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General Insurance Newsletter Friday 4th November 2022

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Insurance News

The Financial Conduct Authority's average time taken to approve acquisitions has more than doubled, leading to calls for the regulator to 'get things moving' to help brokers buy and sell businesses much faster. A Freedom of Information request from Insurance Age has revealed the average FCA time taken to approve acquisitions of a firm with permission to trade as a general insurance broker has soared in just four years. The FOI request shows it took 41.6 days in 2018/19 but in the current financial year it has taken 99.5 days on average to approve acquisitions. (Sophie Locke-Cooper, 03/11/2022, Insurance Age, '‘Pull a finger out’ – Average time taken by FCA to approve acquisitions doubles')

Calculations by the British Insurance Brokers' Association have shown brokers are working thousands of hours to complete fair value assessments. Biba calculates that a small broker with 30 agencies will have to ask 10,800 questions and slog through an incredible 1,080 hours of work. A larger broker with 2,700 products faces 5,400 hours of work to get through the FCA paperwork. (Saxon East, 02/11/2022, Insurance Age, '‘Ridiculous’ – FCA fair value broker paperwork hours revealed')

Complaints to the Financial Ombudsman Service about buildings insurance were down fractionally at 1,621 in the second quarter as it fell out of the top five most complained about products. The insurance line was replaced in the FOS’ table by personal loans which had 1,678 complaints from July to September. Car/motorcycle insurance remained firmly ensconced in the top five keeping its position in third place from the previous quarter. (Emmanuel Kenning, 02/11/2022, Insurance Age, 'Buildings insurance drops out of FOS’ top five complaints table')

Commercial insurance pricing in the UK rose by 7% in the third quarter, according to research by Marsh. This was down on the 11% annual rise posted in the second quarter and far below the 20% leap recorded by the Global Insurance Market Index in Q1. However, prices in Q3 were still rising faster in the UK than globally, the worldwide figure was a 6% uptick. (Emmanuel Kenning, 02/11/2022, Insurance Age, 'Marsh reports easing of UK commercial pricing rises')

Premier League clubs are continuing their battle against insurers Allianz, Aviva, CNA, Liberty Mutual, MS Amlin and Zurich in a dispute over Business Interruption payments. The clubs argue that their BI claims for losses during the 2019/20 and 2020/21 Covid-interrupted seasons ought to be subject to multiple limits of liability, rather than a single £2.5m limit per club as the six insurers named in the case contend. (Saxon East, 01/11/2022, Insurance Age, 'Premier League clubs continue battle against insurers in BI court case')

Commercial Express and Arag have partnered up to provide commercial legal protection to brokers serving a range of Retail and Wholesale business clients, as well as emergency assistance and legal protection to Residential Property Owners. The two Managing General Agents detailed that the legal expenses insurance cover, including access to digital legal services, will be available to clients of brokers using Commercial Express schemes for offices, shops, pubs, restaurants and fast-food outlets, as well as wholesalers.(Emmanuel Kenning, 01/11/2022, Insurance Age, 'Commercial Express and Arag team up on broker schemes')

Everest Re Group has announced a brand refresh, including a new logo and visual identity. “There has never been a more exciting time to be part of the Everest community, and that pride is palpable among our global colleagues who inspired our brand and shape our company’s future,” said Juan C. Andrade, President and CEO of Everest. “From the reimagined mountain to the digitally optimised logo and design system, our refreshed brand honours Everest’s core values, growth and strong performance in a contemporary reflection of who we are, where we are headed, and our mission to provide protection and opportunity in an increasingly complex risk environment.”(Ryan Smith, 03/11/2022, Insurance Business UK, 'Everest Re Group reveals brand refresh')

Insurance group AXA has released its revenue report for the nine months ended September 30, announcing an increase in gross revenues from last year’s €76 billion to €78.4 billion (approx. £67.53 billion) this time around.(Terry Gangcuangco, 03/11/2022, Insurance Business UK, 'AXA publishes revenue figures for first nine months')

SiriusPoint has published its financial results for the third quarter and first nine months of 2022, reporting losses in both periods. According to its interim financials, the global insurer and reinsurer posted net losses of US$98 million and US$376 million, respectively, in the quarter and nine months ended September 30. Compared to previous numbers, this year’s quarterly loss was bigger, while the 9M figure was a dive from the net income recorded in 2021. (Terry Gangcuangco, 03/11/2022, Insurance Business UK, 'SiriusPoint hit with losses, announces office closures')  

International specialist insurer Hiscox has issued a trading statement that points to an increase in gross written premium (GWP) for the nine months ended September 30. Noting the rise in group GWP, Hiscox said: “Rate momentum continues to be favourable across all Hiscox businesses, although the degree of rate strengthening varies across business units and lines of business." (Terry Gangcuangco, 03/11/2022, Insurance Business UK, 'Hiscox reveals latest GWP figures')  

For the fourth year running, Allianz has been ranked the world’s most valuable insurance brand, according to the 2022 Best Global Brands ranking, released by leading consultancy Interbrand. Allianz’s brand value has soared to 18.7 billion USD, an increase of 23% percent in the last year. (Allianz, 03/11/2022, youTalk insurance, 'Ardonagh Advisory acquires Stallard Kane Group')

​American International Group, Inc has reported financial results for the third quarter ended September 30, 2022. AIG Chairman & Chief Executive Officer Peter Zaffino said: “AIG had another very strong quarter of financial performance, driven by our successful execution of strategic priorities, and highlighted by the initial public offering of Corebridge, another major accomplishment by our team, as well as continued profitable underwriting results and decreased volatility in General Insurance. These results are even more impressive when viewed against the backdrop of a challenging macro-economic environment and one of the largest insured-loss hurricanes in U.S. history." (AIG, 03/11/2022, youTalk insurance, 'AIG publishes Third Quarter 2022 Results')

​Aviva has announced new partnerships that will see the insurer pledge £7m and £2m to Citizens Advice and the Money Advice Trust’s Business Debtline service respectively over the next two years. Citizens Advice and the Money Advice Trust, two of the UK’s leading financial support and debt advice charities, can today also share new data showing unprecedented levels of demand for advice and support. As people across the UK struggle to cope with rises in the cost of living, the need for these services has ballooned. (Aviva, 31/10/2022, youTalk insurance, 'Aviva invest £9m into Citizens Advice and Business Debtline services to help with crisis support')

Leading Motor insurance provider Aioi Nissay Dowa Europe (AND-E) is creating more than 150 new jobs in Newcastle to support its growing relationship with Toyota Insurance Services. The new roles are part of an on-going expansion of AND-E’s North Tyneside operating hub and will create a range of opportunities in leading edge customer services, claims management and specialist support functions for customers of Toyota and Lexus insurance products. (Aioi Nissay Dowa Europe, 03/11/2022, youTalk insurance, 'AIOI Nissay Dowa Europe to create 150 new jobs in the North East')

A year from the launch of the Insurance Fraud Coordination Office (IFCO) in Ireland, LexisNexis® Risk Solutions Insurance has expanded into the Republic of Ireland to deliver data enrichment services to insurance providers in the region and boost the market’s fraud detection capabilities. A leading data, analytics and technology provider to 97% of the U.K. insurance market, LexisNexis Risk Solutions, driven by requests for greater choice and scale from the Irish market, will deliver solutions to support more accurate underwriting and pricing, streamline claims’ processes, help reduce fraud and improve the customer’s experience when they are buying or renewing a policy. (LexisNexis® Risk Solutions Insurance, 03/11/2022, youTalk insurance, 'LexisNexis Risk Solutions Insurance opens for business in the Republic of Ireland')

Canopius Group has announced the launch of the ‘Canopius Tech & Data Hub’ in Manchester, UK. Technology and data services have increasingly become a fundamental part of Canopius’ offering. To continue this momentum, the business has recognised that now is the ideal time to establish a centre within Manchester, wholly focused on technology and data. (Canopius Group, 03/11/2022, youTalk insurance, 'Canopius to launch technology and data Hub in Manchester')

​Liberty Mutual has found itself in the red, with the insurance group announcing losses not only in the third quarter but also in the nine months ended September 30th. According to the latest set of financial results released by Liberty Mutual Holding Company and its subsidiaries (LMHC), the net loss attributable to LMHC in the third quarter amounted to $353 million, while the net loss attributable to LMHC in the first nine months stood at $198 million. In the same periods in 2021, the firm enjoyed earnings.(Terry Gangcuangco, 04/11/2022, Insurance Business UK, 'Liberty Mutual reveals losses in Q3 and 9M')  

​Markel Corporation has taken a double beating in its financial results, revealing losses both in the quarter and nine months ended September 30. In Q3 2022, Markel posted a comprehensive loss to shareholders of $367.4 million. In the same period last year, the company enjoyed a comprehensive income to shareholders worth $80.2 million. In 9M, meanwhile, this year’s comprehensive loss to shareholders amounted to $2.2 billion. The corresponding figure in 2021 was a comprehensive income to shareholders to the tune of $1.3 billion. (Terry Gangcuangco, 04/11/2022, Insurance Business UK, 'Markel Corporation lands in the red in latest financials')  

​Lancashire Holdings Limited, with operating subsidiaries in the UK and Bermuda, has issued its business update for the first nine months of 2022. During the period, Lancashire saw a 34.3% increase in gross written premium (GWP), from US$967.7 million in 9M 2021 to US$1.3 billion this time around. All segments – Property and Casualty (P&C) reinsurance (US$739.3 million), P&C insurance (US$217.8 million), Aviation (US$93.9 million), Energy (US$156 million), and Marine (US$93.1 million) – all improved in terms of GWP. (Terry Gangcuangco, 04/11/2022, Insurance Business UK, 'Lancashire Holdings reports 9M 2022 GWP numbers')  

Mergers & Acquisitions

Gallagher has bought Irish broker Doyle Mahon and revealed the Innovu deal is now fully integrated with the rebrand set to complete next Monday. The consolidator expanded into Ireland with the purchase of Innovu in June and announced, a few days later, its plans to rebrand the Commercial and Personal Lines company as Gallagher. (Sophie Locke-Cooper, 03/11/2022, Insurance Age, 'Gallagher rebrands Innovu and buys Doyle Mahon in Ireland')

Lloyd’s broker Servca has bought Medicas, an independent health insurance specialist, for an undisclosed sum. Medicas offers a range of Medical Indemnity, Medical Malpractice and Healthcare Liability insurance for healthcare groups, organisations, and individual practitioners. (Sophie Locke-Cooper, 02/11/2022, Insurance Age, 'Servca buys healthcare insurance specialist')

Dickson & Co has expanded its network of offices in Northern Ireland to eight with the purchase of Armagh-based Jim Burton Insurance Services. Established in 1978 Jim Burton Insurance Services works across Personal and Commercial Lines. All nine employees are remaining with the business with former Owner Jim Burton continuing to work with Dickson & Co Managing Director Ashley Dickson. The buy takes Dickson & Co to over £30m of gross written premium. (Emmanuel Kenning, 01/11/2022, Insurance Age, 'Dickson & Co buys Jim Burton Insurance Services in Armagh')

Ardonagh Advisory has bought Stallard Kane Group, a provider of health and safety, HR, training, and employment law compliance consultancy services. The consolidator confirmed that SKG will be led by Managing Director Nathan Jones. It will trade independently as part of the advisory platform which also includes Towergate’s regional branch network, Broker Network, Compass UK and Ethos Broking. (Emmanuel Kenning, 01/11/2022, Insurance Age, 'Ardonagh buys Stallard Kane')

Ardonagh Advisory Holdings Ltd, a subsidiary of The Ardonagh Group has announced that it has acquired Stallard Kane Group Limited (SKG), a leading provider of health and safety, HR, training, and employment law compliance consultancy services to businesses across the UK. SKG was established in 2000 and is headquartered in Gainsborough, with a presence in Birmingham, Hull and London. Its team of nearly 100 people includes a host of industry experts who provide specialist high-quality risk advice across a wide variety of sectors. The firm’s corporate book represents over 3000 clients. (Ardonagh Advisory Holdings Ltd, 03/11/2022, youTalk insurance, 'Ardonagh Advisory acquires Stallard Kane Group')

PIB Group Ltd has expanded its footprint in the Dutch markets. PIB, which is backed by private equity firms Apax Funds and The Carlyle Group, has acquired Risqwise B.V. (pending regulatory approval). Risqwise is a specialist in providing insurance solutions for medium-sized and large companies. The Rotterdam based business concentrates largely on commercial insurance broking and boasts a number of specialisms. (PIB Group, 31/10/2022, youTalk insurance, 'PIB Group buys Risqwise B.V for further expansion in the Dutch market')

Movers & Shakers

Chubb has appointed Chris Turberville as Head of Hull for its London Market Wholesale and Specialty business, Chubb Global Markets (CGM). Turberville joins CGM from Allianz Global Corporate and Specialty, where he served as Head of Hull and Liability insurance (UK) since 2012. He is a member of the Chartered Insurance Institute and also the Lloyd's Market Association's Joint Hull Committee.(Lyle Adriano, 03/11/2022, Insurance Business UK, 'Chubb names head of hull for London Market specialty business')  

First Underwriting has appointed Gemma Stanley as Operations Director, a newly created role. Stanley joined from IQUW, where she has previously held senior roles within the underwriting function. She was previously Head of Underwriting Transformation for ERS and has also worked in several claims roles. (Gabriel Olano, 03/11/2022, Insurance Business UK, 'First Underwriting announces new operations director')  

AXA Commercial has appointed Rob Corner as Regional Director North, Martin Kilshaw as Regional Director South, and Nicola Porter as Branch Manager, Leeds & Newcastle. Rob joins AXA from Allianz, where over his nine-year career he has held various senior market-facing roles, including Managing Director of ABSL (Allianz Broker). Martin has over 20 years’ experience at AXA working in market-facing roles, most recently as Branch Manager, Manchester. Nicola joins the team from Aviva, where she recently led the Aviva Broker Community team. (AXA, 03/11/2022, youTalk insurance, 'AXA Commercial strengthens senior team with three new appointments')

Brit Ltd has announced that Matthew Wilson will be stepping down from his role as Group CEO and will be succeeded by Martin Thompson, who will become the new Group CEO and Executive Chairman of Ki effective 31st October (subject to regulatory approval). Matthew will continue to work within the Fairfax Financial Holdings (“Fairfax”) Group as an Executive Advisory Director. Matthew returned as Brit CEO in September 2022 following a leave of absence to undergo treatment for a rare form of blood cancer. In stepping down as CEO and becoming an Executive Advisory Director to Fairfax, Matthew will be able to prioritise his own health and spend more time with his family. (Brit, 31/10/2022, youTalk insurance, 'Matthew Wilson to step down as Brit CEO with Martin Thompson appointed successor')

​Martin Vince joins Liberty Specialty Markets as Head of Broker Management, he is responsible for leading the Broker Management Team in London. Vince joins LSM from Chubb Insurance, where he held the position of Strategic Development Manager. He has over 24 years of experience in the insurance industry. (Liberty Specialty Markets, 03/11/2022, youTalk insurance, 'Liberty Specialty Markets appoints new Head of Broker Management')

QBE has announced the appointment of Ceri Stokoe as Chief Information officer, European Operations and Nathan Fuller as Chief Operations Officer, International to its International Executive Management Board. Ceri joined QBE in 2016 as the Head of Application Services, before becoming the Director of Strategy and Transformation in 2019 and subsequently Chief Information Officer in January 2020. Nathan joined QBE in 2004 as a Senior Claims Adjustor and has held a number of roles across the claims function, playing a key role on the Claims Executive for the last four years in his most recent position as Head of Core Claims. (Sandra Villanueva, 03/11/2022, youTalk insurance, 'QBE International makes 2 new Executive Management Board appointments')

Lockton, has appointed Robert Rechtern as Head of Accident & Health, Sports and Contingency within the Wholesale Property & Casualty (P&C) division. Rechtern brings over 15 years’ market experience to Lockton. He joins from Aon UK, where he served as Executive Director of the People Risk team. Prior to this, Rechtern held the role of Vice President at Guy Carpenter in its D&F division. (Lockton, 03/11/2022, youTalk insurance, 'Lockton appoints Robert Rechtern as Head of Accident & Health, Sports and Contingency')

TH March, the UK's leading specialist jewellery insurance broker, has announced that Chief Executive Officer, Neil McFarlane will be retiring in early 2023, after nearly 40 years of loyalty and committed service to the company. Neil joined the Commercial Insurances Department of the TH March Plymouth office as a Management Trainee at the tender age of just 19. Simon Dawe has been named as Managing Director (effective since 1st June 2022) and has an extensive background and history at TH March, ready to deliver a strong operational performance and support its strategic direction. (TH March, 03/11/2022, youTalk insurance, '135 year old broker TH March announces future senior leadership changes')

Specialist Risk Group (SRG) has announced the appointment of Oliver Thorne as Managing Director of its Retail business Specialist Risk Insurance Solutions (SRIS). Thorne brings significant senior insurance experience, most recently as Regional Managing Director at Gallagher. Prior to that, he spent over eight years in leadership roles at Stackhouse Poland including as Managing Director, Commercial and Corporate. Thorne has a successful track record of building broking teams to deliver organic growth and has extensive experience of integrating acquired companies, teams and individual talent. (Specialist Risk Group, 31/10/2022, youTalk insurance, 'Specialist Risk Group invests in growth with appointment of retail Managing Director')

Markel UK has appointed Sam Rix as Technical Underwriting Manager – Technology, as part of the company’s underwriting team. Rix joins Markel UK from Chubb, where he spent five years as Senior Technology Underwriter.(Lyle Adriano, 04/11/2022, Insurance Business UK, 'Markel UK taps Chubb hire for tech team')  

All information provided in this Market Digest has been gathered from Insurance Age, Insurance Business UK and youTalk insurance.