Insurance news

• Broker Service Survey 2017/18 – brokers assemble and shake up the UKGI industry

  06-06-2017 20:47
  
  Insurance Times has launched the annual Broker Service Survey – now in its 12th year. Brokers up and down the country are keen to reveal which insurers provide the best service levels, and which areas need improvement.
  
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• Opinion: a clean slate?

  06-06-2017 19:52
  News that Novae isexploring a legacy transaction to hand off some £450mn
  ($580mn) of net reserves raises numerous questions.
  But the one which feels most pertinent is whether this attempt
  to clear the decks will ultimately signal the start of a
  much-needed new chapter for the Lloyd's carrier.
  It's been a tumultuous few months at Novae; a period
  punctuated by profit warnings, large losses and redundancies. The
  days of double-digit RoEs and glowing investor praise seem to be a...
  
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• Marine liability and UK property heads leave Brit

  06-06-2017 19:52
  Brit Insurance's marine liability head Richard Mander and UK
  property leader David Hancock have both left the business,
  The Insurance Insider can reveal.
  Sources said that the duo exited late last month. In each case
  it is understood that their departure is likely to signal a
  drawback in the lines of business they looked after, although
  broking sources said Brit had indicated it would have a continued
  presence in both.
  Mander and Hancock are understood to have departed at the...
  
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• Hudson Structured closes MultiStrat run-off risk deal

  06-06-2017 19:52
  Hudson Structured Capital Management and MultiStrat Advisors
  closed their first deal, involving a $35.3mn reinsurance vehicle
  into which Hudson has invested $20.1mn in preferred shares.
  The run-off transaction linked to workers' compensation
  liabilities announced by the companies today may be followed by
  more deals between the two.
  "We have studied a series of opportunities together and
  expect that this will be the first of many that we complete,"
  Hudson managing partner Michael Millette said in
  
  Read more

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• AIG makes senior credit hires

  06-06-2017 19:52
  AIG has expanded its political risk and trade credit team with a
  trio of senior hires, The Insurance
  Insider understands.
  Mark Moran returns to AIG Europe as head credit officer from
  Allianz-owned trade credit insurer Euler Hermes, where he was
  global head of excess of loss underwriting.
  In a second hire from Euler Hermes, Sharon Giddings moves to AIG
  as UK head of trade credit.
  The insurer has also recruited Sumeet Berry from Credit Suisse
  as UK head of structured...
  
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• Skipton to launch first cash-only Lifetime Isa

  06-06-2017 19:34 via ft.com
  Building society will launch product later this week
  
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• New Towergate group reveals bond interest bill

  06-06-2017 19:22
  
  Interest rates set for new Towergate group bond issue
  
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• US residuals benefit from soft US cat market

  06-06-2017 15:03
  A number of the bigger residual insurers were among cedants that
  prospered as competition for US property catastrophe reinsurance
  business intensified in the mid-year renewals.
  As the dust settles after another bloody renewal, pricing
  information coming out of the catastrophe-exposed southern US
  suggests a continuation of the bleak pricing environment for
  reinsurers.
  Sources told this publication that the first $40mn layer of
  Louisiana Citizens' property cat programme, which sits atop an
  unchang
  
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• US cat buyers benefit as soft market deepens

  06-06-2017 15:03
  Underwriters are surveying the damage of a 1 June property cat
  renewal that was significantly more competitive than initially
  expected, with buyers securing better terms than they might have
  hoped for.
  Year-on-year comparisons are challenging because of shifts in
  underlying portfolios - both inside and outside Florida - as well
  as cat model changes and programme restructuring.
  There has also continued to be mixed experience depending on the
  perceived quality of the cedant, and that has meant the
  
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• Tokio Millennium Re cat bond targets $250mn

  06-06-2017 15:03
  Tokio Millennium Re is seeking $250mn of reinsurance cover from its
  Spectrum Re 2017-1 cat bond, according to sister publication
  Trading Risk.
  Spectrum Re is Tokio Millennium's first major cat bond
  transaction, although it has previously sponsored a $25mn private
  insurance-linked securities (ILS) deal, Omamori 2014-1.
  The bond will cover the reinsurer against multiple US perils and
  Canada quake risks on an industry loss basis.
  Data from Property Claim Services (PCS) will be used across the
  deal'
  
  Read more

• Protectionism is the 'biggest challenge' for cargo: Beale

  06-06-2017 15:03
  A trend towards protectionism in developed markets is the
  biggest threat facing the marine cargo insurance industry,
  according to Lloyd's CEO Inga Beale.
  In a speech to the International Cargo Insurance Conference
  yesterday Beale said while emerging markets such as China and India
  were opening up, there was a corresponding rise in protectionism in
  the developed world.
  This, she said, created barriers for the import and export of
  goods and services, directly impacting the marine cargo
  industry.
  B
  
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• PRA probes broker facilities

  06-06-2017 15:03
  The Prudential Regulation Authority (PRA) is investigating
  broker facilities in one of two interconnected reviews launched
  amid pleas for help from carriers in tackling mounting acquisition
  costs, The Insurance Insider has
  learned.
  The decision to study facilitisation represents a marked shift
  in the regulator's stance, with the PRA previously making clear
  that it did not consider facilities and the associated increase in
  broker remuneration a matter for prudential regulation.
  UK regulators work
  
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• Opinion: Aon Client Treaty

  06-06-2017 15:03
  When it was announced, there was a sense in the marketplace that
  the creation of the Aon Client Treaty (ACT) was a defining event.
  Here was a facility that could see 20 percent of the book of
  London's biggest insurance broker disappear from the open
  market, redirecting a huge chunk of premium and intensifying
  competition for what remained.
  And it looked like it could be the thin end of a very thick
  wedge. The 20 percent ceiling was arbitrary. What...
  
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• Nelson: Lloyd's ILS platform a possibility post-Brexit

  06-06-2017 15:03
  Lloyd's plans to form an insurance-linked securities (ILS)
  trading platform could be realised once Brexit matters have been
  dealt with, according to its outgoing chairman John Nelson.
  "I don't think it's going to happen in the very
  short term, but once we get through Brexit and all these other
  issues that we have been dealing with - and not these market
  conditions - then I think that is something that will play a
  role," he said.
  "I don't see any...
  
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• Insider View: PRA facilities probe

  06-06-2017 15:03
  For years, the broker drive to facilitise the market and
  intermediaries' efforts to push acquisition costs higher has
  been a subject of intense interest and mounting concern for carrier
  executives.
  You do not have to travel far or look hard to find a senior
  member of the managing agent community who will privately excoriate
  the big brokers for gouging the market.
  Criticism of the major intermediaries is rife on the carrier
  side of the divide.
  As much as brokers emphasise...
  
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• Hamilton at Lloyd's A&H head quits

  06-06-2017 15:03
  Laura Owen, head of accident and health (A&H) and health
  insurance at Hamilton at Lloyd's, has left the syndicate,
  The Insurance Insider can reveal.
  Sources indicated that Hamilton at Lloyd's will continue to
  write A&H, with her books to be written by her deputy, Simon
  Buckley.
  Owen is a direct and facultative specialist, known well in the
  professional sports underwriting world, having moved across from
  CNA Hardy.
  She has also previously worked at Syndicate 1206 and Syndicate
  718, accord
  
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• Florida rates slip to 10% above last low

  06-06-2017 15:03
  Florida reinsurance rates are now hovering just 10 percent above
  the previous cyclical lows noted in 1999-2000, after falling by 5.1
  percent at this year's June renewal, according to JLT Re.
  The broker's rate-on-line index registered a faster drop
  this year than at the June 2016 renewal, when it fell by 3.1
  percent.
  Florida reinsurance prices have fallen 40
  percent from the peaks recorded in 2012, according to the
  index.
  JLT Re said renewal rates ranged from flat to 10...
  
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• Ed picks Willis Re broker as non-marine reinsurance chairman

  06-06-2017 15:03
  Wholesale and specialty broker Ed has recruited Ian Wicks to
  chair its non-marine reinsurance division. Wicks joins Ed from
  Willis Re, where he was an executive director for casualty.
  Wicks spent two decades as a director of Harman Wicks &
  Swayne, the reinsurance broking firm he co-founded with Chris
  Harman in 1988.
  JLT acquired Harman Wicks & Swayne in 2008 and Wicks became
  head of casualty at JLT Re, running the casualty treaty team and
  becoming co-head of non-marine.
  In...
  
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• Benelux builds Brexit lead among UK carriers

  06-06-2017 15:03
  The Benelux region has pulled further ahead of rival
  jurisdictions among UK carriers seeking locations for post-Brexit
  subsidiaries, with Luxembourg extending its overall lead.RSA and CNA Hardy became the fourth and fifth major carriers to
  announce plans for Luxembourg entities after decisions from AIG, FM
  Global and Hiscox.
  Last month The Insurance
  Insider reported that Liberty Specialty Marketshad also chosen Luxembourg, though the company denied having
  made a decision at that point.
  CNA Hardy
  
  Read more

• Arma Underwriting gets regulatory green light

  06-06-2017 15:03
  Asta-backed Lloyd's coverholder Arma Underwriting has
  received regulatory approval for its Dubai-based operation, the
  company announced today.Arma received in-principle approval from the Dubai Financial
  Services Authority (DFSA) on 19 February, and has now been granted
  full approval by both the DFSA and Lloyd's to begin operations
  in the territory.In a statement Asta said Arma will initially focus its Middle
  East and Africa regional underwriting on property lines, including
  terrorism and jewelle
  
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• Apollo-backed Athene in secondary share sale

  06-06-2017 15:03
  Athene Holding, a Bermuda-based life insurer and reinsurer, has
  launched a new share sale three weeks after an earlier
  offering.
  Select shareholders of Athene are offloading 16.2 million common
  shares - around 16 percent of outstanding Athene stock -
  collectively valued at $791mn at closing price on 5 June.
  There is also a 30-day option to purchase up to an additional
  2.43 million common shares from the select selling shareholders at
  the offering price, less the underwriting discount.
  Athene wil
  
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• Aon Client Treaty volumes well down on projected levels

  06-06-2017 15:03
  Aon Client Treaty, the big-three broker's flagship London
  market facility, wrote only around a third of the premiums forecast
  in its first full year of operation, The Insurance
  Insider can reveal.
  Multiple sources told this publication that the 20 percent
  all-class follow-form initiative had written only around $150mn of
  premiums in 2016, although the broker is understood to be telling
  carriers that writings totalled $210mn.
  It is understood that Aon marketed the portfolio underwriting
  facility
  
  Read more

• AmTrust travails lead to client loss

  06-06-2017 15:03
  AmTrust shares have fallen by more than half this year after a
  series of missteps and scandals that may now be affecting the US
  insurer's ability to retain its client base.
  Brokers Marsh and Alliant are understood to have written to
  their clients making them aware of events at the New York-based
  insurer, whose premiums totalled $7.9bn in 2016, with at least one
  client dropping the carrier.
  The notification follows a tumultuous period
  for AmTrust, which was first punished by...
  
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• Allstate cuts $175mn layer after new cat bond issue

  06-06-2017 15:03
  Allstate allowed a $175mn gap fill layer to lapse when it
  renewed its $4.42bn nationwide excess catastrophe reinsurance
  programme ahead of the start of the 2017 hurricane season.
  The layer had been placed with traditional reinsurers on the
  same terms as the first six layers of the structure, which renewed
  as expiring.
  Also at the top of the programme, the insurer
  replaced $350mn of expiring 2013-1 Sanders Re cat bond cover with a
  $375mn, or 36.62 percent of $1.024bn, slug...
  
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• IIG launches IIGLOO

  06-06-2017 13:32
  
  New online system includes offering for contractors insurance.
  
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• BP Marsh poised to make further investments in 2017

  06-06-2017 13:24
  
  Venture capital group BP Marsh is looking to make investments of around £5m into six different firms over the remainder of 2017.
  
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• Amicus opens office in Newcastle

  06-06-2017 12:33
  
  Broker targets £1m GWP for new office in the first year.
  
  Read more

• CNA Hardy to set up post-Brexit hub in Luxembourg

  06-06-2017 12:25
  
  CNA Hardy will establish a new office in Luxembourg in preparation for Brexit, with the process set to be completed in early 2019.
  
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• UK Broker Awards closing – get your entries in now

  06-06-2017 11:47
  
  With the deadline fast approaching don’t delay in completing your submission.
  
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• UK Broker Awards closes tomorrow – get your entries in now

  06-06-2017 11:47
  
  With the deadline fast approaching don’t delay in completing your submission.
  
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• Calamp introduces automated accident response service to improve claims handling

  06-06-2017 11:43
  
  Telematics software provider, Calamp, has developed a vehicle risk management service to provide insurers with automated accident reconstruction and predictive vehicle damage assessment.
  
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• Perils revises loss estimate for cyclone Zeus to €269m

  06-06-2017 11:33
  
  Perils has revised its loss estimate for cyclone Zeus to €269m (£234.3m).
  
  Read more

• QBE chooses Brussels for EU base

  06-06-2017 10:55
  Australian carrier QBE has chosen Brussels for its post-Brexit
  EU base.
  QBE Europe already has a branch in Belgium and plans to have the
  subsidiary established in time for the 2019 renewals.
  In a statement QBE Europe CEO Richard Pryce said: "Our
  priority is providing certainty for our customers and staff, and
  our decision to set up a legal entity in Belgium ensures we can
  provide continuity of service irrespective of the outcome of Brexit
  negotiations.
  "From the perspective of...
  
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• Perils lifts cyclone Zeus loss estimate to $303mn

  06-06-2017 10:55
  Industry loss aggregator Perils has increased its estimate for
  insured losses stemming from extratropical cyclone Zeus to EUR269mn
  ($302.9mn).
  The company had originally pegged the loss for the property
  insurance market at about EUR192mn. Perils will publish its third
  estimate on 6 September with a full break down of property
  sub-lines.
  Zeus was one of a number of low-pressure systems which swept the
  British Isles and parts of Northern Europe in early March, with
  France bearing the brunt of the.
  
  Read more

• CNA Hardy joins line for Luxembourg

  06-06-2017 10:55
  CNA Hardy has chosen Luxembourg as the location for its EU
  subsidiary, it announced today.
  CEO David Brosnan said Luxembourg was the "optimum
  jurisdiction" for its EU base due to its geographic location
  between three of the firm's continental European offices, its
  stable economic and political environment and the professional
  approach of the Luxembourg regulator.
  He added: "We are in the business of providing certainty
  for our customers, and in an increasingly uncertain political
  environment, we
  
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• Brexit uncertainty a plus for financial services: Lilico

  06-06-2017 10:55
  The financial services sector stands to gain from the volatility
  caused by Brexit and needs to be alive to opportunities arising
  from uncertainty, according to Europe Economics executive director
  Andrew Lilico.
  Speaking at The Insurance
  Insider's London 100 event on 1 June, the
  economist argued the current changeable conditions had created a
  raft of trading opportunities for financial services firms.
  However, Lilico added the sector appeared unaware of the chances
  available to it in the wake of
  
  Read more

• QBE chooses Brussels for post-Brexit EU base

  06-06-2017 10:53 via insuranceage.co.uk
  
  Insurer to expand its current Brussels branch.
  
  Read more

• QBE unveils location for post-Brexit EU insurer

  06-06-2017 10:40
  
  Insurer sets up post-Brexit EU insurer to cope with the potential loss of passporting
  
  Read more

• CNA Hardy picks Luxembourg for post Brexit office

  06-06-2017 10:38
  
  New unit to be established by the start of 2019.
  
  Read more

• BP Marsh saw 12% hike in profits in 2016

  06-06-2017 10:15
  
  BP Marsh saw a 12% hike in profits in 2016, up to £9.8m from £8.7m in the previous year.
  
  Read more

• Roundtable: Digital is an attitude

  06-06-2017 08:00
  
  Being a digital insurer isn’t about the aptitude but the attitude. This was the conclusion of a roundtable I chaired recently for Post, in conjunction with SSP.
  
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• Legal Update: The problem with delegated authorities

  06-06-2017 08:00
  
  Do delegated authorities represent a short-term solution that is creating long-term problems? Jeremy Irving, partner at DWF, discusses.
  
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• QBE opts for Brussels EU base

  06-06-2017 06:59
  
  Australian global insurer QBE has decided to move its EU headquarters from London to Brussels.
  
  Read more

• QBE sets up Brussels base in blow to Dublin

  06-06-2017 06:07 via ft.com
  Insurer follows Lloyd’s as sector’s second major group to select Belgium over Ireland
  
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• Insurer QBE sets up Brussels base in blow to Dublin

  06-06-2017 06:07 via ft.com
  It is second major group in sector to select Belgium over Ireland following Lloyd’s
  
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• Power takes control at Lexington national branch

  06-06-2017 00:53
  Matthew Power has taken an expanded role at AIG's excess and
  surplus lines (E&S) operation Lexington after being promoted to
  head of the carrier's national branch, The
  Insurance Insider can reveal.
  He effectively takes over from Rick Taute, an executive vice
  president at the firm who had led the national branch for the past
  year-and-a-half.
  In his new position, Power takes responsibility for underwriting
  teams at Lexington's national branch.
  It is understood that he will also be expected to
  
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• James River offering sees Shaw sell $167mn stake

  06-06-2017 00:53
  James River investor DE Shaw's sale of 4.25mn common shares
  in the Bermuda-based (re)insurer has closed, with the
  private-equity and hedge fund manager agreeing to accept $39.41 a
  share from underwriter Morgan Stanley.
  The sale of the 14.5 percent stake held in various Shaw funds
  brought the sellers about $167.5mn, James River said today in a
  regulatory filing. None of the sale proceeds went to the
  carrier.
  The transaction reduces the stake in James River held in Shaw
  funds to...
  
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