Insurance news

• Florida AOB crisis flares as groups game system: study

  09-03-2017 23:38
  Florida's assignment of benefits (AOB) crisis can be partly
  blamed on a small number of lawyers and service providers who have
  helped fuel the explosive growth in lawsuits brought against
  insurers in recent years, a new study shows.
  While 11 lawyers accounted for a quarter of all AOB cases
  brought to court from 2013 to 2106, the Florida Justice Reform
  Institute study said one lawyer alone filed over 30,000 of the
  lawsuits against insurers from 2015 to last year. The...
  
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• AssuredPartners agrees deal to buy Keenan & Associates

  09-03-2017 23:38
  Expansive US broker AssuredPartners has agreed to acquire Keenan
  & Associates in a cash and stock deal.
  With 2016 revenue of $170mn and 700 employees, Keenan will
  become the largest agency in the Apax Partners-backed
  consolidator's growing operations.
  In a statement, Torrance, California-headquartered Keenan said
  it will continue to focus on the public entity and health care
  markets and provide additional distribution for AssuredPartners in
  the Golden State.
  Keenan's president and CEO Sean S
  
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• Opinion: Hancock's departure

  09-03-2017 20:20
  AIG CEO Peter Hancock should have resigned the day the reserve
  charge was announced.
  His position was completely untenable in the light of the size
  of the loss. Hancock had lost all credibility with investors and
  the firm's recovery was going to be more difficult with him in
  place than with him gone.
  Turnarounds depend upon confidence and sentiment. Hancock could
  not expect after a second multi-billion reserve charge to command
  confidence.
  Although Hancock could no longer be part of...
  
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• LMG's Aubert warns of post-Brexit claims risks

  09-03-2017 20:20
  Claims chaos could erupt if there is no clear transitional
  arrangement in place when the UK leaves the EU, London Market Group
  (LMG) chairman Nicolas Aubert has warned.
  Speaking to The Insurance Insider
  after an event to launch the LMG's key Brexit recommendations
  to government, Aubert said that without implementation plans
  "we could face thousands and thousands of situations where
  insurers can't pay a claim" after losing their EU licence
  following Brexit.
  "The timing of the implementation start
  
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• Hancock exit 'positive' for AIG: analysts

  09-03-2017 20:20
  Equity analysts have responded positively to the resignation of
  AIG president and CEO Peter Hancock, and claimed the company now
  ideally needs to find a successor with underwriting expertise and
  experience in turning around an ailing company.Hancock resigned earlier today after a run of poor underwriting
  results and mounting investor pressure. Last month the P&C
  giant posted a $2.79bn fourth quarter net loss and unveiled a
  surprise reserve charge of $5.6bn.
  BMO Capital Markets analyst Charle
  
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• EPIC buys NE broker The Capacity Group

  09-03-2017 20:20
  Expansive US retail broker and employee benefits consulting firm
  EPIC has bought its smaller rival The Capacity Group (TCG) in a
  deal that gives it a strong Northeast regional platform for further
  growth.
  In an announcement the companies said the addition of TCG would
  add 280 professionals and 15 locations, with the acquired broker
  anchoring EPIC's Northeast presence.
  They added that TCG's leadership team will continue to play
  "vital roles" in the combined organization.
  Privately-held New Jersey
  
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• Fitch issues gloomy warning for company market in wake of Ogden rate changes

  09-03-2017 18:10
  
  Fitch has issued a gloomy warning for the UK non-life company market this year in the wake of the Ogden rate cut.
  
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• AIG CEO Peter Hancock steps down over eroding shareholder support

  09-03-2017 17:37
  
  AIG CEO Peter Hancock, has resigned, citing a lack of “wholehearted shareholder support”.
  
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• Aviva to focus on cost-cutting in wake of restructure

  09-03-2017 17:19
  
  Aviva will look to make cuts in areas of the business that overlap following the recent restructure of the business.
  
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• Irish regulator lures 5 Brexit applicants

  09-03-2017 16:47
  Ireland has received five applications from carriers looking to
  establish subsidiaries following the Brexit vote, but has continued
  to insist that would-be entrants have a substantive presence.
  Sylvia Cronin, who is director of insurance supervision at the
  Central Bank of Ireland, revealed the number at a KPMG event a day
  after AIG opted for Luxembourg over Dublin and other locations for
  its post-Brexit EU subsidiary.
  The AIG move supported the perception that stringent Irish
  regulatory requirem
  
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• Hoare replaces Jardine on Lloyd's Council

  09-03-2017 16:47
  Dominick Hoare, the chief underwriting officer of the Munich Re
  Syndicate, has been elected unopposed to the Lloyd's Council,
  Lloyd's said in a statement today.
  Hoare replaces Paul Jardine, the executive vice president and
  chief experience officer of XL Group. Jardine represented Catlin
  Syndicate on the Council until his term expired on 31 January.
  Hoare will join the Council, the body responsible for the
  management and supervision of the Lloyd's market, on 19 April.
  His term will run until Janu
  
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• AIG shares climb on Hancock exit

  09-03-2017 16:47
  AIG shares climbed 1.6 percent in early New York trading as
  investors reacted positively to the resignation of CEO Peter
  Hancock.
  The stock was trading up 1.58 percent at $64.44 as of 14:53 GMT
  as markets digested the news, which was released before trading
  began this morning.
  Keefe Bruyette & Woods analyst Meyer Shields said the change
  of leadership was a "significant positive" for the
  company.
  He said Hancock's past and present underperformance made it
  "difficult to see how AIG...
  
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• AIG CEO Hancock resigns after Q4 loss

  09-03-2017 16:47
  Peter Hancock has resigned as president and CEO of AIG, citing a
  lack of "wholehearted shareholder support" for his
  leadership after the company posted weak fourth-quarter
  results.
  In a statement the carrier said Hancock will remain for a
  transitional period until a successor has been named. AIG shares
  were up 1.5 percent in the pre-market.The executive's position has come under pressure in recent
  weeks after AIG revealed a mammoth $5.6bn charge in its Q4 results,
  primarily stemming from liabili
  
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• Aviva reiterates commitment to brokers

  09-03-2017 16:34 via insuranceage.co.uk
  
  CEO Wilson hails best growth in 11 years and says the insurer is “winning” in the UK.
  
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• AIG chief exits over lack of shareholder support

  09-03-2017 16:21
  
  Fear of undermining progress prompts AIG chief exit
  
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• CEO Peter Hancock to leave AIG

  09-03-2017 15:13 via insuranceage.co.uk
  
  Boss to remain with the insurer until the board has found a replacement.
  
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• Government must 'fight fire with fire' over Brexit business

  09-03-2017 14:50
  
  The UK government needs to "fight fire with fire" when it comes to keeping business within the City of London during Brexit negotiations.
  
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• Autofocus trial continues as defendants give evidence

  09-03-2017 14:45
  
  The trial against former Autofocus employees for contempt of court continued today at the Royal Courts of Justice.
  
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• Novae’s profit halved after discount rate hit

  09-03-2017 14:12
  
  Underwriting performance deteriorated as Novae’s profit halved
  
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• Novae profit halved after discount rate hit

  09-03-2017 14:12
  
  Underwriting performance deteriorated as Novae profit halved
  
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• CII holds mass networking event to highlight insurance apprenticeship opportunities

  09-03-2017 13:32
  
  The Charted Insurance Institute has organised a networking event between leading insurers, students and apprentices to raise awareness of insurance apprenticeship schemes.
  
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• Opinion: cyber market sustainability

  09-03-2017 13:24
  At a gathering of London cyber market professionals earlier this
  week, delegates indulged in some blue-sky thinking on the future of
  their industry.
  Can the market continue the rapid growth trajectory it has found
  itself on? Can available capacity keep meeting growing client
  demand? How can the market be more innovative in its coverages?
  But perhaps more pressingly, delegates questioned whether this
  rapid growth and broadening coverage scope were threatening the
  sustainability of the cyber marke
  
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• Markel International enters surety market

  09-03-2017 13:24
  Markel International has launched a surety offering following
  the appointment of Damian Manning to head up the new team.
  The team will initially focus on opportunities in the UK,
  Ireland and Continental Europe, with the intention to expand to
  other regions outside North America. David Chandler has also joined
  as senior underwriter.
  Manning has more than 19 years of experience in the credit and
  surety market, having started his career as a broker at Aon Trade
  Credit before moving to...
  
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• LMG asks for assurance on post-Brexit equivalence

  09-03-2017 13:24
  The London Market Group (LMG) today called for a guarantee that the
  London insurance market will have regulatory equivalence with the
  EU after Brexit.
  Other items on the LMG's list of key recommendations to the
  government were a new trade deal with the EU to ensure both UK and
  EU insurers, reinsurers and brokers can continue cross-border
  business; and an early agreement on an implementation period to
  avoid a Brexit "cliff edge".
  In a statement ahead of an event to...
  
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• Charles Taylor posts £14.8mn pre-tax profit

  09-03-2017 13:24
  Insurance services firm Charles Taylor has reported a 4 percent
  increase in adjusted pre-tax profits to £14.8mn ($18mn) for
  the full-year 2016.
  The company increased its full-year dividend per share to
  10.50p, a 5 percent hike from the previous year. Adjusted earnings
  per share (EPS) rose by 11.5 percent to 22.27p.
  Revenues jumped 18.1 percent to £169.3mn. The figure
  benefitted from a 3.8 percent boost from translation of
  international earnings due to the weakness of sterling.
  The pr
  
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• Brit expands Versutus sidecar to $150mn

  09-03-2017 13:24
  Brit has expanded the collateralised reinsurance capacity of its
  sidecar Versutus to $150mn, it announced today.
  The increased capacity became effective on 1 January, and is a
  $40mn increase on the previous capacity level of $110mn. GC
  Securities acted as placement agent for the new preference shares
  issued by Versutus.
  Brit launched Bermuda-domiciled Versutus in January 2015 to
  provide collateralised capacity to support the its property
  catastrophe treaty portfolio.
  Versutus has a quota share a
  
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• Axa adds parametric product

  09-03-2017 13:24
  Axa has launched Axa Global Parametrics to widen its parametric
  insurance solutions, the company announced today.
  Axa has been working on parametric offerings since 2014, notably
  in the area of climate risk.
  Working as part of Axa Corporate Solutions, the parametric team
  has provided products for weather-sensitive corporates in
  agriculture, renewable energy, construction, transportation,
  leisure and textiles, as well as for international institutions and
  governments.
  About 40 percent of these se
  
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• Aviva takes £475mn Ogden hit

  09-03-2017 13:24
  Aviva has reported a pre-tax £475mn ($578mn) impact from the
  UK government's decision to reduce the Ogden discount rate to
  minus 0.75 percent, it announced alongside its annual results
  today.
  Excluding the impact, which Aviva has accounted as an
  exceptional item, the UK composite insurer's operating profit
  increased by 12 percent to £3bn - ahead of analyst
  expectations of £2.9bn.
  The outperformance was driven by an 8 percent increase in life
  profits, a 9 percent increase in non
  
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• QBE launches live web chat facility for brokers

  09-03-2017 13:04 via insuranceage.co.uk
  
  On successful completion of the pilot, QBE will roll out the facility to 500 brokers in three weeks.
  
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• LMG seeks new EU cross-border deal for market

  09-03-2017 12:54
  
  The London Market Group has called for a new trade deal between the UK and the European Union that will allow insurers to operate across borders.
  
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• ERS updates agricultural offering

  09-03-2017 12:50 via insuranceage.co.uk
  
  Provider says benefits include increased third party property damages and cover for trailers.
  
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• Admiral CEO’s charity sells shares worth £4.02m

  09-03-2017 12:50
  
  Admiral CEO David Stevens’ own charity, the Waterloo Foundation, has sold 225,000 shares in the insurer worth £4.02m.
  
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• Claims boss John Latter to leave Zurich for Chubb

  09-03-2017 11:58
  
  John Latter, director of technical claims at Zurich, has resigned and will join Chubb.
  
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• Aviva’s UK commercial lines COR hits 112.3% for 2016

  09-03-2017 11:29 via insuranceage.co.uk
  
  Personal lines comes in at 104.6% as both lines impacted by Ogden rate change.
  
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• Aviva's general insurance COR soars to 106.3%

  09-03-2017 10:42
  
  Aviva has reported an increase in its UK general insurance combined operating ratio 106.3% in 2016.
  
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• Ogden hits Aviva UK COR as it rises to 106.3%

  09-03-2017 10:17 via insuranceage.co.uk
  
  UK GI performance was described as “strong” with net written premium increasing by £341m.
  
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• Ogden change pushes Novae to underwriting loss

  09-03-2017 09:47
  London market carrier Novae has fallen to an underwriting loss
  for 2016 after a cut to the Ogden rate moved the company's
  combined ratio for the year from 98.3 percent before the change to
  103.6 percent after.
  In 2015, the company had reported a full-year combined ratio of
  91.3 percent.
  Novae delayed the publication of its annual results last week as
  the unexpected changes dealt a £55mn hit to its reserves.
  As previously announced the decision altered the company's
  final...
  
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• Hannover Re P&C profit jumps on improved underwriting

  09-03-2017 09:47
  Fourth-quarter operating profit in the P&C segment at
  Hannover Re climbed 10.5 percent to EUR447mn ($472mn), driven by an
  improvement in underwriting performance.
  The result was more than 10 percent ahead of the analyst
  consensus of EUR404mn, according to Helvea equity analyst Daniel
  Bischof.
  In a note published this morning, he said: "In our view the
  market will focus on the significant non-life reserve releases of
  EUR804mn in 2016 which equals 60 percent of the segment's
  [operating profit]
  
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• Novae hit by US catastrophes and Ogden as profit drops 45%

  09-03-2017 09:00
  
  Novae has described its 98.3% pre-Ogden 2016 combined operating ratio as disappointing while the Lloyd's (re)insurer's investment portfolio performed well.
  
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• Discount rate hit pushes Aviva GI to underwriting loss

  09-03-2017 08:26
  
  Aviva’s UK COR in loss-making territory after discount rate hit
  
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• Uninsured driving - the European way

  09-03-2017 08:00
  
  A recent European ruling that means insured motorists will pay repairs for uninsured drivers has caused outrage in the industry. What is the extent of uninsured driving in Europe, how do national differences compare and which policies work?
  
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• Swiss Re Corporate Solutions opens Kuala Lumpur office

  09-03-2017 03:26
  
  Swiss Re's commercial insurance arm has opened an office in Kuala Lumpur.
  
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• The Hartford's Swift wins new term as AIA chairman

  09-03-2017 02:30
  The Hartford's Chris Swift has been re-elected as chairman
  of the American Insurance Association (AIA), a position he first
  took on last year.
  Noting that 2016 marked the 150th anniversary of the
  organisation, the Hartford chairman and CEO said: "AIA has
  been and remains at the forefront of advocacy for the
  property-casualty industry at all levels of government."
  Leigh Ann Pusey, AIA president and CEO said: "Chris has
  brought a tremendous vision and enthusiasm to AIA throughout his
  tenure as...
  
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• Markel takes $85mn reserve charge on Ogden rate

  09-03-2017 02:30
  Markel became the latest carrier to fall victim to the Ogden
  rate change, which has plagued UK motor insurers since it was set
  last week, with the underwriter reporting an $85mn reserve
  charge.
  The rate change will be felt mostly through its exposure to UK
  auto casualty claims stemming from reinsurance contracts written up
  to and including 2014, when it ceased writing the business, the
  Richmond, Virginia-based carrier said today.
  The reserve charge will be recorded against 2017 first-quarter
  res
  
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