General Insurance Newsletter Friday 14th June 2024

Insurance News

The British Insurance Brokers’ Association (BIBA) has extended its professional indemnity (PI) accredited broker agreement with Griffiths & Armour for another three years. Griffiths & Armour, which has been a BIBA accredited provider since 2013, boasts over nine decades of experience in delivering coverage to various professions. Matt MacLaren, Professional Risks Director at Griffiths & Armour, expressed his enthusiasm about the renewal, noting: “We are delighted to continue to offer support and cover to BIBA members as an accredited PI provider. Our exclusive BIBA PI scheme was founded more than 10 years ago based on core principles of market-leading cover alongside a secure long-term approach." (Terry Gangcuangco, 13/6/2024, Insurance Business UK, 'BIBA extends professional indemnity tie-up with Griffiths & Armour')

Allianz Engineering Inspection Services (AEIS) has revealed its ambitious growth plans to become the biggest engineer surveyor team in the UK and offer market-leading inspection services aiming to grow their engineering workforce to over 800 in the next four years. AEIS is dedicated to providing leading inspection services with a strong emphasis on customer safety and compliance, and their commitment to customer satisfaction has been acknowledged through their position as a loyalty leader. (Allianz, 13/6/2024, youTalk Insurance, 'Allianz unveils ambitious growth plans in engineering inspection business')

The first Prestige Underwriting Non-Standard Survey reveals that over three-quarters (79%) of brokers have experienced an increase in non-standard insurance enquiries over the past year, with an equal percentage also expecting continued growth in the non-standard market in the year ahead. The anticipated growth is primarily attributed to an expected rise in the number of customers entering the non-standard market, as highlighted by 79% of brokers. In contrast, only 13% believe that growth will be driven solely by an increase in premium rates. Focusing on specific sectors, more than half (55%) of brokers identify the greatest growth potential in insurance to come from unoccupied homes and homes at risk of flooding over the next few years. Additionally, 26% predict significant increase in the market for homes at risk of subsidence. (Prestige Underwriting, 13/6/2024, youTalk Insurance, 'Prestige Underwriting finds that brokers expect growth in non-standard market in the year ahead')

Aon has announced a $350 million insurance program with the US International Development Finance Corporation (DFC) to bolster insurance capacity and accelerate capital investment and economic recovery in Ukraine. The global broker coordinated a $50 million reinsurance facility, collaborating closely with DFC and the Ukraine Ministry for Development of Economy and Trade. This initiative aims to support the issuance of war risk policies for businesses operating in Ukraine. Additionally, Aon and DFC developed $300 million in war risk insurance specifically for Ukraine's health care and agriculture sectors. (Kenneth Araullo, 12/6/2024, Insurance Business UK, 'Aon charges ahead where many others fear to tread')

The latest Consumer Intelligence Home Insurance Price Index has revealed that the average quoted price of home insurance surged by 41.6% over the 12 months to April. This marks the steepest annual rise since Consumer Intelligence began monitoring quoted premiums in 2014. According to Consumer Intelligence, the trend shows no signs of slowing, as quoted premiums for buildings and contents insurance jumped by 10.3% in the last three months as well – the highest quarterly increase in a decade. (Terry Gangcuangco, 12/6/2024, Insurance Business UK, 'UK home insurance premiums break records')

Specialist insurance provider CFC has announced its second insurance solution for buyers of voluntary carbon credits. The new Carbon Cancellation Insurance from CFC protects purchased carbon credits from financial and management risks in case of cancellation or invalidation due to political risks, such as regulatory changes and weather events affecting carbon projects. Additionally, the insurance covers buyers against revocation of Article 6 transfer eligibility and loss of eligibility under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). (Kenneth Araullo, 11/6/2024, Insurance Business UK, 'CFC launches carbon cancellation insurance solution')

Specialist managing general agent (MGA) HB Underwriting has expanded its digital offerings with the launch of a new health and social care product and an innovative quote and buy portal. This service, the MGA says, is designed for individuals who need insurance when employing a personal assistant or carer to support their social or healthcare needs. Employer Protect is tailored for those using Local Authority Direct Payments or NHS Personal Health Budgets to hire personal assistants. As employers, they are legally required to have Employers’ Liability Insurance. (Kenneth Araullo, 11/6/2024, Insurance Business UK, 'HB Underwriting launches new personal assistant product')

American International Group (AIG) has fulfilled the criteria necessary for the deconsolidation of Corebridge Financial for accounting purposes following AIG’s decision to relinquish its right to a majority representation on the Corebridge board and the resignation of AIG Executive Vice President and Global Chief Underwriting officer Chris Schaper from the same board. Peter Zaffino, Chairman and Chief Executive of AIG, stated: “[The] announcement about AIG’s deconsolidation of Corebridge Financial is a major achievement, which reflects the culmination of a series of well-planned and deliberate strategic decisions which will position AIG for the future as a leading global property and casualty insurer." (Terry Gangcuangco, 11/6/2024, Insurance Business UK, 'AIG completes deconsolidation')

Devonshire Underwriting, based in London, has expanded into Europe with approval from Lloyd’s. Launched in the UK in April, the transactional risk managing general agent now serves the Nordics, Germany, France, Spain, Benelux, Poland, Italy, and Central and Eastern Europe. Founded by Natasha Attray, James Dodd, James Fletcher, and Charles Turnham, Devonshire specializes in warranty & indemnity, tax, and contingency insurance. With a combined 30 years of underwriting experience and 15 years in law and tax, the MGA focuses on sectors like infrastructure, technology, logistics, healthcare, and financial services for large transactions. Devonshire expects numerous significant deals this year and is actively engaging in preliminary discussions. (Terry Gangcuangco, 11/6/2024, Insurance Business UK, 'Devonshire Underwriting secures green light for European expansion')

Brokerbility has announced that Cairn Corporate has joined its network of independent brokers, in addition to becoming an appointed representative of the Gauntlet Group. Cairn Corporate, based in Kirkcaldy, Scotland, will now have access to Brokerbility’s insurer relationships and services, aiding its growth and expansion plans. Additionally, Cairn Corporate is set to utilise Gauntlet’s range of FCA-compliant broking and back office services, allowing it to focus on client-facing services, advice, and guidance. (Kenneth Araullo, 10/6/2024, Insurance Business UK, 'Brokerbility Network welcomes newest member Cairn Corporate')

Mergers & Acquisitions

Jensten has announced the acquisition of Chris Knott Insurance Consultants, pending regulatory approval. The acquisition will bring a team of 19 professionals and an office in Hastings to Jensten, along with an additional £6.1 million in gross written premium (GWP). Chris Knott Insurance Consultants, known for its niche motor scheme focusing on classic cars and owners club vehicles, also provides tailored solutions for small charities, allotments, canine-related activities, and photographers. This acquisition is part of Jensten's strategic regional expansion across the UK, enhancing its presence in the London and South East regions. (Kenneth Araullo, 13/6/2024, Insurance Business UK, 'Jensten expands in London and South East with major acquisition')

The Clear Group has announced its acquisition of the book and assets of Rycroft Associates LLP, which includes Inspire Credit Management Limited. The transaction, financial terms of which were not disclosed, enhances Clear’s commercial offerings amid insolvencies in the UK reaching a 30-year high. Rycroft, located in Lichfield, assists businesses across the UK and Europe in securing competitive trade credit insurance products. Citing Association of British Insurers (ABI) data, Clear highlighted the importance of cover against bad debts and invoice credit risks. (Terry Gangcuangco, 12/6/2024, Insurance Business UK, 'The Clear Group swoops for trade credit insurance business')

Oxbridge Re Holdings’ board of directors is evaluating a range of strategic options, including a potential sale, spinoff, merger, divestiture, or recapitalization, according to a company statement. As per a statement, the board is reviewing alternatives to maximize shareholder value and will consider options for both the company and its subsidiary, SurancePlus Holdings Ltd. Oxbridge Re's board has not set a specific timeline for the review. “The company cannot assure that its evaluation will result in the company and/or its subsidiaries pursuing a transaction or that any transaction, if pursued, will be completed on attractive terms,” Oxbridge Re said in its statement. (Kenneth Araullo, 11/6/2024, Insurance Business UK, 'Oxbridge Re board evaluating potential sale, merger options')

JMG Group has acquired specialist scheme broker Gleaming Insurance and motor trade insurance broker Executive Insurance Services for an undisclosed sum. Known for its expertise in providing specialised Hiscox-underwritten insurance policies for cleaning professionals, Gleaming Insurance will continue to trade using its existing branding while now under the JMG Group umbrella. Managing Director Martin Holden, who launched the business in 2011, will remain at the helm with the support of Gleaming Insurance’s new owner. Holden’s insurance career started in 1989, with him working at a large national insurance company as an underwriter before he transitioned to the broking side. (Terry Gangcuangco, 11/6/2024, Insurance Business UK, 'JMG Group announces double deal')

Brown & Brown (Europe) Ltd has acquired 100% of the equity capital of T Oscar Rollins & Company Ltd, known as Rollins Insurance Brokers. Rollins, founded in 1945 by T Oscar Rollins, has operated as a family-owned business in Holywood, Northern Ireland. The company provides commercial and personal lines insurance, with a focus on insurance for social clubs, golf clubs, and other sports associations. Following regulatory approval, Rollins will be integrated into Brown & Brown’s Northern Ireland business, ABL Group. The existing Rollins team, including Managing Director Dermot Rollins, will remain and continue to develop the business, reporting to ABL Group CEO Maurice Boyd. (Kenneth Araullo, 10/6/2024, Insurance Business UK, 'Brown & Brown swoops for Rollins Insurance')

Independent insurance brokerage and risk management firm TL Dallas is snapping up Marsh Commercial’s operations in the Highlands and Islands of Scotland. The transaction, financial terms of which were not disclosed, is anticipated to be completed in August. A fourth-generation family business, TL Dallas is owned by its staff and leadership team. With over a century in operation, it stands among the UK’s largest independent insurance brokers. The firm trades nationwide, from Shetland to London, with a workforce of more than 165 people. TL Dallas offers an extensive array of commercial and personal insurance services spanning corporate, SME, trade credit, demolition, agriculture, health, collectables, and private clients. (Terry Gangcuangco, 10/6/2024, Insurance Business UK, 'TL Dallas swoops for Highlands and Islands business from Marsh Commercial')

Movers

Andrzej Klesyk and Vincent Vandendael have joined the supervisory board of MJM Holdings SA, a re/insurance brokerage based in Poland. Klesyk will serve as the Chairman of the supervisory board. His background includes roles such as Managing Partner at Cornerstone Investment Management and CEO of PZU from 2007 to 2015. He has also been involved with the Ministry of Ownership Transformations and co-founded Handlobank and Bank Inteligo. His earlier career includes positions at McKinsey & Company in London and Boston Consulting Group. Vandendael, the other new board member, brings international experience to the table. He recently served as CEO of Everest Global Markets and its Lloyd’s Syndicate 2786 and chaired the Ireland board. His previous roles include Global Chief Commercial Officer for Lloyd’s of London and Chief Executive of Lloyd’s Europe in Brussels, along with nearly two decades at Zurich Financial Services. (Kenneth Araullo, 13/6/2024, Insurance Business UK, 'MJM Holdings tap two new members for supervisory board')

The Chartered Insurance Institute (CII) has appointed Dr. Desmond Bermingham and Jon Graham to its board, effective June 3, 2024. Dr. Bermingham will chair the Education & Learning Committee (ELC) and also chairs the Independent Technical Advisory Panel for the Global Partnership for Education at the World Bank. Jon Graham will chair the Audit & Risk Committee (ARC) and has a background in chartered accountancy and professional training, with leadership roles in various organizations. (Kenneth Araullo, 13/6/2024, Insurance Business UK, 'CII board appoints two new members')

International managing general agent DUAL Group has brought in its first-ever head of emerging products. Taking on the newly created London-based role in September is Scott Sayce. With over two decades of experience in specialist lines insurance, Sayce has held various global leadership positions. His previous posts include Group Head of Financial Lines and Cyber at AXA; Head of Cyber, Technology, and Life Science at CNA Hardy; and, latterly, Global Cyber Head at Allianz Commercial. (Terry Gangcuangco, 13/6/2024, Insurance Business UK, 'DUAL Group creates new leadership role')

London-based digital risk exchange InsurX has welcomed Canopius Founder and former Council of Lloyd’s member Michael Watson as Non-Executive Chairman. Watson, who will be succeeded by Andy Haste as Canopius Chair in July, brings significant governance experience to his new role as InsurX advances its technology and widens the company’s workforce to meet growing client demand. As part of its growth plans, InsurX is also expanding into new business classes. (Terry Gangcuangco, 13/6/2024, Insurance Business UK, 'Canopius founder becomes InsurX chair')

Hamilton Insurance DAC, a subsidiary of Hamilton Insurance Group in Ireland, has announced the appointments of Ross Reynolds as Chief Executive and Matthew Saunders as interim Chief Underwriting Officer. Reynolds joined the Bermuda-headquartered specialty insurance and reinsurance company in 2014, following the group’s acquisition of Ironshore Europe DAC in 2019. His most recent role at Hamilton was as Global Head of Operations, preceded by his position as Global Head of Financial Planning and Analysis. The promoted leader began his career with Irish Progressive Services International and later moved to Zurich Insurance Company. (Terry Gangcuangco, 13/6/2024, Insurance Business UK, 'Hamilton Insurance DAC names new CEO')

Euclid Program Managers has announced the launch of Euclid Mortgage, a managing general underwriter (MGU) focused on underwriting mortgage credit risk for insurers and reinsurers. The new offering aims to address a market need by providing scalable access to the profitable and diverse mortgage reinsurance market. Leading the initiative are Joe Monaghan and Joe Hissong, two experienced figures in the mortgage reinsurance industry. Monaghan will serve as the Managing Principal and CEO of Euclid Mortgage, following his contributions to the post-GFC mortgage reinsurance market at Aon. Hissong, on the other hand, will join as Chief Operating Officer, bringing experience from Essent Group, Ltd, where he helped establish its MGA and Bermuda reinsurer. (Kenneth Araullo, 12/6/2024, Insurance Business UK, 'Euclid establishes MGU for mortgage re/insurance market')

International re/insurance group Aventum has announced the appointment of Jeff Uden as its new Head of Learning & Development. Uden brings over 23 years of HR experience to Aventum. He joins from MS Amlin, where he served as Senior Talent & Development Manager. Prior to that, he was Head of Talent at Iceland and held strategic HR roles at Morrisons and Argos. (Kenneth Araullo, 12/6/2024, Insurance Business UK, 'Aventum names new group head of learning & development')

Reinsurance brokerage Lockton Re has announced the upcoming addition of Andy Wakefield as a Senior Broker in its marine & energy division. Wakefield, who will be based in London, is set to join later this year. With more than three decades of experience as a marine and energy reinsurance broker, Wakefield currently works at Aon Reinsurance, where he serves on the marine executive committee and leads new business production. His career began at Tysers, followed by tenures at Benfield (later Aon Benfield) and Willis Re. (Kenneth Araullo, 11/6/2024, Insurance Business UK, 'Lockton Re bolsters marine & energy division with key hire')

Marsh McLennan reinsurance specialist Guy Carpenter has announced the creation of the Capital & Advisory group within its Global Capital Solutions unit. The firm also appointed Alexander Schnieders as Global Head of Capital & Advisory. Schnieders joins Guy Carpenter from Teneo Holdings, where he led the Financial Institutions Group and co-headed M&A. In his previous role, he managed Teneo’s US insurance practice, overseeing strategy, business planning, deal sourcing, and executing capital raising and M&A transactions. (Kenneth Araullo, 11/6/2024, Insurance Business UK, 'Guy Carpenter launches capital & advisory group')

Argenta Holdings Limited has announced the appointment of Niranjan Nathan as Group Chief Risk Officer, pending regulatory approval. Nathan will take over the role from Carol-Ann Burton, who will continue as Group General Counsel and Compliance Director. He will also join the board of ASML. Nathan brings over 20 years of experience in the global insurance industry, with expertise in risk, pricing, reserving, risk capital, strategy development, and transformation. He joins Argenta from EY, where he was a Partner and the UK Non-Life Actuarial Practice Leader. Prior to EY, Nathan spent more than a decade at Swiss Re, where his roles included Head of Actuarial Pricing UK, Director Group Corporate Strategy and Development, and Chief Risk Officer of Swiss Re Corporate Solutions. (Kenneth Araullo, 11/6/2024, Insurance Business UK, 'Argenta names new group chief risk officer')

The Geneva Association has announced that Lee Yuan Siong, Group Chief Executive and President of AIA, was appointed Chairman of the organization, succeeding outgoing Chairman Christian Mumenthaler, CEO of Swiss Re. Lee has been Vice Chairman of The Geneva Association since November 2021. Three members were also elected to the Association's board of directors at the 2024 general assembly: Satoru Komiya, CEO of Tokio Marine; Pauline Leclerc-Glorieux, CEO of BNP Paribas Cardif; and Bianca Tetteroo, CEO and Chair of the executive board of Achmea. (Kenneth Araullo, 10/6/2024, Insurance Business UK, 'AIA chief executive succeeds Swiss Re CEO as chairman of The Geneva Association')

Lockton Re has announced that James Mackay has joined the company as Head of Lloyd’s Capital, based in London. Mackay joins Lockton Re from Aon, where he served as Head of Lloyd’s Relationships and Executive Director of Aon Securities. With over 30 years of market experience, Mackay began his career at Argenta Private Capital and later moved to Argenta Holdings as Business Development Director. (Kenneth Araullo, 10/6/2024, Insurance Business UK, 'Lockton Re bolsters capital division with key appointment for Lloyd's')

Independent specialist re/insurance broker Miller has announced its expansion into the Japanese market, extending its specialty offerings into non-marine insurance lines through its Japanese business, Lead Insurance Services Limited (Lead). Tokinori Kono will join as Head of Non-Marine Broking, enhancing Miller’s product capabilities in Japan. Kono previously served as General Manager at I&T Risk Solutions (now Comos Risk Solutions) for seven years and spent four years at Aon. His career began at Tokio Marine, and he has experience in establishing an international trade business that monitored and managed risk. (Kenneth Araullo, 10/6/2024, Insurance Business UK, 'Miller expands in Japan with key hire')

AUB Group Limited (AUB) has agreed to acquire a 40% equity stake in Momentum Broker Solutions (Momentum), a prominent authorised representative (AR) network in the UK. This transaction is pending regulatory approval and signifies a strategic expansion for AUB in the UK market. AUB aims to use its extensive experience in managing delegated authority and AR networks in Australia and New Zealand to benefit Momentum’s partners and clients. This investment will enable Momentum to maintain its independence while accessing AUB’s expertise to drive further growth. (Roxanne Libatique, 10/6/2024, Insurance Business UK, 'AUB Group buys 40% stake in Momentum Broker Solutions')

Helios Underwriting, an investment firm that provides direct access to a varied portfolio at Lloyd’s, has announced Michael Wade’s immediate transition from Non-Executive Chairman to Executive Chair. The move comes in response to Martin Reith’s departure from his position as Chief Executive to pursue other opportunities. The search for Reith’s successor is now also underway. Additionally, Nigel Hanbury, who is currently the Executive Deputy Chairman at Helios, will assume the role of Non-Executive Deputy Chair. (Terry Gangcuangco, 10/6/2024, Insurance Business UK, 'Michael Wade becomes Helios executive chair')