General Insurance Newsletter Friday 28th July 2023

Insurance News

Specialist insurer Beazley Plc has outlined its performance for the first half of 2023. Compared to the previous year, GWP from cyber risks grew 14%; digital saw a 1% slide; MAP risks, down by 5%; property risks, up 66%; and specialty risks posted a slight decline of 1%. “The excellent conditions in the property market persisted into the second quarter, and we continued to take advantage of those, delivering a strong performance on growth for the group in the first half of 2023,” said Beazley Chief Executive Adrian Cox. (Terry Gangcuangco, 27/7/2023, Insurance Business UK, 'Beazley issues trading statement for first half')

In a recent earnings call, Chubb Chairman and CEO Evan Greenberg shared how the insurance company is looking to use artificial intelligence (AI), despite “breathless rhetoric” the emerging technology will take time to have an impact. Chubb has been using algorithmic AI for “five or six years”, Greenberg said, and is now investigating potential benefits of large language models. However, he told analysts and investors on the July 26 Q2 2023 earnings call that he expected the technology to take time to reap any rewards. (Jen Frost, 27/7/2023, Insurance Business UK, 'AI impact to take longer than 'breathless rhetoric' suggests – Chubb CEO')

Global broker WTW has announced the launch of Climate Vista, a new engagement tool that aims to assist company boards and senior management in comprehending their exposure to environmental, social, and governance (ESG) and climate-related risks and opportunities, amid increasing shareholder, investor, and regulatory pressure for climate risk disclosure. A recent survey conducted by WTW and the Nasdaq Center for Board Excellence revealed that nearly half of the respondents (48%) reported their boards lacked the necessary skills and expertise to effectively oversee climate risks. Although improvements are expected in the next three years, the gaps may persist, WTW said. (Steven Byerley, 27/7/2023, Insurance Business UK, 'WTW reveals climate engagement tool')

Northern Ireland broker AbbeyAutoline has raised over £4,000 for a local charity through its recently concluded ‘50k in May’ challenge, a company-wide initiative that saw more than 120 staff members collectively walk, run, bike, or hike 50 kilometres each during May. Throughout the month, staff from AbbeyAutoline’s 15-branch network covered a total distance of 6,000 kilometres with the goal of raising funds for AWARE NI, which provides mental health services to those affected by depression, anxiety, and bipolar disorder. (Mika Pangilinan, 27/7/2023, Insurance Business UK, 'AbbeyAutoline raises over £4,000 for mental health charity')

In further news...AbbeyAutoline is celebrating its 50th anniversary with a major boost to its high street presence by relocating its Portadown branch to a new town-centre location. The new branch is located on Market Street and is part of the Northern Ireland brokerage’s efforts to strengthen its well-established commercial lines business in Portadown following the acquisition of BMG Insurance, which had its headquarters in the same area. (Mika Pangilinan, 25/7/2023, Insurance Business UK, 'AbbeyAutoline celebrates anniversary with new town-centre branch')

Global underwriter Everest Group has published its financial results for the second quarter of 2023. Of the group’s GWP, US$2.8 billion came from reinsurance while the insurance segment contributed US$1.4 billion. Both segments saw increases in their GWP. Everest President and Chief Executive Juan C. Andrade said: “Everest’s second quarter performance was outstanding as we leaned into the hard reinsurance market. We continued to grow premiums, while expanding margins, resulting in strong increases in quarterly underwriting profits, net income, and record operating income."(Terry Gangcuangco, 27/7/2023, Insurance Business UK, 'Everest Group announces earnings for second quarter')

Arch Capital Group has released its earnings report for the second quarter of 2023. According to the company’s announcement, the net income available to Arch common shareholders for the period amounted to US$661 million. The corresponding sum in Q2 2022 was US$394 million. Gross written premium (GWP), meanwhile, saw a 25% growth. (Terry Gangcuangco, 27/7/2023, Insurance Business UK, 'Arch Capital Group publishes Q2 financial results')

CHL, the parent company of Conduit Re, a reinsurance firm headquartered in Bermuda, has released its interim results for the six months ended June 30, based on the IFRS 17 accounting standard. “This has been a very successful half-year for Conduit, and we are delivering on the goals we set out when we founded the business in 2020,” said Trevor Carvey, CEO. “In a half year which has seen high industry losses, our focussed underwriting strategy has delivered strong underwriting results which, coupled with our low expense base, have delivered a very attractive combined ratio of 72.5% (83.1% on [an] undiscounted basis). (Steven Byerley, 27/7/2023, Insurance Business UK, 'Conduit unveils H1 results')

In a bio to address the growing significance of environmental, social, and governance (ESG) matters in shaping the future of businesses, the Chartered Insurance Institute’s (CII) Broking Community New Generation group has published a new guide detailing how small and medium-sized (SME) brokers can navigate this pivotal territory. The guide comes from research carried out by the CII Broking Community New Generation group for the 2022/23 period. In their research, the group sought to understand how ESG strategies are being implemented by larger firms and how these measures could be adopted by SME brokers. (Mika Pangilinan, 27/7/2023, Insurance Business UK, 'CII New Gen Group releases ESG guide to empower SME brokers')

Chubb has revealed its financial results for the quarter ended June 30. The company recorded a net income of US$1.79 billion, equivalent to US$4.32 per share, and a core operating income of US$2.04 billion, or US$4.92 per share. Book value per share and tangible book value per share saw a slight increase of 0.6% and 0.2%, respectively, from the previous quarter, standing at US$128.75 and US$78.97. (Steven Byerley, 25/7/2023, Insurance Business UK, 'Chubb reports quarterly results')

Convex Group Limited and Swiss Re have set a new world record, becoming the fastest mixed-gender crew to row across the Pacific Ocean. Aboard the Iron Ore vessel, two reinsurance leaders, Theresa (Tia) Patricios, Head of Investments at Convex, and Cameron Parker, Head P&C Structured Solutions for Continental Europe and Africa at Swiss Re, became the first reinsurance team to row across the Pacific. They completed the voyage as part of an effort to raise money for mental health. (Steven Byerley, 25/7/2023, Insurance Business UK, 'Swiss Re, Convex set world rowing record')

Global insurer Allianz has introduced a new regional set-up for its commercial insurance business after combining the group’s Allianz Global Corporate & Specialty (AGCS) unit with the commercial insurance operations of local Allianz property & casualty entities. Under the integrated proposition, the businesses will trade as “Allianz Commercial” moving forward. “Our commercial businesses have been united in one global model,” Allianz SE management board member Chris Townsend said in an emailed release. “With Allianz Commercial, we can service a fuller, more dynamic range of customers under our new unifying name – this gives us an immense competitive advantage and a compelling customer value proposition across the commercial insurance market, rooted in simplicity and consistency.” (Terry Gangcuangco, 25/7/2023, Insurance Business UK, 'Allianz unveils new regional set-up for integrated commercial business')

Moneysupermarket.com Group Plc has released its financial results for the first six months of 2022. Broken down, revenue from insurance grew 23% while that from travel saw a 42% increase. Revenue from cashback was up 1%. Money and home services, meanwhile, posted a slight decline (by 2% and 1%) in their respective results. (Terry Gangcuangco, 24/7/2023, Insurance Business UK, 'Moneysupermarket.com Group announces interim financials')

PIB Group, which acquired 23 businesses across six countries last year, has released its financial results for the year ended December 31, 2022. According to the London-headquartered insurance intermediary, its revenue went up by 49% from £231 million to £345 million. Adjusted earnings before interest, taxes, depreciation, and amortisation, meanwhile, rose 36% from £67 million to £91 million. (Terry Gangcuangco, 24/7/2023, Insurance Business UK, 'PIB Group publishes full-year results')

Allianz Trade has launched a standalone fraud insurance product aimed at assisting UK businesses amid the increasing prevalence of employee fraud and external scams. The new product is designed to provide coverage for a wide range of fraud-related incidents. These include internal fraud carried out by employees, such as bribery, embezzlement, and misappropriation of funds or property. It also covers external fraud, encompassing robbery, burglary, intercepted payments, payments based on forged orders, and impersonation fraud. (Mika Pangilinan, 24/7/2023, Insurance Business UK, 'Allianz Trade unveils business fraud product')

WTW has published its financial results for the quarter ended June 30, 2023. Of the group’s segment operating income, US$145 million came from the risk & broking (R&B) segment; US$222 million from health, wealth & career (HWC). The HWC segment saw a higher operating income in the period, while R&B posted a 14% decline. (Terry Gangcuangco, 28/7/2023, Insurance Business UK, 'WTW releases earnings report for Q2')

AM Best has upgraded the outlooks for the credit ratings of Lloyd’s and its rated subsidiaries, as well as for the credit ratings of the Society of Lloyd’s. According to AM Best, the credit ratings reflect the strong operating performance, favourable business profile, and appropriate enterprise risk management at Lloyd’s, as well as the balance sheet strength of the insurance marketplace. (Terry Gangcuangco, 28/7/2023, Insurance Business UK, 'Lloyd’s credit ratings outlook upgraded to positive')

Chubb UK has partnered with stolen vehicle recovery and billing platform Global Telemetrics to launch a vehicle tracking system for personal lines policyholders in Britain. “The number of luxury vehicles stolen has increased significantly in recent years as car thieves deploy ever-more sophisticated technology,” said Stephen Vaughan, Chubb’s Head of PRS (personal risk services) Europe. “Chubb’s vehicle trackers have been developed to provide the highest available level of security for our customers to help protect their vehicles and provide them with peace of mind.” (Terry Gangcuangco, 28/7/2023, Insurance Business UK, 'Chubb UK rolls out vehicle tracking system')

Insurance data provider Percayso Inform has completed a second major investment for its business by securing a £2.7 million fundraise, led by industry veteran Neil Utley and the firm’s venture capital investor, Praetura Ventures. Following the earlier investment made by Praetura Ventures last year, Percaysos has extended its proposition to deliver a full quote intelligence suite with data aggregated from many different sources, allowing intelligence to be accessed with a simple API call and at significant volume. The firm’s client base now includes 65, including Ageas, Covea, Direct Line, Markerstudy, Somerset Bridge, The AA, and more. (Kenneth Araullo, 28/7/2023, Insurance Business UK, 'Percayso Inform boosted with £2.7M second investment')

Mergers & Acquisitions

Health insurer Medicash has acquired One Derby Square owner Palace Capital Liverpool for £12 million. A special purpose vehicle that was part of the Palace Capital Group, Palace Capital Liverpool snapped up One Derby Square – where Medicash is located – for £14 million in 2019. Now, with its shares purchased by Medicash, the company becomes a fully owned subsidiary of the insurer and will be known as One Derby Square Limited. (Terry Gangcuangco, 24/7/2023, Insurance Business UK, 'Medicash acquires Palace Capital Liverpool')

Howden has announced that it has acquired Hudson Sky International (Hudson Sky), securing its position as a preeminent broker in the aviation insurance sector in Switzerland. This acquisition is part of Howden’s wider strategy to become a leader in its chosen specialty markets, such as aviation, and underlines its continued investment in expertise to expand its product offering for Swiss and multinational clients. Hudson Sky has established itself as a leading aviation (re)insurance broker in the Swiss market, with its core focus on the helicopter segment, and servicing a range of clients on a global scale. The acquisition will cement Howden’s position as a major force in the aviation sector as well as strengthening Howden’s geographic presence in Europe. (Howden Group, 24/7/2023, youTalk Insurance, 'Howden acquires specialist Swiss broker Hudson Sky')

British insurance giant Aviva has strengthened its position in the UK home insurance market, announcing a contract with Barclays UK that will see it snap up Barclays’ home insurance portfolio. The deal is set to complete in August. In a press release, Aviva noted that the acquisition of the portfolio - which comprises 350,000 customers – will support its ambitions to further grow its retail insurance business. The insurer has been a strategic partner of Barclays for 18 years, a role that saw it administering, underwriting and providing servicing and claims management for the bank’s home insurance customers. (Mia Wallace, 24/7/2023, Insurance Business UK, 'Aviva announces major home insurance swoop')

Movers

Newly launched reinsurance broker Augment Risk has named Charlie Love as Chief Financial Officer. Love most recently served as a board member of the British Insurance Brokers’ Association international and wholesale members advisory board and as a Bank of England panel member. Meanwhile, Henry Mikrut, who brings decades of experience in the reinsurance broker advisory and financial analysis space, has been named as Head of Rating Agency Advisory. (Terry Gangcuangco, 27/7/2023, Insurance Business UK, 'New reinsurance broker Augment appoints chief financial officer')

Allianz Commercial has announced two internal promotions to further strengthen its UK distribution following the appointment of Nick Hobbs as Chief Distribution Officer a few weeks ago. The newly formed function will start operating from Sept. 1, and joining Hobbs in the leadership suite are Mike Thomas, who will become Director of Distribution for digital and mid-market, and Andy Montgomery, who will become Head of Broker Distribution Management. Thomas has been with Allianz for two decades and has undertaken various leadership roles for the insurer, including within claims and as development manager for Birmingham. Montgomery has been with Allianz since 2005 and has worked extensively across its UK business, including roles in account management, and working with corporate partners and brokers. (Kenneth Araullo, 27/7/2023, Insurance Business UK, 'Allianz Commercial strengthens UK distribution with leadership promotions')

Insurance broking and risk management firm Gallagher has added six new hires to its team in Liverpool. Below are the newest members of the Liverpool roster based in the Spinnaker House office on Sefton Street. Callum Goulding joins as Business Development Executive - Healthcare, Jessica Smith has been appointed as Account Broker - Healthcare, Gill Birchall joins as Account Broker - Marine, Helen Hall has been appointed as Account Broker - Corporate, Martin Rimmer has joined as Account Broker - Corporate and Ben Thomas joins as Account Broker - Corporate. (Terry Gangcuangco, 26/7/2023, Insurance Business UK, 'Gallagher widens Liverpool roster')

HSB, part of giant reinsurer Munich Re, has announced the appointment of Stacey Sheridan as network relationship manager, further strengthening its broker proposition. Sheridan has been with HSB since 2019 and is being promoted from her previous business development role. Sheridan comes to the role with over 20 years of industry experience. According to her LinkedIn, she was previously with Broker Network for three years before coming to HSB. Prior to this, she also worked at TEn Insurance Services as well as other firms in the Northwest market.(Kenneth Araullo, 26/7/2023, Insurance Business UK, 'HSB strengthens broker proposition with new appointment')

WTW has appointed Lucy Clarke and Adam Garrard as President and Chair, respectively, of risk & broking. Joining WTW in the third quarter of 2024, Clarke will move from Marsh where she was President of Specialty and Global Placement – a position to be filled by internal hire Pat Donnelly. Meanwhile, Garrard, who currently serves as Risk & Broking Head at WTW, will become the segment’s Chair when Clarke arrives. (Terry Gangcuangco, 25/7/2023, Insurance Business UK, 'WTW appoints risk & broking president and chair')

Ulrich Kranich will be succeeded by Morten Engelstoft as Chairman of liability insurance provider TT Club. Engelstoft, who spent 36 years at Maersk and most recently served as Chief Executive of APM Terminals, will take over as Chair of both Through Transport Mutual Insurance Association Limited (Bermuda) and TT Club Mutual Insurance Limited (UK). Meanwhile, Marika Calfas, John Chambers, and Miguel d’Orey have been appointed as new Directors. (Terry Gangcuangco, 25/7/2023, Insurance Business UK, 'TT Club elects new chair')

Arch UK is revamping its Bristol office with the promotion of Julie Collins to Branch Manager, effective immediately. Collins succeeds Ruth Hitchcox, who has been appointed to the new position of National Production Improvement Lead. According to her LinkedIn, Collins previously held the positions of Broker Relationship Development Manager and Transformation Support Manager for Arch UK. She also previously worked at Covea, Arista Insurance, and NIG Insurance. In addition to Collins, Arch UK also announced the appointment of Stuart Hawker as Broker Relationship Development Manager for the Bristol Office. Hawker joins from Allianz, his firm of over 14 years, where he worked as Business Development Manager. (Kenneth Araullo, 25/7/2023, Insurance Business UK, 'Arch UK bolsters Bristol office with key appointments')

Global broker Marsh has announced the appointment of Pat Donnelly as President of Marsh Specialty and Global Placement and Michelle Sartain as President of Marsh US. Donnelly brings more than 25 years of experience to the role. He has been leading Marsh's US business since January 2022 and had previously served as the Head of Marsh Specialty for Marsh US and Canada after Marsh McLennan's acquisition of JLT, where he had held the role of CEO of JLT Specialty US. Prior to this role, Sartain served as the Head of Marsh Specialty for the US and Canada and has accumulated more than 25 years of experience, holding various key positions at Marsh. (Steven Byerley, 24/7/2023, Insurance Business UK, 'Marsh names two presidents')

Pen Underwriting– an underwriting business with its eyes fixed on hitting a £1 billion GWP target by 2025– has announced a swathe of changes to its divisional structure. In a Press release, the business revealed that as of August 1, it will separate its International & Financial Lines (IFL) division - creating a standalone UK Financial Lines & Specialist Liability division. Richard Webb will be stepping into a new role as Managing Director of the division and will join the Pen executive committee. Meanwhile, the newly dedicated International division will continue to be led by MD Adrian Scott. Among the changes, MUM-Founder and current CEO Charles Manchester will become Chair of the new UK Financial Lines & Specialist Liability division. Webb, who is currently a Director at MUM, joined Pen in October 2021 when MUM was acquired by Pen. He brings 37 years of industry experience to his new role, having previously served with HCC International and Hiscox, prior to joining MUM in 2010. (Mia Wallace, 28/7/2023, Insurance Business UK, 'Pen Underwriting restructures to create new dedicated divisions')

Victor, Marsh’s global managing general underwriting business, has appointed Charles Williamson as its CEO, succeeding Brian Hanuschak, who will become the company’s chairman. New York-based Williamson brings three decades of underwriting experience to Victor, including serving nearly 25 years in various executive roles at AIG. Most recently, he served as Co-Founder and CEO of Vault, a managing general agency and reciprocal insurance exchange serving a high-net-worth clientele. (David Saric, 27/7/2023, Insurance Business UK, 'Marsh’s Victor taps new CEO and chairman')

American International Group has announced that Christopher Schaper, currently CEO of AIG Re, has been named Global Chief Underwriting Officer of AIG, effective as of the closing of the previously announced sale of Validus Re to RenaissanceRe, which is expected to occur in the fourth quarter of 2023. Mr. Schaper has more than three decades of experience in the insurance and reinsurance industries. He is currently CEO of AIG Re, the global reinsurance business of AIG, as well as CEO of Validus Re and AlphaCat. Mr. Schaper joined AIG in 2019 from Marsh McLennan, where he was CEO of Victor Insurance Holdings, Marsh’s global underwriting MGA. Prior to that, Mr. Schaper served as President of Montpelier Re Ltd and Underwriting Chairman of Blue Capital, Montpelier’s capital markets entity. Previously, he held leadership roles at Endurance Specialty Insurance Ltd., including Chief Underwriting Officer and Head of Reinsurance. Earlier, he had underwriting responsibilities at ERC, a division of GE Capital and at Cigna Insurance. He is a member of the Corebridge Financial, Inc. Board of Directors. (AIG, 27/7/2023, youTalk Insurance, 'AIG appoints Christopher Schaper as Global Chief Underwriting Officer')