Insurance news

• AIG board mulls ousting Hancock: WSJ

  27-02-2017 23:42
  Directors of American International Group reportedly are
  considering punishing or even ousting the insurance giant's CEO
  Peter Hancock following dismal fourth-quarter results that sent its
  shares tumbling by almost 10 percent.
  The board is mulling its options, which could include slashing
  Hancock's bonus or replacing him, according to the Wall Street
  Journal.
  The executive has been living with the threat of revolt since
  around this time last year when, under pressure from activist
  investors John
  
  Read more

• Enstar profits more than halve in Q4

  27-02-2017 21:42
  Legacy-to-live carrier Enstar reported a nearly 80 percent drop
  in fourth-quarter net income even as net earned premiums rose 21
  percent as expenses surged.
  Enstar's pre-tax profit fell 55 percent to about $35.4mn
  from the year-earlier period, the Bermuda-based company said today
  in a regulatory filing. It did not break out the source of the
  decline on a quarterly basis, although expenses jumped 62 percent
  to about $173.4mn.
  In per share terms, the company said it earned $1.16 per share...
  
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• Ogden decision 'incredibly badly handled': Pryce

  27-02-2017 19:18
  Richard Pryce, CEO of QBE's European operations, has
  criticised the UK Ministry of Justice for the timing and scale of
  its Ogden rate decision, which was announced earlier today.
  The UK government shocked carriers by announcing a far
  steeper-than-expected cut to the discount rate shaved off lump-sum
  personal injury payments to claimants.
  Most insurers and analysts were anticipating a move from the
  current 2.5 percent to either 1.0 percent or 1.5 percent, but
  Justice Secretary Liz Truss cut the s
  
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• QBE's retail business performed well, says Pryce

  27-02-2017 18:57 via insuranceage.co.uk
  
  QBE Europe chief also said he welcomes a review of the discount rate as quickly as possible.
  
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• Novae reassures investors as shares crash amid profit warning

  27-02-2017 18:25
  
  Premium content: Lloyd’s insurer one of the worst affected by discount rate change as shares crash and it reassures the City 
  
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• Government opens consultation on Insurance Distribution Directive

  27-02-2017 17:45
  
  The government has opened a consultation on the transposition of the insurance distribution directive.
  
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• Reinsurers to absorb bulk of £5bn-£7bn Ogden losses

  27-02-2017 17:07
  Reinsurers will be hit hardest by the UK government's
  surprisingly steep reduction in the rate shaved off lump-sum
  personal injury payments, with reserves and underwriting
  profitability set to come under unexpected pressure.
  As well as significant reserve charges for reinsurers, there is
  also likely to be a substantial upward correction in market pricing
  - particularly on excess-of-loss (XoL) cover.
  Willis Towers Watson said reinsurers collectively will bear the
  brunt of a one-off reserve charge
  
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• AmTrust shares fall 15% after reserve charge

  27-02-2017 17:07
  AmTrust shares plunged 15 percent in early trading in New York
  today as investors reacted to a major fourth quarter earnings miss
  driven by a $65mn reserve charge.
  As of 10am EST, AmTrust shares were down 14.6 percent to
  $23.63.
  Before market opened, the US carrier posted a set of Q4 results
  that contained a $65mn reserve charge related to its specialty
  programme book.
  Fourth quarter operating earnings at AmTrust plummeted 42
  percent year-on-year to $66.3mn, and its operating earnings...
  
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• Hiscox shortlists two locations for post-Brexit base

  27-02-2017 17:07
  
  Lloyd’s of London underwriter Hiscox said it has shortlisted two European Union countries and was in talks with regulators to set up a new insurance base to continue servicing clients after Britain leaves the EU.
  
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• QBE looks to move £500m of business to new territory

  27-02-2017 17:04
  
  QBE will move £500m of business, around 20% of its European operation, out of the UK in the wake of Brexit.
  
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• Profile: Bob Darling, Coversure

  27-02-2017 15:36
  
  Moving with the times: Coversure’s managing director Bob Darling tells Insurance Age that his focus has changed from increasing office numbers and why the future is bright for the franchise model
  
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• Ryan Specialty to buy Trident Marine Managers

  27-02-2017 15:21
  Chicago-based RSG Underwriting Managers has agreed to pay an
  undisclosed sum to acquire Trident Marine Managers and claims
  adjusting affiliates.
  Trident is a specialty marine managing general agency and has
  operated in the energy sector for over 35 years.
  Joint managing directors Martin Hayes and Michael Johnson will
  continue to lead Trident from its Houston headquarters under the
  new owner.
  Miles Wuller, chief operating officer of RSG Underwriting
  Managers, said the purchase of Trident was a "c
  
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• Neon hires property duo

  27-02-2017 15:21
  Neon has recruited Sam Yates and Jonathan Powell to its property
  insurance team, the Lloyd's managing agent said in a statement
  today.
  Yates, who has worked at Ariel and FM Global in the past, will
  be responsible for expanding Neon's direct and facultative
  (D&F) business.
  Powell's previous role was as line underwriter for personal
  lines at Hiscox. At Neon, he will focus on building a North
  American residential property book.
  Chris Fisher, CEO of Neon Bermuda and head of property...
  
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• Hiscox to shrink London Market book in 2017

  27-02-2017 15:21
  Hiscox expects to shrink its London Market gross premiums by
  between £50mn and £100mn ($62mn-$125mn) in 2017, with the
  precise amount dependent on pricing, CEO Bronek Masojada confirmed.
  Speaking to The Insurance Insider
  following the release of the carrier's
  full-year results earlier today, the executive said it was
  likely Hiscox would shrink exposure in some lines of business this
  year, rather than exiting them altogether."Our goal is to have a portfolio which we can reshape. It
  wi
  
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• Berkshire Q4 underwriting profits nearly double

  27-02-2017 15:21
  Berkshire Hathaway reported a near twofold rise in its insurance
  underwriting income in the fourth quarter, with earnings going up
  from $306mn to $548mn.
  This was partly offset by a weaker insurance investment
  performance at the Warren Buffett-led conglomerate, as returns went
  down 13.9 percent year-on-year to $889mn for the quarter.
  The company's annual report stated that its specialty
  insurance carrier - Berkshire Hathaway Specialty Insurance -
  increased its volume by 40 percent to $1.3bn for
  
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• Asta backs Middle East MGA Arma

  27-02-2017 15:21
  Asta has entered a financing agreement for the development of
  Middle East specialist managing general agent (MGA) Arma
  Underwriting Limited.
  Asta will take a minority equity stake in Arma and will also
  support the company's infrastructure, including finance and IT,
  the firm said in a statement today.
  Arma will support local insurance companies in the Middle East
  by providing multi-class reinsurance capacity, backed by
  Lloyd's paper.
  The firm will be led by Michael Rafter, former head of general
  
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• AmTrust misses consensus after $65mn Q4 reserve charge

  27-02-2017 15:21
  Fourth quarter operating earnings at AmTrust plummeted 42 percent
  year-on-year to $66.3mn after it took a $65.0mn charge to
  strengthen reserves in its specialty programme segment.
  Operating earnings per share (EPS) for the quarter were $0.38, a
  long way beneath the analyst consensus forecast of $0.73, as cited
  by MarketWatch.
  CEO Barry Zyskind said the firm was strengthening prior-year
  loss and loss adjustment reserves in its specialty programme
  segment following extensive internal actuarial rev
  
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• RSA warns SMEs facing new risks

  27-02-2017 15:00 via insuranceage.co.uk
  
  Brokers must be aware of changing risk landscape according to SME and insurance experts.
  
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• Hiscox achieves strong growth in SME, says Langan

  27-02-2017 14:56
  
  MD of Hiscox UK says provider sees opportunities to grow its UK broker book.
  
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• Willis predicts big hit from ‘surprise’ discount rate cut

  27-02-2017 14:45
  
  Broking and consultancy firm updates estimate of discount rate hit impact
  
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• 'Mixed bag' for London market says Hiscox MD

  27-02-2017 14:06
  
  Hiscox’s London market business has presented an inconsistent and mixed operating year for the insurer, according to Steve Langan, managing director of Hiscox UK.
  
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• Aviva will retrain staff affected by automation roll out

  27-02-2017 13:54
  
  Aviva has asked staff if a robot could better perform their job. If the answer is yes, the company will offer employees the chance to be retrained.
  
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• Skuld increases tonnage by 11% at renewal

  27-02-2017 13:49
  Skuld grew by 11 percent at renewal, bringing its mutual protection
  and indemnity (P&I) gross tonnage to 88.5 million.
  The figure is net of de-selections and lost business.
  Skuld said despite a competitive environment it had continued to
  expand its global offshore business and also achieved growth on
  blue water contracts in the Nordics, Europe and Asia as it gained
  new mutual business.
  Last week, Skuld appointed
  Krester Krøger Kjær as head of Skuld Copenhagen .Krøger Kj&a
  
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• Insurers' share prices tumble as profits hit by discount rate changes

  27-02-2017 13:33
  
  More insurers have posted swingeing losses as a result of the discount rate cut.
  
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• Personal injury lawyers welcome discount rate cut ruling

  27-02-2017 13:20
  
  APIL claims discount rate cut ruling is long overdue
  
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• Personal injury lawyers welcome discount rate cut decision

  27-02-2017 13:20
  
  APIL claims discount rate cut decision is long overdue
  
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• Three arrested in ghost broker raids

  27-02-2017 12:58
  
  City of London Police arrested two men and a woman suspected of acting as unregistered insurance brokers.
  
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• Costs for SMEs could rise £6.8bn over 2017

  27-02-2017 12:27
  
  Seven out of 10 small to medium enterprises expect their revenues to shrink or stay the same in 2017.
  
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• QBE announces share buyback as FY profit rises

  27-02-2017 12:07
  QBE reported rising earnings in 2016 and noted signs of a
  "modest improvement" in the market as it announced a
  three-year, A$1bn ($766.3mn) share buyback.
  Group adjusted pre-tax profit, which excludes the effect of
  fronting and legacy transactions, rose 6 percent to $1.06bn for
  2016, after a jump in investment income offset a deteriorating
  underwriting result.
  On an adjusted basis, net investment income on shareholders'
  funds went up by 42 percent to $339mn, while underwriting profit
  declined to
  
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• MS Amlin buys Hong Kong yacht MGA

  27-02-2017 12:07
  MS Amlin has acquired Phoenix Underwriters, a Hong Kong-based
  managing general agency (MGA) that specialises in insuring yachts.
  The MGA's four-person team will be integrated into MS
  Amlin's Hong Kong operation later in the year, according to a
  statement from the carrier today.
  Phoenix specialises in cover for yachts, super-yachts and
  commercial vessels.
  Simon Clarke, CEO of MS Amlin Asia Pacific, said: "The
  acquisition continues our international strategy of adding marine
  products to our core p
  
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• Intesa abandons Generali acquisition plans

  27-02-2017 12:07
  Italian bank Intesa Sanpaolo has decided not to pursue a
  takeover of Generali after weeks of publicly weighing up a bid for
  the Trieste-headquartered insurer.
  Generali's stock fell 4.3 percent in early trading as
  markets digested the news, taking the share price back to EUR13.49
  - levels not seen since Intesa's interest in a carve-up of the
  insurer first leaked to the Italian press just over a month
  ago.
  In its statement, Intesa said it had completed its assessment of...
  
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• Above-forecast Ogden rate cut to hit insurers

  27-02-2017 12:07
  The UK government shocked carriers today by announcing a far
  steeper-than-expected cut to the discount rate shaved off lump-sum
  personal injury compensation, to send shares in the sector down as
  Novae and Direct Line gave profit warnings.
  Justice Secretary Liz Truss cut the so-called Ogden rate from
  2.5 percent to minus 0.75 percent, in a move described by the
  Association of British Insurers (ABI) as "crazy".
  The cut - which will impact the levels of reserves that must be
  carried...
  
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• GWP down 7% to $4.1bn at QBE Europe in 2016

  27-02-2017 12:02 via insuranceage.co.uk
  
  COR worsened to 93.6% in the insurer's results.
  
  Read more

• Insurer shares plummet in wake of discount rate cut decision

  27-02-2017 11:53
  
  Premium content: Discount rate cut decision is set to hit the industry hard
  
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• Video: Succession planning (1) - the latest wave of consolidation

  27-02-2017 11:51 via insuranceage.co.uk
  
  Phil Bayles, chief distribution officer, intermediaries at Aviva joins Insurance Age editor Emmanuel Kenning in the studio.
  
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• Hiscox posts 'record' 2016 as UK and Europe profits double

  27-02-2017 11:50
  
  Insurer Hiscox has reported a "record" profit of £354m for 2016, an increase of 64%, driven by a benign claims environment and strong investment return.
  
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• NHS faces £1bn annual bill after 'reckless' change to injury payouts

  27-02-2017 11:45
  
  Angry insurers criticise alteration to personal injury formula that will also hike car premiums by £75 for millions of peopleA “reckless” government-ordered change to the way personal injury awards are calculated will add as much as £75 to already fast-rising average car insurance premiums, and land the NHS with an annual £1bn bill, the insurance industry has warned.The lord chancellor, Liz Truss, has announced a change to the so-called Ogden discount rate, which is
  
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• NHS faces new £1bn annual bill after 'reckless' change to injury payouts

  27-02-2017 11:45
  
  Angry insurers rail against ‘crazy change’ to personal injury formula that will hike car premiums by £75 for millions with British military and small firms hitA “reckless” government-ordered change to the way personal injury awards are calculated will add as much as £75 to already fast-rising average car insurance premiums, and land the NHS with an annual £1bn bill, the insurance industry has warned.The lord chancellor, Liz Truss, has announced a change
  
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• QBE reports increase in COR due to weakened sterling

  27-02-2017 11:39
  
  Australian insurer QBE has reported an increase in its Combined Operating Ratio and a dip in European profits in the year 2016.
  
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• QBE Europe reports increase in COR due to weakened sterling

  27-02-2017 11:39
  
  Australian insurer QBE has reported an increase in its combined operating ratio and a dip in European profits in the year 2016.
  
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• Insurers to face £3bn bill from discount rate cut

  27-02-2017 11:26
  
  Insurers could face a £3bn bill from the discount rate cut, with individual motor premiums rising by an average of £100.
  
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• MS Amlin boosts marine with Phoenix acquisition

  27-02-2017 11:24
  
  Global specialty insurer MS Amlin, is to acquire 100% of the equity of Phoenix Underwriters, a Hong Kong based managing general agent specialising in yachts, super yachts and commercial craft.
  
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• Hiscox UK and Ireland GWP up 12.5% in 2016

  27-02-2017 10:58
  
  Profits for UK and Europe doubled in the past 12 months.
  
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• PwC warns of motor rate hikes up to £1,000 after discount rate cut

  27-02-2017 10:50
  
  Specialists note that SMEs will also be hit by increased rates.
  
  Read more

• #insagepeople: 27 Feb - 5 March 2017

  27-02-2017 10:47
  
  Keep up to date with the latest people moves.
  
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• Opinion: Buberl's Age of Reason

  27-02-2017 10:42
  Axa's recently installed CEO, Thomas Buberl, has distanced
  himself from the pursuit of big-ticket M&A in favour of a more
  nuanced approach.
  Hosting his first full-year press conference since replacing
  Henri de Castries at the helm in September, Buberl ruled out
  "small acquisitions and very large acquisitions" in
  response to questioning about the company's interest in
  Generali.
  Predecessor de Castries gave serious thought last year to buying
  Generali, a EUR22bn ($23.2bn) market cap insurer, i
  
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• Hiscox posts 'record' 2016 profits

  27-02-2017 10:42
  Hiscox reported record pre-tax profits of £354.5mn
  ($441.4mn) for the full year following a significant boost from
  foreign exchange movements and an improved investment return.
  The carrier's 2016 pre-tax profits were a 64 percent increase
  on the previous year's result and the highest Hiscox has
  reported since 2009, when it posted pre-tax profits of
  £320.6mn.
  Net foreign exchange gains for the year surged to £152.4mn
  from just £15.2mn a year ago, while the 2016 investment
  
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• BHSI grew to $1.3bn in premium in 2016: Buffett

  27-02-2017 10:42
  Berkshire Hathaway Specialty Insurance (BHSI) expanded its premium
  volume by 40 percent to reach $1.3bn in 2016, according to Warren
  Buffett.
  In his annual letter to shareholders, Buffett said that the
  company, launched in 2014, was "destined to become one of the
  world's leading P&C insurers".
  Berkshire Hathaway had expected significant losses in the early
  years from the specialty insurance operation while divisional CEO
  Peter Eastwood built the personnel and infrastructure needed for a
  worl
  
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• QBE Europe profit drops as trading conditions worsen

  27-02-2017 10:11
  
  Catastrophe claims and currency hit QBE Europe profit
  
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• ABI slams “crazy” decision to cut discount rate to minus 0.75%

  27-02-2017 10:11
  
  Trade body warns that up to 36 million customers could face higher premiums after the decision.
  
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