Insurance News
Admiral’s shares soared to the top of the FTSE 100 yesterday, showing a 10% increase on the back of impressive half-year financial results. The company’s revenues surged by 43% in the first six months of its fiscal year, largely due to a strong performance in the UK motor insurance sector. During the period, total revenue reached £3.2 billion, with pre-tax profits climbing by 32% to £310 million. These outcomes resulted from boasting a record number of 5.5 million vehicles insured in the UK, along with a substantial increase of nearly half a million customers across other insurance products. By the end of June, Admiral had nearly 11 million customers, marking 12% growth primarily through its motor insurance division in the UK, supported by competitively priced offerings. (Althea Javellana, 16/8/2024, Insurance Business UK, 'Admiral shares fly to the top of the FTSE 100 as firm hikes dividend amid profit surge')
Aspen Insurance Holdings Limited, which is headquartered in Hamilton, Bermuda, has shared its financial performance for the first half of 2024. The company reported solid results for both the second quarter and the initial six months of the year, demonstrating consistent strength despite significant industry-wide challenges during the period. For the first half of 2024, Aspen reported a net income of $154 million and an operating income of $201 million, with shareholders seeing a $55 million net income in the second quarter alone. Key financial metrics for the period include an operating return on average equity of 18.7% and an adjusted combined ratio of 86.5%. (Althea Javellana, 15/8/2024, Insurance Business UK, 'Aspen reveals strong mid-year performance')
Talanx Group has reported significant growth in insurance revenue and net income for the first half of 2024. Insurance revenue increased by 13% year-on-year to €23.6 billion, while Group net income surged 32% to €1.09 billion. This marks the first time the company’s H1 net income surpassed €1 billion. (Kenneth Araullo, 15/8/2024, Insurance Business UK, 'Talanx Group hits first-ever billion milestone for H1 2024')
Fidelis Insurance Group has released its second-quarter report for 2024, showing a steep decline in net income compared to the same period last year. The company reported a net income, as of June 30, 2024, of $53.7 million from April to June this year, compared to $83.9 million recorded in the same period last year. This number equates to $0.46 per diluted common share and operating net income of $63.0 million, or $0.54 per diluted common share, the second quarter report stated. The company also recorded an income decline in the first quarter of this year. (Noel Sales Barcelona, 15/8/2024, Insurance Business UK, 'Fidelis Insurance sees net income drop')
Aviva plc has announced its interim results for 2024, with the company reporting growth across key financial metrics. The group's operating profit rose by 14% to £875 million, up from £765 million in the same period last year. Additionally, Solvency II operating own funds generation (OFG) increased by 10% to £758 million, compared to £686 million in the first half of 2023. Underlying Solvency II OFG saw a notable rise of 27% to £768 million, up from £605 million. (Kenneth Araullo, 14/8/2024, Insurance Business UK, 'Aviva issues interim results – how did the insurance giant fare?')
Hannover Re reported a 21% increase in group net income, reaching €1.2 billion for the first half of 2024, and confirmed its full-year guidance. The company’s reinsurance revenue grew by 5.2% to €12.9 billion, compared to €12.3 billion in the previous year. Adjusted for exchange rates, growth would have been 6.1%. The reinsurance service result, which reflects the profitability of underwriting after accounting for ceded business, increased by 31% to €1.4 billion, up from €1.1 billion. (Kenneth Araullo, 13/8/2024, Insurance Business UK, 'Hannover Re confirms double-digit growth for H1 2024')
Following its technology innovation challenge, Aventum is set to develop its artificial intelligence (AI) underwriting assistant, the re/insurance company announced recently. Aventum stated that the recent Bear Cave Innovation Challenge, a Dragon’s Den-style competition for its staff, encouraged its employees to pitch in ideas that will help the company achieve revenue growth, boost efficiency, improve the workplace, and achieve sustainability. The innovation challenge, according to Aventum, yielded more than 30 innovation ideas, and the champion, Lee Ellis, received VIP tickets to Silverstone for the British Grand Prix. The ideas ranged from sustainability innovations to the development of AI-driven technology to increase the company’s capabilities to serve its clients. (Noel Sales Barcelona, 13/8/2024, Insurance Business UK, 'Aventum to develop AI underwriting assistant')
International specialty property and casualty re/insurer Canopius Group has released its financial results for the first half of 2024, ending June 30, highlighting significant growth across key financial metrics. For the first half of 2024, Canopius reported a 23% increase in insurance contract written premium, totaling $1.84 billion, up from $1.50 billion in the same period last year. Net insurance revenue rose by 24% to $980 million, compared to $790 million in the first half of 2023. (Kenneth Araullo, 12/8/2024, Insurance Business UK, 'Canopius continues profitability streak with H1 2024 results')
Sompo Holdings Inc. reported a 20% increase in net attributable income for the quarter ending June 30, reaching ¥120.04 billion (approx. US$818.2 million). In the first quarter of the fiscal year, property and casualty net premiums written grew to ¥1.22 trillion, which is up from ¥1.14 trillion compared to last year. Additionally, life insurance net premiums also grew from ¥75.47 billion to ¥75.99 billion. (Grant Funtila, 12/8/2024, Insurance Business UK, 'Sompo showcases strong income growth in Q2 results')
Acquisitive brokerage firm Jensten and Manchester-based regtech company RiskSmart have announced a partnership, as part of Jensten’s efforts to beef up its portfolio and ensure its further growth. Jensten was on an “acquisition spree” last year, snapping up a host of companies, including East Anglian-based One Broker GroupandScrutton Bland Insurance Brokers. These strategic acquisitions, according to Jensten, helped to grow its workforce to almost 1,000. This year, the company has continued its momentum with four more acquisitions, and is now making preparations for “further strategic growth.” Steve Folkard, Chief Risk and Compliance Officer at Jensten, said the partnership with RiskSmart would play a vital role in ensuring continued growth and providing clients with the best services. RiskSmart is known for its specialisation in governance, risk, and compliance software. (Noel Sales Barcelona, 12/8/2024, Insurance Business UK, 'RiskSmart teams up with Jensten')
Mergers & Acquisitions
According to the latest insights from MarshBerry, July 2024 witnessed a shift in the UK insurance distribution merger and acquisition (M&A) landscape, marked by the installation of a new Labour Government and a reduction in the number of deals announced. The month recorded 11 new transactions involving ten separate buyers, including two significant deals where the targets employed over 100 staff. As of July 31, the year-to-date transaction count in the sector stands at 85, representing a 9% decrease compared to the 93 deals recorded by the same point in 2023. According to MarshBerry, while transaction volumes in 2024 are slightly behind last year’s record levels, the overall deal count for the year is still projected to approach 150. However, the average size of announced deals continues to decrease. MarshBerry notes that this trend is expected to continue as the market adjusts to evolving conditions. (Kenneth Araullo, 15/8/2024, Insurance Business UK, 'Blockbuster deals help drive UK M&A forward in July 2024 – MarshBerry')
Howden, the global insurance intermediary group, has announced the acquisition of Help Me Compare Group Limited (ActiveQuote) and its subsidiaries, a prominent UK health and life insurance broker. Howden highlighted the acquisition as a development to bolster its position in the UK health insurance brokerage market, catering to a broad range of clients, from individual consumers to multinational corporations. Help Me Compare Group Limited (HMCGL), founded in 2009 by Richard Theodossiades, employs 132 staff at its head office in Cardiff Bay and manages premiums totalling approximately £60 million. The acquisition bolsters Howden’s presence in the consumer insurance sector and aligns with its broader strategy to expand its employee benefits capabilities to address growing client demand. (Kenneth Araullo, 12/8/2024, Insurance Business UK, 'Howden inks deal for Help Me Compare Group')
Movers
QBE has announced the appointment of Simon Lascelles as the company’s Director for Underwriting (Marine and British Marine). Lascelles was QBE’s Portfolio Manager for cargo and international markets and has been with the company for over a decade. According to QBE Europe’s LinkedIn post, Lascelles has been a valuable member of the company since he joined QBE in 2014. Meanwhile, based on his LinkedIn profile, before joining QBE, Lascelles served as a Cargo Broker for Marsh from 2011 to 2014. Prior to his stint with the brokerage giant, Lascelles also worked with Aon as an Account Handler from August 2008 to January 2011. Meanwhile, QBE has been on a promotion and appointment spree to further strengthen its presence and place in the market. The company recently announced the promotion of Fabian Desch as General Manager for Germany, subject to regulatory approval. Desch has been Head of Distribution for QBE Europe since 2022, where he helped manage the German team since his predecessor Andrea Brock went on gardening leave in May. QBE also recently appointed a new General Manager for its Italy operations. Davide Anselmo was named in the role, succeeding Angela Rebecchi, who will be retiring this summer after leading QBE Italy for seven years. (Noel Sales Barcelona, 15/8/2024, Insurance Business UK, 'QBE appoints new director of underwriting for marine')
Acrisure has announced new leadership for the UK-based Eleven Network, subject to regulatory approvals, with Jeff Hobson as CEO, joining from Burns & Wilcox. The team includes Simon Cooter as Chair of the Board, coming from Covea Insurance; Matt Dyer as Director, Founder of ITC Compliance; Shahram Shayesteh as Deputy CEO, previously at an insurer as Head of Compliance; Kat Cross as CFO, formerly with Tysers; Chris Sedgley as Broking Director, from Jones Taylor Steven Ltd; David Cunningham as Head of Member Services, from Close Brothers; and Russell Preece as IT Director. These industry experts, with experience from prominent networks, brokers, insurers, and finance partners, aim to enhance the Network’s offerings in the UK, as highlighted by Acrisure UK CEO, Mark McIlquham. (Acrisure - Eleven Network, 15/8/2024, youTalk Insurance, 'Acrisure’s Eleven Network unveils new leadership team')
The Australian Reinsurance Pool Corporation (ARPC) has announced the appointment of Cameron Hick as its new Head of Technical Underwriting. Hick brings extensive experience in underwriting, client, and portfolio management, having worked across multiple geographies in the reinsurance sector. Hick joins ARPC from Aon, where he served as Senior Treaty Broker from September 2023 to June 2024. Before his tenure at Aon, Hick was Director and Head of Broking at Gallagher Re, where he led the broking team and oversaw the creation and execution of broking portfolio business strategies. Hick’s career in reinsurance spans over two decades, during which he has held various leadership positions, at different companies. (Kenneth Araullo, 15/8/2024, Insurance Business UK, 'ARPC names new head of technical underwriting')
Skyward Specialty Insurance Group has announced its entry into the mortgage reinsurance market, a move which also further broadens its presence in the specialty property and casualty (P&C) sector. To lead this new initiative, Jean-Philippe Latour joined the company as Senior Vice President in May 2024. Latour brings extensive experience from his previous roles, including his time at Arch, where he began his insurance career in 2013. At Arch, he played a key role in developing reinsurance solutions for the primary mortgage market and government-sponsored enterprises (GSEs). Prior to joining Skyward Specialty, Latour also led Vantage Risk’s entry into the mortgage reinsurance market. His background also includes experience in banking and capital markets, with a focus on mortgage banking, securitization, and interest rate risk management. (Kenneth Araullo, 14/8/2024, Insurance Business UK, 'Skyward Specialty enters mortgage reinsurance with key appointment')
Accredited Insurance Program Management has announced the appointment of Stuart McMurdo as President of Accredited UK & Europe. McMurdo brings extensive experience to the position, having most recently served as CEO of SCOR’s global reinsurance business. His career at SCOR also included senior roles such as Regional Head of SCOR P&C for EMEA and CEO of SCOR UK and the SCOR Syndicate at Lloyd’s. Prior to his time at SCOR, McMurdo held leadership positions at Santam, Hannover Re, Glenrand MIB, and Standard Bank. (Kenneth Araullo, 14/8/2024, Insurance Business UK, 'Accredited names new president for UK and European operations')
Independent specialist re/insurance brokerage Miller has announced the appointment of Cedric Thevenot as an Account Executive. Thevenot will join the company on Sept. 2 and will be based in Paris. Thevenot brings over 30 years of industry experience to his new role, having most recently worked at Verspieren, an independent French brokerage. He has also held senior positions at Gras Savoye and AXA, with a focus on the sports and entertainment sector. (Kenneth Araullo, 13/8/2024, Insurance Business UK, 'Miller bolsters sports and entertainment division with key hire')
Chubb has announced three key executive appointments in its finance organization, effective September 4, 2024. George Ohsiek, currently Chief Auditor, has been named Vice President, Chubb Group and Chief Accounting Officer. Ohsiek, who has over 25 years of experience, will oversee corporate and regulatory accounting, financial reporting, and financial planning and analysis (FP&A). He succeeds Annmarie Hagan, who will now serve as Vice President, Chubb Group and Chief Financial Officer of Operations & Technology and Transformation, focusing on FP&A for Chubb’s technology sectors and ESG-related financial reporting. Mong-Diep Le, currently Global Controller, will succeed Ohsiek as Chief Auditor, overseeing internal audit functions across the company. Le has more than 25 years of experience in accounting and reporting. (Kenneth Araullo, 13/8/2024, Insurance Business UK, 'Chubb names three executives to enhance leadership')
Allianz has announced that Petros Papanikolaou will assume the role of Executive Director of Group Strategic Initiatives at Allianz SE, effective September 1 – which means a change to the leadership of Allianz Commercial. His career at Allianz began in 1998, where he held various financial management roles at AGF Kosmos. Papanikolaou also served as CEO of Central Europe for Allianz Group from 2015, overseeing Allianz’s operations in 11 countries. He was also previously CEO of Allianz Hellas from 2004 to 2015. Early in his career, Papanikolaou served as a General Manager in life, sales, and property/casualty business and as an Auditor at EY, the company said in a previous statement. (Grant Funtila, 13/8/2024, Insurance Business UK, 'Allianz Commercial names new interim CEO')
The International Underwriting Association (IUA) has welcomed two new members to its secretariat supporting companies in the London reinsurance market. May El Mantawy and Faye Hepburn have joined as Legal, Underwriting, and Claims Technicians. The two new hires bring a wealth of experience to the association. Mantawy, a graduate of Queen Mary University, London, has prior insurance industry experience from her time at NFU Mutual. Meanwhile, Hepburn, a University College London graduate, worked for an outsourced insurance buyer and claims resolution firm called Mactavish. (Grant Funtila, 13/8/2024, Insurance Business UK, 'IUA welcomes new staff')
International specialty re/insurance MGA Rokstone has announced the appointment of Martin Thomas as Head of Underwriting Management and Stuart Lee as Chief Actuary. The appointments are part of Rokstone's strategy to enhance decision-making and operational efficiency across its business operations. Stuart Lee joins Rokstone from Markel, where he served as Chief Actuary, bringing 14 years of experience within the actuarial function. Prior to his time at Markel, Lee held positions as an Actuary and Economic Analyst at KPMG and the Bank of England. Martin Thomas comes from Probitas where he was Head of Underwriting Management. His experience includes underwriting management and business transformation roles at StarStone Insurance, Willis, and Occam Underwriting. (Kenneth Araullo, 12/8/2024, Insurance Business UK, 'Rokstone brings in duo to bolster actuarial and underwriting propositions')
All information provided in this Market Digest has been gathered from Insurance Business UK and youTalk Insurance.
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