General Insurance Newsletter Friday 2nd August 2024

Insurance News

AXA has published its earnings report for the first half of 2024, revealing a strategic decision involving one of its business lines. “We have delivered strong growth across all lines of business, leveraging the attractive positioning of our franchise and a positive initial contribution from growth initiatives. P&C revenues were up 7%, with continued good demand, notably in commercial lines, and positive pricing dynamics across all lines" AXA Chief Executive Thomas Buberl said. "We have taken a strategic decision to exit asset management with the intention to sell AXA Investment Managers to BNP Paribas,” Buberl said. “We intend to offset the resulting earnings dilution with a share buyback, and we are affirming the key financial targets of our new strategic plan. We further intend to enter into a long-term investment management agreement with BNP Paribas that would provide a wider range of investment solutions to AXA and its customers.” (Terry Gangcuangco, 2/8/2024, Insurance Business UK, 'AXA reveals financials and plan to exit one business line')

QBE has rolled out a new generative artificial intelligence (Gen AI) solution, expanding its application across various global operations. Initially launched in December 2023, the Cyber Underwriting AI Assistant was introduced to support underwriters in North America, enabling them to review broker submissions more efficiently. The AI Assistant has achieved a 65% reduction in review times since its implementation. (Mav Rodriguez, 1/8/2024, Insurance Business UK, 'QBE expands AI to boost underwriting efficiency')

American International Group (AIG) has released its earnings report for the three months ended June 30 – a period described by AIG Chair and Chief Executive Peter Zaffino as an “outstanding” quarter despite the net loss attributable to common shareholders. Explaining the negative result, the global insurer noted: “AIG recognised a loss of US$4.7 billion as a result of Corebridge deconsolidation driven by a gain of US$2.5 billion from Corebridge assets retained offset by the recognition of an accumulated other comprehensive loss (AOCL) of US$7.2 billion, which represents the proportional recognition of the remaining 48.4% ownership stake of AOCL of Corebridge as of June 9, 2024 (deconsolidation date)." (Terry Gangcuangco, 1/8/2024, Insurance Business UK, 'Deconsolidation drags down AIG results')

CHL, the parent company of Bermuda-based Conduit Re, has released its interim financial results for the six months ending June 30. The company reported a return on equity (RoE) of 9.9%, supported by a 36.1% growth in gross premiums written, which reached $737.8 million. Reinsurance revenue increased by 37.1% to $382 million, while net reinsurance revenue grew by 39.3% to $338.2 million. (Kenneth Araullo, 31/7/2024, Insurance Business UK, 'Conduit Re publishes results for H1 2024')

PartnerRe Ltd has reported its financial results for the first half of 2024, showing significant activity across its segments. The company recorded gross premiums written of $5.3 billion and a net income attributable to the company of $358 million. Operating income stood at $366 million, translating to an operating income return on equity of 8.9%. (Kenneth Araullo, 31/7/2024, Insurance Business UK, 'PartnerRe publishes results for H1 2024')

RSA parent firm Intact Financial Corporation has published its financial results for the second quarter of 2024, a period that the company said it ended with a total capital margin of CA$2.9 billion. Broken down, Intact’s operating DPW in Canada amounted to CA$4.56 billion; in UK&I, CA$1.32 billion; and in the US, CA$777 million. All segments saw increases from last year’s second quarter. (Terry Gangcuangco, 31/7/2024, Insurance Business UK, 'RSA parent's quarterly results: CEO talks profitability momentum')

The aviation industry and its insurers have faced numerous challenges recently, including the COVID-19 pandemic, the energy crisis, and geopolitical conflicts like Russia's war. Despite these obstacles, the sector is showing signs of recovery, with 2023 recording some of the best safety results to date. According to Allianz Commercial’s Aviation Risk, Claims and Insurance Outlook, global air passenger numbers are expected to reach an all-time high this year, increasing by 10.4% year-on-year, primarily driven by growth in Asia-Pacific and North America. The report highlights that aviation generates some of the most significant and high-profile claims in corporate insurance worldwide. An analysis of over 32,000 industry claims from 2019 to 2024, totalling $15 billion (€14 billion), shows that collision or crash incidents and faulty workmanship or defective products account for 85% of the total value of claims. (Kenneth Araullo, 31/7/2024, Insurance Business UK, 'Challenges and opportunities abound in aviation insurance amid recovery – Allianz')

Arch Capital Group and AXIS Capital Holdings, both based in Bermuda, have released their respective earnings reports for the second quarter of 2024. For the three months ended June 30, the net income available to Arch common shareholders amounted to US$1.3 billion – an increase from last year’s US$661 million. Meanwhile, after-tax operating income available to Arch common shareholders stood at US$981 million. The corresponding sum in the 2023 second quarter was US$726 million. As for AXIS, its financial results in the quarter were also marked by improvements. In Q2, net income available to common shareholders was US$204 million – a climb from last year’s net income available to common shareholders of US$143 million. (Terry Gangcuangco, 31/7/2024, Insurance Business UK, 'Arch, AXIS report quarterly performance')

Despite facing significant constraints such as climate variability, supply chain disruptions, casualty deterioration, social inflation, and geopolitical tensions, the renewable energy sector remains resilient and optimistic this year, according to WTW. The broking giant’s Renewable Energy Market Review 2024 report, however, indicates that achieving overall profitability continues to be a challenge due to variable results within different energy classes. The report by WTW features a detailed examination of the insurance markets for renewable energy, as well as insights from international experts, providing a thorough analysis of the risks and opportunities in 2024. (Terry Gangcuangco, 31/7/2024, Insurance Business UK, 'Renewable energy sector resilient, says WTW')

Global specialty re/insurer SiriusPoint has announced a new strategic partnership with Hellenic Hull Management (HMA), a marine hull and machinery underwriter based in Greece and Cyprus. This collaboration aims to enhance their offerings in the marine insurance sector. Under the partnership, SiriusPoint will provide underwriting capacity for a selected portfolio of high-quality hull and machinery risks, as well as ancillary covers. SiriusPoint holds a financial strength rating of A- (Excellent) from AM Best, S&P, and Fitch, and an A3 rating from Moody’s. (Kenneth Araullo, 30/7/2024, Insurance Business UK, 'SiriusPoint partners with Hellenic Hull to cover high-quality hulls and machinery risks')

Insurance group CNA Financial Corporation has published its financial results for the second quarter of 2024. Commenting on the numbers, Chair and Chief Executive Dino E. Robusto said: “We produced outstanding results in the quarter with an US$18 million increase in core income to US$326 million, leading to record core income in the first half of 2024. Net investment income was up 7% as yields in our fixed income portfolio increased again this quarter and our alternatives portfolio generated strong returns." (Terry Gangcuangco, 30/7/2024, Insurance Business UK, 'CNA sees improved results in second quarter')

Gallagher has reported its financial results for the second quarter of 2024, which were described by Chair and CEO J. Patrick Gallagher, Jr. as excellent. The company posted a 14% increase in reported revenue and 7.7% organic revenue growth in its core brokerage and risk management segments. The net earnings margin improved by 35 basis points to 13.9%, while the adjusted EBITDAC margin increased by more than 100 basis points to 31.4%. (Kenneth Araullo, 30/7/2024, Insurance Business UK, 'Gallagher bolsters Europe cyber division')

Sabre Insurance Group plc, a leading motor insurance underwriter in the UK, has released its unaudited financial results for the first half of 2024, ending on June 30. Sabre's gross written premium reached £125.7 million, up from £99.5 million in the same period last year and £225.1 million for the full year 2023. The net loss ratio improved to 57.3%, compared to 62.0% in June 2023 and 56.3% at the end of December 2023. The expense ratio stood at 26.3%, down from 31.8% the previous year, contributing to a combined operating ratio of 83.6%, a decrease from 93.8% in 2023. (Kenneth Araullo, 30/7/2024, Insurance Business UK, 'Sabre publishes half-year results for 2024')

Aviva’s Global Corporate and Speciality (GCS) division has unveiled a new global service proposition as part of the insurer’s expansion plans. The move aims to enhance Aviva GCS’s international diversification and accelerate the growth of its multinational and delegated underwriting authority (DUA) segments. The integration of DUA and lead multinational operations under the new proposition is designed to support Aviva’s global ambitions. Additionally, a revitalised captives offering is set for launch later this year. According to Aviva, its £130 million gross written premium multinational business has a partner network that spans more than 150 territories and 95% of the world’s gross domestic product. (Terry Gangcuangco, 30/7/2024, Insurance Business UK, 'Aviva outlines global growth plans')

Zurich Insurance Group has invested in SME cyber insurance provider Cowbell via a $60 million Series C funding. The equity investment will enable Cowbell to expand its operations and strengthen its cyber resilience services amid increased demand. The funds will also support the introduction of innovative products and boost strategic partnerships. Cowbell plans to leverage advances in artificial intelligence and generative AI to enhance its technological infrastructure, thereby improving efficiencies and facilitating quicker decision-making for policyholders and brokers through traditional, digital, and API-driven (application programming interface) channels. (Terry Gangcuangco, 29/7/2024, Insurance Business UK, 'Zurich Insurance Group invests in Cowbell')

Aon has published its interim earnings for the second quarter of 2024 – a period of “excellent” financial results, according to Chief Executive Greg Case. Of the quarterly revenue, US$2.02 billion came from commercial risk solutions; US$635 million, reinsurance solutions; US$662 million, health solutions; and US$463 million from wealth solutions. (Terry Gangcuangco, 27/7/2024, Insurance Business UK, 'Aon unveils quarterly earnings')

Insurer MAPFRE has published its financial results for the first half of 2024. Of the premiums, €11.97 billion came from non-life while life contributed €3.17 billion. Lifting the lid on the numbers, MAPFRE highlighted: “The intense improvement in profit mainly results from the higher contribution of the United States, Spain, and the reinsurance business. North America posts a relevant improvement in the result (+€58 million) thanks to the technical measures implemented. Iberia’s result grows 37%, reaching €168 million." (Terry Gangcuangco, 29/7/2024, Insurance Business UK, 'MAPFRE reports interim financial results')

HDI Global SE continues its international expansion receiving a regulatory license from Dubai Financial Services Authority (DFSA) to open an office in Dubai. The new local presence in Dubai International Financial Centre (DIFC) will allow HDI Global to bring its global financial strength and technical expertise closer to clients in the Middle East. The new Dubai office Managing Director, Willem van Wyk, brings over three decades of global insurance industry experience including senior leadership roles in the Middle East market and beyond. Currently Regional Market Manager ASEAN and Australasia, Willem van Wyk has contributed to the significant profitable growth in the Asia Pacific portfolio working closely with teams in Australia, New Zealand, Singapore and Hong Kong branch offices since joining HDI Global in 2020. Prior to joining the HDI Global team, he held senior positions at AGCS, Marsh and Commercial Union, including as CEO AGCS in Dubai from 2016-17. This followed his previous experience in the Middle East in the insurance industry, living there from 2001-05. (youTalk Insurance, 29/7/2024, 'HDI Global strengthens business in the Middle East with local presence in Dubai International Financial Centre')

Mergers & Acquisitions

Ardonagh Advisory’s Geo Underwriting is snapping up Zurich UK’s marine insurance brand Navigators & General (N&G). The acquisition, expected to be finalised in the second half of 2024, will see N&G’s specialised team, currently based in Brighton, come on board Geo Underwriting. The established portfolio of business will continue to operate under the Navigators & General brand while collaborating with Geo Marine. (Terry Gangcuangco, 2/8/2024, Insurance Business UK, 'Geo Underwriting swoops for Navigators & General')

Intermediary group Howden is acquiring Allianz UK’s musical insurance book for an undisclosed sum. Under the deal, the musical insurance customers and marketing and operations teams from Allianz will be integrated into Howden’s existing Lark Music scheme. The swoop will enhance Lark Music’s current offerings, which primarily focus on high-value instruments, supporting the scheme’s goal to expand its product range to cover a wider variety of musical instrument insurance for musicians at all levels of expertise. (Terry Gangcuangco, 2/8/2024, Insurance Business UK, 'Allianz UK sells musical insurance book to Howden')

Miller has announced the acquisition of 4809 Brokers AG, a reinsurance capital advisory firm, marking the re/insurance brokerage’s third acquisition in Continental Europe since 2022 and aligning with its strategy of expanding internationally and enhancing its reinsurance capabilities. Founded in 2020 by Marc Hannebert and Benjamin Bourseau, 4809 Brokers provides advisory services on insurance transactions aimed at achieving capital relief. These services include alternative risk transfer, liability side investment transactions, and portfolio transfer solutions, such as reinsurance to close (RITC) transactions. (Kenneth Araullo, 1/8/2024, Insurance Business UK, 'Miller continues European expansion with major reinsurance acquisition')

Global insurance group Enstar has announced a definitive merger agreement under which Sixth Street will acquire Enstar, with Liberty Strategic Capital, JC Flowers & Co LLC, and other institutional investors also participating in the transaction. Enstar shareholders are expected to receive US$338.00 in cash per ordinary share upon closing, representing a total equity value of US$5.1 billion. The consideration offers a premium of approximately 8.5% to the 90-day volume weighted average price (VWAP) of the company shares as of July 26, 2024, and 6.9% to the 60-day VWAP as of the same date. (Kenneth Araullo, 29/7/2024, Insurance Business UK, 'Sixth Street secures agreement to acquire Enstar')

Markerstudy Group (Markerstudy) has revealed its plans to acquire Hughes Insurance, pending regulatory approvals and standard conditions. This move aims to strengthen Markerstudy’s footprint in Northern Ireland. Kevin Spencer, Chief Executive of Markerstudy Group, reaffirmed the group’s commitment to the Northern Ireland market. “Markerstudy and Hughes Insurance have traded together for many years and worked closely on numerous initiatives. We’re committed to the Northern Ireland market and are looking forward to welcoming their team and supporting their aspirations to deliver growth and innovation to enhance their customer offering,” he said. (Roxanne Libatique, 29/7/2024, Insurance Business UK, 'Markerstudy Group to snap up Hughes Insurance')

European private equity firm Inflexion is selling its stake in UK insurance broker David Roberts & Partners (DR&P) to specialist insurance and reinsurance brokerage BMS Group. Manned by nearly 400 colleagues across 25 offices in the UK and Europe, DR&P manages over £620 million in gross written premium for its clients. Inflexion initially invested in DR&P in 2021 before investing further last year to back the company’s continued growth. In partnership with Inflexion, DR&P’s management executed a successful mergers & acquisitions strategy, creating a network of strategically aligned regional insurance brokers. Significant investment in technology infrastructure also boosted DR&P’s capabilities. (Terry Gangcuangco, 27/7/2024, Insurance Business UK, 'BMS buying DR&P stake from Inflexion')

Movers

Gallagher has appointed Tim Chance as Managing Director of trade credit and surety for its UK & Ireland Retail business. Tim joined Gallagher in 2016 as Practice Leader for trade credit and surety, which saw him managing teams in Birmingham and Manchester as well as overseeing growth, client relationships and product development. Prior to joining Gallagher, he was National Practice Leader, Corporate Division, at Marsh where he supported large corporate clients working across all industries in the UK. Tim Fisher, who has held this role since 2015, will step down and take a part-time position as he looks forward to retirement. (Gallagher, 1/8/2024, youTalk Insurance, 'Gallagher appoints Managing Director of trade credit & surety practice')

Marsh McLennan has announced the appointment of Stephen McKay as UK Advisory Leader - He will also join Marsh’s UK Executive Committee. Mr. McKay is currently the Property Practice Leader for Marsh Advisory in North America, a position he has held for over four years. With 30 years of experience advising on risk programmes across various industries, his expertise includes areas such as major hazard assessment, M&A due diligence and environmental controls. (Marsh, 1/8/2024, youTalk Insurance, 'Marsh appoints Stephen McKay as UK Advisory Leader')

In a strategic move to bolster its expansion across North America, Mosaic Insurance has appointed seasoned industry executive Joe Boren as Chair of a newly formed advisory board. The board’s primary focus will be to steer Mosaic’s strategic growth, with an emphasis on market engagement, innovation, strategy, and thought leadership. A Senior Advisor at US wholesale broker Synapse Services, Boren is recognised for his significant contributions to the global specialty insurance sector, particularly in environmental insurance. At Mosaic, he will help assemble the advisory board. Boren has an impressive track record with 50 years in the insurance industry, having held numerous leadership roles. He was President of US field operations and Environmental Chair at Ironshore for nearly a decade. Prior to that, he was Chairman and Chief Executive of AIG’s environmental division. (Terry Gangcuangco, 1/8/2024, Insurance Business UK, 'Mosaic Insurance taps industry veteran to form advisory board')

JM Glendinning Insurance Brokers has promoted Amanda Rosser, Spencer Champion-Russell, and David Edmondson within its Midlands and Lancashire operations. Edmondson steps up as Client Director at the Blackburn office, where he will concentrate on business development. Since joining as an Account Executive in 2020, Edmondson has consistently provided excellent service and built a robust network within Lancashire. Champion-Russell, meanwhile, has been appointed as Client Director at JM Glendinning Real Estate in Birmingham. Having joined the company in September 2020 as an Account Handler, he was promoted to Account Executive in July 2023. Also from JM Glendinning Real Estate, Rosser now serves as Broking Team Leader. She joined the team in July 2023 as an Account Handler. (Terry Gangcuangco, 1/8/2024, Insurance Business UK, 'JM Glendinning promotes trio')

Global insurer MAPFRE has appointed Leire Jiménez Group Chief Innovation Officer effective September 1. At the same time, she will continue to serve as Chief Executive of MAPFRE’s assistance business unit MAWDY. Jiménez will be in charge of leading this next phase, bringing two decades of industry experience to her wider remit. The soon-to-be Group Chief Innovation Officer has held significant roles in the UK, France, and Asia and has been CEO of MAWDY since 2019. She is succeeding José Antonio Arias, who will continue in his position as Group Chief Operational Transformation Officer. (Terry Gangcuangco, 1/8/2024, Insurance Business UK, 'MAPFRE picks group chief innovation officer')

Swiss Re has announced the appointment of Anders Malmström as the new Group Chief Financial Officer, effective April 1, 2025. Malmström will succeed John Dacey, who has held the position since 2013. Malmström is set to join Swiss Re from Athora Holdings, a European savings and retirement services group, where he has been Group Chief Financial Officer since May 2021. His previous roles include Senior Executive Vice President and CFO of Equitable Holdings in New York, and Senior Executive Director and CFO at AXA US. He also served as a member of the executive board and head of the life business at AXA Winterthur, and held senior leadership positions at Swiss Life Group. (Kenneth Araullo, 31/7/2024, Insurance Business UK, 'Swiss Re introduces new group CFO')

Chubb has announced the appointment of Leander Metzger as Regional Executive Officer for the Eastern Region, covering Continental Europe, the Middle East, and North Africa (MENA). Metzger joins from Berkshire Hathaway Specialty Insurance (BHSI), where he served as Country Manager for Switzerland and Head of Property and Risk Engineering for Germany, Austria, and Switzerland. Metzger succeeds Andreas Wania, who passed away earlier this year. With over 25 years of experience in the insurance industry, Metzger previously held senior positions at FM Insurance in Germany, joining the company in 2006. (Kenneth Araullo, 31/7/2024, Insurance Business UK, 'Chubb names new regional executive officer')

Howden Re has appointed Andy Foot as Managing Director of the marine, energy & terror treaty reinsurance division. Foot joined the team this month and will focus on expanding the company's presence in the London and US markets. Foot brings extensive experience from his previous role at Aon, where he spent 22 years in the specialty reinsurance division, leading US marine and energy. He also served as a Senior London Practice Broker, working across various lines and business areas. Before moving into broking, Foot began his career in underwriting with positions at Folkam, UK, ERC Frankona, and Reliance International, gaining experience in the marine and energy sectors. (Kenneth Araullo, 30/7/2024, Insurance Business UK, 'Howden Re names new MD for marine, energy, and terror treaty')

In further news...Howden has appointed Tony Barber as Account Director as it continues to grow its presence in South Wales. Tony will be based in Cardiff, covering Wales and its surrounding regions, and joins the team having previously worked as Account Director at Willis Towers Watson. (Howden, 29/7/2024, youTalk Insurance, 'Howden appoints Account Director to accelerate growth in Wales')

SCOR's board of directors has approved of the company's financial statements for the second quarter. The group reported a net loss of €308 million, with an adjusted figure of €283 million, largely due to negative performance in life and health (L&H) reinsurance, partially offset by strong results in property and casualty (P&C) reinsurance and investments. As a result, the global re/insurer announced that Frieder Knüpling, CEO of SCOR L&H since 2021, will be leaving the group to pursue new opportunities. Until further notice, CEO Thierry Léger will assume the management of the L&H division. (Kenneth Araullo, 30/7/2024, Insurance Business UK, 'SCOR announces L&H leadership change following "disappointing" H1 results')

Aspen has announced leadership changes effective August 1 to enhance executive roles. Christian Dunleavy is promoted to Group President and Aspen Bermuda CEO, with over 25 years in (re)insurance. Mark Pickering will become Group CFO & Treasurer, stepping down as Aspen Bermuda CEO. Chris Coleman, the outgoing CFO, will leave at the end of the month. Rob Houghton will have increased responsibilities as Group COO, and Mo Kang will take on broader duties as Group Chief Corporate Affairs and People Officer. (Terry Gangcuangco, 30/7/2024, Insurance Business UK, 'Aspen tweaks leadership roster')

Gallagher has announced the appointment of Aldo Borsani as the Head of Cyber for Europe. In this role, Borsani will work with the firm's existing clients and teams across Europe, enhancing Gallagher's cyber products and services and driving new business growth. Borsani joins Gallagher from Chubb, where he spent nearly a decade, most recently serving as Financial Lines & Cyber Underwriting Manager for Southern Europe. He has also worked in the US as part of Chubb's cyber and professional liability underwriting team in New York. In addition, Gallagher has also recently appointed Richard Harries to its board of directors. Harries brings over 35 years of experience in the insurance sector, having held senior roles in various regulated markets. His previous positions include Chief Executive, Chief Underwriting Officer, and Energy Underwriter at Atrium Underwriters Limited, as well as significant roles in the energy sector at Willis Faber & Dumas. (Kenneth Araullo, 30/7/2024, Insurance Business UK, 'Gallagher bolsters Europe cyber division')

Cyber risk firm Resilience has appointed Killian Brady as Chief Underwriting Officer. In his expanded role, Brady will supervise all aspects of underwriting for Resilience's expanding portfolio while maintaining his current position as Chief Operating Officer of global insurance operations. The appointment aligns with the company’s plans for future growth and development. Before joining Resilience in 2020, Brady held positions at AIG, Beazley, and Allianz Global Corporate & Specialty, bringing over 15 years of industry experience to his wider remit. (Terry Gangcuangco, 30/7/2024, Insurance Business UK, 'Resilience picks chief underwriting officer')

Kova Professions, a professional indemnity (PI) managing general agent that came to life earlier this year, has hired another Senior Underwriter. Joining fellow Senior Underwriter Keeley Patten is Sarah Morrison, whose extensive PI experience will significantly bolster Kova’s underwriting capabilities and risk management processes. She is making the switch from RSA Group, where she served as a Senior PI Underwriter. Morrison’s credentials include time spent as a Product Owner and SME Lead at Placing Platform Limited and Delegated Underwriting Technician at QIC Global Insurance Company. She has also gained valuable experience as a PI Underwriter at Brit Insurance and Aspen Insurance. (Terry Gangcuangco, 30/7/2024, Insurance Business UK, 'Kova Professions brings in additional senior underwriter')

Avid Insurance, a specialist managing general agent (MGA), has expanded its workforce by 20% with six new hires, including four underwriters in its construction division, to support its growth objectives. Zarrar Tariq and Adrian Sanderson, have joined IIGL as Regional Underwriters to handle construction risks. Additionally, Paul Turner and Jake Rose, both with significant experience in the construction sector, will continue to support the South East operation while assisting in regional expansion efforts. James Clewes has also joined as Group Head of Compliance after six years at MoneySuperMarket and seven years at Think Money. Clewes will focus on regulatory activities associated with being a leading MGA. (Kenneth Araullo, 29/7/2024, Insurance Business UK, 'Avid bolsters construction division with four new hires')

Giancarlo D’Alessandro has been appointed as portfolio underwriting head at Hampden Risk Partners’ Syndicate 2689 at Lloyd’s (HRP). The key addition bolsters HRP’s underwriting and analytical strengths, aiding in the continued success of its ‘intelligent follow model’ reset. D’Alessandro brings 13 years of experience in lead underwriting roles at AIG and QBE, where he recently managed a £150 million gross written premium portfolio covering general liability clients across large corporate, mid-market, and coverholder segments. (Terry Gangcuangco, 29/7/2024, Insurance Business UK, 'Lloyd's Syndicate 2689 hires portfolio underwriting head')