General Insurance newsletter Friday 13th December 2024

Insurance News

Neurodiverse recruitment: How neuro-diverse are you? - Neurodiverse recruitment involves creating inclusive hiring practices that value diverse thinking styles and remove barriers for neurodivergent individuals. Businesses can enhance inclusivity by adapting interview processes, fostering supportive workplace environments, and educating teams about neurodiversity to unlock innovative potential and attract a broader talent pool. (IDEX Consulting news, 'Neurodiverse recruitment: How neuro-diverse are you?')
How to increase your retention levels - To increase retention, businesses must prioritize employee support by offering clear career development paths, fostering positive workplace culture, and addressing individual needs. Open communication, recognition, and meaningful benefits play key roles in reducing turnover and maintaining a motivated workforce. (IDEX Consulting news, 'How to increase your retention levels')
The role of an Insurance Claims Adjuster - Learn more about the role of an Insurance Claims Adjuster, who assesses and processes insurance claims by investigating damages, determining liabilities, and negotiating settlements. This position requires strong analytical skills and expertise in insurance policies to ensure fair and efficient claim resolutions. (IDEX Consulting news, 'The role of an Insurance Claims Adjuster')
The impact of robo advisers on the Financial Services market - Robo-advisers are transforming the Financial Services market by providing automated investment advice at a lower cost, improving access to financial planning. While they challenge traditional advisory models, they also present opportunities for innovation and efficiency in wealth management. The rise of robo-advisers reflects a broader trend toward digitalization in finance, pushing the industry toward more tech-driven solutions. (IDEX Consulting news, 'The impact of robo advisers on the Financial Services market')
Aon plc has partnered with the EBRD to launch a €110 million war risk insurance facility to support Ukraine’s economic recovery, providing guarantees to reinsurers covering war-related risks for businesses and SMEs, with the potential to insure up to €1 billion in goods and vehicles annually. (Jonalyn Cueto, 13/12/2024, Insurance Business, 'Aon and EBRD launch war risk insurance facility')
Guy Carpenter has launched a research initiative with academic partners, including Florida International University and the University of Michigan, to explore parametric insurance solutions aimed at enhancing financial resilience for communities facing wildfire and hurricane risks in California and Florida. (Kenneth Araullo, 12/12/2024, Insurance Business, 'Guy Carpenter explores parametric insurance for wildfire, hurricane risks')
The Texas Windstorm Insurance Association (TWIA) approved a $40.27 million budget for 2025, with $485 million allocated to reinsurance—up from $397 million in 2024—to address a depleted catastrophe reserve and growing exposure, covering losses between $2.45 billion and $6.5 billion. (Kenneth Araullo, 12/12/2024, Insurance Business, 'TWIA increases reinsurance spending after Hurricane Beryl losses')
The City of London Corporation will host its inaugural Global Risk Summit on May 21, 2025, spotlighting the UK insurance sector’s innovation and expertise. Part of a weeklong series of events, it will gather industry leaders to address global risks like AI, geopolitical tensions, and sustainability. (Jonalyn Cueto, 12/12/2024, Insurance Business, 'City of London Corporation to host Global Risk Summit')
Efforts to enhance Property Flood Resilience (PFR) and support Build Back Better (BBB) initiatives are gaining traction among insurance brokers, as highlighted at the British Insurance Brokers’ Association (BIBA) Tour of the Regions. Nearly 800 brokers engaged in discussions on reducing flood risks, with a focus on Flood Re’s initiatives to mitigate flooding impacts, following the significant damage caused by 12 storms and flooding in over 4,000 properties last winter. (Jonalyn Cueto, 12/12/2024, Insurance Business, 'Flood resilience highlighted as priority at BIBA Tour of the Regions')

Lloyd’s has released a systemic risk scenario projecting global economic losses of up to US$13.6 trillion over five years from a hypothetical human pandemic. In collaboration with the Cambridge Centre for Risk Studies, the scenario explores losses ranging from US$7.3 trillion to US$41.7 trillion, reflecting reductions in global GDP of 1.1% to 6.4%. The study, part of Lloyd’s Futureset series, underscores the economic impact of local lockdowns and international travel restrictions, particularly in the transportation sector, which accounts for over 10% of global GDP. (Kenneth Araullo, 11/12/2024, Insurance Business, 'Pandemic risks could lead to US$396 billion annual expected economic loss – Lloyd's')
Allianz has launched Sconset Re Ltd, a Bermuda-based reinsurance platform, to reinsure a US$4 billion block of annuity liabilities and enter a forward flow agreement for US$5 billion to US$10 billion of new business. The platform’s investment portfolio will be primarily managed by PIMCO, Allianz’s asset management subsidiary, with equity investments from institutional partners Voya Financial and Antares Capital LP, who will also manage portions of the portfolio. (Kenneth Araullo, 11/12/2024, Insurance Business, 'Allianz expands reinsurance with Sconset Re launch')
Talanx Group has set new strategic targets for 2027, aiming for a 30% increase in net income to over €2.5 billion, a return on equity consistently above 12%, and a dividend increase to €4.00 per share. For 2024, the company expects net income over €1.9 billion, a return on equity above 15%, and a proposed dividend of €2.70 per share. (Kenneth Araullo, 11/12/2024, Insurance Business, 'Talanx sets ambitious €2.5 billion net income target by 2027')
The British Insurance Brokers’ Association (BIBA) has announced "A New Era" as the theme for its 2025 conference, focusing on the industry's transformations and future opportunities. Scheduled for May 14–15, 2025, at Manchester Central, the event will explore how brokers can adapt to emerging risks. BIBA CEO Graeme Trudgill highlighted the significant changes in the past 25 years, including political shifts, regulatory updates, and evolving risks, and emphasized the need for a forward-looking approach to insurance broking. (Jonalyn Cueto, 11/12/2024, Insurance Business, 'BIBA announces theme for 2025 conference')
WTW’s Political Risk Index warns of growing threats to maritime and offshore infrastructure from grey zone aggression, such as cyberattacks and disinformation. The report highlights risks to vessels, undersea cables, and oil installations, and notes the expansion of the shadow fleet for unlawful oil exports, which poses safety risks and worsens supply chain disruptions. (Jonalyn Cueto, 11/12/2024, Insurance Business, 'Grey zone threats escalate for some sectors - WTW')
K2 Group Holdings (K2 International) has opened a box in Lloyd’s of London, with three divisions operating from it: K2 Rubicon Specialty, K2 Crisis Management, and K2 Property D&F. Key underwriters, including Gavin Wall, Matthew Eve, and Chris McGill from K2 Rubicon, Tom Kennett from K2 Crisis Management, and Robert Coker, Christian Bennett, and Jacob Gladding from K2 Property D&F, will engage with brokers to explore opportunities in the specialty insurance and reinsurance markets. (Kenneth Araullo, 10/12/2024, Insurance Business, 'K2 International expands presence with Lloyd's market entry')
Envelop Risk, a cyber reinsurance and analytics specialist, has surpassed US$1 billion in gross written premium (GWP) since its 2018 launch, achieving a 40% compound annual growth rate. The company also secured a three-year capacity agreement with MS Reinsurance and a multi-year deal for analytics services with its newly launched Solutions Business. Envelop has launched Augmented Re in Bermuda, a Class 3A reinsurer, to align risks with capacity partners in Bermuda and London. (Kenneth Araullo, 10/12/2024, Insurance Business, 'Envelop Risk surpasses US$1 billion GWP milestone in cyber reinsurance')
Beazley’s executive team highlighted key challenges and opportunities for 2025, focusing on AI, climate resilience, regulatory divergence, and tech obsolescence. CEO Adrian Cox emphasized the need to avoid "AI-washing" as businesses integrate AI, warning that hype can outpace reality. Beazley’s research shows 80% of companies plan to adopt AI, but Cox cautioned that the true impact will only be clear when the AI bubble bursts. (Kenneth Araullo, 9/12/2024, Insurance Business, 'Beazley warns against "AI-washing" risks in 2025')

Mergers and Acquisitions

BMS Group has agreed to acquire Rasher, a Spanish insurance broker with operations in Colombia and Peru, expanding its presence in Iberia and Latin America and strengthening its expertise in surety, credit, and risk management for corporate clients, subject to regulatory approvals. (Kenneth Araullo, 12/12/2024, Insurance Business, 'BMS strengthens Iberian presence with acquisition of Rasher')
According to MarshBerry, UK insurance distribution M&A activity peaked in November 2024 with 18 deals, driven by sellers rushing to secure the 20% Capital Gains Tax rate before it increased to 24% in the Autumn budget. Year-to-date, 135 transactions have been recorded, nearing 2023's 137 at the same point, with expectations for 2024 to match last year's record-breaking levels. Analysts caution that some transactions may have been accelerated, potentially slowing activity in early 2025. (Kenneth Araullo, 12/12/2024, Insurance Business, 'Capital gains tax shift drives November M&A surge in insurance – Marshberry')
Lycetts has acquired Newcastle-based Cheviot Insurance Services to strengthen its North East operations. The acquisition integrates Cheviot’s team, including John Baty and Joel Marks, into Lycetts’ Newcastle office. Ian Barclay, Lycetts’ CEO, highlighted the deal’s significance, noting it supports the company’s growth strategy and enhances its regional strengths by building on Cheviot’s reputation and community ties. (Jonalyn Cueto, 12/12/2024, Insurance Business, 'Lycetts acquires Cheviot Insurance Services')
Utmost Group has received regulatory approvals to acquire Lombard International Assurance, with the deal set to close on December 30, 2024. The acquisition will integrate Lombard into Utmost International, strengthening the group's position in key European markets and expanding its capacity to meet long-term client needs. Lombard will continue to operate from Luxembourg, offering its products under the Utmost brand alongside existing offerings. (Kenneth Araullo, 11/12/2024, Insurance Business, 'Utmost to complete acquisition of Lombard International')
Specialist Risk Group (SRG), backed by Warburg Pincus and Temasek, has acquired R3, a specialist insurance broker, marking SRG’s 11th acquisition in 2024. R3, which offers insurance solutions in sectors like UK tourism, charities, and military, will integrate into SRG’s retail division, specialist risk insurance solutions (SRIS), enhancing its ability to handle complex risks. Lee Anderson, Group Deputy CEO of SRG, described the acquisition as an opportunity to strengthen the group’s specialised offerings. Rob Proudman of R3 expressed excitement about the collaboration, citing SRG’s strong reputation for developing specialist teams. (Jonalyn Cueto, 11/12/2024, Insurance Business, 'Specialist Risk Group acquires R3')
Arthur J Gallagher & Co has agreed to acquire US-based insurance broker AssuredPartners for US$13.45 billion in an all-cash deal. The acquisition, one of the largest in the industry, is expected to close in Q1 2025, pending regulatory approvals. Chairman and CEO J Patrick Gallagher Jr emphasized the strategic alignment between the two companies. (Kenneth Araullo, 9/12/2024, Insurance Business, 'Gallagher acquires AssuredPartners in $13-billion megadeal')
European insurers aiming to strengthen their market positions in 2025 are likely to follow the acquisition models of Generali and Sampo, according to a Bloomberg Intelligence report. Smaller insurers may adopt similar strategies, avoiding larger, riskier deals. Generali's €2.3 billion acquisition of Liberty Seguros and Sampo's purchase of Topdanmark have solidified their market leadership in Spain, Portugal, and the Nordic region. The report also highlighted that the challenges faced by Admiral and Direct Line, such as rebuilding profitability, may be seen across the industry. (Joshua Recamara, 9/12/2024, Insurance Business, 'Profit-earning European insurers likely to make acquisitions in 2025 – report')
Aviva plc has entered preliminary talks to acquire Direct Line Insurance Group plc at approximately 275 pence per share, a 73.3% premium over Direct Line’s last closing price. The offer includes 129.7 pence in cash, 0.2867 new Aviva shares, and potential dividend payments of up to 5 pence per share. If completed, Direct Line shareholders would hold a 12.5% stake in the enlarged Aviva group. While analysts generally support the deal, some caution that Aviva will face significant challenges post-acquisition.(Jonalyn Cueto, 9/12/2024, Insurance Business, 'Is Aviva's bid for Direct Line a strategic jackpot?')

Movers

AXA’s board has appointed Ewout Steenbergen to replace Rachel Duan, who is stepping down after six years on the board, effective December 31, 2024. Steenbergen, currently CFO at Booking Holdings, has held senior roles at S&P Global, Voya Financial, and is a UNICEF USA board member. (Jonalyn Cueto, 13/12/2024, Insurance Business, 'Steenbergen appointed to AXA’s board of directors')
HDI Global SE has appointed Dr. Carsten Schulte as its new Global Head of Marine, effective January 1, 2025, succeeding Alexander Schlei, who will move to head technical and strategic services. Schulte brings extensive experience in underwriting and portfolio management, while Schlei, with over 20 years in corporate insurance, previously led HDI’s NatCat division. (Kenneth Araullo, 12/12/2024, Insurance Business, 'Dr Schulte to lead HDI Global marine division starting January 2025')
Gabriel Ewing will join Amwins Global Risks as Head of its new transaction risk practice in London, bringing nearly 20 years of legal and M&A expertise, including warranty, indemnity, tax, and contingent liability insurance, with experience in emerging markets to support the company’s expansion. (Josh Recamara, 12/12/2024, Insurance Business, 'Amwins Global Risks names head of new transaction risk practice')
The Benefact Group has appointed Mark Bennett as its new CFO, effective January 2025, after serving as acting CFO since July 2024. Bennett, who joined the group in 2007, will also join the boards of Benefact Group and Ecclesiastical Insurance. His appointment follows an extensive recruitment process, and he brings a wealth of experience, having led initiatives like the group’s regulatory internal model approval in 2018. (Jonalyn Cueto, 12/12/2024, Insurance Business, 'Benefact Group appoints Bennett as chief financial officer')
Zurich Insurance Group has appointed Drazen Jaksic as the incoming CEO of Zurich UK, subject to regulatory approval. Jaksic, currently CEO of Zurich Benelux, will replace Tim Bailey, who transitions to lead the newly established global Life Protection business. Jaksic joined Zurich in 2019, with over 30 years of experience in P&C and life insurance, including roles at Chubb Europe. Bailey, who led Zurich UK for four years, will now report to Cara Morton, CEO of Zurich Global Ventures. (Roxanne Libatique, 11/12/2024, Insurance Business, 'Zurich UK makes CEO change')
Simply Business has appointed Julie Fisher as its new UK CEO, after serving as interim CEO. With over 35 years of insurance experience, Fisher, who joined as CCO in 2019, previously held leadership roles at Churchill, RBS, and MoneySuperMarket. She has helped the company more than double its customer base to over one million globally and led digital initiatives to enhance the customer claims experience as part of its growth strategy. (Kenneth Araullo, 11/12/2024, Insurance Business, 'Simply Business welcomes Julie Fisher as CEO to boost expansion')
Atec Group has appointed Steve Woodford as Chief Technology Officer, succeeding Andy Brown, who is retiring. With over 30 years of experience, Woodford previously served as CIO of BGL Group and CompareTheMarket.com and has held roles at NHS England, PwC, and various tech startups. He is also a Non-Executive Director at NHS England. The appointment supports Atec's ambition to become one of the top 10 UK insurance brokers, driving growth through both organic expansion and M&A. (Josh Recamara, 11/12/2024, Insurance Business, 'Atec Group taps tech veteran Steve Woodford as CTO')
Arch Insurance has appointed Rachida Laazaouzi as Senior Casualty Underwriter for Arch Insurance (EU) dac in Paris. With 17 years of experience, she will focus on expanding the casualty portfolio in France. Laazaouzi previously served as Senior Casualty Underwriter at CNA Hardy Insurance and has held positions at Swiss Re Corporate Solutions and Zurich. (Kenneth Araullo, 10/12/2024, Insurance Business, 'Rachida Laazaouzi joins Arch Insurance to lead French casualty expansion')
Invesco has appointed Joe Steidl as Head of UK Insurance Distribution. With over 15 years of business development experience, Steidl joins from Research Affiliates and will lead distribution strategy and sales within the UK insurance segment. (Josh Recamara, 10/12/2024, Insurance Business, 'Invesco hires Joe Steidl as head of UK insurance distribution')
Howden has appointed Daniel Abbott as Corporate Director for its South Wales team. Abbott, previously Sales and Development Director at Watkin Davies (acquired by Howden in 2021), will focus on risk management and transfer solutions for large, complex clients across various industries. (Jonalyn Cueto, 10/12/2024, Insurance Business, 'New leadership for Howden's South Wales team')
Generali Global Corporate & Commercial (GC&C) appointed two leaders in its Mediterranean and Latin America region as part of an organizational restructure. Jose Maria Romero de Tejada was named Head of the new Business Transformation & Technical Excellence unit, focusing on strategic initiatives across the region. Mikel Bermejo joined as Head of Underwriting, bringing extensive corporate insurance experience. Both report to Patricia Puerta. Romero de Tejada has been with Generali for 13 years, while Bermejo previously served as Head of Property IBERIA at QBE Europe. (Kenneth Araullo, 9/12/2024, Insurance Business, 'Generali announces leadership updates in LATAM Region')
Mark Cloutier, CEO of Aspen Insurance Group, has been named Chairman of the Association of Bermuda Insurers and Reinsurers (ABIR) for 2025-2026, succeeding Pina Albo. He will be joined by Deputy Chairmen Nicolas Papadopoulo (Arch Capital Group) and Paul Simons (Convex Insurance). Previously, Cloutier was CEO of Brit Ltd, overseeing its acquisition by Fairfax Financial. (Kenneth Araullo, 9/12/2024, Insurance Business, 'Aspen's Mark Cloutier named ABIR chairman for 2025-2026')
OAK Reinsurance has appointed James Irvine as Chief Underwriting Officer for property, effective spring 2025. Based in London, Irvine brings nearly 20 years of experience, having previously worked at Guy Carpenter and Lancashire, where he managed underwriting operations across Bermuda and Lloyd’s. (Kenneth Araullo, 9/12/2024, Insurance Business, 'James Irvine joins OAK Re as property CUO')
Miller has appointed Elizabeth McGonagle as Head of Power for the Asia Pacific region. With over 10 years of experience in the energy and power sectors, McGonagle previously served as Regional Director at Howden Singapore and held a Division Director role at Willis Towers Watson overseeing natural resources, power, and renewables in Asia. (Kenneth Araullo, 9/12/2024, Insurance Business, 'Elizabeth McGonagle joins Miller to lead APAC power team')
HDI Global SE has appointed Hannah Brooke as Head of Marine Cargo Underwriting for the UK and Ireland, effective January 1, 2025. Brooke, previously based in HDI’s Belgium operations, will report to Antonia Osborne, Director of Underwriting – Commercial. She will focus on growth initiatives and strategic planning for the marine cargo division, with an emphasis on risk engineering, insurance coverage, and claims management. Brooke brings significant expertise in marine insurance, covering hull, machinery, and cargo sectors. (Jonalyn Cueto, 9/12/2024, Insurance Business, 'HDI Global appoints new marine cargo head')