Insurance news

• AIG hires Sompo's McDonnell for Bermuda casualty role

  03-04-2018 23:05
  AIG has returned Michael McDonnell to the fold with the former
  Sompo International executive expected to rejoin the insurance
  giant in the next few weeks.
  Sources have told The Insurance
  Insider that he will become head of casualty for
  AIG's insurance operation in Bermuda, and he is listed by the
  New York-based insurer as one of many company executives who plan
  to attend the RIMS conference in San Antonio that begins on 15
  April.
  The move will return McDonnell to...
  
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• Who could buy Chaucer, StarStone and Atrium?

  03-04-2018 20:06
  Bankers will now be scrambling to line up bidders forChaucer,StarStone and Atrium after this publication broke the news that
  all three businesses are available to acquire.
  Each business offers something slightly different to buyers and
  - although there could be overlap between bidders - will therefore
  draw a different profile of suitor.
  Chaucer is the largest of the firms by top line, with $1.24bn of
  gross written premiums in 2017, although at $600mn-$700mn of book
  value it has...
  
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• SoftBank talks set stage for Swiss Re investors' day

  03-04-2018 20:06
  Shareholders are braced for an update tomorrow on Swiss Re's
  potential sale of a minority stake to Japan's SoftBank,
  following a report last week that a deal was taking shape.
  The last word from the Zurich carrier on the subject came with
  fourth-quarter and full-year results on 28 February, when CEO
  Christian Mumenthaler said the company was "carefully
  assessing the strategic and financial implications of such a
  partnership".
  He gave no timeframe for the talks but Bloomberg reported last
  week...
  
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• Punja resigns from Arcus Syndicate 1856

  03-04-2018 20:06
  Head of Arcus Syndicate 1856, Rajiv Punja, has left the company,
  sister publication Trading Risk has
  reported.
  Punja was a founding principal of the syndicate in December 2015
  before going on to take the CEO role in December last year.
  Nicky Payne, chief underwriting officer and active underwriter
  at Arcus 1856, said: "I can confirm that Rajiv Punja has
  resigned from his position at Arcus Syndicate 1856 to pursue other
  interests. We wish him every success for the future.
  "Arcus...
  
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• Munich Re seeks to raise cyber limit to $300mn: JLT

  03-04-2018 20:06
  Munich Re aims to construct an excess facility to raise cyber
  limits to $300mn through its Stream Consortium, according to JLT
  Specialty.
  The added coverage would be under a standalone cyber product
  that provides a full buy-back for offshore energy producers with
  all-risks policies that would cover them without a CL 380
  exclusion, JLT Specialty said in a recent report.
  Munich Re's Stream Consortium, which is made up of various
  Lloyd's syndicates, currently offers up to $160mn in coverage
  under..
  
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• Maiden in play as Catalina buys 5 percent stake

  03-04-2018 20:06
  Catalina has built up a 5 percent stake in Maiden Holdings for
  $27.3mn in a move which some will interpret as a signal that it
  could take a run at the Bermudian reinsurer.
  According to a regulatory filing, Catalina bought the shares via
  20 open-market transactions executed during the past 60 days.
  The 21 March purchase of 350,000 shares at $6.848 apiece tipped
  Catalina over the 5 percent reporting benchmark, at 5.01
  percent.
  Catalina used its working capital to fund...
  
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• Lloyd's underwriters morose on pricing post-cats

  03-04-2018 20:06
  How such an eventful catastrophe year as 2017 could fail to
  dramatically affect pricing in a positive way seems to have
  surprised, and disappointed, many underwriting executives at
  Lloyd's syndicates.
  A sampling of annual reports from Lloyd's carriers shows
  executives wondering what it will take to stimulate a general price
  hardening, especially since a historic cat year failed to get the
  job done.
  Richard Trubshaw, the active underwriter of Managing Agency
  Partners (MAP) lamented: "Last year I
  
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• Lime Street M&A reignites as sellers eye gains

  03-04-2018 20:06
  Chaucer, StarStone and Atrium are all likely to see changes of
  ownership in the coming months as the elevated interest in M&A
  seen in Bermuda reaches Lime Street.
  Chaucer owner The Hanover and StarStone and Atrium owners Enstar
  and Stone Point Capital have retained investment banks and are
  poised to attempt to capitalise on robust valuations to bank gains
  on assets bought in 2011-2014 when multiples were far lower.
  There has already been an uptick in Lloyd's M&A in the...
  
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• ILS syndicates report 2017 losses

  03-04-2018 20:06
  The Lloyd's syndicates of insurance-linked securities (ILS)
  managers all made a loss in 2017 in the wakes of hurricanes Harvey,
  Irma and Maria.
  Nephila's Lloyd's Syndicate 2357 reported a $120.6mn
  loss in 2017 as its combined ratio soared to 167 percent.
  The losses were driven by the syndicate's MGA insurance
  business, which made an underwriting loss of $132.1mn on gross
  claims of $216mn.
  By contrast, its reinsurance segment made a $9.8mn profit, as
  reinsurance recoveries of $26.0mn helped reduc
  
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• February return low for Markel Catco ordinary shareholders

  03-04-2018 20:06
  Markel Catco's London-listed Reinsurance Opportunities Fund
  reported only a 0.35 percent gain to net asset value (NAV) in
  February for its ordinary shareholders exposed to last year's
  catastrophe losses.
  New class C shareholders, in contrast, saw the NAV of their
  shares rise by 1 percent in the month, returning to above their $1
  par value for the first time since issuance in December.
  Ordinary shareholders received their annual 5 percent dividend
  in relation to last year's portfolio in the month
  
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• Faraday 435 reports £111.8mn underwriting loss

  03-04-2018 20:06
  Losses from the third quarter catastrophes and changes to the UK
  personal injury discount rate pushed Faraday's Lloyd's
  Syndicate 435 to a £111.8mn ($157.4mn) loss for full-year
  2017.
  The syndicate's result deteriorated from a £45mn profit in
  2016 as it absorbed claims from hurricanes Harvey, Irma and Maria
  and the Californian wildfires.
  The combined ratio for Syndicate 435 deteriorated by 53.2 points
  to 137.3 percent. This was despite reserve releases of £15.2mn
  from the prope
  
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• Eckert's Incubex start-up to target reinsurance

  03-04-2018 20:06
  The Incubex venture of former Brit CEO Neil Eckert is aiming to
  raise up to $5mn of additional equity, as it looks at trading
  opportunities in the reinsurance markets.
  The new equity is being offered at a level valuing the existing
  company at $50mn, according to an announcement from AIM-listed
  energy company Aggregated Micro Power (AMP) Holdings.
  Incubex is working with Deutsche Börse subsidiary the
  European Energy Exchange (EEX) to launch a series of environmental
  trading contracts.
  It tol
  
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• Big balance sheet reinsurer returns: Kent

  03-04-2018 20:06
  After abandoning the reinsurance market in the late 1990s and
  early 2000s, primary carriers are making a dramatic re-entrance,
  according to James Kent, global CEO of Willis Re.
  The effects are already being seen in Bermuda, where two global
  giants, Axa and AIG, have moved to acquire XL Group and Validus,
  respectively.
  "The 'Big Balance Sheet' reinsurer model is being
  reinvigorated," Kent said in the latest Willis Re 1st View
  report. But he added that the real test for company...
  
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• Aon Benfield's Shakespeare gets set to bow out

  03-04-2018 20:06
  Aon Benfield veteran reinsurance broking executive Dan
  Shakespeare is set to retire later this month, The
  Insurance Insider can reveal.
  Shakespeare currently holds the position of executive managing
  director at Aon Benfield and leads the intermediary's Boston
  office.
  A company spokesman confirmed the executive will officially
  retire on 30 April, with James Conroy replacing him as leader of
  the Aon Benfield Boston office.
  Conroy is also an executive managing director at the firm,
  currently based
  
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• Acquisition playbooks in focus as Aspen process launches

  03-04-2018 20:06
  News of Aspen's sale process will have confirmed what many in
  the market have long suspected was coming, but the deal is unlikely
  to be as straightforward as other recent Bermuda transactions.
  This publicationrevealed last week that a number of interested parties,
  including one strategic bidder and two private equity houses, were
  circling the carrier, which is being advised by Goldman Sachs and
  JP Morgan.
  A sale process has now been launched, with non-disclosure
  agreements sent out to interested
  
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• RAC facing refund costs over breakdown cover renewal letters

  03-04-2018 18:32
  Insurer accused of breaching FCA rules intended to make price rise clear to consumersThe RAC could be forced to offer refunds to up to 1 million breakdown recovery customers after its policy renewal letters failed to prominently display the previous year’s premium. Under transparency regulations introduced a year ago by the Financial Conduct Authority (FCA), companies have to clearly show the amount the customer paid the previous year alongside the renewal price.Related: Renewing your RAC
  
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• Worldwide Facilities buys Tennant Risk Services

  03-04-2018 17:07
  US wholesale insurance broker Worldwide Facilities has expanded its
  professional liability book of business with the acquisition of
  Tennant Risk Services (TRS).
  Connecticut-headquartered TRS specialises in professional
  liability, directors' and officers', cyber and employment
  practices liability cover.
  The consideration and terms of the deal were not disclosed.
  As part of the transaction TRS chief executive Robert Sargent
  will join Worldwide Facilities as executive vice president.
  Worldwide Faci
  
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• White Mountains agrees to buy 95% of NSM for $368mn

  03-04-2018 17:07
  White Mountains has taken another step along the acquisition
  trail with an agreement by a subsidiary to buy a majority stake in
  program administrator NSM Insurance Group for $368mn in cash.
  Cash on hand and $100mn in debt taken on by NSM will be used to
  fund the deal, which will bring White Mountains Catskill Holdings a
  95 percent equity stake, White Mountains said today in a regulatory
  filing. The agreement values NSM at $388mn, with the acquirer's
  net investment...
  
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• Texas broker Goosehead plans $100mn IPO

  03-04-2018 17:07
  Personal lines and small business insurance broker Goosehead
  Insurance plans to raise $100mn through an initial public offering,
  according to a regulatory filing.
  The family-controlled broker, based in Westlake, Texas had
  revenue of $42.7mn last year, up about 36 percent from 2016,
  according to the IPO registration statement filed yesterday with
  the Securities and Exchange Commission. The business was founded in
  2003 represents over 80 insurers.
  Net income came to $8.7mn last year, Goosehead add
  
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• S&P downgrades Chaucer on news of sale

  03-04-2018 17:07
  S&P has cut Chaucer Insurance's financial strength
  rating after its parent company The Hanover placed its specialty
  insurance arm up for sale.
  In a note published this morning, the ratings agency said
  Chaucer's Irish subsidiary's long-term issuer credit and
  financial strength ratings have been lowered to A- from A.
  Chaucer writes most of its business on Lloyd's paper, which
  continues to be rated A+ by S&P.Both companies are under special surveillance by S&P's
  analytical staff, with t
  
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• Rivera leaves MGA V3 to join Tokio Marine HCC as COO

  03-04-2018 17:07
  Susan Rivera has left V3 Insurance Partners, the specialty MGA
  she helped start and headed up as CEO, for a new executive role at
  Tokio Marine HCC, the Houston-based unit of Japan's Tokio
  Marine Group.
  Rivera began yesterday as executive vice president and COO of
  Tokio Marine HCC, the company said today. She assumed the COO role
  from William Burke, who retains the president's position at the
  specialty insurer.
  Rivera will report to Tokio Marine HCC CEO Christopher Williams
  and...
  
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• Perils: Cyclone Eleanor losses rise to EUR680mn

  03-04-2018 17:07
  Catastrophe data aggregator Perils has pegged its second loss
  estimate for extra-tropical Cyclone Eleanor, also known as
  Burglind, at EUR680mn ($836.7mn).
  In its first estimate in February, Perils estimated theloss total at EUR643mn .
  The windstorm struck swathes of western and central Europe on 2
  January and 3 January.
  The majority of the losses occurred in France, Germany and
  Switzerland.
  Six people were killed in France.
  The third loss estimate will be released on 2 July, six months
  after...
  
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• Opinion: Aspen bows to the inevitable

  03-04-2018 17:07
  So, at last Aspen's board has bowed to the inevitable and
  placed itself up for sale.
  Non-disclosure agreements have been sent out to potential
  bidders after a number of approaches.
  The company's shareholders cannot hope to receive the same
  multiples paid for peers XL and Validus, but there can be little
  doubt that they will do better via an exit than they would if the
  Aspen board had chosen to try and persevere with its
  independence.
  Holding an auction at...
  
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• Mudslide claims tied to fire near $422mn in California

  03-04-2018 17:07
  California's January mudslides that devastated high-end
  residential neighbourhoods near Santa Barbara in the wake of the
  historic Thomas wildfire prompted almost $422mn in claims, state
  regulators said today.
  Insurance Commissioner Dave Jones warned insurers shortly after
  the deadly mudslides that forthcoming damage claims could merit
  treatment under fire policies if the Thomas blaze, the largest
  California wildfire on record, was found to be the "efficient
  proximate cause" of the slides.
  Under
  
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• Meaningful rate rises elude reinsurers at 1.4: Willis Re

  03-04-2018 17:07
  Property reinsurance rates remained broadly flat on loss-free
  accounts at the 1 April renewals, according to a Willis Re report
  released today.
  "Any hopes reinsurers held for meaningful real rate
  increases to help offset difficult 2017 results have been
  dashed," global CEO James Kent said in the broker's 1st
  View report.
  Despite last year's major catastrophes, rates largely have
  failed to rise significantly except for cat-affected risks, capital
  remains abundant and markets overall remain soft,
  
  Read more

• Guillaume-Smith retirement prompts A&H reshuffle at XL Catlin

  03-04-2018 17:07
  Nigel Guillaume-Smith, head of life and wholesale accident &
  health (A&H) at XL Catlin, is retiring after almost 40 years in
  the market.
  He is replaced by Simon Hearn, who will take the post alongside
  his existing role as global product leader for the life class of
  business. Hearn has also been appointed active underwriter of XL
  Catlin's life Syndicate 3002.
  Hearn joined XL Catlin in 2009 as a class underwriter and has
  more than 28 years of underwriting and...
  
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• Frenchman's Reef loss climbs above $300mn

  03-04-2018 17:07
  The claim on the Frenchman's Reef beach resort in the US
  Virgin Islands (USVI) has now gone above $300mn as business
  interruption (BI) losses and escalating rebuild costs push the
  burden for insurers higher, The Insurance
  Insider has learned.
  According to sources, the loss has now gone through the top of a
  $200mn x $100mn layer on the programme bought by owner DiamondRock
  Hospitality.
  As previously reported, the 502-room resort
  hotel located near Charlotte Amalie on St. Thomas sustained
  signific
  
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• Fidelis hires Clarke from Zurich

  03-04-2018 17:07
  Fidelis Insurance has hired Alison Clarke to join its London
  market underwriting team as a senior underwriter.
  Clarke has over the 20 years' experience in the industry and
  joins from Zurich Insurance, where she led the carrier's
  offshore energy team.
  Over the last two years Alison has been an active member of the
  LMA joint rig committee for offshore energy, liaising with industry
  leaders and practitioners.
  Fidelis chief underwriting officer Rich Coulson said
  Clarke's depth of experience would he
  
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• Enstar to listen to bids for StarStone and Atrium

  03-04-2018 17:07
  Enstar and Stone Point have drafted in Evercore for advice after
  they received takeover approaches for live businesses StarStone and
  Atrium, The Insurance Insider can
  reveal.
  Sources said that with M&A multiples flying high, the 60:40
  owners have decided to run parallel restricted processes for the
  two assets, and will sell if their reserve prices are met.
  Taken in combination with the news, broken last week by this
  publication, that The Hanover has put Chaucer up for sale, the twin...
  
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• Castel Specialty adds global property fac book

  03-04-2018 17:07
  Castel Specialty, a division of MGA platform Castel Underwriting
  Agencies, has added a global property facultative reinsurance
  offering to its portfolio, led by Paul Witzenfeld.
  Witzenfeld was previously head of North American property at Pen
  Underwriting and has more than 20 years of underwriting experience
  in the Lloyd's and London markets, including senior roles with
  legacy-Ace Global Markets (now Chubb) and Liberty Syndicates.
  He joins Castel Specialty to underwrite global property
  facultati
  
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• Carlyle-backed PIB buys commercial broker Wilby

  03-04-2018 17:07
  Insurance broker-consolidator PIB has acquired independent UK
  broking group Wilby.
  Wilby specialises in commercial insurance and risk management
  for private individuals and for businesses ranging from caravan
  dealers to providers of social care.
  The current management team at Wilby is set to remain in
  place.
  The buyer, which is expanding rapidly under the ownership of
  buyout firm Carlyle Group, disclosed no financial information about
  the deal.
  PIB is led by Brendan McManus, a former CEO at Will
  
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• Atlas Financial's Q4 loss widens on reserve charges

  03-04-2018 17:07
  Commercial auto specialist Atlas Financial posted a $67.5mn
  adjusted pre-tax operating loss for the fourth quarter driven by
  prior-year reserve strengthening that added 130.3 percentage points
  to the insurer's combined ratio for the period.
  The adjusted pre-tax loss amounted to $5.57 per share, Atlas
  reported today after securities markets had closed. Analysts had
  expected a $3.91 a share operating loss, the average of three
  estimates compiled by MarketWatch.com.
  Atlas warned in March that reser
  
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• Argenta gets go-ahead for Hannover Re SPA

  03-04-2018 17:07
  Argenta Syndicate Management Limited, the Lloyd's managing
  agency subsidiary of Argenta Holdings, has gained Lloyd's
  approval to launch a special purpose arrangement (SPA).
  SPA 6134 will be sponsored and capitalised by Hannover Re, and
  will write quota share reinsurance of business written by Syndicate
  2121, Argenta's main syndicate.
  For 2018 the SPA is targeting gross written premium income of
  £36mn ($50.4mn), up from the £22.6mn initially
  anticipated for the SPA in Argenta's 2017 a
  
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• Aegis' Croom-Johnson joins LMA board

  03-04-2018 17:07
  The Lloyd's Market Association (LMA) has appointed
  Aegis' David Croom-Johnson as a new board member and
  re-installed three others.
  Croom-Johnson, who is managing director at Aegis Managing
  Agency, will take the role from 31 May.Stephen Eccles, chief underwriting officer at Argo Managing
  Agency, Richard Harries, CEO of Atrium Underwriters and Matthew
  Shaw, president of Chubb Global Markets, will also all be
  re-elected to the board to serve another three years.
  Neil Maidment, chief underwriting of
  
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• Editor's letter - April 2018

  03-04-2018 16:57
  Passing on the baton: Not goodbye, more like au revoir
  
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• The Headline Makers - April 2018

  03-04-2018 16:16
  The hottest stories on www.insuranceage.co.uk, the month in numbers and quotes from the biggest news stories of the month
  
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• PIB Group buys Wilby

  03-04-2018 13:35
  The deal takes the consolidator’s GWP up to £500m and will see Wilby aim to grow further through acquisition.
  
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• FCA goes on attack against "unacceptable" renewal failings

  03-04-2018 12:35
  Regulator warns general insurance firms after widespread failings to comply with new rules on renewal transparency.
  
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• Insurers still failing to meet FCA renewal rules

  03-04-2018 12:07
  The Financial Conduct Authority has warned it will take action against general insurers who fail to implement rules introduced to encourage shopping around at renewal time.
  
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• Islands drops SSP for Open GI’s Mobius platform

  03-04-2018 11:46
  Open GI said that Islands Insurance Group, part of NFU Mutual, is one of the first to move to the application.
  
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• #insagepeople 3 - 6 April 2018

  03-04-2018 11:29
  Keep up to date with all the latest people moves.
  
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• Webinar: What brokers need to know about GDPR

  03-04-2018 10:23
  Tune in today to our live event at 11am.
  
  Read more

• Q&A: Chubb's Karen Strong and Dan Atkinson

  03-04-2018 07:00
  Chubb’s Karen Strong and Dan Atkinson talk to Jonathan Swift about why Chubb reviewed its real estate offering and how it intends to take this to the ‘next level’ with hires and delivering a ‘complete solution’ to clients
  
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• Analysis: W&I for bricks and mortar

  03-04-2018 07:00
  Warranty and indemnity insurance has seen significant growth in the real estate sector over the last few years. And, with the cover offering significant advantages to those involved in real estate deals, many expect it to become a standard part of any transaction
  
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