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General Insurance Newsletter Friday 6th January 2023

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Insurance News

Personal Finance Society member directors have called claims by the Chartered Insurance Institute about PFS board governance failures untrue. On 21 December the CII Group appointed a majority of Directors to the PFS board, seizing control of it with immediate effect. CII claimed the decision was made due to severe governance issues on the PFS board, but denied it was a board ‘takeover’. (Lauren Ingram, 5/1/23, Insurance Age, 'PFS board calls CII claims untrue')

Lloyd’s broker and wholesaler Citynet has secured capacity to help its broker partners on Motor business. Citynet announced that it had secured support from rated capacity to place bus, coach and Minibus ,Motor business through its wholesale business. “Citynet Insurance Brokers Motor Fleet division already boasts unrivalled access to Lloyd’s and London market insurance providers and this latest partnership will enhance our offering to our broker partners by providing a first-class solution to the UK passenger vehicle sector in what is a shrinking and limited marketplace,” the broker said in a statement on LinkedIn. (Saxon East, 5/1/23, Insurance Age, 'Citynet secures capacity for ‘first class’ solution to help its brokers')

Chambers and Newman has recorded a post-tax profit of £385,000 for the period including the sale to Ardonagh. The results filed at Companies House last month were for a nine-month period up to 31 December 2021. Turnover for the foreshortened timeframe spanning across the sale was £2.1m. (Emmanuel Kenning, 5/1/23, Insurance Age, 'Chambers and Newman reveals profit in Ardonagh sale year')

Mark Mellett, Managing Director of Spitfire Brokers, has been convicted in a Hampshire court of indecent exposure but avoided a jail sentence. Mellett pleaded guilty on 16 November 2022 to exposing himself to two women at a park in Eastleigh, Hampshire, before being sentenced last month. (Lauren Ingram, 4/1/23, Insurance Age, 'Broker convicted for indecent exposure')

Caravan Guard has posted a 6% fall in turnover to £11.9m in the year ended 31 March 2022. However, the broker noted that turnover in the prior 12 months had been boosted by the release of historic underwriting reserves. “The income from policies sold in the current period increased by 8% compared to the prior year, demonstrating solid underlying organic growth,” the directors reported in a filing at Companies House.(Emmanuel Kenning, 4/1/23, Insurance Age, 'Caravan Guard posts turnover dip but underlying growth')

Aston Lark is expanding its UK regional footprint by opening offices in South Wales and The Thames Valley. The broker, part of Howden Group since last April, already has more than 75 offices in the UK and Ireland, with 2,000 employees serving 200,000 customers and more than £1.2bn of premiums.(Emmanuel Kenning, 4/1/23, Insurance Age, 'Aston Lark to open branches in South Wales and the Thames Valley')

Loadsure has received capacity backing from Tokio Marine Kiln to enhance its Freight protection offering. According to the managing general agent, the collaboration is part of a broader approach undertaken by TMK to drive digital innovation. The aim of the partnership is to develop a framework that Loadsure can use to expand its platform capabilities, supported commodities and geographic outreach.(Sophie Locke-Cooper, 4/1/23, Insurance Age, 'Loadsure boosts freight offering with Tokio Marine Kiln capacity backing')

Ecclesiastical has become the new insurance partner for Brokerbility’s bricks and mortar scheme, taking over from Aviva. Aviva had backed the scheme for several years. The tie-up with Ecclesiastical marks Brokerbility’s first scheme partnership with the Gloucester-based insurer. (Emmanuel Kenning, 4/1/23, Insurance Age, 'Brokerbility strikes first schemes deal with Ecclesiastical')

The Financial Conduct Authority dished out £214,250,056 in fines in 2022, the fourth lowest on record since the FCA was formed in 2013. JLT Specialty was hit with the only general insurance broking related fine last year. It was slapped with a £7.9m penalty for financial crime control failings, which in one instance allowed bribery of over $3m (£2.45m) to take place. (Emmanuel Kenning, 3/1/23, Insurance Age, 'FCA fines drop to £214.3m in 2022')

Higos has taken on 10 college leavers as apprentices working with Wiser Academy to help build the next generation of insurance brokers in the South West. Higos, bought by Global Risk Partners as its hub for the region in 2017, has previously worked with Wiser Academy on training including on the latter’s graduate programme. However it is the first time it has been part of Wiser Academy’s Rise Up programme for apprentices which is aiming to get 500 young people into broking. (Emmanuel Kenning, 3/1/23, Insurance Age, 'Higos adds 10 apprentices in Wiser Academy tie-up')

AXA has successfully placed €750 million of Regulation S senior unsecured notes due 2033 with institutional investors, with part of the proceeds going towards debt refinancing. In its announcement, the global insurer said: “The notes will be used for general corporate purposes, including the refinancing of part of the group’s outstanding debt." (Terry Ganguangco, 5/1/23, Insurance Business UK, 'AXA unveils successful senior notes placement')

​It’s official – Fidelis MGU has arrived, following completion of the transaction establishing the new managing general underwriter that is separate from Fidelis Insurance Holdings Limited and the existing companies collectively known as Fidelis Insurance Group. With offices in Bermuda, the UK, and Ireland, Fidelis MGU is led by Chair & Group Chief Executive Richard Brindle. Executive committee members include Deputy Chair & Group Executive Director Charles Mathias, Group Chief Financial Officer Hinal Patel, insurance CEO & UK Chief Underwriting Officer Richard Coulson, and Group Chief Operating Officer Rinku Patel. The latter will, at the same time, serve as Chief Executive for the UK and of managing general agent platform Pine Walk. (Terry Ganguangco, 5/1/23, Insurance Business UK, 'Fidelis MGU arrives')

Mergers & Acquisitions

Global Risk Partners has bought Hedron Network member Christopher Trigg Insurance Brokers. The deal, GRP’s first of 2023, has received regulatory approval and sees the consolidator buy 100% of the Rickmansworth-based commercial insurance broker. (Emmanuel Kenning, 5/1/23, Insurance Age, 'GRP buys Christopher Trigg Insurance Brokers')

Specialist Risk Group has bought Oxfordshire-based specialist broker Fleet and Commercial in its first deal of the year. Founded in 2011, Fleet and Commercial works UK-wide supporting a range of different industries, trades and businesses, from tradespeople to SMEs and large corporates. According to SRG the takeover, which is subject to regulatory approval, will enhance its Commercial Motor capability. (Emmanuel Kenning, 4/1/23, Insurance Age, 'SRG starts 2023 with Fleet and Commercial buy')

Howden, the international insurance broker, has announced that it has acquired 100% of Spanish insurance broker March Risk Solutions (March R.S.) and has signed an alliance with Banca March, March R.S.’s parent company and one of the region’s pre-eminent investment banks. Following the purchase, Howden Iberia will exceed EURO 100 million in revenue, EURO 700 Million in Gross Written Premium (GWP), and will comprise over 1,000 employees. The transaction is pending approval by the Directorate General of Insurance and Pension Funds. (Howden, 3/1/23, youTalk Insurance, 'Howden buys Spain’s March Risk Solutions and signs deal with Banca March')

Jensten has revealed that the deal for Tasker Insurance Group cost £35.1m with the majority of the bill – £33.6m – paid in cash. Jensten’s purchase was first revealed in June 2021 with the buy completing on 15 September. Less than a fortnight later Tasker completed the purchase of Altrincham-based broker Insure Risk for £1.07m.(Emmanuel Kenning, 6/1/23, Insurance Age, 'Jensten posts £21.5m loss as it reveals £35.1m Tasker price')

Record-breaking M&A figures in 2021 were followed by a troubled year in 2022 for the M&A industry, with political and economic events forcing dealmakers to reassess some investments. At the beginning of Q4 2022, M&A deals were estimated to decrease by 37% on a yearly basis, according to the Global M&A Insurance 2022 Review and 2023 Outlook by Gallagher. The report said that there was a slight reduction in the number of Warranty and Indemnity (W&I)/Representations and Warranties (R&W) policies taken out in 2022. However, the uptake of M&A insurance products (including tax and contingent risk policies) continued to increase on a “portion of deals done” basis. (Gabriel Olano, 5/1/23, Insurance Business UK, 'M&A industry sees decline in 2022 – Gallagher)

Movers & Shakers

​Only hours after a subset of the board of the Personal Finance Society (PFS) issued a statement regarding the recent action taken by the Chartered Insurance Institute (CII) board to “equalise” the PFS board, Caroline Stuart, President of the PFS, has tendered her resignation. In a statement, Stuart revealed that she will be stepping down as both President and Member Director of the PFS board with immediate effect. Registering her “deepest sadness” at the decision, she highlighted that she has been working with the PFS on a voluntary basis for almost eight years and that it was the greatest honour of her professional life to elected President in September 2022. (Mia Wallace, 5/1/23, Insurance Business UK, 'PFS president steps down amid surging tensions')

bolttech, an international insurtech that serves customers in 30 markets across North America, Asia, and Europe, has appointed Dr. Jens Schädler as its new CEO for Europe. Dr. Schädler has over 18 years of experience in telecommunications, having been a Partner at consultancies Bain & Company and Booz Allen Hamilton in Switzerland. (Roxanne Libatique, 5/1/23, Insurance Business UK, 'Insurtech bolttech names new CEO for Europe')

​Chubb has announced the launch of a global climate business unit dedicated to tackling the impact of climate change and working toward the goal of a net zero future. Heading the new unit are two of Chubb’s Senior Leaders. Matthew McMullin has been tapped to be the North America leader of the Chubb Global Climate Practice, while Matthew Hardy has been appointed the Chubb Overseas General (COG) leader, handling the market outside the US, Canada, and Bermuda.(Mika Pangilinan, 5/1/23, Insurance Business UK, 'Chubb announces launch of global climate business unit')

McGill and Partners has expanded its structured solutions team by hiring new Partner Dan Cordina, who joined from EY on Jan. 1. Cordina has extensive experience in the European insurance and reinsurance transactions and restructuring space, having spent more than a decade at EY, one of the big four accountancy firms. During his career, he successfully executed various economic and legal finality solutions, including traditional legacy reinsurance deals, as well as the sale of a specialist legacy carrier to private equity, and several Part VII transfers. Cordina is a qualified Chartered Accountant, a member of the Insolvency Practitioners’ Association and the Joint Insolvency Examination Board. (Gabriel Olano, 5/1/23, Insurance Business UK, 'McGill and Partners grows structured solutions team')

HDI Global SE UK & Ireland (HDI) has appointed Phil Healy to lead the Motor Fleet underwriting division, effective immediately. Mr Healy takes over from John Shepherd who, after 10 years at HDI, retires from the company this month. Mr Healy joined HDI in June 2020 as Motor Fleet Team Leader following time at Aon - where he was a Placing Broker in the UK & Ireland facultative Motor Reinsurance team – Aviva, WTW and RSA. He has over 30 years of Motor Fleet insurance experience. (HDI Global SE, 5/1/23, youTalk Insurance, 'HDI appoints new Director of Motor Fleet Underwriting in the UK & Ireland')

Allianz Holdings has announced the appointment of Laurence Townley as Chief Actuary for the UK business effective 1 January 2023. Laurence joins Allianz following 10 years at Direct Line as Director of Financial Risk. Prior to that, he held various roles at Zurich Insurance UK including Chief Actuary. He is a Fellow of the Institute and Faculty of Actuaries and has chaired the prudential regulation committee at the Association of British Insurers (ABI) overseeing matters such as Solvency 2 and regulatory framework reviews.(Allianz, 5/1/23, youTalk Insurance, 'Allianz Holdings welcomes new Chief Actuary')

Barry Driscoll has joined GRP’s underwriting division as Chief Trading Officer (CTO). The role is a new one for GRP, starting from 1 January 2023. Driscoll, who was previously in a senior leadership role at Zurich, will report to underwriting CEO Clive Nathan. (GRP, 4/1/23, youTalk Insurance, 'GRP Underwriting appoints Barry Driscoll as Chief Trading Officer')

Lonmar Global Risks, trading as Ropner Insurance Services (Lonmar) has appointed experienced Marine and Freight Liability Broker John Naughton to its Marine Cargo team. His appointment will help drive forward growth plans for the Marine Cargo team, particularly in Freight and Logistics. (Lonmar Global Risks, 3/1/23, youTalk Insurance, 'John Naughton joins Lonmar’s Marine Cargo team as Executive Director')

AIG has announced that Don Bailey has joined the company as Global Head of Distribution and Field Operations, effective immediately. For over 30 years, Mr. Bailey has held many senior roles across the Insurance industry. He is joining AIG from Bristlecone Partners, a growth and human capital consultancy firm, where he had been a Partner since 2017. Prior to that, Mr. Bailey served as President of Global Sales at Marsh. Earlier in his career, Mr. Bailey served as President of Allstate B2B and Chairman of Encompass, the mass affluent personal lines subsidiary of Allstate. He also previously served as Chairman and CEO of Willis Towers Watson North America. (AIG, 4/1/23, youTalk Insurance, 'AIG appoints Don Bailey as Global Head of Distribution and Field Operations')

ICSR is delighted to announce the appointment of Claire King as Head of Risk with effect from 3 January 2023. Claire has over 20 years’ experience of working in the London Insurance market, developing and implementing risk frameworks for a variety of firms including Amlin, Hardy and Tokio Marine HCC. (ICSR, 5/1/23, youTalk Insurance, 'Claire King joins ICSR as Head of Risk')

MS Amlin has made several appointments to its senior underwriting leadership team. Graham Baxter will become interim CUO, Neil Walker has become Co-Deputy CUO and Head of Specialty Insurance. Walker assumes responsibility for Marine, Casualty Natural Resources and Crisis Management insurance lines. Sam Geddes has also been named as Co-Deputy CUO, alongside his existing responsibilities for Property and Auto insurance product lines. (Sophie Locke-Cooper, 6/1/23, Insurance Age, 'People Moves: 2 - 6 January 2023')

Spring Insure has named Tristan Sargeaunt as Group CEO. Sargeaunt joins from Lloyd’s of London broker, Protean Risk, where he was Managing Director. He will succeed Co-Founder Nathan Sewell, who has steered the MGA since its launch in November 2020.(Sophie Locke-Cooper, 6/1/23, Insurance Age, 'People Moves: 2 - 6 January 2023')

Darwin Clayton has appointed Mark Harris to the board of directors. In his new role, he will be responsible for product governance and oversight, managing insurer relationships, leading the scheme teams, technical referral point within the business and continuing responsibility for select large client accounts. Mark has been with the company in a variety of roles since 2004. (Sophie Locke-Cooper, 6/1/23, Insurance Age, 'People Moves: 2 - 6 January 2023')

Berkshire Hathaway Specialty Insurance (BHSI) has made internal leadership appointments for its Executive & Professional Lines business in Britain. Former UK Head of Executive & Professional Lines Chris Warrior, who has been in insurance for four decades, will now be in charge of driving technical underwriting excellence across all Executive & Professional Lines segments. He is succeeded by Jess Kirby, who moves up from being Commercial Management Liability Head. Replacing Kirby is Tom Harris, who previously served as Senior Underwriter. He has been with BHSI since 2021; Kirby, 2018; and Warrior, 2019. Both Kirby and Harris bring 15 years of experience to their respective roles. (Terry Gangcuangco, 6/1/23, Insurance Business UK, 'BHSI unveils internal hires for UK executive & professional lines')

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