General Insurance Newsletter Friday 26th April 2024

Insurance News

WTW has published its earnings report for the first quarter of 2024. WTW’s HWC (health, wealth & career) segment saw a 4% increase in revenue in the first quarter, from US$1.29 billion to US$1.34 billion. The segment’s operating income grew 9% to US$336 million. Risk & broking, meanwhile, posted an 8% climb in revenue to US$978 million. Operating income from the segment was up 13% to US$203 million. For the full year, WTW expects to deliver at least US$9.9 billion in revenue. (Terry Gangcuangco, 26/4/2024, Insurance Business UK, 'WTW reports Q1 results')

Arthur J.Gallagher & Co. has published its financial results for the first quarter of 2024. Gallagher’s revenues before reimbursements in Q1 amounted to US$3.2 billion, an increase from last year’s US$2.7 billion. EBITDAC (net earnings before interest, income taxes, depreciation, amortisation, and the change in estimated acquisition earnout payables), meanwhile, grew from US$874.9 million to US$1.1 billion. (Terry Gangcuangco, 26/4/2024, Insurance Business UK, 'Gallagher releases earnings for Q1')

Allianz Partners, a major global insurance and assistance provider, has disclosed its financial outcomes for the year 2023, setting new records for revenue and operational profit. The company’s earnings report revealed total revenues of 9.3 billion euros and an operating profit of 301.2 million euros, marking a milestone as the firm’s most successful financial year. (Roxanne Libatique, 25/4/2024, Insurance Business UK, 'Allianz Partners achieves record 2023 financial results')

Ariel Re and Hiscox Re & ILS have announced the formation of CyberShock, a cyber catastrophe consortium. This new entity, touted as the first of its kind in the industry, aims to provide up to $50 million in per-program capacity to support cyber insurers globally. (Kenneth Araullo, 25/4/2024, Insurance Business UK, 'Ariel Re, Hiscox Re & ILS launch new cyber catastrophe consortium')

Active insurance provider Coalition has released its 2024 Cyber Claims Report, shedding light on key cyber threats and their implications for policyholders throughout 2023. Notably, the report revealed that over half (56%) of all cyber claims during the year stemmed from funds transfer fraud (FTF) or business email compromise (BEC), a result which Coalition explains underscores the importance of robust email security measures. Further findings from the report indicate heightened vulnerabilities associated with certain network security devices. Specifically, businesses utilizing internet-exposed Cisco ASA devices were nearly five times more likely to file a cyber claim in 2023. Similarly, those using Fortinet devices experienced a doubled likelihood of filing a claim. (Kenneth Araullo, 25/4/2024, Insurance Business UK, 'Coalition publishes 2024 cyber claims report')

Allianz's personal lines business has reported a 29% increase in fraud prevention in 2023 compared to the previous year. This spans across all types of insurance fraud from motor claims, home claims and application fraud, and the notable rise of ghost brokers and their tactics to lure innocent victims into a fake insurance policy. Unfortunately, a landscape of rapidly evolving fraud tactics is evident, with fraudsters regularly adapting their methods to pursue new scams, including a rise in moped crash for cash fraud and an increase in shallow fakes. Cases where apps were used to distort real-life images, videos and documents increased by 300% from 2022 and into 2023, and has all the signs of becoming the latest big scam to hit the insurance industry. As part of its fraud investment, the insurer is announcing a new partnership with voice analytics tool Clearspeed, to detect more fraud and help accelerate the processing of genuine customer claims. (Allianz, 25/4/2024, youTalk Insurance, 'Allianz prevents 29% more fraud and announces partnership with Clearspeed')

TT Club has developed a toolkit in collaboration with its members, partners, and service providers to help insureds address the intricate challenges posed by the formulation of environmental, social, and governance (ESG) policies. The toolkit offers guidance on approaches and solutions to issues such as the measurement, reduction, and reporting of emissions. Chief Executive Charles Fenton highlighted the importance of the toolkit, saying: “The rapid development of ESG principles presents a challenge to many members, particularly smaller operators." (Terry Gangcuangco, 24/4/2024, Insurance Business UK, 'TT Club launches ESG toolkit')

Latin Re has acquired licensing rights for RiskExplorer, an advanced risk management software developed by Ultimate Risk Solutions (URS). The move makes Latin Re the first broker in the Brazilian reinsurance market to utilize this technology, which offers modelling capabilities for risk analysis and reinsurance pricing. By integrating RiskExplorer, Latin Re said it wants to provide more precise and comprehensive risk assessments to its clients. (Mika Pangilinan, 24/4/2024, Insurance Business UK, 'Latin Re boosts risk management services with new software')

Ahead of the scheduled publication of its final Q1 2024 results on May 8, Munich Re has posted its preliminary results for the quarter, revealing a ‘strong start to the year’. The reinsurance giant saw a preliminary net profit of approximately €2.1 billion in the quarter, significantly surpassing analysts’ expectations of €1.476 billion. Munich Re also noted that the operational performance of all lines of business surpassed expectations. Munich Re’s ERGO’s net result stood at approximately €0.3 billion. Meanwhile, the reinsurer achieved a high investment result, yielding an ROI of approximately 3.8%, and a positive currency result – which it highlighted was underscored by a favourable capital market environment. (Mia Wallace, 23/4/2024, Insurance Business UK, 'Munich Re reveals first-quarter financial results')

MS Amlin has formed a partnership with catastrophe risk modelling firm Moody’s RMS to enhance its exposure management and modelling capabilities. A news release from the global re/insurer said the partnership intends to aid with integrating and upgrading analytical functions within its underwriting division. Recently, MS Amlin transferred its exposure management team into the underwriting division in order to streamline decision-making processes and bolster alignment across departments. The firm will be adopting several advanced applications from Moody’s RMS as part of this move. (Mika Pangilinan, 23/4/2024, Insurance Business UK, 'MS Amlin partners with Moody's RMS')

Property and specialty re/insurer IQUW has announced the launch of FortiFI, a new insurance solution tailored specifically for US financial institutions. The new offering integrates cyber coverage with IQUW’s established financial institutions (FI) suite, which already includes errors and omissions, directors and officers, employment practices liability, fiduciary, and crime insurance. (Mika Pangilinan, 23/4/2024, Insurance Business UK, 'IQUW launches combined FI and cyber solution')

Maksure Risk Solutions has been granted full Lloyd’s registered broker status, becoming the only African originating firm to achieve this designation within the renowned insurance market. Operating from its various bases across Africa, Asia, East and Western Europe, South America, and the Caribbean, Maksure is now poised to leverage its new status to enhance its service offerings. This includes access to a diverse pool of underwriting expertise and capacity in the Lloyd's global marketplace. Managing Director Simba Makwembere said the approval from Lloyd’s reflects the firm’s “strong corporate governance, exceptional technical and leadership skills that can compete at a global scale.” (Mika Pangilinan, 23/4/2024, Insurance Business UK, 'Maksure Risk Solutions receives approval as Lloyd's registered broker')

Polaris has announced that Bravo Digital Trader is now the fifth broker system to integrate with imarket, expanding product access for major insurers such as RSA and Zurich through its network members. Simon Bloomfield, Polaris’ Head of imarket, commented on the addition of Bravo Digital Trader and said it is part of the platform’s long-standing goal to facilitate more effective trade between insurers and brokers. (Mika Pangilinan, 23/4/2024, Insurance Business UK, 'Polaris adds fifth broker system to imarket')

Swiss Re has introduced an enhanced version of its Life & Health underwriting manual, Life Guide, now featuring the Swiss Re Life Guide Scout, a Generative AI-powered underwriting tool. The AI assistant leverages the Microsoft Azure OpenAI Service and is designed to streamline the underwriting process by providing AI-generated answers to queries, enabling underwriters to access expert knowledge efficiently. (Kenneth Araullo, 22/4/2024, Insurance Business UK, 'Swiss Re launches GenAI underwriting assistant')

Mergers & Acquisitions

Jensten has acquired Robert Gerrard & Co, as part of a move to expand its schemes and affinities business. Robert Gerrard & Co is a Chingford area broker specialising in the lift and escalator industry. The firm has carved a niche with its Lift Plan product, offering bespoke policies designed to cater to the unique requirements of the sector. The acquisition by Jensten will introduce a team of 19 professionals to the business. It will also include the Robert Gerrard office located in Chingford. (Mika Pangilinan, 24/4/2024, Insurance Business UK, 'Jensten grows schemes and affinities business with new acquisition')

Belfast firm, WF Risk Group, (The Group), has confirmed continued growth in the Republic of Ireland marketplace with the acquisition of Compass Insurance Brokers (Compass). WF Risk Group has experienced significant growth in recent years, most recently in the Republic of Ireland with the expansion of Kennett Ireland and it’s new Director appointments. This latest strategic move marks another significant milestone in the Group’s journey towards expanding its market presence and enhancing its portfolio of services. Compass is a Dublin based insurance brokerage, that prides itself on client centric values and is led by John Mollohan. With over 25 years’ experience within the insurance broking industry, John has specialist expertise in a wide variety of sectors including property, hospitality and leisure and professional indemnity. (WF Risk, 23/4/2024, youTalk Insurance, 'WF Risk Group buys Dublin based broker')

MNK Group, through its holding entity Specialty Management UK, has finalised its acquisition of Oceánica de Seguros SA, a Costa Rican-based insurer. Established in 2013, Oceánica de Seguros has over a decade of operational history in the local market. The company is now part of MNK Group's growing portfolio, which includes entities like MNK Re, a Lloyd’s Broker, and Specialty MGA UK, a managing general agent specializing in specialty lines and complex risk solutions. Overall, the company notes that this strategic move is aimed at bolstering MNK Group's presence and operational scope in Central America and the broader Latin American (LatAm) region. The acquisition has received approval from the Superintendencia General de Seguros (SUGESE), the insurance regulatory body in Costa Rica. (Kenneth Araullo, 22/4/2024, Insurance Business UK, 'MNK Group completes acquisition in Costa Rica')

Movers

Allianz UK has appointed a new Managing Director for LV= Broker ahead of the upcoming rebrand of the personal lines broker business. Taking over from Mike Crane with immediate effect is Nicola George, who joined LV= Broker in 2022 as Portfolio Pricing Director. Her credentials include 11 years spent at Aviva General Insurance. (Terry Gangcuangco, 26/4/2024, Insurance Business UK, 'Allianz UK names new MD for LV= Broker ahead of rebrand')

Kingfisher Insurance, a specialist insurance broker, has unveiled Kingfisher Risk Solutions, a new consultancy arm dedicated to tailor-made workplace safety services. Gemma Horton, who holds an MSc in Health and Safety Risk Management and has more than 18 years of experience in supporting high-risk sectors, will head Kingfisher Risk Solutions. (Terry Gangcuangco, 26/4/2024, Insurance Business UK, 'Kingfisher Insurance rolls out new consultancy service')

Howden Re International has announced the appointment of Alexander Roth as Managing Director, Head of Capital and Operational Solutions Europe, effective May 1. Based in Germany, Roth brings a wealth of experience from his recent role as Global Head of M&A and CEO, Europe at DARAG Group, where he led European operations and managed global transaction activities. His prior experience also includes financial consultancy and M&A advisory positions at E&Y, Duff & Phelps, and Rasenberger Toschek Advisors. (Kenneth Araullo, 25/4/2024, Insurance Business UK, 'Howden Re names new head of capital and operational solutions in Europe')

Lockton has announced two key senior promotions within its Crisis Management team. Helen Sandford has been appointed as Head of Special Crime and Freddie Schlesinger has been appointed as Head of Product Recall and Reputational Risk, effective 1st May 2024. Helen was previously Assistant Vice President at Lockton, serving as Special Crime Lead for the Lockton Crisis Management team. Freddie Schlesinger joined Lockton in 2019, serving as Vice President and has extensive experience and a proven track record in product recall, and a demonstrable commitment to client excellence. (Lockton, 25/4/2024, youTalk Insurance, 'Lockton announces senior promotions in Crisis Management team')

Aviva is preparing to launch two new regional trading offices in Chelmsford and Southampton in a bid to enhance its regional network to better connect with brokers and customers. The management of these new branches will be overseen by a dedicated local team. Alison Coleman will serve as Branch Manager for the South-East, while Peter Jukes will take on the role of Regional Broker Development Manager. In addition, they will be supported by James Preston, Client Relationship Manager, and Vanessa Millar and Kim Owen, who will manage claims services. (Kenneth Araullo, 25/4/2024, Insurance Business UK, 'Aviva builds foothold in Chelmsford and Southampton')

AI in insurance specialist Cytora has further expanded its global advisory board by appointing James Platt, a commercial insurance expert. Platt brings a wealth of experience to Cytora, having formerly held pivotal roles at Aon, including Group Chief Operating Officer and Chief Digital Officer. His tenure at Aon was marked by digital advancements, following his initial role as CEO of data analytics. Before joining Aon, Platt was instrumental in leading the big data and advanced analytics practice at BCG and later spearheaded Aon's group-wide digitization efforts. More recently, Platt co-founded Trimstone Partners, a consultancy specializing in strategic transformation within the financial services sector. (Kenneth Araullo, 25/4/2024, Insurance Business UK, 'Cytora further expands advisory board with ex-Aon executive')

Reinsurance technology firm Supercede has named Tom Spier as its Chief Commercial Officer. Spier was previously Head of Commercial and has contributed to steering the company through a period of rapid growth, according to an emailed news release. (Mika Pangilinan, 24/4/2024, Insurance Business UK, 'Supercede names chief commercial officer')

Davies has announced the appointment of Pino Vallejo as the new CEO of its multi-sector global consulting division – previously known as Sionic. In a Press release, the specialist professional services and technology business noted that Vallejo brings over three decades of financial services leadership experience to the role. For the last eight years, he has served with Davies’ banking and markets team and oversaw the opening of the firm’s first office in Madrid, Spain. (Mia Wallace, 24/4/2024, Insurance Business UK, 'Davies names new CEO for key division')

AXA has announced some changes to its board of directors following its annual shareholders’ meeting. Key outcomes from the meeting include the renewal of Antoine Gosset-Grainville’s mandate as a Director for another four-year term. Following this renewal, Gosset-Grainville was reappointed as Chairman of the board for the duration of his new term. Clotilde Delbos and Isabel Hudson were similarly renewed as Directors for four years. Angelien Kemna and Marie-France Tschudin also had their directorships extended, each for a term of three years. Additionally, Helen Browne was appointed as Director upon the proposal of AXA Group’s employee shareholders. She is set to join the board for a four-year term. (Mika Pangilinan, 24/4/2024, Insurance Business UK, 'AXA announces board changes, dividend distribution')

Specialist insurance provider CFC has expanded its transaction liability practice by forming a new team tasked to underwrite warranty and indemnity insurance specifically for the renewable energy sector. Leading the new unit is Simon Wood, who transitioned to CFC more than a year ago from an international law firm. The line-up also includes Aline Brayner, who has extensive experience in providing strategic counsel for large and complex energy projects in the renewable energy technology space. (Terry Gangcuangco, 24/4/2024, Insurance Business UK, 'CFC widens transaction liability practice with new specialist team')

The Fidelis Partnership announced this week the appointment of Douglas Somerville as its new Head of Capacity and Ceded Reinsurance. Somerville has been described as a seasoned professional with 14 years in the reinsurance industry. He transitions to the Bermudian-based company from his recent role at Howden Re. There, he held the position of Head of Casualty Facultative, focusing on tailored reinsurance solutions for complex risks. Before his tenure at Howden Re, Somerville spent more than seven years at Guy Carpenter, where he served as Vice President for international casualty and specialty. His experience and leadership in various senior roles enhanced his qualifications for his new responsibilities at The Fidelis Partnership, it was stated. (Jonalyn Cueto, 23/4/2024, Insurance Business UK, 'The Fidelis Partnership welcomes new ceded reinsurance head')

Arch Insurance International (Arch) has confirmed the promotion of Kirsten Valder to the position of Deputy CEO, effective immediately. Having been a key member of Arch’s senior leadership team for the past decade, Valder previously held the title of Chief Administrative Officer, overseeing claims, legal, human resources, and compliance. Her tenure at Arch began after her stint as a Partner at Kennedys Law LLP. (Roxanne Libatique, 23/4/2024, Insurance Business UK, 'Arch Insurance International names deputy CEO')

David McElroy, Chair of general insurance at American International Group (AIG), is retiring on May 1. “Mr McElroy has agreed with AIG to accelerate his retirement date for personal reasons and will remain available to the company,” AIG noted without elaborating. The departing leader took on the chairmanship, a new role, in January. He previously served as General Insurance Chief Executive from August 2020 until the end of last year. When McElroy came on board in 2018, he initially held the President and CEO positions at Lexington Insurance Company. Prior to becoming a member of the AIG executive leadership team in 2020, McElroy served as President and CEO of North America general insurance. (Terry Gangcuangco, 23/4/2024, Insurance Business UK, 'AIG chair of general insurance retiring')

Ansvar Insurance has appointed David Eccles as Head of Distribution. Before making the switch to Ansvar, Eccles accumulated diverse experience in the areas of charity, SME, and pet insurance, besides his stint at an insurtech. Spanning more than two decades, the distribution expert’s credentials include roles at Zurich Municipal, Expression Insurance, and Markerstudy Insurance. (Terry Gangcuangco, 23/4/2024, Insurance Business UK, 'Ansvar Insurance brings in distribution head')

Nexus Underwriting has appointed Steve Willett as Development Head. Willett’s credentials as a Senior Underwriter include a decade spent at Antares and five years with CNA. He was also connected with specialty brokers like SBJ, Willis, and Glencairn. (Terry Gangcuangco, 23/4/2024, Insurance Business UK, 'Nexus Underwriting appoints development head')

Rebecca Shelley is now Sabre Insurance Group’s Chair. In a filing with the London Stock Exchange, the motor insurer said: “Shelley, who joined the board as a Non-Executive Director in December 2017, has been appointed as Chair of the company." Shelley’s credentials include time spent in senior executive positions at Norwich Union, Prudential Plc, Tesco, and TP ICAP. Aside from her current role at Sabre, she is also the Senior Independent Director at Liontrust Asset Management and Conduit Holdings. Additionally, Shelley chairs the remuneration and sustainability committees at Hilton Food Group. (Terry Gangcuangco, 22/4/2024, Insurance Business UK, 'Sabre Insurance Group confirms chair')