  21-02-2017 14:33
  Analysts have cast doubt on AIG management's execution of its
  recovery strategy after the company revealed another
  multi-billion-dollar reserve in its fourth quarter results.
  AIG strengthened its reserves by $5.6bn in the fourth quarter
  after further loss trend deterioration in the company's
  casualty portfolio.
  Keefe Bruyette & Woods analyst Meyer Shields said in a note
  that AIG shares would respond favourably to a change of CEO and
  that Peter Hancock's record since taking over the role in 2
  
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• Tax and exchange rates set to push up home insurance costs

  21-02-2017 14:08
  
  Tax and exchange rates will push up home insurance costs with the average premium rising by 1.8% to £124.
  
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• Fairfax loss reflects Watsa investment strategy pivot

  21-02-2017 12:41
  Fairfax Financial's fourth quarter loss could hardly have
  come at a worse time for the Toronto-based firm, whose leader, CEO
  Prem Watsa, is often referred to as the Warren Buffett of
  Canada.
  The insurance holding company, which ran up investment losses of
  $1.07bn in the fourth quarter of 2016, is currently trying to put
  together financing for its proposed acquisition of Allied World -
  the biggest deal in the firm's history.
  "It was a painful quarter and year for Fairfax,&...
  
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• Tesco Bank to exit life, GI unaffected

  21-02-2017 12:18
  
  Tesco Bank is to withdraw from the life insurance market, but its general insurance offering will not be affected.
  
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• United Insurance misses forecast as cat losses bite

  21-02-2017 11:08
  Floridian carrier United Insurance Holdings posted a
  greater-than-expected loss in the fourth quarter because of
  increased catastrophe activity and reserving.
  The company, which is in the process of buying American Coastal,
  reported a loss per share of $0.49, worse than the consensus
  forecast for $0.42, and compared with earnings per share of $0.64 a
  year earlier.
  It reported a loss of $17.6mn before tax for the quarter
  compared with profits of $20.4mn a year earlier.
  Catastrophe losses in the f
  
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• Opinion: Allied aviation transfer offers efficiency pointers

  21-02-2017 11:08
  (Re)insurance executives are aware the industry's cost base
  is far too high and frequently take to the stage to denounce this
  scourge of profitability.
  They lament the inertia of Lloyd's and company market
  carriers alike in failing to tackle the issue decisively, warning
  with stern faces that if expenses continue at current levels it
  will ultimately open the door to other lower-cost alternatives.
  The debate has now reached a point where astute expense control
  has come to be viewed as...
  
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• Hyperion appoints CEO of FP Marine

  21-02-2017 11:08
  Insurance group Hyperion has appointed Mark Johnson to lead its
  specialty marine business, FP Marine Risks, which it will fold into
  RKH Specialty in April.
  Johnson, the former CEO of JLT Thailand, will take up the CEO
  role at the Hong Kong-based company on 1 March, once regulators
  have approved his appointment.
  He will replace Richard Walker, who stepped into the CEO role at
  FP Marine last year whenPhilip Bilney stepped down .
  Walker now will return to his...
  
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• Quarter of insurance CEOs expect to make redundancies over the next 12 months, says PWC

  21-02-2017 11:06
  
  A quarter of insurance CEOs expect their companies to make redundancies in the next 12 months, according to an extensive survey.
  
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• Quarter of insurance CEOs expect to make redundancies over the next 12 months

  21-02-2017 11:06
  
  A quarter of insurance CEOs expect their companies to make redundancies in the next 12 months.
  
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• Clark Thomson drops Open GI for Acturis

  21-02-2017 11:04
  
  The broker has changed software house after 20 years with Open GI.
  
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• Telematics firm teams up with insurance software giant

  21-02-2017 11:02
  
  Insurers with telematics to benefit from partnership 
  
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• Join now: High Net Worth Society launches

  21-02-2017 10:30
  
  Insurance Age has set up an exclusive members club for HNW brokers. Join today for access to special events and content.
  
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• Hood Group opens Innovation Lab to attract start-ups

  21-02-2017 10:19
  
  Hood Group has launched an Innovation Lab and created a number of new roles.
  
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• Anthony Jones Insurance Brokers switches from SSP to Applied

  21-02-2017 10:11
  
  Kent-based broker selects TAMCloud.
  
  Read more

• Airmic's John Hurrell on why insurers should assess risk culture

  21-02-2017 08:00
  
  It is a well-established practice for underwriters to take into account risk management performance when assessing the risk profile of a business.
  
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• Insurance Council of Australia to review Code of Practice

  21-02-2017 04:47
  
  With two Senate general insurance inquiries underway and criticism around the selling of add-ons, the Insurance Council of Australia has launched a review of the General Insurance Code of Practice.
  
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