Insurance news

• Kinsale gains 9.4% on earnings beat

  04-08-2017 22:59
  Kinsale shares climbed 9.4 percent in New York trading today
  after the company posted a 36 percent surge in second quarter
  underwriting profit late yesterday.
  Net income jumped 40 percent to $8.5mn, or $0.40 per share,
  topping Wall Street's consensus expectation for $0.32 a
  share.
  Gross written premiums climbed 15 percent to $57.8mn, the
  Richmond, Virginia-based carrier said, highlighting growth in small
  business, construction, energy, product liability and personal
  insurance lines.
  "Most of our
  
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• Aon: record cat bond quarter bolstered by large renewals

  04-08-2017 20:40
  New cat bond issuances in Q2 were higher than any other quarter
  on record, as a number of $500mn+ deals boosted volumes, Aon
  Securities said in its latest ILS quarterly report.
  The broker-dealer placed the total quarterly volumes at $6.38bn
  - $1.89bn more than the prior record quarter set in Q2 2014.
  Combined with the $2.17bn of limit placed in Q1 2017, this gave
  a total of $8.55bn for the year to date - a figure that has already
  broken...
  
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• Soft market and willing capital drive M&A: S&P

  04-08-2017 17:55
  Further consolidation among (re)insurers can be expected as
  unrelenting pricing pressures over the next 12 to 24 months and a
  continuing influx of capital compel larger carriers to seek growth
  through acquisitions, according to Standard & Poor's
  (S&P).
  In a report published this week, S&P analysts led by Taoufik
  Gharib said: "We expect the industry to continue to adapt to
  the challenging operating environment, resulting in fewer but
  larger (re)insurers."
  The report cited "an abundanc
  
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• Opinion: AIG's change in tack

  04-08-2017 17:55
  Brian Duperreault's first earnings call as AIG's new
  chief was met with a neutral response from investors.
  Analysts were broadly positive after a solid second quarter that
  brought a comfortable earnings beat, despite the lagging
  performance of commercial insurance.
  But the company's shares traded flat yesterday after the
  call as investors digested further confirmation of a well-flagged
  shift in strategy from that undertaken by Duperreault's
  predecessor, Peter Hancock.
  Of course, less than three
  
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• Covéa gearing up to sell Swinton

  04-08-2017 17:55
  French mutual insurer Covéa is preparing to divest UK
  personal lines and commercial motor broker Swinton, The
  Insurance Insider can reveal.
  It is understood that Covéa has been holding discussions
  with investment banks ahead of running a process, with one source
  suggesting that Rothschild had already been handed the mandate.
  Swinton, which employs more than 3,000 people across more than
  300 locations in the UK, had revenues of £265mn ($349mn) in
  calendar-year 2015, the last y
  
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• Binders team transfers to Bishopsgate from Ed

  04-08-2017 17:55
  Expansive London market broker Bishopsgate has struck a deal
  with Ed to acquire its North American binders team and portfolio,
  The Insurance Insider can reveal.
  Team head Graham Kilby and around half a dozen staff will make
  the move, along with most of the revenues attached to the
  substantial Bass Underwriting and Gridiron accounts.
  Between them the two US MGAs are worth around $100mn of premium
  to the London market, placing them among the market's bigger
  MGA deals.
  Bass is...
  
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• Brokers concerned about reduced choice following Allianz and LV deal

  04-08-2017 17:38
  However, experts also see opportunities rising from the merger.
  
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• Swiss Re profits hit by Cyclone Debbie

  04-08-2017 16:39 via ft.com
  Shares drop after net income falls more than a third in the first half
  
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• Lark 2016 results show growth

  04-08-2017 16:16
  Turnover and Ebitda both grew for the Lark Group holding company as it posts last set of results prior to Aston Scott deal.
  
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• Swiss Re shares slide over 4% on weak H1

  04-08-2017 15:10
  Shares in Swiss Re fell by as much as 4 percent today after the
  reinsurer posted a disappointing set of first half results this
  morning.
  The stock was trading down 3.32 percent at CHF91.85 as of 13:30
  BST as investors reacted to a weak underwriting result and a 31
  percent drop in profits due to lower reinsurance income from the
  company's property and casualty unit.
  Casualty reserve strengthening and higher cat losses led
  underwriting performance at the specialty insurance unit...
  
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• OneBeacon posts Q2 underwriting loss

  04-08-2017 15:10
  US specialty insurer OneBeacon has reported a Q2 underwriting
  loss as increased catastrophe and underlying losses pushed the
  combined ratio up by 4 percentage points to 106.9 percent.
  The company delivered comprehensive income to shareholders of
  only $100,000 for the quarter, down from $24.7mn in the prior-year
  period in what could be its final set of results in the public
  markets.
  The carrier, which is soon to be acquired by Intact Financial in
  a $1.7bn deal, said catastrophes had added...
  
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• Fairfax posts $108mn Q2 underwriting profit

  04-08-2017 15:10
  Underwriting profits at Fairfax Financial jumped 31.7 percent in
  the second quarter to $108.4mn, as the company reported diluted
  earnings per share of $12.67.
  The combined ratio for the company's (re)insurance
  operations was 94.9 percent, an improvement on the 95.7 percent
  posted in the same period last year.
  London market carrier Brit posted a 2.9 percentage point
  improvement in its combined ratio to 97.0 percent, while
  OdysseyRe's combined ratio narrowed by 3.9 points to 90.5
  percent.
  But Fair
  
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• Dubai Torch Tower blaze puts (re)insurers on watch

  04-08-2017 15:10
  (Re)insurers are set to be hit with more claims from skyscraper
  fires in Dubai after the Torch Tower caught fire yesterday for the
  second time in two years.
  Reports and video footage showed flames licking up the side of
  the building and burning debris falling to the ground, causing
  damage to both the property and vehicles in the vicinity.
  The tower was fully evacuated during the incident and no people
  were harmed. The cause of the blaze remains unclear.
  The...
  
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• Aon swings to a loss on restructuring costs

  04-08-2017 15:10
  Aon fell to a $118mn operating loss in the second quarter as it
  absorbed a series of restructuring costs relating to the sale of
  parts of consultancy arm Aon Hewitt and an efficiency
  programme.
  The company posted adjusted earnings per share of $1.45, in line
  with an average of analyst forecasts compiled by MarketWatch and up
  13 percent year-on-year.
  Aon delivered operating income of $387mn in Q2 2016.
  Revenues in Aon Commercial Risk Solutions, the primary broking
  arm, increased by...
  
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• Allianz-LV deal creates number three in UK general insurance

  04-08-2017 15:03 via ft.com
  German company says mix of mutual’s brand and its scale can create powerful competitor
  
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• “Business as usual” for LV and Allianz following deal

  04-08-2017 14:27
  No changes for brokers until the £500m deal goes through but bosses believe the “complementary businesses” are strategically matched and LV aims to become personal lines insurer of choice for brokers.
  
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• Allianz and LV to remain competitors until first half of joint venture deal is completed

  04-08-2017 14:19
  Following the announcement that Allianz will buy 49% of LV’s general insurance commercial business, both parties have said that they will remain competitors until phase one of deal is completed at the end of 2017.
  
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• MoJ declines to give date for release of Ogden consultation feedback

  04-08-2017 13:48
  The Ministry of Justice cannot give a date for the release of the discount rate consultation feedback.
  
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• Quizzical questions: 04 August 2017

  04-08-2017 13:09 via insuranceage.co.uk
  Test your knowledge of the week's news with our topical quiz.
  
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• Liberty Q2 boosted by investment turnaround

  04-08-2017 13:06
  Liberty Mutual recorded an improved investment result in the
  second quarter, as its underwriting result remained negative and it
  was forced to strengthen reserves.
  The mutual insurer recorded a combined ratio of 102.7 percent
  for the period, 1.3 percentage points worse than a year earlier.
  Excluding catastrophes and reserve development, the underlying
  ratio rose 1.5 points to 93.8 percent.
  Reserves were strengthened by $45mn for prior-year events,
  whereas in the same period last year Liberty Mut
  
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• 'Broad organic growth' behind Aviva success as investment in tech curbs expenses, says Holmes

  04-08-2017 13:01
  Maintaining “broad organic growth” has been a key driver of success behind Aviva’s half-year results, said Aviva UK’s CEO Colm Holmes.
  
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• This Month in Post: AIG's UK CEO, BIA photos, terror car hire and tower fire

  04-08-2017 12:36
  A look at this week's insurance news and this month's Post issue.
  
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• Allianz UK sees drop in profits as COR improves marginally

  04-08-2017 12:03
  Allianz UK saw its combined operating ratio marginally improve in H1 2017 despite deteriorating operating profits.
  
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• Allianz LV deal precursor to more European activity in UK market, brokers say

  04-08-2017 11:20
  Allianz’s purchase of 49% of LV’s GI unit could be a precursor to further UK market activity from European insurers, brokers told Post.
  
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• Underwriting loss at Swiss Re Corporate Solutions rises

  04-08-2017 11:14
  Casualty reserve strengthening and higher cat losses led
  underwriting performance at Swiss Re's specialty insurance unit
  Swiss Re Corporate Solutions to deteriorate to a 104.5 percent
  combined ratio in the first half.
  The weak underwriting result came as Swiss Re missed consensus
  expectations by a distance, as profits fell by 31 percent thanks to
  a collapse in P&C reinsurance income.
  The unit posted a 2.9 point increase on the H1 combined ratio
  year on year, the second consecutive year where
  
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• Qatar Re reinsures latest Clear Blue program

  04-08-2017 11:14
  Clear Blue's latest addition to its stable of programs has
  the backing of Qatar Re as its reinsurer, The Insurance
  Insider can reveal.
  Earlier this week MGA Stratus Risk Underwriters (SRU), based in
  Oldsmar, Florida, announced it had teamed up with program fronting
  specialist Clear Blue to launch a new offering for airport property
  and hangar owners and lessors in the Sunshine State.
  Writing on Clear Blue paper, rated A- by AM Best, the new
  program aims to offer aviation...
  
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• Opinion: The broker roll-up

  04-08-2017 11:14
  On paper, consolidation of the independent London broker market
  seems utterly logical and looks relatively straightforward.
  The market consists mainly of relatively small and specialised
  operations, which have been built from the ground up by individuals
  with strong relationships and deep knowledge of their parts of the
  market.
  If these attributes could be combined with the scale and
  efficiency of a larger corporate acquirer, these firms' owners
  would get their reward and significant value would
  
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• Munich Re takes Willis Re's Kruger

  04-08-2017 11:14
  German reinsurance powerhouse Munich Re has hired Willis Re
  executive vice president Kenneth Kruger, The Insurance
  Insider can reveal.
  Kruger led Willis Re's structured reinsurance practice -
  also known as its customised solutions division - in the US,
  according to his LinkedIn profile.
  He was responsible for designing and executing non-traditional
  reinsurance transactions.
  Kruger is expected to continue to work within structured
  solutions when he moves over to the carrier side with Munich Re
  la
  
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• Cypress offers Florida AOB-blunting deductible plan

  04-08-2017 11:14
  Florida homeowners' carrier Cypress Property & Casualty
  Insurance has introduced a deductible instalment plan for
  policyholders that may provide an incentive not to enter into
  assignment of benefits (AOB) agreements with third parties after a
  damaging storm.
  According to sources the carrier has been approved by the
  Florida Office of Insurance Regulation to provide the policy
  endorsement to existing and new policyholders for hurricane
  deductibles.
  The patented plan applies to up to 2 percent
  
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• Brit H1 profit falls on lower investment result

  04-08-2017 11:14
  First-half pre-tax operating profit at Fairfax-owned Brit fell 24
  percent to $144mn following an investment result which was 30
  percent lower year on year.
  The Lloyd's carrier reported a combined ratio of 95.1
  percent for the half, which included a 1.8 point hit as a result of
  the cut in the Ogden discount rate.
  This compared to a reported combined ratio of 96.5 percent in H1
  2016.
  The year on year improvement was driven by the fact Brit had no...
  
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• Allianz seals £500mn LV= minority stake acquisition

  04-08-2017 11:14
  Allianz has agreed a deal to acquire a 49 percent stake in UK
  mutual LV='s general insurance business for £500.0mn
  ($657.5mn).
  The carriers have also agreed to launch a joint venture under
  the LV= brand, which will create the UK's third largest general
  insurer with annual premium income of over £1.7bn.
  The deal is expected to close in the second half of this year
  and remains subject to relevant regulatory approvals.
  The agreement also contains a provision for Allianz to...
  
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• AGCS returns to underwriting profit in Q2

  04-08-2017 11:14
  Operating profit at Allianz's Global and Corporate Specialty
  division (AGCS) surged to EUR116mn ($137.8) as the unit returned to
  a second quarter underwriting profit.
  In the second quarter of 2016, the unit had reported an
  operating profit of just EUR5mn.
  The result came as operating profits at Allianz's wider
  P&C division beat analyst consensus by 12 percent.
  The AGCS Q2 combined ratio improved by 13 percentage points year
  on year to 97.4 percent as the loss ratio drastically improved in...
  
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• Insurance Cares: Biba calls for signposting

  04-08-2017 10:59
  Biba’s Graeme Trudgill explains why signposting is a key element of helping vulnerable customers access insurance.
  
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• Profit down but COR improves for Allianz UK

  04-08-2017 10:48
  Insurer admits there is “some way to go to fill the financial hole” left by the Ogden rate change.
  
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• AIG reveals Grenfell Tower exposure

  04-08-2017 10:39
  AIG reveals Grenfell Tower exposure, but unable to quantify likely claims
  
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• H1 results: Brit takes £10m Ogden hit

  04-08-2017 10:20
  Lloyd’s insurer improves underwriting result despite Ogden hit
  
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• Allianz to buy 49% of LV GI for £500m

  04-08-2017 09:38
  Allianz will buy 49% of LV’s general insurance business as part of a long-term partnership which will see the creation of the UK's third largest personal lines insurer.
  
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• Allianz and LV announce deal to create £1.7bn personal lines insurer

  04-08-2017 09:38 via insuranceage.co.uk
  Allianz is set to pay LV £500m for a 49% stake in the business as a first step but will move to own 69.9% long term paying £713m in total.
  
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• Allianz to buy controlling stake in LV= GI unit

  04-08-2017 09:35
  Deal values LV= GI unit at £1bn
  
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• H1 results: Allianz UK profit down as COR holds steady

  04-08-2017 09:13
  Allianz UK profit falls as GWP and underwriting performance stay flat
  
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• Brit's profits fall in first half

  04-08-2017 08:50
  UK-based Brit Insurance's investment returns have hit profits in the first half of the year.
  
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• TransRe-Gen Re premiums pass $350mn

  04-08-2017 01:54
  Premium volume written by TransRe on behalf of Berkshire
  Hathaway's Gen Re hit $350mn in the first year of the exclusive
  North American broker market underwriting partnership between the
  two reinsurers.
  The total was revealed by TransRe's parent Alleghany
  Corporation as it reported a strong increase in profit but
  nonetheless missed Wall Street earnings forecasts.
  Alleghany's operating profit more than doubled to $98.2mn
  from $45.7mn, bolstered by improved underwriting performance in
  insurance an
  
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• Navigators beats on top and bottom line growth

  04-08-2017 01:54
  Navigators Group topped Wall Street estimates as its top line
  rose 9.6 percent and its combined ratio improved by 2.3 points from
  a year earlier to 97.3 percent in the second quarter.
  The (re)insurer posted operating earnings of $0.66 a share while
  analysts had forecast $0.57 on average, based on six estimates
  compiled by MarketWatch.
  Gross written premiums climbed to $452.2mn during the just ended
  period and underwriting profit increased more than sevenfold from a
  near breakeven in Q2 2016...
  
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• Kinsale posts top and bottom line growth

  04-08-2017 01:54
  Specialty insurer Kinsale Capital reported net income that
  surged 40 percent to $8.5mn for the second quarter as it delivered
  top and bottom line growth.
  Gross written premiums climbed 15 percent to $57.8mn as the
  Richmond, Virginia-based carrier highlighted growth in small
  business, construction, energy, product liability and personal
  insurance.
  Net written premiums increased by more, jumping 40 percent to
  $49.8mn, as the insurer retained more of its own business after
  non-renewing its multi-li
  
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• Enstar doubles Q2 profits

  04-08-2017 01:54
  Legacy-to-live carrier Enstar reported a second quarter pre-tax
  profit of $111.3mn, more than double the result generated in the
  same period of last year.
  Net earnings rose to $4.62 per ordinary share from $2.09 in the
  prior-year period.
  The main driver in the rise posted by the Bermuda-based company
  was a 90 percent plunge in net incurred losses, which dropped to
  $9.6mn from $96.5mn in the year-earlier quarter.
  Pre-tax profit from Enstar's live carrier StarStone fell by
  14.1 percent to...
  
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• Duperreault confirms strategy shift at AIG

  04-08-2017 00:03
  AIG's new president and CEO Brian Duperreault has wasted
  little time in putting his mark on the company with a move to do
  away with share buyback targets and focus on growing the business
  again organically and through acquisitions.
  For the past year-and-a-half the insurer has been on a shrinking
  path as it cut back its commercial insurance book, sold assets and
  returned capital to investors in a bid to improve results.
  Central to that strategy was underwriting remediation, a...
  
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