General Insurance Newsletter Thursday 28th March 2024

Insurance News

After the release of its preliminary results earlier this month, Lloyd’s has disclosed its financial figures for the full year of 2023 (FY2023), illustrating a rise in profits across underwriting and investment sectors. The institution reported an underwriting profit of £5.9 billion, up by £3.3 billion from the previous year. This enhancement led to a 7.9 percentage point decrease in the combined ratio to 84.0% (FY2022: 91.9%)—the most favourable result recorded since 2007. (Kenneth Araullo, 28/3/2024, Insurance Business UK, 'Lloyd's achieves strong financial outcomes in 2023')

Insurance law firm Fenchurch Law has announced its shift to an employee ownership model. The firm said in a news release that 60% of its shares will now be owned by its employees through a newly formed Employee Ownership Trust (EOT). Managing Partner David Pryce called the move “the natural next step for Fenchurch Law,” stating that becoming employee-owned reinforces the firm’s “progressive and unique values.” (Mika Pangilinan, 28/3/2024, Insurance Business UK, 'Fenchurch Law transitions to employee ownership model')

The recent collapse of the Francis Scott Key Bridge in Baltimore is expected to impose significant financial burdens on the reinsurers involved, as an analyst indicates that they are poised to cover most of the insured costs stemming from the incident. Matilde Jakobsen, Senior Director of Analytics at AM Best, highlighted the critical role of protection and indemnity insurers (P&I clubs) in providing liability coverage for maritime vessels, including the one implicated in the bridge collapse. “Reinsurers will bear the bulk of the insured cost of the collapse of the Francis Scott Key Bridge in Baltimore,” Jakobsen said in a report. “Liability cover for most shipping vessels is provided through protection and indemnity insurers known as P&I clubs.” (Kenneth Araullo, 27/3/2024, Insurance Business UK, 'Bulk of Baltimore bridge collapse cost falls on reinsurers – AM Best')

Pool Re, the UK’s government-supported terrorism reinsurer, has received approval from its members and the HM Treasury to overhaul the current Pool Re scheme. The proposed modifications, set to take effect in April 2025, maintain the core principles and coverages of the scheme but introduce enhanced flexibility for members in underwriting terrorism-related commercial property damage and business interruption risks. (Kenneth Araullo, 27/3/2024, Insurance Business UK, 'Pool Re gets green light for treaty model transformation')

Oxbridge Re has announced its financial results for the final quarter and the entire year of 2023 – one that saw net premiums rise, but net losses also climb. During the three-month period ending December 31, 2023, Oxbridge Re reported net premiums earned of $523,000, an uptick from the previous year’s same period, which saw no net premiums. The annual figures showed an increase in net premiums earned to $1,255,000 in 2023 from $995,000 in the prior year, attributed to higher reinsurance contract rates. (Kenneth Araullo, 27/3/2024, Insurance Business UK, 'Oxbridge Re hit by rise in net losses')

Brit Limited has released its financial results for the year ending December 31, 2023, showcasing major upticks across various metrics. The company reported an increase in group profit after tax, including operations that have since been discontinued, recording a figure of $895.4 million for the year, compared to $308.9 million in 2022. Profit from ordinary activities before tax, foreign exchange (FX) considerations, and excluding discontinued operations was $720.3 million, a rise from the previous year's $281.3 million. (Kenneth Araullo, 27/3/2024, Insurance Business UK, 'Brit profits surge in 2023 annual results')

The Financial Conduct Authority (FCA) has pinpointed issues within the motor insurance sector, revealing that some companies may not be offering fair valuations for vehicles that are written off or stolen. This discovery emerged from an FCA review, which suggested that affected firms tend to propose settlements below the actual value of such vehicles, adjusting these figures only upon receiving complaints from customers. This finding comes amid the FCA's previous cautions to insurers against the undervaluation of cars or other insured items during claims settlements. The regulatory body revealed that it is now in dialogue with the implicated insurers, urging them to rectify their practices in line with the FCA's observations. (Kenneth Araullo, 27/3/2024, Insurance Business UK, 'FCA sounds alarm over motor insurers' valuations')

Marsh has unveiled a new insurance solution designed for custodians of digital assets, including financial institutions. This new facility offers up to $825 million in insurance coverage to Marsh’s global clientele and is crafted to cater to organizations holding digital assets in cold storage — offline storage — as well as those seeking insurance for risks associated with assets safeguarded through Multi-Party Computation (MPC) or other custody technologies not solely reliant on offline methods. (Kenneth Araullo, 26/3/2024, Insurance Business UK, 'Marsh introduces new global facility for digital asset custodians')

Marsh has formed cyber-only group captive Edgware Re. Aimed at organisations looking for more stability and control when it comes to cyber cover, Bermuda-based Edgware Re was created following what Marsh described as a “volatile period” of cyber insurance pricing and coverage modification. “Participating members can purchase up to US$10 million in insurance or reinsurance from Edgware Re based on their needs,” announced Marsh, which will provide captive management, incident response, vendor engagement, and claims advocacy support to the new group captive. “Limits are expected to grow as participation increases.” (Terry Gangcuangco, 26/3/2024, Insurance Business UK, 'Marsh launches cyber group captive Edgware Re')

Swiss Re Institute’s latest projections suggest that insured losses could double over the next decade, exacerbated by rising temperatures and more frequent and intense extreme weather events, underscoring the critical need for mitigation and adaptation efforts. In 2023, natural catastrophes, including a major earthquake in Turkey and Syria, severe convective storms (SCS), and widespread urban flooding, pushed insured natural catastrophe losses to $108 billion. This escalation continues a 5-7% annual increase in global insured natural catastrophe losses observed since 1994. (Kenneth Araullo, 26/3/2024, Insurance Business UK, 'Swiss Re reveals huge spike in insured losses is coming')

PartnerRe has released its financials for the entire year of 2023, highlighting achievements across various sectors of its operations. The company reported a net income available to common shareholders of $2,308 million, achieving a return on equity of 20%. Operating income reached $1,447 million, reflecting a 20% return on equity and a 7.5% improvement from prior results. The growth was fuelled by a 9% increase in net premiums earned, attributed to 4% growth in the non-life sector and a 26% expansion in life and health insurance. (Kenneth Araullo, 26/3/2024, Insurance Business UK, 'PartnerRe reveals financials')

HDI Global SE has disclosed its financial performance for the year 2023, showcasing growth across its segments. The insurer witnessed an improvement in its combined ratio by 1.5 percentage points from the previous year, currently positioned at 91.5%. Insurance revenues saw a 10% increase, reaching €9.1 billion. There was also a 4% rise in operating profits, totalling €446 million, and a 13% increment in net income, which amounted to €351 million. (Kenneth Araullo, 26/3/2024, Insurance Business UK, 'HDI Global reports growth in 2023 results')

Reinsurance Group of America (RGA), a global life and health reinsurer, has announced an agreement with Japan Post Insurance Company (Kampo). “This transaction marks a significant milestone in the Asia-Pacific longevity market as a first-of-its-kind coinsurance transaction in Japan,” said Gaston Nossiter, Senior Vice President, Head of Asia-Pacific, global financial solutions, RGA. The transaction will mean an RGA affiliate will be reinsuring an approximately 700 billion JPY in-force block of individual life annuities through coinsurance, marking a landmark transaction with one of the leading providers of life annuities in Japan. (Abigail Adriatico, 25/3/2024, Insurance Business UK, 'RGA announces agreement with Japan Post Insurance Company')

Everen Specialty Ltd (Everen), a mutual insurance company, has announced its net income for the 2023 fiscal year, amounting to a total of $35 million. In an annual general meeting with its shareholders, it reported gross written premiums amounting to $444 million. Everen stated that this was a decrease of $213 million from the previous year, which was a result of its underwriting actions in 2022 and 2023. (Abigail Adriatico, 25/3/2024, Insurance Business UK, 'Everen Specialty Ltd reports CEO exit and financials')

Momentum Broker Solutions has revealed in a statement that it exceeded expectations with its 2023 financial performance, marking another year of significant achievements, despite a challenging market environment. The company reported a 31% increase in premium growth, reaching a notable £81 million. This achievement has been attributed to the firm’s partnerships, its onboarding of new partners and the expansion of its existing partnerships. The company also saw a surge in revenue, with gross revenue climbing to £15 million and net revenue exceeding £6 million, marking a 35% increase. The firm also experienced a 60% growth in profits. According to the company statement, this profit growth highlights Momentum’s solid financial planning and its ability to capitalise on market opportunities. (Jonalyn Cueto, 25/3/2024, Insurance Business UK, 'Momentum Broker Solutions hits key financial milestones in 2023')

Howden, formerly Aston Lark, has partnered with managing general agent Qlaims Limited for the benefit of the insurance group’s commercial clients in the UK. Under the tie-up, Qlaims will offer loss assistance insurance to Howden’s SME customers in the country, boosting the latter’s internal claims proposition. “We have been working with Qlaims to ensure we have the best proposition for our commercial clients; the solution we feel reflects the Howden brand and works seamlessly to complement our existing in-house claims services,” said Victoria Sutton, Head of Claims Operations for corporate and commercial, UK & Ireland retail. (Terry Gangcuangco, 25/3/2024, Insurance Business UK, 'Howden taps Qlaims to enhance claims services')

Mergers & Acquisitions

Davies has expanded its legal services arm, Keoghs, with the strategic acquisition of Shoreside Law. The snapped up commercial and maritime litigation firm brings expertise in shipping, commercial insurance, and energy disputes. Shoreside Law serves a diverse clientele spanning insurers, owners of ships and yachts, charterers, non-vessel operating common carriers, and ports. Lawyers from Shoreside Law will integrate into Keoghs, operating from Davies’ London headquarters as part of the complex & specialty unit. They will be under the leadership of Laura Warwick, Chief Operating Officer of complex & specialty claims at Davies UK & Ireland. The merger will provide Davies’ existing clients with access to experts skilled in handling domestic and international maritime and commercial litigation. Following the 2020 acquisition of Keoghs, Davies’ insurance clients have already seen the benefits of extended capabilities. (Terry Gangcuangco, 27/3/2024, Insurance Business UK, 'Davies expands Keoghs with Shoreside Law swoop')

London-based independent private medical insurance intermediary Get Medical Plans is now part of international insurance brokerage and consulting firm NFP. “We are delighted to join NFP, especially as the company continues to expand in the UK,” Get Medical Plans Founders Marc Benjamin and Sanjeev Mallipeddi said in a joint statement. “This partnership will enable Get Medical Plans to continue to deliver a first-class service to our clients by accessing the resources and range of services within a global organisation, while also giving us the ability to reach new customers.” Under the deal, financial terms of which were not disclosed, the co-founders will remain at the helm of Get Medical Plans, bringing more than four decades of combined private healthcare industry experience to NFP. (Terry Gangcuangco, 26/3/2024, Insurance Business UK, 'NFP swoops for Get Medical Plans')

Movers

KGM, a specialist motor managing general agent (MGA) under DUAL UK, has named Ciaran Astin as its new Managing Director. Astin joins KGM with over a decade of experience in leadership and business development roles within the motor insurance sector. He has held key positions at Hastings Group and Direct Line Group, according to his LinkedIn page. In his most recent role, Astin served as Managing Director of DriveScore, an app-driven motor insurance data company within ClearScore group. (Mika Pangilinan, 28/3/2024, Insurance Business UK, 'DUAL UK's KGM appoints managing director')

Hannover Re has announced plans to merge its cyber and digital operations into a singular specialty reinsurance business unit in a bid to bolster its underwriting prowess. The leadership of this newly formed cyber and digital business unit will be entrusted to Stefan Sperlich, who will serve as its Managing Director. Sperlich, a mathematics graduate, has been with Hannover Re since 2009, where he initially took on roles as a Structured Reinsurance Underwriter, gradually assuming greater responsibilities, particularly in the North American region. Since 2019, he has spearheaded the structured reinsurance business in North America and led the company’s digital business accelerator for property and casualty insurance. (Kenneth Araullo, 27/3/2024, Insurance Business UK, 'Hannover Re forms new specialty reinsurance unit')

AXA XL has promoted Neil Cole to Global Chief Underwriting Officer, Marine, effective 1 April 2024. Mr. Cole has 25 years of experience in the marine industry, 10 of which at AXA XL. He started his career in claims before moving into underwriting and specialising in international marine markets. Since 2020, Mr. Cole was Global Head of Underwriting Management and Deputy Chief Underwriting Officer, Marine. (AXA XL, 27/3/2024, youTalk Insurance, 'AXA XL promotes Neil Cole to Global Chief Underwriting Officer for Marine')

Everest Group has announced the elevation of Jim Williamson to oversee its reinsurance and insurance operations. Williamson currently holds the position of Everest’s EVP, Group Chief Operating Officer, and Head of the reinsurance division. Before joining Everest, Williamson held various senior roles at leading global insurance firms such as Chubb, ACE, The Hartford, and Bain & Company. (Kenneth Araullo, 27/3/2024, Insurance Business UK, 'Everest promotes stalwart to lead re/insurance businesses')

Claims management and loss adjusting specialist firm Sedgwick has announced the appointment of Peter Farrelly as its Chief Operating Officer for the UK sector. With a career spanning over three decades in the industry, Farrelly ascends to this position after a tenure as Managing Director for Sedgwick’s commercial claims services in the UK since 2019. Prior to Sedgwick, Farrelly honed his skills at GAB Robins (now part of Gallagher) for more than two decades, most notably as Director for major and complex loss. (Kenneth Araullo, 27/3/2024, Insurance Business UK, 'Sedgwick names chief operating officer in the UK')

Program manager Accredited has announced the strategic hire of Grace Meek as President of Accredited America. With over three decades of experience in program management, Meek will become part of Accredited’s global executive team. Previously, Meek held the title of Chief Executive and President at Homesite Underwriting Managers where she spearheaded the creation of the firm’s program division. Before her tenure at Homesite, Meek spent eight years at Allied World Assurance Group where she was also in charge of managing the program division she set up. (Terry Gangcaungco, 27/3/2024, Insurance Business UK, 'Accredited names America president')

Specialty vehicle insurance provider Hagerty is bringing its Hagerty Drivers Club – operating in the US since 2002 – to the UK market, adding Charlotte Moseley to the company’s British line-up as UK Membership Manager. Moseley brings a wealth of experience to the table, having previously held several marketing positions at Footman James Insurance. Her most recent role involved overseeing brand strategies at a group level. (Terry Gangcuangco, 27/3/2024, Insurance Business UK, 'Hagerty makes key UK appointment')

Lloyd’s global re/insurer MS Amlin has announced Sam Phibbs as its new Head of Catastrophe Research. Phibbs brings a strong academic background to his new position, holding a PhD in atmospheric physics from Imperial College London. Before joining MS Amlin, Phibbs served as Vice President of International Catastrophe Advisory at Guy Carpenter for two years, where he spearheaded the company’s advisory on the physical risks associated with climate change. His career also includes a five-year tenure at Gallagher Re, where, as Divisional Director for model research and evaluation, he focused on developing and refining models for extreme weather catastrophes. (Kenneth Araullo, 26/3/2024, Insurance Business UK, 'MS Amlin expands cat risk expertise with new head of research')

AXA Commercial has announced that Paul Tombs will join the company as the Director of its SME intermediary sector, commencing his role this summer. Tombs brings to the table over two decades of insurance industry experience with 18 years dedicated to various roles at Zurich. His responsibilities there encompassed underwriting, marketing, and the enhancement of propositions. Most recently, Tombs spearheaded the firm’s digital overhaul and enhanced broker services for the insurer’s SME division. Tombs also previously worked as a Director at Polaris, a software enterprise owned by the insurance industry aimed at enhancing digital trading. He also founded and managed the UK branch of Yarowa, an insurtech firm that assists insurers in digitalising their operations. (Kenneth Araullo, 26/3/2024, Insurance Business UK, 'AXA Commercial names new director for SME intermediary')

Things have become official for Tony Collman, who now holds the position of Property Director within the UK specialty lines division at RSA Insurance after serving in an interim capacity from December 2023. Replacing Neil Cryer, Collman will focus on the risk managed, real estate, and wholesale international side of the insurer’s property business. Collman’s three-decade insurance career began at Guardian Royal Exchange. The former Gresham Underwriting Chief Underwriting Officer has been with RSA since May 2018, initially taking on the role of Underwriting Leader for global property and real estate. (Terry Gangcuangco, 26/3/2024, Insurance Business UK, 'RSA picks permanent property director')

Saudi Reinsurance Company (Saudi Re), a reinsurer in Saudi Arabia, has announced the appointment of Ahmed Al-Jabr as its acting CEO. Al-Jabr has held various leadership roles in firms such as NCB Capital, Gulf International Bank, Al Jabr Holding, Asharqia Chamber, Ajzal Capital, and Fikrah. Al-Jabr currently holds the position of Deputy CEO and has more than 25 years of experience in the insurance and reinsurance sector. He held a host of executive roles ahead of joining Saudi Re in 2011, including as General Manager of Strategy Management in Tawuniya. (Abigail Adriatico, 25/3/2024, Insurance Business UK, 'Saudi Re announces the appointment of acting CEO')

Everen Specialty Ltd (Everen) announced the impending exit of its CEO. Bertil Olsson stated that he will be retiring in March 2025 and that Everen will be engaging in an extensive recruitment process in order to find someone who suited to taking his place. “While my retirement is still a year away, I would like to express what an honour and privilege it has been to lead this amazing organisation over the past 8.5 years,” said Olsson. The Everen Specialty board of directors has also appointed John Talarico as Chairman and Tim Bucci as Deputy Chairman. (Abigail Adriatico, 25/3/2024, Insurance Business UK, 'Everen Specialty Ltd reports CEO exit and financials')

Miller, a broker specialising in independent (re)insurance, has announced the addition of four key members to its onshore energy team, with Adam Barber-Murray appointed as the Team Leader. According to the company statement, Barber-Murray’s most recent position was at WTW, where, for over 10 years, he led the downstream natural resources broking. Prior to that, he served as an Onshore Energy Broker at Aon. Joining Barber-Murray at Miller are three seasoned professionals: Daniel Fraser, also coming from WTW, is joining as Deputy Head of Onshore, bringing over three decades of experience in developing and placing downstream oil and gas programs in London and International markets. He previously held significant positions at Aon, Gallagher, and London broker Alesco. Conor Boughey, who recently served as a Senior Associate in the natural resources team at Willis Towers Watson, is joining as a Broker/Account Executive. (Jonalyn Cueto, 25/3/2024, Insurance Business UK, 'Miller bolsters onshore energy team with key appointments')

AXIS Capital has promoted Kyle Freeman to the role of AXIS ILS (insurance-linked securities) Head. The newly appointed Head of ILS has been with the insurance group since 2021, initially serving as ILS Structuring Head for property. Aside from managing investor relationships, Freeman was also in charge of capital investments in property catastrophe sidecars, catastrophe bonds, joint ventures, and other ILS vehicles. Before his tenure at AXIS, he was Head of North America Programs Pricing at AXA XL. Freeman’s credentials include time spent at JPMorgan, AIR Worldwide, and USAA (United Services Automobile Association). A former Nuclear Engineer and Submarine Officer with the US Navy, Freeman served for seven years before joining the corporate world. (Terry Gangcuangco, 25/3/2024, Insurance Business UK, 'AXIS Capital appoints head of insurance-linked securities')