General Insurance Newsletter Friday 26th July 2024

Insurance News

Global insurance brokerage Gallagher has published its financial results for the second quarter of 2024 – a period described by Chair and Chief Executive J. Patrick Gallagher, Jr. as excellent. Commenting on the numbers, the CEO said: “We had an excellent second quarter. Our core brokerage and risk management segments combined to post 14% reported revenue growth and 7.7% organic revenue growth. Our net earnings margin improved by 35 basis points to 13.9%, and we improved our adjusted EBITDAC margin by more than 100 basis points to 31.4%." (Terry Gangcuangco, 26/7/2024, Insurance Business UK, 'Gallagher announces "excellent second quarter")

Last week, the insurance sector experienced a significant upheaval due to a global IT crisis. Experts from Consumer Intelligence are now advising policyholders to reassess their recent home and motor insurance quotes. This industry-wide alert follows a defective update issued on July 19th by cybersecurity company CrowdStrike, which adversely affected approximately 8.5 million devices globally. The glitch caused considerable disruptions within the general insurance market, most notably in pricing structures. According to the latest data from Consumer Intelligence, on the day of the incident, prices surged for 17 home insurance brands. Particularly alarming was the four brands which recorded average increases ranging from 32% to a 65% for annual premiums. In one extreme instance, the annual premium for a policy rose by £439. The disappearance of some key underwriters from the market was a significant factor contributing to these sharp price increases. (Althea Javellana, 25/7/2024, Insurance Business UK, 'Insurance customers 'should check quotes' after IT disruption')

The Connect Group has announced the launch of Stability Re, a specialty reinsurer. According to the insurance group, Stability Re will provide binder capacity to Stability Risk and underwrite specialty and casualty lines, including directors and officers (D&O) liability, public and product liability, professional indemnity (PI), contingency, and cyber. Jamil Elbahou, Connect Group CEO and CUO, stated that the launch of Stability Re will provide additional capacity to Stability Risk and potentially other partner MGAs, complementing existing capacities within the Lloyd’s and London Market. (Kenneth Araullo, 24/7/2024, Insurance Business UK, 'Stability Re launched by The Connect Group')

According to the Global Insurance Market Index released by Marsh, the world’s leading insurance broker and risk advisor, global commercial insurance rates were flat in the second quarter of 2024, down from a 1% increase in the first quarter of 2024. This marks the first time since the third quarter of 2017 that the global composite rate has not increased. The moderation of rates is largely due to increasing competition among insurers in the global property market. Average rates decreased by 5% in Canada and the Pacific and by 3% in the UK and Asia regions. Rates increased by 1% in the US and Europe, and by 4% in Latin America, the Caribbean, and the India, Middle East, and Africa (IMEA) regions. (Kenneth Araullo, 24/7/2024, Insurance Business UK, 'Commercial insurance rates surge hits the brakes - Marsh')

Specialist MGA services platform OneAdvent has announced a new partnership between one of its MGAs and the hybrid fronting insurer Bridgehaven Specialty UK Ltd. The deal will see Bridgehaven provide A-rated capacity to underwrite waste management and recycling risks. This collaboration is the first of its kind for OneAdvent's platform MGAs. Fronting has been a feature of the US MGA market for many years and has recently influenced UK and EU MGA capacity decision-making over the past 18 months. The merits of fronting insurers versus traditional capacity were a topic of discussion at the recent MGAA conference, where Bridgehaven CEO Paul Jewell and AXA CUO David Ovenden participated in a panel discussion. (Kenneth Araullo, 24/7/2024, Insurance Business UK, 'OneAdvent MGA partners with Bridgehaven for capacity deal')

Reports of an increase in fraudulent motor insurance deals sold by ghost brokers on social media platforms rose by 6% last year, with further increases expected due to ongoing financial strain, according to the Insurance Fraud Bureau (IFB). Exclusive findings from YouGov indicate that one in five 18-24 year-olds now use social media to search for car insurance deals, making these platforms prime targets for ghost brokers. The IFB's new insights reveal that TikTok and Snapchat are among the most popular sites for these fraudulent activities. The General Insurance Fraud Committee (GIFC) has launched a campaign in partnership with insurers and police to raise public awareness about these deceptive deals. The IFB can uncover up to 50,000 fraudulent motor insurance policies annually, many linked to ghost broking. (Kenneth Araullo, 24/7/2024, Insurance Business UK, 'Ghost broking activity continues to rise in the UK')

London-based insurtech Wrisk has reported a profitable first half of 2024, revealing significant growth figures. Wrisk’s annualised gross written premium exceeded £60 million, with H1 revenue growing by 219% year-over-year and a tripling of annualised revenue run rate growth compared to the previous year. As an independent embedded insurance technology platform focused on the automotive OEM sector, Wrisk currently manages over 73,000 monthly premiums for its retained client base, supported by insurer partners including Allianz. (Kenneth Araullo, 24/7/2024, Insurance Business UK, 'Wrisk achieves major growth milestone for H1 2024')

Independent managing general underwriter Carbon Underwriting Limited, the name behind Lloyd’s Syndicate CBN 4747, has been granted in-principle approval for next year’s launch of Syndicate 5757. The green light is seen as a major step for Carbon, marking its second syndicate at Lloyd’s and expanding its reach to fulfil the company’s goal of becoming a leading figure in delegated authority business. Syndicate 5757 will be a technology-driven initiative centred on Carbon’s proprietary ecosystem, Graphene. The new syndicate will exclusively target US programme business. Carbon said the plan is to foster innovation and deliver superior underwriting in this data-rich market by leveraging process and its Graphene technology. (Terry Gangcuangco, 24/7/2024, Insurance Business UK, 'Carbon Underwriting gets green light for second Lloyd’s syndicate')

Juniper Re and CAPE Analytics, Inc, a provider of AI-driven property intelligence, have announced a strategic collaboration. This partnership aims to deliver key property risk insights to Juniper Re clients and offer a unique perspective to the reinsurance market. This collaboration adds a new component to Juniper Re’s catastrophe analytics platform, designed to provide clients with distinct insights, enhanced positioning in the reinsurance marketplace, and improved portfolio and company performance by leveraging specialized technology. (Kenneth Araullo, 23/7/2024, Insurance Business UK, 'Juniper Re forms partnership with CAPE to strengthen catastrophe analytics')

Brown & Brown, the world’s seventh-biggest brokerage by revenue, has reported an increase in its net income attributable to the company. “Each of our three segments delivered an exceptional quarter,” Brown & Brown President and Chief Executive J. Powell Brown stated. “These results are a testament to all of our 16,000-plus teammates delivering for our customers every day.” (Terry Gangcuangco, 23/7/2024, Insurance Business UK, 'Brown & Brown reports “exceptional quarter”)

OneAdvent, a specialist managing general agent and broker services platform, has formed a strategic partnership with Solace Global Risk to boost its accident & health insurance proposition. A company specialising in risk management and security services, Solace Global will help OneAdvent deliver a comprehensive insurance and risk management solution for its A&H MGA clientele. Under the tie-up, OneAdvent will tap into Solace Global’s extensive international network of security professionals operating in 191 countries, providing localised support and round-the-clock global security operations. (Terry Gangcuangco, 22/7/2024, Insurance Business UK, 'OneAdvent boosts A&H offering with tie-up')

Insurance company Travelers has published its interim financial results, revealing a major turnaround in the second quarter. Lifting the lid on the numbers, Travelers Chair and Chief Executive Alan Schnitzer stated: “We are pleased to have generated a strong bottom-line result in a quarter that included a record level of severe convective storms across the United States. Core income of US$585 million, or US$2.51 per diluted share, benefited from excellent underlying results, favourable net prior year reserve development, and higher investment income." (Terry Gangcuangco, 22/7/2024, Insurance Business UK, 'Travelers announces huge turnaround')

Mergers & Acquisitions

Optio Group, a managing general agent (MGA) specialising in insurance solutions, has disclosed its recent acquisition of Den Hartigh Beheer & Exploitatie B.V., an MGA based in the Netherlands and Brussels, with a focus on B2B insurance products. Established in 1916, Den Hartigh stands out in the insurance market with its tech-driven approach, offering a wide array of property & casualty insurance products. Its offerings predominantly include land-based equipment, marine insurance, and policies designed for high-net-worth individuals, all distributed through its unique broker-based platform. The acquisition marks a pivotal expansion for Optio Group into the European domain, aligning with its strategy to enhance its influence in the market through partnerships with entrepreneur-led MGA businesses. The move not only broadens Optio’s product offerings but also establishes its strategic foothold in Europe which will drive further growth and create synergies across the continent. (Althea Javellana, 25/7/2024, Insurance Business UK, 'Optio Group expands into Europe with significant acquisition')

NFP has announced its acquisition of Sean Barrett Bloodstock Insurances Ltd, trading as Barrett Private Insurances. John Barrett, Director of Sean Barrett Bloodstock Insurances Ltd, will join NFP as a Managing Director. His focus will be on growing the company's Private Client Group in Ireland and the UK, which provides customized risk solutions for high-net-worth individuals and families. Barrett Private Insurances has operated in the Irish market for 37 years. The brokerage leverages its experience and knowledge of the home, collections, travel, auto, yachts, and bloodstock insurance markets to address the complex risk management needs of its private clients. (Kenneth Araullo, 24/7/2024, Insurance Business UK, 'NFP expands in Ireland with key acquisition')

The Clear Group (Clear) has announced its acquisition of Maynard Milton Insurance Services LLP’s (Maynard Milton) book and assets. Founded over three decades ago, Maynard Milton operates as a £4.9 million gross written premium broker in Southend-on-Sea, Essex. The firm is recognised for its strong position in the local market, particularly in the fleet and property insurance sectors. Post-acquisition, the entire team from Maynard Milton, including partners Martin Maynard and Kevin Milton, will integrate into the Clear Group. This strategic move aims to bolster the group’s presence in the region, complementing its current operations in Shoeburyness. (Roxanne Libatique, 24/7/2024, Insurance Business UK, 'Clear Group expands with acquisition of Maynard Milton's book and assets')

Specialist Risk Group (SRG) has announced its agreement to acquire the specialist property and casualty (P&C) managing general agent (MGA), Trilogy Underwriting. This acquisition marks SRG's second addition to its underwriting pillar, MX, in 2024. MX’s acquisitions this year include Tristar Special Risks, The MPLC, CLS Risk Solutions, Blackrock Insurance Solutions, and GB Underwriting. Formed in 2013, Trilogy Underwriting specialises in property and casualty business, supporting a select panel of wholesale and retail brokers across the UK. (Kenneth Araullo, 23/7/2024, Insurance Business UK, 'Specialist Risk Group acquires Trilogy Underwriting')

Movers

Marsh has appointed Stephen McKay as UK Advisory Leader. Currently serving as the Property Practice Leader for Marsh Advisory in North America, McKay has held this role for over four years. His extensive 30-year career spans advising on risk programmes across multiple industries, with specialisations in major hazard assessment, M&A (mergers and acquisitions) due diligence, and environmental controls. (Terry Gangcuangco, 26/7/2024, Insurance Business UK, 'Marsh names advisory leader for the UK')

Arthur J. Gallagher & Co. has appointed Richard Harries to its board of directors, bringing in a seasoned professional with over 35 years of insurance sector experience. Harries’ extensive career spans various senior roles across the UK and other heavily regulated markets. Notably, he previously served as Chief Executive, Chief Underwriting Officer, and Energy Underwriter at Atrium Underwriters Limited. Meanwhile, his tenure at Willis Faber & Dumas saw Harries in significant positions within the energy sector. The seasoned leader’s LinkedIn profile shows he was CEO at Atrium until July 2023. (Terry Gangcuangco, 25/7/2024, Insurance Business UK, 'Gallagher adds former CEO of Atrium Underwriters to board')

Allianz has announced Bethany Thomas as the Head of Sustainability in a newly created role that centralises Allianz UK’s sustainability strategy. Bethany joined Allianz in 2014 on the underwriting graduate scheme and subsequently held a number of roles within underwriting including Head of Multinational. She then joined Allianz Group as Executive Assistant to the Global Head of Property and Casualty, a role that included all aspects of sustainability for the P&C business. Most recently she rejoined Allianz UK to lead the CEO office team overseeing projects, governance, reporting and strategy. (Allianz, 25/7/2024, youTalk Insurance, 'Allianz UK creates new sustainability leadership role')

RSA Insurance has announced the appointment of Damian Cannings as Bristol Regional Manager with immediate effect. Damian moves across to his new role from NIG, where he was Niche Accounts Portfolio Manager. He has strong leadership, market and underwriting experience obtained through various roles including time spent at NFU, Markel, Chubb, AIG and PIB. (RSA, 25/7/2024, youTalk Insurance, 'RSA names Damian Cannings as Bristol leader')

New York Stock Exchange (NYSE) Vice Chair John Tuttle is joining insurance brokerage Acrisure in September to serve as President. The appointment will see Tuttle move to Grand Rapids where he will report to Greg Williams, Acrisure’s Co-Founder, Chair, and Chief Executive. Tuttle’s tenure at the NYSE and parent company Intercontinental Exchange (ICE) began 17 years ago after he served in the US government. His previous roles include Chief Operating Officer and Chief Commercial Officer of the NYSE. (Terry Gangcuangco, 25/7/2024, Insurance Business UK, 'Acrisure swoops for NYSE vice chair')

Insurtech UK has announced the formation of an advisory panel designed to foster the growth of the UK’s insurtech sector. The initiative brings together leaders from established insurance firms and founders of thriving insurtech startups, aiming to address industry challenges and seize new opportunities. The panel includes Insurtech UK Chief Executive Melissa Collett; Graham Davis from Ageas; Suzanne Lawson, Aviva; Blake Redrup, Aon; Phil Evans, Applied Systems; Ed Gaze, Innovative Risk Labs; John Warburton, Konsileo; Tobias Taupitz, Laka; Rosie Denée, Lloyd’s; Leda Zaharieva, McKinsey; Eloise Morgan, Paragon; Louise Birritteri, Pikl; James Orchard and Peta Kilian, QBE Ventures; Goncalo de Vasconcelos, Rnwl; and Swiss Re’s Ruta Mikiskaite and Rob Onoufriou. Victoria Roberts, who previously led Tech Nation’s HM Treasury-backed insurtech board, will support the panel. (Terry Gangcuangco, 25/7/2024, Insurance Business UK, 'Insurtech UK forms advisory panel')

Global specialty re/insurer SiriusPoint has announced the appointment of Inmaculada Gonzalez as Global Head of Ceded Reinsurance, effective Aug. 19. Based in New York, Gonzalez will report to David Govrin, Group President and Chief Underwriting Officer. She will oversee the execution of SiriusPoint’s global ceded reinsurance strategy and manage the global ceded team. Gonzalez will succeed Habib Kattan, who will leave SiriusPoint on Dec. 31 following a transition period. Gonzalez brings 22 years of experience in the reinsurance industry. She joins from AXIS Capital, where she served as Deputy Global Head of Ceded Reinsurance, managing a $5 billion global portfolio. Prior to that, she was Senior Reinsurance Officer in the global ceded division of AIG. (Kenneth Araullo, 23/7/2024, Insurance Business UK, 'SiriusPoint names new global head of ceded reinsurance')

Lucy Clarke and Adam Garrard have now assumed their new roles as Risk & Broking President and Chair, respectively, at WTW. The duo, whose appointments were announced a year ago, will collaborate closely to advance the growth of WTW’s risk & broking division, which spans over 14,000 employees serving 140 countries and markets. Clarke, who made the switch from Marsh, is in charge of the financial and operational management and expansion of the key unit. Prior to Clarke’s arrival on July 22, Garrard served as Risk & Broking Head. Having worked in London in the UK since 1990, Clarke’s credentials include time spent as Chief Executive of JLT Global Specialty. (Terry Gangcuangco, 23/7/2024, Insurance Business UK, 'New risk & broking chair, president assume roles at WTW')

Aspen Insurance Holdings has appointed Tony Bishop as Chief Data & Analytics Officer with immediate effect. Joining Aspen in 2022 as Head of Data & Analytics, Bishop has already driven significant advancements in Aspen’s data and artificial intelligence (AI) strategy. This includes the launch of Aspen Data Labs and a groundbreaking partnership with Microsoft. With a robust background in data strategy and execution, Bishop is equipped to design and implement comprehensive data platforms, governance structures, and educational programmes within the insurance sector, ensuring optimal data utilisation across all levels. (Terry Gangcuangco, 23/7/2024, Insurance Business UK, 'Aspen promotes expert to chief data & analytics officer')

Berkshire Hathaway Specialty Insurance (BHSI) has officially announced its expansion into the Spanish surety market, appointing Jesús Barbero as the Head of Surety. This strategic move is set to enhance BHSI's service offerings in Europe and respond directly to the growing demands of their clients and brokers in the region, the company said. (Althea Javellana, 22/7/2024, Insurance Business UK, 'Berkshire Hathaway Specialty Insurance launches surety in Spain')

The Chartered Insurance Institute (CII) has appointed Ben Rose, Roger Jackson, and Suzy Middleton as engagement board members. Ben Rose, President of Supercede and Chair of the Insurance Institute of London's reinsurance committee, also co-hosts The Reinsurance podcast and has advised reinsurers at Aon Inpoint. Roger Jackson, with 17 years of industry experience, is a Chartered Financial Planner and board member of the Financial Management Bureau. Suzy Middleton, CEO of SEIB Insurance Brokers, earned her CII fellowship in 2010, won the 2019 ‘Insurance Broker of the Year’ award, and was President of the Insurance Institute of Chelmsford & South Essex. (Grant Funtila, 22/7/2024, Insurance Business UK, 'CII appoints three new Board members')