General Insurance Newsletter Friday 21st April 2023

Insurance News

Movo will be launching its managing general agent Moveda Underwriting on 1 May, upping its appointed representative network target to 120 next year and has rolled out Quote Portal, Managing Director Lea Cheesbrough said. Owned by Movo Investment Group after the soft launch the MGA will be opened up to Movo Group’s 17 brokers on 1 June ahead of being released to the full AR network and Durrell brokers in due course, Cheesbrough confirmed. (Emmanuel Kenning, 21/4/2023, Insurance Age, 'Movo unveils MGA and rolls out Quote Portal as targets grow with start-ups focus')

Brokers face a near ban on paying commissions to third parties after a shock FCA report revealed incompetence and unjustifiable remuneration in the buildings’ insurance market. Brokers will also have to reveal full commission disclosure to customers on how much commission they receive from carriers for buildings’ insurance. These are two of the biggest changes the regulator wants to impose by the end of this year on the buildings’ insurance market. (Saxon East, 21/4/2023, Insurance Age, 'FCA announces overhaul in broker property commissions amid market failure')

The AA’s earnings fell 21% to £55m (2022: £70m) in 2022 as the insurance business suffered from claims inflation and lower commissions following the FCA’s pricing ban. Adjusted earnings before interest, taxes, depreciation and amortisation fell in a ‘challenging external environment’, the broking group confirmed in its full-year results to 2023. The AA said: “Driven by the challenging external environment, adjusted Ebitda in our Insurance business reduced by £15m to £55m (2022: £70m). (Saxon East, 20/4/2023, Insurance Age, 'AA insurance earnings fall 21% as dual pricing ban hits commissions')

The Chartered Insurance Institute published a five-year strategic plan containing six themes. In its most recent financial results, the CII posted a £4.4m loss for 2021. According to the Institute, the plan is organised into two phases. For the first year – 2023 – it focuses on addressing legacy systems issues, returning the CII to a surplus position and building foundations for the future.(Insurance Age Reporter, 20/4/2023, Insurance Age, 'CII launches five-year plan')

Car insurance premiums increased by £107 (20%) during the past 12 months, with motorists now on average paying £657, according to research from Confused and WTW. The average cost of a comprehensive car insurance policy is now the most expensive it has been since 2011. This is the sixth consecutive price rise, following an increase of 4% in the first quarter of 2023. (Sophie Locke-Cooper, 20/4/2023, Insurance Age, 'UK car insurance premiums see biggest annual rise in over a decade')

According to research from Ecclesiastical, only two in five national brokers have set a net zero target. In its second annual survey of brokers’ attitudes to net zero, the insurer found the number of broker firms that set a net zero target has risen slightly since last year, but lack of concern remains, particularly among smaller firms. Only 10% of regional brokers, up from 5% last year, and 4% of provincial brokers, have made a net zero commitment.(Sophie Locke-Cooper, 20/4/2023, Insurance Age, 'Brokers show lack of urgency towards net zero')

In a span of three weeks, three major names have left the United Nations-convened Net-Zero Insurance Alliance (NZIA) – this time around we see Hannover Re, the third biggest reinsurer in the world, head for the door. Without detailing its reasons for the exit, Hannover Re cited “careful consideration” behind the decision. Just like its peers Munich Re and Zurich, though, Hannover Re is similarly sticking to its own climate and sustainability goals. (Terry Gangcuangco, 20/4/2023, Insurance Business UK, 'Net-Zero Insurance Alliance departures continue')

Aviva and GRP have entered a new partnership, finally healing all the wounds of their fall out five years ago. The Aviva and GRP agency ended in 2018, with the two companies falling out over commissions and profitability. However, since GRP was acquired by US giant Brown & Brown in July last year, Aviva has kept the consolidator’s newly acquired brokers as agency partners. The pilot has gone well enough for Aviva to now enter into a full partnership with all of GRP’s brokers. (Saxon East, 19/4/2023, Insurance Age, 'Aviva and GRP heal wounds with new deal')

It looks like accounting giant PwC had to pay less than 6% of the amount previously being sought in the settled negligent auditing case against the company for its work on failed insurer Quinn Insurance. Prior to the case settling last year, insolvent Quinn Insurance was seeking €900 million for PwC’s supposed negligent auditing of the business between 2005 and 2008. Quinn Insurance went bust in 2010. PwC, which denied negligence, was also sued for breach of contract and duty.(Terry Gangcuangco, 21/4/2023, Insurance Business UK, 'Revealed – settlement sum between Quinn Insurance and PwC')

Italian insurance broker Double S Insurance Broker has rebranded as Acrisure, marking the global company’s entry into Italy. The rebranding is effective immediately, and going forward, the Double S team will represent Acrisure in the country. Acrisure is an international insurance company offering a wide range of products including insurance, reinsurance, cyber services, and more. (Miko Pagaduan, 21/4/2023, Insurance Business UK, 'Insurance broker rebrands as Acrisure in partnership move')

Marsh McLennan (MMC) has unveiled financial results for the first quarter of 2023, reporting $5.9 billion in revenue, a 7% increase compared to the same period last year. Revenue increased 9% on an underlying basis. Operating income was $1.7 billion, 19% higher than the previous year. Adjusted operating income rose 13% to $1.8 billion.(Gia Snape, 20/4/2023, Insurance Business UK, 'Marsh McLennan announces Q1 2023 financials')

In further news...Marsh McLennan (MMC) expects to see costs of up to US$400 million from a restructuring program first revealed in January of this year. This is according to MMC CEO John Doyle, who addressed analysts and investors during the global broker’s Q1 2023 results call. MMC expects “roughly US$300 million of savings by 2024 with total cost to achieve these savings of $375 million to US$400 million”, Doyle said. (Jen Frost, 20/4/2023, Insurance Business UK, 'Marsh parent restructure could cost US$400 million')

The Chartered Insurance Institute (CII)’s new five-year ‘Strategic Plan 2023-2027’ is the very embodiment of a ‘spring clean’ – serving as both a reaffirmation of the professional body’s overarching purpose and a roadmap for where it will go next. Discussing the plan’s launch, CII Chief Executive Alan Vallance highlighted how it underscores the Institute’s mission – "to educate and support our members to deliver services to the highest professional standards and to advocate for the public good". (Mia Wallace, 20/4/2023, Insurance Business UK, 'CII chief Alan Vallance unveils five-year strategic plan')

Aspen Insurance Holdings has reasons to be merry about its financial results for the 12 months ended December 31, 2022. Of Aspen’s underwriting income, US$104 million came from the group’s insurance segment; US$87 million from reinsurance. Both segments enjoyed growth in the period, from an underwriting loss of US$101 million for insurance in 2021 and from reinsurance’s US$71 million in underwriting income.(Terry Gangcuangco, 20/4/2023, Insurance Business UK, 'Aspen reports full-year financials')

Global economic losses for natural disasters hit an estimated US$77 billion (about £61.9 billion) in the first quarter – the highest Q1 total in a dozen years, according to a new report from Gallagher Re. Public and private insurance entities covered an estimated $22 billion in losses, leaving a 72% (US$55 billion) protection gap, according to Gallagher Re’s Q1 2023 Natural Catastrophe Report. (Ryan Smith, 20/4/2023, Insurance Business UK, 'Global Q1 cat losses hit 12-year high')

Specialty insurer Tokio Marine HCC International (TMHCCI) has announced the opening of a broker lounge located on the seventh floor of the iconic Walkie Talkie Building at 20 Fenchurch Street. The opening signifies the consolidation of TMHCCI’s London Market operations in one site in the building. Open from 8am to 6pm Monday to Friday, the lounge features open panoramic views across London and has a multi-use purpose with space for all kinds of functions, from formal business meetings to more casual social events. The broker lounge will also act as a key access point for brokers to collaborate with teams across the business.(Kenneth Araullo, 20/4/2023, Insurance Business UK, 'Tokio Marine HCCI opens new broker lounge at Walkie Talkie')

AXA Commercial has launched a new branch as part of its commitment to strengthening engagement and enhancing its offering to regional brokers. The new branch, located in Southampton, will operate as a trading hub and have a dedicated underwriting team focused on new and existing businesses across AXA Commercial product lines. (Roxanne Libatique, 19/4/2023, Insurance Business UK, 'AXA Commercial launches new branch')

Network Brokerbility has listened to both members and non-members to come up with a new membership framework aimed at making every partner feel valued and part of “a true community” through collective working and knowledge sharing. In an emailed release, Brokerbility said large-scale broking groups and those with multiple brands will be considered foundation partners; independent brokers, core partners; brokers with a strong trajectory, growth partners; an incubator for startups and appointed representatives, launchpad partners; and insurer tech and innovative services, affiliate partners.(Terry Gangcuangco, 19/4/2023, Insurance Business UK, 'Brokerbility introduces new membership framework')

Mergers & Acquisitions

PIB has completed its second acquisition in less than a week, buying property broker St Giles. St Giles has offices in London, Liverpool and Ringwood, Hampshire. It focuses solely on arranging property owners’ insurance and directly related covers for a chosen segment of managing agents and a small number of property owners.(Saxon East, 19/4/2023, Insurance Age, 'PIB snaps up residential property specialist broker')

Shareholders of Argo Group International Holdings have voted in favour of the company’s all-cash sale to Brookfield Reinsurance. The shareholder nod comes despite allegations by purported investors that the proxy statement for the agreement omitted material information that rendered it incomplete or misleading. As previously reported, Argo called these complaints meritless. (Terry Gangcuangco, 21/4/2023, Insurance Business UK, 'Argo Group sale secures shareholder approval')

Insurtech conglomerate POP Group Holdings (POP) has received its first external strategic minority investment from private equity fund Direct Capital. Launched in 2018, POP is composed of specialist M&A and financial lines MGA Fusion Specialty and dedicated specialty insurtech and M&A tech platform io.insure. Over the years, it has grown rapidly and has established a physical presence, client base, and technology platforms in the APAC, the US, the UK, and European markets. (Roxanne Libatique, 19/4/2023, Insurance Business UK, 'POP Group Holdings welcomes investment from Direct Capital')

Specialty managing general agent Nirvana Risk Partners, which completed its management buyout from Castel Underwriting Agencies in March, has now entered into an incubation partnership with Pro MGA Global Solutions. “Following the buyout, we are looking for a seamless transition to an independent MGA, and we are very pleased to be partnering with Danny [Maleary] and team, who I’m confident will apply their leading technical expertise to continue to enable the global vision of our business,” shared Nirvana Chief Executive Kabir Chanraiin a release. (Terry Gangcuangco, 19/4/2023, Insurance Business UK, 'Ex-Castel managing general agent seals deal with Pro MGA Global Solutions')

Movers

Lockton has hired Peter Chesterfield as Senior Vice President in the global real estate and construction team. He joins from Gallagher where he was Executive Partner. He brings over a decade of experience in the delivery of business development, sales and strategic account management across construction classes, both in London and Australia, to his new role. He previously held senior roles at JLT and Marsh Specialty.(Sophie Locke-Cooper, 21/4/2023, Insurance Age, 'People Moves: 17 - 21 April 2023: Lockton hires senior vice president')

Lonmar, part of Brown & Brown-owned GRP, has named Nick Muir Head of UK & Ireland property. He joins from Lockton and will report to managing director, Karen Allen. Allen said: “Nick is a great hire for us; he is highly experienced and respected in his class and has well developed relationships across the market and a reputation borne out of delivering results throughout his career." (Sophie Locke-Cooper, 21/4/2023, Insurance Age, 'People Moves: 17 - 21 April 2023: Lonmar adds head of UK & Ireland property')

Intangic MGA has appointed Debbie Durkan as Commercial Director. She has more than 25 years’ experience in the insurance market and has held various senior roles in insurance broking firms. She joins from Marsh, where she served most recently as Chief Client Officer for the UK commercial group. (Sophie Locke-Cooper, 21/4/2023, Insurance Age, 'People Moves: 17 - 21 April 2023: Intangic MGA appoints commercial director')

MS Amlin has appointed Ruth Adamson as Head of Insurance and Financial Risk, and Kevin Ball as Head of Compliance. Adamson joins from AEGIS London where she has worked since 2008 and for the last eight years as Head of Risk and Governance. Ball joins from Ascot Group, where he has worked since 2004, serving as Head of Compliance for the last seven years. (Sophie Locke-Cooper, 21/4/2023, Insurance Age, 'People Moves: 17 - 21 April 2023: MS Amlin expands risk and compliance functions with senior hires')

Keith Skeoch has been named Executive Chairman of QBE European Operations. He has over 40 years’ experience across the private and public sectors. After 20 years as Chief Economist at James Capel, he joined Standard Life Investments as Chief Investment Officer in 1999 and served on the board of Standard Life plc, initially as CEO of Standard Life investments plc and then as CEO of Standard Life plc and Standard Life Aberdeen. (Sophie Locke-Cooper, 21/4/2023, Insurance Age, 'People Moves: 17 - 21 April 2023: QBE European Operations names executive chairman')

BMS has hired Morna Leather as UK and International Chief Financial Officer, effective summer 2023. With a career spanning more than 25 years, Leather joins BMS from her most recent position as CFO of Ardonagh Global Partners. Prior to this, she held several senior roles at RFIB, including CFO and Head of Corporate Strategy. Leather was also Head of Finance Projects at Aon Benfield and a Senior Manager at PwC. (Sophie Locke-Cooper, 21/4/2023, Insurance Age, 'People Moves: 17 - 21 April 2023: BMS recruits UK and international CFO')

Specialist global insurer Hiscox has appointed Minesh Shah as its new Director of Underwriting Risk for Hiscox Re & ILS. Shah, a qualified Actuary with over 25 years of experience in property and casualty reinsurance across Bermuda and London, will be responsible for driving optimisation across Hiscox Re & ILS’ reinsurance portfolio and those for third-party capital. (Miko Pagaduan, 20/4/2023, Insurance Business UK, 'Hiscox Re & ILS taps director of underwriting risk')

Verlingue has confirmed its plans to open a new Birmingham office as part of the broker’s strategy to expand its existing client base in the Midlands and South West region. The broker will be providing its full range of risk management, broking, and employee benefits propositions from this new office. Operations for the new Birmingham location will be led by new hire Ian McKinney, who has been appointed as Verlingue Director for Corporate in the Midlands and South West. McKinney brings with him over 20 years of insurance market experience, most recently serving as Client Services Director for broker AJ Gallagher’s Coventry office. (Kenneth Araullo, 19/4/2023, Insurance Business UK, 'Verlingue announces Birmingham expansion')

Claims giant Sedgwick has announced the appointment of Jonathan Mockridge as Head of its UK environmental adjusting practice in a move that supports the expansion of its claims services for environmental losses. Mockridge joins Sedgwick with over 25 years of experience in the insurance industry, having spent the last 13 years specialising in environmental losses associated with commercial, agricultural, and domestic pollution incidents, involving a variety of contaminants. (Mike Pangilinan, 18/4/2023, Insurance Business UK, 'Sedgwick appoints head of environmental adjusting practice in the UK')