General Insurance Newsletter Friday 24th February 2023

Insurance News

Axa has posted €3.74bn (£3.3bn) of revenue in the UK and Ireland for 2022, up 4% from the previous year on a comparable basis, with growth in both Commercial and Personal lines. However, the combined operating ratio for Property and Casualty business worsened from 95.6% in 2021 to 100.1%. P&C insurance underlying earnings after tax dropped to €222m from €254m. (Emmanuel Kenning, 23/2/2023, Insurance Age, 'Axa grew UK and Ireland revenue 4% in 2022 but COR deteriorated to over 100%')

Theft at work in England and Wales has jumped by a fifth (19%), according to data released by Zurich. The insurer has analysed Freedom of Information results from 43 police forces in England and Wales. The national figures revealed almost 6000 workers were caught stealing from their employer in 2022, up from 5000 the year before. (Emmanuel Kenning, 23/2/2023, Insurance Age, 'Zurich flags rise in commercial crime claims as firms face average losses of £140,000')

Ageas has reported an 11% fall in UK gross written premiums in 2022. The insurer detailed that UK GWP fell to €1.27bn (£1.18bn) in 2022. It is no longer supplying a breakdown of UK results, but the group figures revealed a €23m hit from the December freeze in the UK. (Emmanuel Kenning, 23/2/2023, Insurance Age, 'Ageas confirms €23m December freeze hit as UK GWP drops')

Technology provider Open GI is eyeing up the growing pay-as-you-go market, after having entered the sector with online motor broker Love Your Miles in 2022. According to Simon Badley, Open GI’s group CEO, the partnership has been a “collaborative journey” from the outset. “We look forward to continuing the forward momentum together, and to working with the Love Your Miles team as the brand grows, and they realise their plans to diversify into further pay-per-usage vehicle markets,” Bradley said. (Emmanuel Kenning, 22/2/2023, Insurance Age, 'Open GI eyes pay-as-you-go market after Love Your Miles partnership move')

Tysers delivered AU$18m (£10.16m) of pre-tax profit to AUB Group in the final three months of 2022, its new parent company has confirmed. The Lloyd’s wholesale broker was bought by the Sydney-headquartered firm from private equity house Odyssey Investment Partners for £500m in September 2022. According to AUB, Tysers had performed “above expectations” in the period. It noted that the broker had grown revenue by 12.3% more than initial forecasts, of which 10% was organic growth.(Emmanuel Kenning, 22/2/2023, Insurance Age, 'Tysers exceeding expectations and forecasts, says AUB Group')

The Association of British Insurers has rolled out a three-year strategy with a core focus of driving change to support customers, society and the planet. According to the trade body, the insurance and long-term savings sector stands ready to work with government and regulators to navigate the challenges facing the UK, from climate change through to the potential ‘mega risks’ of tomorrow. (Emmanuel Kenning, 21/2/2023, Insurance Age, 'Customers, society and planet are at the heart of a three-year ABI strategy')

Managing general agent Casper Specialty UK has launched targeting the casualty market. The managing general agent (MGA) will operate independently as a sister firm to broker Miller, and begin writing business on 1 March, backed by capacity from Argenta. Cinven and GIC bought Miller in 2021 from Willis Towers Watson (WTW). According to the newly founded MGA, creating Casper as part of the broader group “aligns closely with the ambition to support high-quality, specialty-focused, insurance intermediaries”. (Emmanuel Kenning, 21/2/2023, Insurance Age, 'Miller-linked new MGA Casper to focus on casualty')

Brokers are more optimistic about growth, with 76% expecting their business to expand in 2023, up from 43% that had a positive outlook in 2022, according to Aviva. The insurer polled 224 brokers in December 2022 for its latest Broker Barometer survey, and found that 79% also expect their clients to grow. This is a notable improvement on 2022, when only 45% foresaw uplifts. (Emmanuel Kenning, 21/2/2023, Insurance Age, 'Brokers upbeat on growth but underinsurance concerns persist – Aviva research')

Covéa is no longer writing business in the executive motor space for high net worth. The insurer is working with brokers following the decision to exit the line last month. Personal Lines Director Sue Coffey said: “HNW [high net worth] remains core for us, but we are no longer writing business in the executive motor space, and [we are] working closely with the limited number of impacted brokers to support the transition.”(Saxon East, 21/2/2023, Insurance Age, 'Covéa exits HNW motor line')

German reinsurance giant Munich Re has issued its trading results for the 2022 financial year, reporting a profit of €3.6 billion, up significantly from its 2021 profit of €2.9 billion, surpassing its profit guidance of €3.3 billion. Among the key results posted by the reinsurer, it revealed a GWP jump of 12.7% to €67.1 billion, up from €59.56 billion in 2021. Its operating result for the 2022 business year amounted to €3.58 billion, roughly on par with the previous year of €3.51 billion, while the other non-operating results amounted to -€81 million, compared to -€91 million in 2021.(Mia Wallace, 23/2/2023, Insurance Business UK, 'Munich Re reveals full-year trading figures')

AXIS Capital Holdings Limited has announced that its Board of Directors has declared a quarterly dividend of $0.44 per common share, payable on April 18, 2023 to shareholders of record at the close of business on March 31, 2023. In addition, the Board declared a dividend of $34.375 per Series E 5.50% preferred share (equivalent to $0.34375 per depositary share) payable on April 18, 2023 to shareholders of record at the close of business on March 31, 2023. (AXIS, 23/2/2023, youTalk Insurance, 'AXIS Capital declares quarterly dividend')

Full year results for Allianz Group reveal that the organisation continued to grow in the UK in 2022, achieving a total revenue of £5,612.8m. Colm Holmes, CEO Allianz Holdings, said: “Undoubtedly 2022 was a tough year for the industry and trading performance was impacted by several large weather events and ongoing inflationary pressures which have impacted profitability. Despite these challenges, we have still achieved growth across our business and these results demonstrate that we have the scale and diversity to withstand even the most difficult of market conditions.” (Allianz, 20/2/2023, youTalk Insurance, 'Allianz Group announces revenue of £5.6bn in UK')

Economic losses from the recent earthquakes in Turkey are likely to exceed US$25 billion (approximately £20.8 billion), and the total insured loss is likely to surpass US$5 billion, according to an estimate by catastrophe risk modelling firm Moody’s RMS. The loss estimates reflect the impact of the earthquakes in Turkey only, with losses in Syria not included, Moody’s RMS said. The insured losses include those to private insurers as well as to the Turkish Catastrophe Insurance Pool (TCIP).(Ryan Smith, 24/2/2023, Insurance Business UK, 'Moody's RMS estimates losses from Turkish quakes')

Chubb has announced the name for the new global climate business it launched last month: Chubb Climate+. The company has also announced the appointment of three executives to the business unit’s leadership team. Chubb Climate+ will provide insurance products and services to businesses engaged in developing or employing new technologies and processes that support the transition to a low-carbon economy. It will also provide risk management and resiliency services to those managing the impact of climate change. (Ryan Smith, 24/2/2023, Insurance Business UK, 'Chubb names new climate business, adds executives')

Liberty Mutual Holding Company Inc. and its subsidiaries (collectively LMHC) has unveiled its financial results for the three and 12 months to December 31, 2022. For the three months to December 31, 2022 (Q4 FY22), LMHC reported a net income of $612 million, down from $722 million for the same period in 2021 (Q4 FY21). For the 12 months to December 31, 2022 (FY22), the company reported a net income of $414 million, down from $3.068 billion for the same period in 2021 (FY21). (Roxanne Libatique, 24/2/2023, Insurance Business UK, 'Liberty Mutual publishes latest financial results')

Mergers & Acquisitions

The Broker Investment Group-backed Beam Insurance has snapped up a medical insurance broker and has plans to ramp up acquisitions. Beam has received backing from The Broker Investment Group, which is majority owned by Towergate founder Peter Cullum, for the purchase of Redditch-based AP Insurance Brokers. Beam has two more acquisitions in the pipeline, as it targets growing gross written premium from £13.75m to £20m-£25m by 2025. Its last purchase was Absolute Risk Solutions in 2021. (Saxon East, 23/2/2023, Insurance Age, 'The Broker Investment Group supports first broker acquisition since rebrand')

Tysers has revealed the sale of its bloodstock broking team and bloodstock managing agent, Galileo, to the “perfect new home” of Howden. Lloyd’s wholesale broker Tysers was bought by AUB Group from private equity house Odyssey Investment Partners for £500m in September 2022. Tysers CEO Clive Buesnel detailed that, while the firm had built “an exceptional bloodstock business”, it was no longer an area of focus. (Emmanuel Kenning, 20/2/2023, Insurance Age, 'Tysers sells bloodstock broking team and MGA Galileo to Howden')

Newcastle-under-Lyme-based Amb Insurance Services has snapped up Stoke on Trent-based Mercer Jones & Company taking its gross written premium up to £6m. Buying the firm has doubled the Bravo Networks member’s GWP while headcount has risen to 21 with plans to recruit further. The deal, for an undisclosed sum, has been funded through a mix of Amb’s cash reserves and bank lending. (Emmanuel Kenning, 24/2/2023, Insurance Age, 'Amb Insurance Services doubles with Mercer Jones & Company buy')

Insurance data intelligence provider Percayso Inform announced its acquisition of Cazana, a move that marked the company’s first major step forward in its plans to increase its footprint across the UK motor insurance market. Moving forward, Cazana will be known as Percayso Vehicle Intelligence. Cazana was founded in 2012, growing to become one of the leading data insight platforms in the European automotive industry. Before Percayso’s purchase, it was acquired by Cazoo in 2021. (Kenneth Araullo, 24/2/2023, Insurance Business UK, 'Percayso Inform acquires automotive data insight platform')

Movers

BGL Insurance CEO Peter Thompson is leaving the business on 28 February, Markerstudy Group has confirmed. Markerstudy completed its purchase of BGL Group in May 2022, after plans for the deal were first revealed in January 2022 for a reported £400m. According to Markerstudy, Thompson’s decision to leave followed a “strategic review”, and was reached “mutually”. Kevin Spencer, Markerstudy Group CEO, will take up the CEO role “in the interim”, supported by the existing executive team, Markerstudy stated.(Emmanuel Kenning, 21/2/2023, Insurance Age, 'CEO Peter Thompson leaving BGL')

MGA Pen Underwriting (Pen) has appointed Seb Simmonds as the new Managing Director (MD) of its public sector division. Simmonds, who has been with Pen since the beginning, is currently the MD of risk managed commercial – a role he has held since 2020. He has 20 years of experience, the majority of which have been in the specialist field of schemes and MGAs. Within Pen, he has held various roles, including managing the delegated commercial team and its 80 sub-delegated arrangements across property and liability schemes for five years.(Roxanne Libatique, 23/2/2023, Insurance Business UK, 'Pen Underwriting appoints company veteran as new MD for public sector')

International re/insurance broking company Consilium has formed a new specialty treaty reinsurance division to be led by Paul Cousins and Matt Webb. Making the switch from Ed Broking after more than two decades, Webb most recently served as Division Director of reinsurance. He joins Consilium as a Partner, co-leading the new division which will offer both proportional and non-proportional solutions. Cousins, meanwhile, brings 44 years of industry experience spanning underwriting and broking. His credentials include time spent at Aon Benfield, Employers Re, Canopius, and Chesterfield Group. (Terry Gangcuangco, 23/2/2023, Insurance Business UK, 'Consilium forms new treaty division')

Premium Credit, the UK and Ireland’s leading premium finance provider, is pleased to announce that Peter Heath has joined the business as Head of Affinity. He takes over from Glen Murphy who was recently promoted to the role of Sales Support Director. Peter has worked in the Insurance industry for over 16 years and has held a number of underwriting and Sales/Relationship roles during that time. He began his careers at Zurich Municipal and went on to work for Allianz for 11 years working across Commercial and Personal Lines. He arrives at Premium Credit from Simply Business where he has spent the last 3 years working in Partnerships.(Premium Credit, 23/2/2023, youTalk Insurance, 'Peter Heath joins Premium Credit as Head of Affinity')

Aon plc has announced the appointments of Tony Day as Head of Crisis Management and Julia Dickson as Head of War and Terrorism. Tony was most recently Chief Broking Officer for Crisis Management at Aon, stepping into this role in 2017. Julia joined Aon in 2013 and was most recently Head of International War and Terrorism. (AON, 23/2/2023, youTalk Insurance, 'Aon announces senior appointments to strengthen its Political Violence & Terrorism team')

Insurance and financial services experts Mike Keller and Scott Fitzgerald have been appointed as founding members of the advisory board at Earnix. Fitzgerald is a Duck Creek Technologies alumnus and current Chief Marketing Officer at Intapp. Keller, meanwhile, brings a combined two decades of experience from JP Morgan Chase and Nationwide Insurance and Financial Services. Currently he sits on the boards at Guidewire Software and Encova Mutual Insurance Group. (Terry Gangcuangco, 24/2/2023, Insurance Business UK, 'Earnix taps duo for advisory board')

Markel International has appointed Paul Hutchins as a Senior Underwriter for its Warranty and Indemnity (W&I) underwriting team. Prior to joining Markel International, Hutchins spent more than eight years at ANV Global Services. At ANV, he started as an M&A Underwriter, then got promoted to Senior M&A Underwriter. It was during this time that he played a key role in establishing and growing ANV’s UK businesses will supporting its junior members. (Lyle Adriano, 24/2/2023, Insurance Business UK, 'Markel International names new senior underwriter for warranty and indemnity')