Insurance news

• UPC Insurance wins sponsor of the year

  11-04-2017 15:11
  Florida-based UPC Insurance received the Sponsor of the Year award
  at the 2017 Trading Risk awards held in
  London last week.
  The award recognises carriers that have made innovative use of
  ILS market capacity in building their reinsurance or retrocession
  programmes.
  Last year UPC sponsored its debut cat bond, Laetere Re, and it
  is also a major buyer of collateralised reinsurance. In addition,
  the Floridian set up a sidecar, Promissum Re, to bring in other
  third-party investors in 2015.
  Generali..
  
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• Probitas in advanced talks as Istmo liquidator appointed

  11-04-2017 15:11
  Ash Bathia's Lloyd's start-up Probitas 1492 has emphasised
  that it will continue to trade forward without any impact on its
  business after majority owner Istmo Re was placed into liquidation.
  Istmo Re wasseized by Panama's insurance regulator late last year and
  downgraded to E by AM Best, which forced the cornerstone backer of
  Probitas into run-off.In a statement the carrier said: "Probitas confirms
  business as usual as it continues to have confidential discussions
  with a number of new...
  
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• 'Pope of Lloyd's' dies

  11-04-2017 15:11
  Neil Mills, the former chairman of Sedgwick Group, has died at
  the age of 93.
  Known in the market as the "Pope of Lloyd's" for
  his strongly held religious convictions, Mills began his career at
  Bland Welch in 1948, after a successful Royal Navy career where he
  became what was thought to be the youngest officer commanding a
  ship at the age of just 21.
  Starting his career on the non-marine side, Mills was initially
  tasked with building a relationship...
  
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• New low for a deal with US wind exposure

  11-04-2017 15:11
  Louisiana Citizens Property Insurance Corporation is on track to
  close its new Pelican Re cat bond for an insurance premium of 225
  basis points (bps) - the lowest ever for a US wind deal.
  Pelican IV Re was released with an original target insurance
  coupon of 275-325 bps, however the price has fallen 25 percent
  below its initial target.
  The 225 bps spread will provide investors with a 2.3x multiple
  of the deal's expected loss of 0.96 percent, using sensitivity...
  
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• New Everglades Re II to target $250mn

  11-04-2017 15:11
  Florida Citizens Property Insurance is targeting $250mn for its new
  Everglades Re II cat bond, according to sources.
  As with the state-backed insurer's previous cat bonds, the
  Everglades Re II 2017 transaction will cover Florida named storms
  over a three-year term on an annual aggregate, indemnity basis.
  The single tranche of class A notes is being offered to
  investors with price guidance in a range of 500 to 575 basis points
  (bps).
  The midpoint of the range gives investors a...
  
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• Neon reports 217% combined ratio for 2016

  11-04-2017 15:11
  Neon's Syndicate 2468 has reported a combined ratio of 217
  percent for 2016, following a 69 percentage point deterioration to
  the loss ratio.
  The combined ratio was 79 points worse than in 2015, driven by
  an almost doubling of the claims ratio, which increased from 86
  percent to 155 percent. The expense ratio meanwhile, remained
  broadly flat, worsening by just 2 points to 23 percent.
  The deterioration led to an underwriting loss of £151.7mn
  ($188.1mn) for the financial year and...
  
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• MS Amlin Syndicate 2001 falls to 2016 underwriting loss

  11-04-2017 15:11
  Syndicate 2001, MS Amlin's flagship vehicle at Lloyd's,
  recorded a combined ratio of 103 percent in 2016 following a
  significant rise in catastrophe claims.
  The 2016 combined ratio was a 15 percentage point increase on
  2015.
  The claims ratio deteriorated by 14 points to 63 percent, while
  the expense ratio ticked up by 1 percentage point to 40 percent.
  Net claims incurred increased by 51.1 percent to £813.5mn
  ($1.01bn) during the period.
  The underwriting result fell to a loss of...
  
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• Mergers cause drought in US crop reinsurance demand

  11-04-2017 15:11
  Consolidation in the US primary crop market has reduced quota share
  demand, which has led some reinsurers to question their future
  involvement in the business.
  The reinsurance renewals for multi-peril crop insurance (MPCI)
  and crop hail books, which typically take place in March and April
  despite their 1 January inception dates, have been overshadowed by
  Zurich's decision to pull its existing outwards deals.
  Zurich acquired the biggest US MPCI carrier, Rural Community
  Insurance Services (RCIS),
  
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• Lloyd's open years climb to 6 in 2016

  11-04-2017 15:11
  The number of open years at Lloyd's increased to six for
  2016, as three syndicates were unable to close their 2014 year of
  account (YoA).
  Hamilton Syndicate 3334, AmTrust's life syndicate 779 and
  the former Andy Doré syndicate 2526 kept their 2014 YoAs open,
  while Neon closed its 2007 open year for Syndicate 2468.
  The 2014 YoA at Syndicate 3334, which
  Hamilton took on through its acquisition of Sportscover in 2015,
  has been placed into run-off rather than closed due...
  
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• InsurTech opportunity lies in aiding incumbents: Aquiline

  11-04-2017 15:11
  InsurTech start-ups that can help the traditional industry
  identify and solve procedural pain-points are the ones most likely
  to succeed in the long term, according to Aquiline chairman and
  chief executive Jeff Greenberg.
  Speaking to The Insurance Insider,
  Greenberg said the private equity firm is targeting InsurTech
  investments in start-ups that help incumbents to combat issues in
  the back and middle office.
  Aquiline has recently launched a dedicated InsurTech fund, aspreviously reported by thi
  
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• Insider View: US crop market pressures all parties

  11-04-2017 15:11
  While falling rates coupled with M&A activity have altered the
  dynamics for reinsurers, primary carriers of multi-peril crop
  insurance (MPCI) and crop hail cover have been pinched by regulated
  rates for the former and the latter's increasing status as a
  loss leader.
  Reinsurers, meanwhile, have seen profits eroded as rates soften
  because of the underlying economics of the market. Those forces
  have also compelled recent M&A, such as the purchase of Crop
  Risk Services by Validus Holdings, w
  
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• Insider View: InsurTech funding

  11-04-2017 15:11
  InsurTech funding is beginning to get serious.
  Trov's $45mn Series D funding round last week signalled that
  (re)insurance-focused start-ups have blossomed from intriguing
  ideas into firms with substantial financial backing and global
  buildout plans.
  But it is the source of the funding that bears watching. In this
  funding round, Munich Re's HSB Ventures displaced venture
  capital fund Oak HC as Trov's lead investor, while Sompo Japan
  Nipponkoa also entered the fray to aid the start-up's expansion
  
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• Flagstone Re founder Byrne dies

  11-04-2017 15:11
  Mark Byrne, the founder and former chairman of Flagstone Re,
  passed away in Montreal, Canada on 6 April, 2017.
  He is survived by his wife Rebecca, four children, Sophie,
  Jacqueline, Matthew and Christopher, as well as his mother, Dorothy
  Byrne and brothers John and Patrick.
  Byrne was involved in the insurance and reinsurance business as
  an owner, investor and board member for many years.
  In 1993 he became chairman of Haverford, a holding company for
  insurance interests in Bermuda, Europe...
  
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• Competition tempers US property softening slowdown

  11-04-2017 15:11
  With Q1 earnings calls and RIMS 2017 looming, executive management
  at carriers and brokers can expect plenty of questions over the
  trajectory of pricing line-by-line on their portfolios of business.
  And property - the insurance class that has been softest for
  longest - is likely to be seen as a bellwether for where the
  broader P&C market is heading.
  Some primary carriers might have seen evidence of slower
  softening on property cat reinsurance at 1 January and 1 April as...
  
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• Carrier backlash against broker pay practices spreads

  11-04-2017 15:11
  A range of heavyweight executives including Sompo International
  CEO John Charman have lent their support to the searing critique of
  broker remuneration practices made last week by Chubb CEO Evan
  Greenberg.
  Lloyd's new underwriting chief Jon Hancock and Validus CEO
  Ed Noonan also joined the swelling chorus of criticism of the way
  that the major brokers have levered up acquisition costs in the
  London market since 2013.
  In Chubb's annual report,Greenberg castigated the brokers for their
  "predatory"
  
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• Bruised Lloyd's underwriters see little change for 2017

  11-04-2017 15:11
  Underwriting executives at Lloyd's syndicates have bemoaned
  the persistent soft conditions in the market, as they braced
  themselves for another year of the same.
  A number of executives said they saw few factors that could
  change the status quo in their annual syndicate reports.
  Andrew Kendrick, regional president for
  Europe at Chubb, wrote that the insurance industry environment in
  the Lloyd's and London markets was "incredibly
  difficult".
  Insurance rates have reached, or are in danger of reachi
  
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• Auto insurers must go beyond rate to lower losses

  11-04-2017 15:11
  Underwriters must move beyond the "blunt force of
  rate" to address the frequency and severity issues blighting
  personal and commercial auto lines, according to Zurich's head
  of North America Commercial Insurance Paul Horgan.
  Speaking at the Advisen Casualty Insights conference in New York
  last week, the executive said auto profitability challenges had to
  be addressed by the industry.
  "Rate is important, but it's not just rate. It's
  driver selection, training, getting safety programmes right. The
  
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• AGCS leads $500mn Airbus helicopter grounding loss

  11-04-2017 15:11
  Allianz Global Corporate & Specialty (AGCS) is the lead
  insurer for a $500mn loss related to the grounding of faulty Airbus
  helicopters last year, The Insurance
  Insider can reveal.
  AGCS holds a 10 percent lead line on the Airbus product
  liability policy, with Global Aerospace understood to have written
  a substantial following line.
  It is not unusual in the aviation market for followers to take a
  larger line on policies than the lead underwriter.
  Sources said the loss exhausted the...
  
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• Insurtech broker Konsileo launches after receiving over 100 applications

  11-04-2017 14:47
  
  Startup commercial broker Konselio claims it can boost operational efficiency by up to 60%
  
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• InsurTech Futures: The rise of the machines

  11-04-2017 11:58
  
  Red Crake's Ed Pugh tells us how brokers can cut costs by using software systems to automate repetitive processes.
  
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• US lawmakers call for clarification of covered agreement

  11-04-2017 11:20
  The top Republican dealing with insurance matters in the House of
  Representatives has formally asked for a delay in signing the
  "covered agreement" on regulating carriers in the US and
  the European Union, seeking clarification of "ambiguous"
  parts first.
  Among the points that "could use clarification"
  identified in a letter from representative Sean Duffy include
  satisfying the group capital requirements by using a calculation
  being developed by state insurance regulators, specifying
  expectations
  
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• Sompo International hires loss control leader

  11-04-2017 11:20
  Sompo International has hired Victor Sordillo from QBE as senior
  vice president and loss control leader, according to a statement
  from the firm.
  Sordillo will run strategic loss control services at Sompo
  International, based in the carrier's New York City office.
  His role will focus on providing risk management services to
  banks, real estate firms, the hospitality industry and financial
  and professional services.
  Sordillo worked at QBE from May 2016, where he also led US loss
  control. He joined
  
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• Opinion: Illinois hackathon

  11-04-2017 11:20
  For too long a single factor has dominated the industry's
  hiring strategy: nepotism.Even today I'd wager that the bulk of new recruits into the
  sector could point to a familial connection to insurance, albeit to
  a lesser extent now than in previous generations.I've lost count of the industry's veterans that have
  recalled their first insurance interview which took place in one of
  Lime Street's pubs with a pint in hand.
  But all that is changing. On Sunday morning...
  
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• Debbie losses reach A$660: ICA

  11-04-2017 11:20
  Claims from Tropical Cyclone Debbie have now hit A$660 ($495mn),
  the Insurance Council of Australia (ICA) said in a statement today.
  The ICA said insurers had received 41,105 claims as of 9.00am
  Sydney time on the 11 April.
  Damage estimates are rapidly increasing as carriers count the
  cost of the category 4 storm, which hit Queensland and New South
  Wales in late March.
  The previous claims estimate from the ICA was A$450mn on 6
  April.
  Some carriers have given updates...
  
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• Aspen Insurance in marine tie-up with US Risk

  11-04-2017 11:20
  Aspen's insurance operation has set up a partnership with the
  wholesale broker US Risk to distribute marine insurance in the US.
  Aspen will underwrite insurance for vessel-assist towboat
  operators, pilot vessel operators, sightseeing and dinner cruise
  charterers, passenger ferries and water taxis, and use US
  Risk's license network to sell the product in 50 states.
  Patrick Hickey, executive vice president and head of US marine
  at Aspen Insurance said: "This partnership allows us to
  jointly offer
  
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• Motor premiums continue to rise into Q1 2017

  11-04-2017 10:48
  
  Motorists are now paying on average £110 more for comprehensive car insurance than they did this time last year.
  
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• Aspen Insurance teams up with US Risk on marine

  11-04-2017 10:44
  
  Aspen Insurance will offer marine insurance across the United States through a partnership with the wholesale broker US Risk.
  
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• Brexit uncertainty to curb European insurance M&A

  11-04-2017 10:42
  
  The political uncertainty surrounding Brexit will reduce merger and acquisition deals in Europe, according to AM Best.
  
  Read more

• Car premiums increase by 16%

  11-04-2017 09:37
  
  Confused.com figures show that the discount rate cut played a key part in the rise of premium costs.
  
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• Ogden and IPT could push motor rates past 2011 peak

  11-04-2017 08:30
  
  Motor rates jump in first quarter of 2017, Willis/Confused index shows
  
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• Blog: Fronting is fraudulent

  11-04-2017 08:00
  
  Policy history data can help insurers detect fronting.
  
  Read more

• Third Point Re lures away Berkshire's Govrin

  11-04-2017 07:05
  Third Point Re has secured the services of David Govrin to
  bolster the ranks of its US platform, taking him from Ajit
  Jain's Berkshire Hathaway Reinsurance Group (BHRG).
  Govrin was appointed executive vice president of underwriting at
  Third Point Reinsurance USA, effective today.
  The executive spent the last seven years working for Jain, a
  Warren Buffett lieutenant, as vice president at the Omaha, Nebraska
  conglomerate's reinsurance unit.
  Govrin is thought to have worked on a wide range of reins
  
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• PE-backed NFP buys Thomas agency in Arkansas

  11-04-2017 07:05
  Private-equity backed NFP, formerly known as National Financial
  Partners, has acquired a property-casualty broker based in Arkansas
  to expand its business in the region.
  NFP, which received a $750mn capital infusion in December from a
  group led by another PE firm, HPS Investment Partners, said the
  deal to acquire the Thomas Insurance Agency closed in February. The
  acquisition was the seventh transaction completed or announced by
  New York-based NFP since the investment by HPS, the successor to
  JP
  
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• Munich Re among suitors as OneBeacon process nears end

  11-04-2017 07:05
  Munich Re is one of the carriers in the hunt for OneBeacon as
  the auction launched in January by controlling party White
  Mountains nears its conclusion, The Insurance
  Insider has learned.
  Banking sources said that final round bids in the Credit
  Suisse-run process were due at the end of last week, with a deal
  now getting close, provided White Mountains can secure its reserve
  price for the New York-listed insurer.
  Zurich and The Hartford are understood to have looked at...
  
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