Insurance news

• Government to "urgently" consult on discount rate cut after insurer CEO meeting

  28-02-2017 22:05
  
  The Government has said that it will “progress urgently” a consultation on the Ogden discount rate and “carefully consider” all the evidenced submitted following today’s meeting between insurers and the Treasury.
  
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• State Farm hit by $7bn in auto losses for 2016

  28-02-2017 20:33
  US mutual giant State Farm was pushed to a $5.5bn underwriting
  loss in 2016 after claims and expenses from its auto book
  outstripped premiums by $7bn.
  The group's auto business, which represents almost two
  thirds of State Farm's $61.7bn property and casualty book,
  found itself on the hook for $35.8bn of claims and loss expenses
  for the year.
  Earned premium in the division climbed 6.9 percent last year to
  $38.8bn from 2015. The auto underwriting loss for 2016 surged 59...
  
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• Aviva takes $478mn Ogden Rate charge

  28-02-2017 20:33
  Aviva has set aside an exceptional charge of £385mn
  ($478mn) following the decision by the UK government to change the
  way personal injury compensation is calculated.In a statement today, the insurer said it would add the sum to its
  2016 results, to be reported on 9 March. The sum will not affect
  the group's operating profit or its dividend policy.
  The UK and European personal lines giant is the latest UK listed
  insurer to respond to the change to...
  
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• HCI plans to raise $115mn in debt

  28-02-2017 18:44
  HCI Group has announced its intention to raise $115mn of debt in a
  private placement days after its CEO signalled an interest in
  acting as a consolidator in the disjointed Florida market.
  The carrier said $35.0mn will be used for stock buybacks, while
  $40.8mn will be used to pay off existing debt. HCI said the
  remainder would be used for "general corporate
  purposes".
  Following the publication of the carrier's consensus-beating
  fourth quarter results last week, HCI chairman and CEO Paresh...
  
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• BGC Partners completes Besso acquisition

  28-02-2017 18:44
  US interdealer and real estate broker BGC Partners has announced
  the completion of its purchase of independent London market
  intermediary Besso.
  In December The Insurance Insider
  revealed BGC was likely to win the race for Besso. In January, the
  company said it had agreed to acquire 100 percent of the broker in
  a deal valued at as much as £70.5mn ($87.6mn) in cash and
  stock.
  BP Marsh announced the disposal of its 37.94 percent stake in
  the company on 4...
  
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• AIG axe hangs over Hancock

  28-02-2017 16:45
  
  Premium Content: Board of directors to convene to discuss leadership change
  
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• StarStone profits surge to $42.8mn

  28-02-2017 16:40
  Enstar-owned StarStone almost doubled its profits in 2016 as it
  reported net earnings of $42.8mn, against $23.2mn in the prior
  year.
  The global specialty insurer's combined ratio remained flat
  at 98.6 percent, while the loss ratio jumped 2.3 percentage points
  year-on-year to 59.7 percent.
  The steady combined ratio was a result of improvement in the
  operating expense ratio, the company said, noting that its net loss
  ratio had remained below 60 percent.
  StarStone said it had received strong profit
  
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• R&Q shares rise on £16.9mn capital raise

  28-02-2017 16:40
  Shares in Randall & Quilter (R&Q) rose 5 percent today
  after it announced it had conditionally raised gross proceeds of
  £16.9mn ($21.0mn) through the placing of 14.4 million
  shares.
  R&Q aims to use the £16.3mn net proceeds from the
  capital raise to grow its core legacy acquisition activity and
  fronting fee generation in both US unit Accredited and its Maltese
  subsidiary.
  As of 2.15pm London time, R&Q stock was up 4.98 percent to
  126.5p.
  A total of 14,423,591 new ordin
  
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• Atrium profit tumbles by 47%

  28-02-2017 16:40
  Atrium Syndicate 609 reported a 2016 calendar-year profit of
  £36.2mn ($45mn), just over half the £68.0mn it reported
  for 2015, as its underwriting performance deteriorated from a year
  earlier.
  The combined ratio for the calendar year increased by 10.9
  percentage points year-on-year to 92.4 percent in 2016, driven by a
  12.7 percentage point jump in the net loss ratio to 47.1
  percent.
  The decline in underwriting performance counteracted a 90 basis
  point improvement in the investment re
  
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• JLT backtracks on Brexit contingency plan statements

  28-02-2017 16:11
  
  JLT has backtracked on earlier statements made in the year on the group’s contingency plans for Brexit.
  
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• Aviva takes £385m hit from discount rate cut

  28-02-2017 15:31
  
  Aviva expects to take an exceptional charge to its 2016 profit after tax of approximately £385m as a result of the decision to cut the discount rate.
  
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• Aviva announces biggest discount rate hit so far

  28-02-2017 15:31
  
  Insurer’s discount rate hit to affect profit and solvency
  
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• Opinion: Axa's David Williams on social media

  28-02-2017 14:45
  
  I tweet therefore I am: David Williams on why he tweets and you should too
  
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• News analysis: Lloyd’s booze ban splits opinion

  28-02-2017 14:44 via insuranceage.co.uk
  
  The market reacts to prohibition on daytime drinking
  
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• The Insider 50 stays flat

  28-02-2017 14:32
  The Insurance Insider's index of
  50 P&C (re)insurance companies was relatively unchanged from
  the previous week's close at 1,055.45 index points.
  Other major market indices also recorded
  slight weekly movements, with the FTSE 100 down 0.8 percent, the
  Stoxx Euro 600 down 0.1 percent and the S&P 500 up by 0.7
  percent.
  Within our company subgroups, the expanded US specialty
  composite posted the highest rise at 1.0 percent to 1,082.3
  points.
  Meanwhile, the Lloyd's carriers were at the other
  
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• The Hanover's Zubretsky maps a five-year growth plan

  28-02-2017 14:32
  The Hanover CEO Joseph Zubretsky outlined a detailed growth
  strategy for investors last week in a plan that relies on an
  expanded risk appetite and new units focused on innovation and
  specialty cover.
  Zubretsky, who became CEO less than a year ago, also made clear
  that the company's Lloyd's arm Chaucer will be integral to
  his plans. The Hanover acquired the Lloyd's insurer in 2011 and
  now expects it to serve as a launchpad for international specialty
  business expansion.
  The...
  
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• Scor appoints new retro leader

  28-02-2017 14:32
  Scor has reshuffled its leadership responsible for retrocession
  buying and appointed the former head of its corporate solutions
  division, Emmanuel Fierens, to the new role of deputy head of
  underwriting management and retrocession.
  His position encompasses the previous head of retrocession title
  formerly held by Augustin Gas, who has moved to Chicago to lead US
  property treaty business for the firm.
  Fierens spent 12 years leading Scor Business Solutions, which
  assumes large corporate risks. He j
  
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• Reprieve for some Floridians as Demotech deadline looms

  28-02-2017 14:32
  A number of Florida insurers considered vulnerable to
  Demotech's downgrade threat earlier this month appear to have
  been reprieved, with the agency signalling their ratings will not
  be lowered below the crucial A range, The Insurance
  Insider can reveal.
  According to sources, at least three of the companies that were
  on course for surplus at around or below the $25mn threshold at
  year-end 2016 have been offered reassurances ahead of today's
  key deadline for shoring up balance sheets.
  The carriers
  
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• Reinsurers brace for Ogden impact

  28-02-2017 14:32
  The largest UK motor reinsurance broker Capsicum Re has warned
  that reinsurers will feel the major impact of spiralling personal
  injury compensation costs after the UK government unexpectedly
  pushed the discount rate into negative territory.
  However, the broker also predicted that the change in the Ogden
  rate to minus 0.75 percent from 2.50 percent could encourage
  reinsurers back into the auto market.
  Yesterday's cut was far steeper than the 1.0 to 1.5 percent
  rate reduction many industry protag
  
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• New ratings agency could offer Demotech alternative

  28-02-2017 14:32
  A new ratings agency start-up is currently in talks with Fannie Mae
  and Freddie Mac in a bid to get on the approved list at the
  government-sponsored enterprises (GSEs).
  According to sources, SE James & Co has been in talks with
  the state-backed mortgage lenders since last summer to get its A,
  A2 and A3 ratings recognised.
  If it is successful, it could provide a viable alternative for
  smaller single-state or regional cat-exposed carriers that are
  currently solely reliant on...
  
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• London ILS timeframe 'uncompetitive': Willkie

  28-02-2017 14:32
  A timeframe of six to eight weeks under the proposed London market
  insurance-linked securities (ILS) framework is unlikely to be
  competitive, according to Willkie Farr & Gallagher.
  The timescale - with a backstop of six months - is outside the
  upper bounds of those adopted by other jurisdictions, the law firm
  said in a submission to the consultation on the framework.
  UK regulator the Prudential Regulation Authority (PRA) has also
  allowed itself 10 working days to notify an applicant whether.
  
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• Insider View: Total return reinsurers

  28-02-2017 14:32
  The past year has been tough for total return reinsurers, with a
  successful quarter consistently proving elusive.
  The first generation of total return reinsurers were created as
  tax-efficient vehicles for fund managers to move money offshore in
  conjunction with underwriting management teams, while using
  underwriting to create asset leverage in order to boost investment
  returns.
  Vehicles like Third Point Re were driven by a single fund
  manager securing ratings, and using the broker channel to acc
  
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• IAG confirms $106mn aggregate reinsurance claim

  28-02-2017 14:32
  IAG will recoup A$106mn ($81mn) from reinsurers on its aggregate
  programme in 2016 as it reported total natural peril losses of
  A$420mn for the six months ended 31 December.
  The recovery confirms previous reports from sister publication
  Trading Risk that IAG had told its reinsurers to expect a
  significant claim for the calendar year 2016, after it made a
  recovery of about A$130mn from the programme in 2015.
  IAG's total half-year loss tally was A$80mn above the
  insurer's allowance for...
  
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• Florida placements hit reinsurance market early

  28-02-2017 14:32
  A number of Florida cat programmes are already out with firm
  order terms (FOTs) as buyers look to secure capacity early amid
  turmoil in the state's homeowners' insurance market.According to sources, parts of the proposed placements for
  2017-18 cat covers sought by Federated National and Homeowners
  Choice came to the reinsurance market with FOTs last week.It is thought that the Federated National cover brought to
  market by broker Aon Benfield is a Florida Hurricane Catastrophe
  Fund (FHCF) replace
  
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• ERS to resubmit Lloyd's returns following Ogden decision

  28-02-2017 14:32
  ERS Syndicate Management Limited will resubmit its year-end returns
  to Lloyd's on 10 March as a result of the UK government's
  change to the Ogden rate.
  The resubmission will include a full and final reassessment of
  the judgement, which saw Justice Secretary Liz Trusscut the Ogden rate from 2.5 percent to minus 0.75 percent on
  Monday.
  According to a note from Argenta, which arranges Names capital,
  ERS had expected to close the 2014 account as at 31 December 2016....
  
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• Atrium 2016 profit tumbles by 47%

  28-02-2017 14:32
  Atrium Syndicate 609 reported a 2016 calendar-year profit of
  £36.2mn ($45mn), little more than half the £68.0mn it
  reported for 2015, as its underwriting performance deteriorated
  from a year earlier.
  The combined ratio for the 2016 calendar year increased by 10.9
  percentage points year-on-year to 92.4 percent, driven by a 12.7
  percentage point jump in the net loss ratio to 47.1 percent.
  The decline in underwriting performance counteracted an
  improvement in the 2016 investment return,
  
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• Arch Re launches Dubai-based underwriter

  28-02-2017 14:32
  Arch Re has launched Arch Reinsurance (Gulf) Limited (AUGL), to be
  based at the Dubai International Financial Center (DIFC), subject
  to regulatory approval.
  The business will supplement Arch Re's existing operating
  entity in the DIFC.
  In May 2015, Arch Re completed its acquisition of Gulf Re from
  its joint venture partner the Gulf Investment Corporation.
  As part of that process, Arch Re put a loss portfolio transfer
  agreement in place, whereby Arch Re assumed 100 percent of all
  liabilities in...
  
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• AIG board considers CEO change

  28-02-2017 14:32
  Peter Hancock's future as CEO of AIG looks increasingly
  uncertain as reports emerged claiming the board of the US insurance
  giant was considering ousting the executive.
  The board is mulling its options, which could include slashing
  Hancock's bonus or replacing him, according to the Wall Street
  Journal (WSJ).
  The executive has coming under increasing pressure from
  shareholders as AIG's performance has lagged behind
  expectations for more than a year.
  Around this time last year, as a result of pres
  
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• AGCS to reduce headcount by up to 10%

  28-02-2017 14:29
  
  Allianz Global Corporate & Specialty is to reduce staff numbers by as much as 10%.
  
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• JLT's speciality business sees UK revenue up 5% in 2016

  28-02-2017 14:16
  
  CEO explains that the disposal of Thistle was due to it no longer fitting the broker's strategy.
  
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• JLT's speciality business sees revenue up 5% in 2016

  28-02-2017 14:16
  
  CEO explains that the disposal of Thistle was due to it no longer fitting the broker's strategy.
  
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• Biba commits to reducing premiums for young drivers

  28-02-2017 14:14
  
  The British Insurance Brokers’ Association is set to urge the government to support its plan to reduce driving premiums for young drivers.
  
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• Discount rate fallout sparks Downing Street summit

  28-02-2017 13:31
  
  Insurer bosses are meeting Phillip Hammond to urge a change in the law following the discount rate fallout
  
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• Insurers descend on Chancellor to fight discount rate cut

  28-02-2017 13:13
  
  The market has warned that the “crazy” change could see some motor premiums rise by £1,000.
  
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• Fatal crash for cash scammers sentenced to a total of 39 years

  28-02-2017 12:56
  
  Four crash for cash fraudsters have been sentenced after their scam killed an 88-year-old woman.
  
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• Fatal crash for cash scammers given prison sentences

  28-02-2017 12:56
  
  Three crash for cash fraudsters have been sentenced after their scam killed an 88-year-old woman.
  
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• Crawford & Company reports improved financial results for 2016

  28-02-2017 12:25
  
  Crawford & Company has reported improved financial results in 2016 with a net income attributable to shareholders of $36m (£28.9m) for in its full year results, up from a net loss of $45.5m (£36.5m) in 2015.
  
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• 15 top insurance CEOs to meet Chancellor today over discount rate cut

  28-02-2017 12:05
  
  The CEOs of 15 of the UK’s biggest motor and commercial liability insurers will today meet Chancellor Philip Hammond to urge an intervention on the government's decision to slash the Ogden discount rate.
  
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• R&Q to raise £16.9mn to grow legacy business

  28-02-2017 11:49
  Randall & Quilter (R&Q) has conditionally raised gross
  proceeds of £16.9mn ($21.0mn) through the placing of 14.4
  million shares.
  R&Q aims to use the £16.3mn net proceeds from the
  capital raise to grow its core legacy acquisition activity and
  fronting fee generation in both US unit Accredited and its Maltese
  subsidiary.
  A total of 14,423,591 new ordinary shares in R&Q were placed
  by Numis Securities at a price of 117p apiece - a discount of
  approximately 2.9 percent to
  
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• Ageas to take another huge hit from discount rate cut

  28-02-2017 11:21
  
  Insurer reveals additional impact of discount rate cut to -0.75%
  
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• Revenue up 11% in Moneysupermarket's insurance business for 2016

  28-02-2017 11:13
  
  The aggregator posted £73.5m in profit after tax in 2016, an increase of 16%.
  
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• Video: Succession planning (2) – people

  28-02-2017 11:10
  
  Having taken an overview of the market Aviva’s Phil Bayles looks in detail at how to prepare succession plans that meet the needs of staff and customers.
  
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• Allianz refreshes D&O cover

  28-02-2017 11:05
  
  Updated policies include kidnap and ransom cover and data protection.
  
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• R&Q raise £16.9m through share placing

  28-02-2017 10:57
  
  Randall & Quilter has conditionally raised £16.9m through a placing of new ordinary shares with institutional shareholders and directors as the group looks to simplify its business model.
  
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• Biba calls for IPT freeze

  28-02-2017 10:40
  
  Broker body says increasing IPT plus the impact of the discount rate change will drive up costs and cause people to reduce insurance protection.
  
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• Profits down at JLT in 2016

  28-02-2017 10:24
  
  Group revenue grows by 9% to £1.26bn.
  
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• QBE pegs Ogden rate cut cost at $160mn

  28-02-2017 10:10
  Insurer QBE said the UK government's decision to cut the
  discount rate deducted from personal injury compensation awards
  will trigger a one-off increase in outstanding claims liabilities
  of $160mn.
  The carrier made the announcement after the Justice Ministry
  said on Monday it would cut the Ogden rate to minus 0.75 percent
  from 2.5 percent as from March 20. The move is seen likely to cost
  insurers and reinsurers up to £7bn ($8.7bn) in reserves and
  force motor premiums up.
  Presenting...
  
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• Costs, US investment weigh on JLT profit

  28-02-2017 10:10
  Exceptional costs of £37.7mn ($46.9mn) and a further
  £27mn of investment in JLT's US Specialty unit pushed the
  parent company's pre-tax profit down 13 percent to
  £134.9mn in 2016.
  Excluding the impact of the one-time costs, underlying trading
  profit before tax rose 1 percent to £172.6mn. Currency
  fluctuations provided a £22.2mn boost.
  The Risk and Insurance unit overall posted organic revenue
  growth of 3 percent as total revenue grew to £960.9mn.
  However, the
  
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• AmTrust placed on negative outlook after report delay

  28-02-2017 10:10
  AM Best has placed US carrier AmTrust on negative outlook after
  the company delayed the filing of its annual report.
  In a statement released this morning AM Best said it had revised
  the outlook on the financial strength ratings and issuer credit
  ratings of AmTrust Group and AmTrust Title Insurance Company from
  stable to negative. It also revised the issuer credit rating of
  AmTrust Financial Services Company from stable to negative.
  AmTrust yesterday pushed back the filing of its annual...
  
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• AGCS to eliminate up to 10% of roles

  28-02-2017 10:10
  Allianz Global Corporate & Specialty (AGCS) is looking to
  reduce its existing global headcount by up to 10 percent via a
  programme of voluntary redundancies, The Insurance
  Insider can reveal.
  Under the so-called Fit For Future programme, AGCS will
  eliminate around 40 of 430 existing roles in the UK, almost all of
  them in London. A similar proportion of staff are potentially set
  to leave the organisation in France, Germany and the US.
  AGCS employs around 1,200 people in its...
  
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