Insurance news

• XL Group sees a third of shareholders rebel on pay

  23-05-2017 22:36
  XL Group shareholders have voiced opposition to the
  company's executive pay plan, with the Bermudian becoming the
  latest carrier to face investor disapproval over compensation
  proposals at an annual meeting of stockholders.
  In an advisory vote last week, holders of almost 32 percent of
  XL shares opposed proposed salary and bonus levels for top
  executives, with those controlling 68 percent of shares favouring
  the plan.
  The vote occurred during XL's annual meeting on 19 May in
  Hamilton, Bermuda. D
  
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• Ironshore adds ex-Hiscox trade underwriter Fisher

  23-05-2017 22:36
  Ironshore has taken on Russell Fisher who was let go when Hiscox
  disbanded its political risk and trade credit underwriting team in
  London.
  The Liberty Mutual-owned carrier based in Boston said Fisher
  would join its ranks as vice president of political risk and trade
  credit.
  The executive will be tasked with underwriting European business
  but will remain in London, it went on.
  Fisher was one of a number of people dismissed when Hiscox put
  its political risk and trade credit...
  
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• CEA raises $925mn from Ursa Re

  23-05-2017 22:36
  The California Earthquake Authority (CEA) has raised $925mn from
  its Ursa Re 2017-1 cat bond, making it not only the
  organisation's biggest cat bond issuance but also one of the
  ILS market's largest ever deals.
  The size of the bond almost doubled throughout the course of the
  negotiations after being launched with a target size of $500mn, as
  sister publication Trading Risk has
  previously reported. It will cover California earthquake risk on an
  indemnity, annual aggregate basis.
  The bond was...
  
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• AIG ratings review ends as AM Best credits Duperreault

  23-05-2017 22:36
  Rating agency AM Best gave newly appointed American
  International Group boss Brian Duperreault a nod of approval today
  as it ended a credit review that began with negative implications
  following a surprise charge against earnings under former leader
  Peter Hancock.
  AM Best's analysts restored their stable outlook for the
  insurance giant's financial strength rating and long-term
  issuer credit rating. Among other factors, the company cited
  Duperreault's hiring, noting "his significant operating
  exp
  
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• The Insider 50 outperforms major market indices

  23-05-2017 17:49
  The Insurance Insider's index of
  major P&C (re)insurance companies - The Insider 50 -
  rose by 0.8 percent last week to 1,062.1 index points, edging ahead
  of other leading market indices.
  By comparison, the FTSE 100 advanced by 0.5
  percent in the week, while the S&P 500 was down by 0.4 percent
  and the Stoxx Euro 600 fell by 1.0 percent.
  However, the growth posted by The Insider 50 was
  somewhat muted relative to other weeks. Only a small number...
  
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• Storm losses erode UPC Insurance deductible

  23-05-2017 17:49
  UPC Insurance incurred almost $20mn of catastrophe losses for the
  first four months of the year to put it $10mn shy of triggering its
  aggregate and quota share reinsurance covers, sister publication
  Trading Risk reported last week.
  The Florida-based carrier incurred about $9mn of cat losses in
  April due to high storm activity in the month, the firm's CEO
  John Forney said on an earnings call, accordingto a Seeking Alpha transcript.
  That added to the $10.6mn of weather losses...
  
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• Rayner to resurface at Apollo

  23-05-2017 17:49
  Former Faraday stalwart Mark Rayner is set to reappear at
  Lloyd's managing agent Apollo, The Insurance
  Insider understands.
  Rayner resigned from Faraday earlier this month after more than
  25 years with the Berkshire Hathaway-owned Lloyd's
  syndicate.
  He rose through the ranks to become chief underwriting officer
  after joining what is now Syndicate 435 as a property treaty
  underwriter in 1990.
  Almost 15 years later he was made joint chief underwriting
  officer of Gen Re's Lloyd's operations before
  
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• Q1 results suggest Ogden impact could hit $7bn

  23-05-2017 17:49
  Reinsurers pushed through motor insurance rate increases of as
  much as 60 percent in the April renewals, while Q1 disclosures
  pointed to a reserves hit of up to $7bn, analysts have said in the
  aftermath of the UK government's Ogden discount rate cut.
  The 3.25 percentage point rate reduction took effect from 20
  March, and first quarter reports by carriers, which had been
  universally reserving well above the new minus 0.75 percent rate,
  pointed to a "$5bn to $7bn industry...
  
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• ProSight run-off prospects under Lloyd's scrutiny

  23-05-2017 17:49
  ProSight's Lloyd's operation has been asked by the
  Corporation to put in place a run-off contingency plan in case it
  is unable to secure a new backer, after it was put up for sale by
  its parent company, The Insurance Insider
  understands.
  Multiple sources told this publication that as well as asking
  ProSight Specialty Underwriters to bring in a third party - in this
  case KPMG - to audit the business, performance management director
  Jon Hancock had requested a roadmap...
  
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• Pioneer targets full syndicate launch for 2018

  23-05-2017 17:49
  Pioneer Underwriters is working on a full Lloyd's syndicate
  start-up with Asta as its third-party managing agent,
  The Insurance Insider can reveal.
  Sources indicated that Pioneer met with the New Entrants
  Assessment Group last week and is due before the Franchise Board at
  the end of June.
  While this timescale suggests the syndicate could launch later
  this year, the low volume of business that renews in Q4 means it is
  more likely the start-up will look to launch for 1...
  
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• Opinion: ProSight at Lloyd's run-off prospects

  23-05-2017 17:49
  For many years, the London market outperformed its specialty
  insurance peers in the US, as well as the Bermuda market and the
  continental reinsurers.
  That is no longer the case.
  The perception may lag the reality, but the market's finest
  underwriting businesses aside, London and Lloyd's carriers are
  not really making any money on underwriting anymore.
  On a year-of-account basis, it is hard to see 2017 delivering a
  meaningful underwriting margin, and it is easy to see it running at...
  
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• Opinion: Pioneer, a special case

  23-05-2017 17:49
  Interest in full syndicate start-ups at Lloyd's has waned
  considerably over the last 18 months to two years as the soft
  market has started to bite.
  Lloyd's is less attractive than it has been at any point for
  years, and the adverse selection against new businesses combined
  with the front-loading of costs - including those of a third-party
  managing agency - mean that only the best will make a profit before
  year four.
  Nevertheless, MGA heavyweight Pioneer looks on track...
  
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• Novae departures mount with former CUO's exit

  23-05-2017 17:49
  Ian Burford, Novae's joint chief
  underwriting officer (CUO) and joint active underwriter until
  earlier this year, has left the company in the latest of a spate of
  exits from the London-listed carrier, The Insurance
  Insider can reveal.
  Burford vacated his positons as CUO and joint active underwriter
  earlier this year, with Robert Forster taking on the roles on a
  sole basis.
  However, Burford continued to hold responsibility for underwriting
  Novae's US property catastrophe reinsurance book.
  Burford
  
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• MTA saves on second cat bond

  23-05-2017 17:49
  The New York Metropolitan Transportation Authority (MTA) has
  achieved significant premium savings on its second cat bond, the
  $125mn MetroCat Re 2017-1 issuance, according to
  Trading Risk sources.
  MTA captive insurer First Mutual Transportation Assurance will
  pay an insurance premium of 3.7 percent for the cover, compared to
  a 4.5 percent coupon on its first cat bond, which was issued in
  2013.
  The MTA's previous MetroCat bond provided $200mn of limit
  and expired in June 2016.
  The lower premium w
  
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• Morocco oil loss lands Lloyd's carriers in court

  23-05-2017 17:49
  A number of Lloyd's carriers are embroiled in legal action in
  New York over the alleged theft of $400mn of oil by Moroccan
  refinery Société Anonyme Marocaine de l'Industrie du
  Raffinage (Samir), court documents show.
  The action was brought by US-based private equity firm Carlyle
  Group in the Southern District Court of New York in March and was
  moved to the Supreme Court of New York on 8 May.
  The buyout firm advanced Samir a shipment of oil through its...
  
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• Maxum pulls out of US programme business

  23-05-2017 17:49
  The Hartford's recently acquired Maxum Specialty unit is
  withdrawing from the US programme sector, The Insurance
  Insider can reveal.
  According to sources, the excess and surplus lines (E&S)
  specialist is exiting the programmes it currently supports and
  putting the portfolio into run-off.
  The exact size of the book is not known but it has been
  suggested it is fairly modest with an annual premium volume in the
  low tens of millions of dollars.
  The move comes just over two years...
  
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• Globe Underwriting creates marine underwriting unit

  23-05-2017 17:49
  UK managing general agent (MGA) Globe Underwriting has launched
  a marine division with a quintet of former Tokio Marine Kiln
  underwriters, the company announced today.
  The new division will be led by head of marine Peter Rogers and
  head of underwriting David Dymond.
  Both will report to Globe Underwriting CEO Gary Corke.
  The firm said the unit will initially focus on UK and
  international marine liability risks.
  It added that the five underwriters had previously worked
  together for nearly two...
  
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• Cyber should be offered on all programmes: Glatfelter CUO

  23-05-2017 17:49
  Cyber should be offered as a coverage option on every insurance
  programme, according to Glatfelter Programs CUO John Solari.
  Speaking on a panel at the Target Markets mid-year meeting in
  Arlington, Virginia last week, the executive said: "You are
  doing a service to your clientele by providing the covers they
  really need that they might not even know they need. Whether they
  buy or not is another subject."
  He added that it was crucial for the future of the product...
  
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• Brokers or PE likeliest State National buyers: Binner

  23-05-2017 17:49
  Potential suitors for State National are likely to include
  brokers and private equity firms, according to FBR analyst Randy
  Binner.
  The Insurance Insider revealed last
  week that the specialist fronting and programme carrier had
  appointed Evercore to run a formal sales process.
  The company's shares traded up almost 5 percent after the
  news broke on Friday (19 May), closing at $16.12.
  Before the uptick, the company's stock was already at above
  2.1x book value, with a price to earnings ratio...
  
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• Acappella future under the microscope

  23-05-2017 17:49
  The future shape of Pembroke-Willis Towers Watson joint venture
  Acappella is in question, with the broker considering its options
  to address the underperformance of the business, The
  Insurance Insider understands.
  Sources have said that Willis is looking hard at Acappella to
  try and assess a way forward and that a restructure is possible -
  including potentially a break-up of the firm's syndicate and
  MGA portions.
  They have said a sale is not out of the question if a buyer
  could...
  
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• SSP passes Biba's software assessment

  23-05-2017 17:09
  
  The review was prompted by SSP failures last year.
  
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• Zurich and Axa close Manchester branches for the day following terror attack

  23-05-2017 13:47
  
  Zurich and Axa have closed their Manchester branches following last night’s terrorist attack on Manchester Arena.
  
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• Pool Re will respond to Manchester attack as ‘quickly as possible’

  23-05-2017 13:37
  
  Pool Re will work with its members to resolve any claim arising from the suicide bomb attack in Manchester, the terrorism reinsurance fund has said.
  
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• Perils raises Doris loss estimate to EUR249mn

  23-05-2017 13:07
  Catastrophe loss data aggregator Perils has increased its loss
  estimate for windstorm Doris to EUR249mn ($280mn).
  The estimate is higher than the initial EUR213mn figure
  published by Perils in April.
  The storm struck the British Isles on 23 February before moving
  into mainland Europe, where it caused widespread damage across the
  Netherlands, Belgium and Germany.
  Perils said in its previous estimate that the losses weremainly concentrated in the UK and Germany.The next loss estimate figure for th
  
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• Opinion: consent issues

  23-05-2017 13:07
  Ever met anyone at the Department for Culture, Media and Sport? If
  not, you might want to start making some friends there.
  Because this is the UK government department that will help
  determine whether the insurance industry deserves a new legal basis
  for processing sensitive personal data under more general data
  protection regulations that are forthcoming.
  Why is this important? Because as of 25 May 2018, the UK's
  data watchdog the ICO wants all companies requiring access to
  so-called "special..
  
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• Great American contests $50mn Tom Cruise movie claim

  23-05-2017 13:07
  Great American is looking to escape footing the bill for a
  Colombian plane crash that killed two people and seriously injured
  another during the filming of the soon-to-be-released Tom Cruise
  movie American Made.
  The film, which was to premiere early this year but was delayed
  after the accident, features Cruise as Barry Seal, an American
  pilot and drug smuggler recruited by the CIA in a bid to catch
  Colombian drug baron Pablo Escobar.
  But disaster struck during filming in Escobar...
  
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• Debbie-hit areas face rate hikes: report

  23-05-2017 13:07
  Carriers in areas of New South Wales and Queensland that were
  hit by Cyclone Debbie in late March are weighing commercial rate
  hikes of up to 20 percent, according to a report.
  Australian newspaper The Courier Mail cited
  unidentified analysts predicting home and motor policy rate
  increases of 5 percent, with commercial insurance premiums likely
  to rise by between 15 percent and 20 percent.
  Both building companies and the Insurance Council of Australia
  told the newspaper the higher costs were...
  
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• Globe Underwriting enters marine market

  23-05-2017 12:59
  
  UK-based managing general agent, Globe Underwriting, has entered the marine market with the launch of a new marine division.
  
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• SSP reveals results of Biba software house audit

  23-05-2017 12:42
  
  The Biba software house audit was carried out on the four major UK broking platforms
  
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• Liberty Specialty denies reports it has picked Luxembourg for post-Brexit base

  23-05-2017 12:41
  
  Liberty Specialty Markets denied it had already made a decision over the base of its European Union subsidiary, despite reports it has picked Luxembourg for the base.
  
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• Vienna Insurance Group sees profits climb by 22%

  23-05-2017 12:13
  
  Vienna Insurance Group saw profits before tax rise 22% in Q1 2017 to €109.6m (£94.6m) from €89.6m in the same period last year.
  
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• SSP outage highlights importance of business continuity planning

  23-05-2017 12:13
  
  Latest incident arose due to SSP making adjustments to embed new clients onto its new data centre, it said.
  
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• Swinton relocates staff after Manchester Arena blast

  23-05-2017 12:09
  
  The broker’s new office is close to the site of the Manchester Arena blast
  
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• ABI in talks with the ICO to set up anonymised cyber incident platform

  23-05-2017 11:52
  
  In response to the Wanna Cry ransomware attack, the Association of British Insurers has reiterated its calls for an anonymised cyber incident database once the General Data Protection Regulation comes into effect.
  
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• Alpha Underwriting and Building Block team up to offer caravan insurance

  23-05-2017 11:42
  
  The product will initially be distributed through broker panels and networks.
  
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• Fresh profit grows to £2.1m

  23-05-2017 11:31
  
  Lisa Powis, CEO at the personal lines broker, said its van, telematics and non-standard home lines performed well.
  
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• InsurTech Futures: Advent launches portal for ancillary products

  23-05-2017 11:16
  
  Firm says proposition will initially provide motor-related ancillary products to brokers.
  
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• ID 2017 Live: All the latest news and views

  23-05-2017 11:00
  
  The latest news and views from the industry’s leading innovation event, ID 2017 Live
  
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• 22 killed in Manchester Arena suicide bombing

  23-05-2017 10:33
  
  22 killed including children in Manchester Arena suicide bombing 
  
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• Aviva stakes claim to industry first with BI calculator and enhanced cover combination

  23-05-2017 10:08
  
  Insurer's research shows that two-thirds of SME customers only take out business interruption cover for 12 months or less.
  
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• Lockton opens new office in Aberdeen

  23-05-2017 09:55
  
  Broker unveils three new recruits joining from Marsh.
  
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• US union seeks answers about Anbang’s ultimate ownership

  23-05-2017 09:10
  Hotel worker group presses on Chinese insurer’s most vulnerable point during talks
  
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• US union asks Anbang about its ultimate ownership

  23-05-2017 09:10
  Hotel worker group presses on Chinese insurer’s most vulnerable point during talks
  
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• Perils lifts storm Thomas loss

  23-05-2017 08:39
  
  Natcat expert Perils has given its second loss estimate for windstorm Thomas, also known as Doris, which affected Belgium, Germany, Holland and the UK on 23 and 24 February.
  
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• Mass's Simon Stanfield on the whiplash opportunity

  23-05-2017 08:00
  
  The delay in whiplash reform should not be wasted, says Simon Stanfield, chair of the Motor Accident Solicitors Society, urging all parties to grasp the opportunity.
  
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• Blog: Diary of an insurtech start-up, episode 3: The quickening

  23-05-2017 08:00
  
  Start-ups have to go to great lengths to attract business, both literally and figuratively, writes James Stuart Clarke, head of sales and partnerships at Digital Fineprint.
  
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• Sompo unit hires Axis's Mulhall and Berringer in US

  23-05-2017 02:54
  Specialty (re)insurer Sompo International has picked up a pair
  of executives from Axis, bringing on Patrick Mulhall and James
  Berringer to launch a property insurance product for mid-size US
  businesses.
  Both have been named senior vice presidents, with Mulhall placed
  in charge of the new project. Both executives report to Mark
  Maritzen, executive vice president of Sompo International's US
  commercial property segment, the company said today.
  Mulhall, who this publication reported in November as p
  
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• Enstar secures further executive commitments

  23-05-2017 02:54
  Legacy-to-live giant Enstar has secured three-year contracts for
  two of its senior executives, the company announced in a Securities
  and Exchange Commission filing today.
  The group's president Paul O'Shea extended his term as
  did Enstar COO Orla Gregory.
  O'Shea's contract includes an 18-month non-compete
  agreement, while Gregory is barred from working for a rival for a
  year should he leave Enstar, under his pact.
  The development follows news last month that the Bermudian
  carrier's CEO Dominic Si
  
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• Innovation Blog: It's time to rethink who we are

  23-05-2017 00:02
  
  The industry must act now to avoid another Kodak moment, says Parul Green, head of M&A and innovation for AXA UK
  
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