General Insurance Newsletter Friday 12th May 2023

Insurance News

Capsule Insurance Services Chief Operating Officer Liam Green has received the Oliver Rose BIBA Young Broker Award from the British Insurance Brokers’ Association (BIBA). Handed out during the second and final day of The BIBA Conference 2023 in Manchester, the award was renamed in memory of Oliver Rose – the BIBA Young Broker of the Year in 2016 who passed away in March 2023. It was presented to Green by Oliver’s mother, Helen Rose. (Terry Gangcuangco, 11/5/2023, Insurance Business UK, 'COO bags Oliver Rose BIBA Young Broker Award')

The British Insurance Brokers’ Association (BIBA) released a new guide aimed at helping members in giving customers practical advice amid the cost-of-living crisis. “Cutting back on cover could be a false and dangerous economy resulting an increase in underinsurance, a reduction in resilience, and a greater potential for non-disclosure and fraudulent claims,” said BIBA Executive Director Graeme Trudgill in an emailed release. (Terry Gangcuangco, 11/5/2023, Insurance Business UK, 'BIBA releases guide centred on cost-of-living crisis')

In further news...The British Insurance Brokers’ Association (BIBA), has published a new guide on ESG (environmental, social, and governance) for BIBA members. A full copy of the guide can be accessed on the BIBA website, while hard copies of a summarised mini version were made available at The BIBA Conference 2023 in Manchester. According to the trade body, the online version is a dynamic guide that will be updated whenever necessary. (Terry Gangcuangco, 10/5/2023, Insurance Business UK, 'BIBA publishes new guidance on ESG')

Results season continues with the turn of Hastings parent Sampo Plc detailing the insurance group’s financial results in the first quarter of 2023. Net profit for the company’s equity holders stood at €271 million. The corresponding figure in Q1 2022 was €773 million. Compared to the previous year, both profit before taxes and net financial result in Q1 2023 went down, while underwriting result and insurance service result were slightly higher. (Terry Gangcuangco, 11/5/2023, Insurance Business UK, 'Sampo Group reports Q1 financials')

AXA Climate has extended its strategic partnership with data analytics provider Planet Labs. The partnership offers satellite data-driven insights for the development of parametric insurance products to help protect farmers against the effects of drought. AXA Climate offers drought insurance services that estimate crop yield and losses. The parametric insurance product automatically triggers payouts within a few days of the end of a risk period, the companies said. This enables farmers, suppliers, processors and other agricultural stakeholders to quickly receive compensation. (Ryan Smith, 10/5/2023, Insurance Business UK, 'AXA Climate, satellite data firm extend partnership')

The British Insurance Brokers’ Association (BIBA) announced Alec Finch as this year’s Francis Perkins Award winner. Named after BIBA’s first chair, the award recognises members who give their time and energy to promote the causes of the insurance broking sector. “Alec absolutely deserves this recognition,” commented BIBA Chief Executive Steve White. “During a career spanning 60 years he was described as a visionary – an accolade he lived up to from his 20s when he set up his first business, going on to develop the Worldwide Broker Network and being instrumental in the development of broker standards, now incorporated into BIBA as the Insurance Brokers’ Standards Committee." (Terry Gangcuangco, 10/5/2023, Insurance Business UK, 'BIBA names Francis Perkins Award winner')

Specialist managing general agent Avid Insurance has chosen Allianz Partners UK as its new capacity provider following discussions with potential partners. “This is an exciting new partnership for Avid, bringing together the strength of Avid’s scheme management, reporting and analytics capabilities, and distribution partnerships with Allianz Partners UK’s commitment to expand their presence within the travel insurance market,” said Avid Insurance Personal Lines Head Dan Baldwin in an emailed release.(Terry Gangcuangco, 10/5/2023, Insurance Business UK, 'Avid Insurance picks Allianz Partners UK as capacity provider')

Hagerty has announced a significant restructuring charge after reporting a $15 million (£11.9 million) net loss for the first quarter of 2023. Its $5.5 million overhaul includes a reduction in its workforce and slimmed hiring plans, as well as further cost-containment initiatives. The company anticipates incremental annualized cost savings of between $20 to $25 million from the restructuring, with approximately $15 million to be realized in 2023.(Gia Snape, 9/5/2023, Insurance Business UK, 'Hagerty takes $15 million loss in Q1, confirms restructuring')

Aviva, as part of its COVID-19 Pledge to customers in the UK, is paying a further £47 million – bringing the total to £128 million in payouts for private medical insurance claims disruption during the pandemic. Lifting the lid on the sum, Aviva said in a release: “The figure represents Aviva’s final assessment of the difference between expected claims costs and actual claims costs for the period of claims monitored, from March 1, 2020 to December 31, 2022, when some treatments and procedures were delayed rather than cancelled.”(Terry Gangcuangco, 9/5/2023, Insurance Business UK, 'Aviva UK reveals total payout for private medical insurance claims disruption during COVID-19')

Applied Systems Europe is set to add three more providers to its commercial lines insurance panel in the UK. In an emailed release, Applied said its cloud-based broker management system for UK brokers will include Arch Insurance, Ark Insurance, and iprism Underwriting later this year. Currently brokers are able to quote and bind directly with Allianz, AXA, NIG, QBE, and RSA using the platform. (Terry Gangcuangco, 9/5/2023, Insurance Business UK, 'Applied Systems to widen commercial lines insurance panel')

London-based underwriting agency Rising Edge has expanded its commercial directors’ and officers’ (D&O) offering with the addition of employment practices liability, pension trustee liability, and commercial crime insurance. The launch of the new product suite coincides with Rising Edge’s second anniversary of trading and is in response to requests from brokers for support in their financial lines placement strategies and needs. (Miko Pagaduan, 9/5/2023, Insurance Business UK, 'Rising Edge expands offering with new financial lines product suite')

AIG has published its first quarter 2023 results. Of the results, General Insurance delivered underwriting income of $502 million, representing the strongest first quarter underwriting results; Commercial Lines net premiums written (NPW) grew 6% year-over-year or 11% on a constant dollar basis and adjusted for the International lag elimination. (AIG, 9/5/2023, youTalk Insurance, 'AIG publishes first quarter 2023 results')

It’s the turn of Talanx Group’s Hannover Re to reveal how it performed in the first quarter of 2023. Of Hannover Re’s reinsurance revenue in the first quarter, €4.6 billion came from property & casualty reinsurance while life & health contributed €1.97 billion. (Terry Gangcuangco, 12/5/2023, Insurance Business UK, 'Hannover Re sees jump in Q1 net income')

The Association of British Insurers (ABI) has released the latest edition of its motor insurance premium tracker, which shows an increase in the average price paid for car insurance in the first quarter both from the fourth quarter and Q1 2022. According to the ABI’s data, motorists paid an average of £478 for private comprehensive motor insurance in the first three months of 2023. Compared to Q4 2022, the figure represents a 2% rise; to Q1 last year, 16%. (Terry Gangcuangco, 12/5/2023, Insurance Business UK, 'ABI publishes Q1 motor insurance premium tracker')

Liberty Mutual Holding Company has reported its Q1 2023 results, reporting a net loss of US$74 million primarily due to catastrophe losses from severe weather storms across the Midwest. The insurer reported a combined ratio of 103.2%. (David Saric, 11/5/2023, Insurance Business UK, 'Liberty Mutual reports net loss for Q1 2023')

Mergers & Acquisitions

Lockton, the world’s largest privately held insurance broker and consultancy, has announced that it has acquired THB Brazil from Amwins. Terms of the transaction were not disclosed. Eduardo Lucena, CEO of THB Brazil, will assume the role of Deputy CEO of Lockton Brazil upon completion of the deal. Other THB Executives will also be joining the combined company’s management team, Lockton said. (Ryan Smith, 8/5/2023, Insurance Business UK, 'Lockton swoops for Brazilian firm')

Fairfax Financial Holdings subsidiary Brit Ltd has completed the sale of its managing general underwriter operations Ambridge Group to Amynta Group. As previously reported, the US$400 million deal spans Ambridge in the US, the UK, and Germany. (Terry Gangcuangco, 12/5/2023, Insurance Business UK, 'Brit completes sale of Ambridge Group')

Movers

Pen Underwriting is continuing its investment in the marine sector with the recent appointment of Chris Curran as Underwriting Consultant to Freeboard Maritime. With over 35 years of underwriting experience, Curran brings extensive technical expertise and a network of industry relationships to Freeboard and Pen. (Miko Pagaduan, 11/5/2023, Insurance Business UK, 'Pen Underwriting expands marine underwriting capabilities')

In further news...Pen Underwriting UK has appointed Catriona Thomson as Chief Financial Officer. Thomson currently leads a 230-strong team in Glasgow, in her capacity as IBA Operations Head in the UK for Gallagher. (Terry Gangcuangco, 11/5/2023, Insurance Business UK, 'Pen Underwriting UK appoints chief financial officer')

Richard Norris has been appointed as General Manager for business specialist products at BupaUK Insurance after serving in an interim capacity since September 2022. An AXA PPP Healthcare alumnus, Norris has been with Bupa since 2011. His UK insurance industry experience spans more than two decades. (Terry Gangcuangco, 11/5/2023, Insurance Business UK, 'Bupa UK Insurance names general manager for business specialist products')

Chubb, the world’s largest publicly traded property-casualty insurance company, has announced the appointment of Mark Homan as Division President, International Property and Casualty, for Overseas General Insurance, the company’s international general insurance operations. Homan currently serves as Chief Operating Officer for the division, and will step into his new role on June 1. (Ryan Smith, 10/5/2023, Insurance Business UK, 'Chubb taps international property-casualty exec')

In further news...Chubb has announced the appointment of Tim Charters as the ClimateTech Practice Leader for the UK and Ireland (UKI) region, in a move that further strengthens its Chubb Climate+ leadership team. Charters previously served as a Corporate Finance Advisor for the UK government's Department for Business, Energy, and Industrial Strategy (BEIS) since 2019. Prior to that, he held senior roles at BEIS focused on energy efficiency and innovation. He also worked in the energy sector, including for a renewables start-up. (Miko Pagaduan, 10/5/2023, Insurance Business UK, 'Chubb Climate+ heats up with new UK&I hire')

The British Insurance Brokers’ Association’s (BIBA) Chief Executive, Steve White, has announced that he will step down later this year. White confirmed the news during a speech at the annual BIBA Conference in Manchester. The BIBA Board has formed a sub-committee to determine the process in selecting the new CEO. (Gia Snape, 10/5/2023, Insurance Business UK, 'BIBA CEO Steve White announces retirement')

Raphael Zindi has been appointed by insurance media technology provider Slipcase as Chief Commercial Officer. Zindi brings more than a decade of insurance industry experience to Slipcase. The newly created role will see him take charge of the company’s sales function. (Terry Gangcuangco, 10/5/2023, Insurance Business UK, 'Slipcase brings in chief commercial officer')

AXA XL has named Dan Bendavid as its Global Lead for innovation, as part of the operations and technology team. Bendavid comes from parent company AXA, where he worked on strategic initiatives such as the group digital strategy for operations and services. In his prior role, he also managed programs in Spain and Italy before leading general insurance claims operations in seven countries across Asia Pacific. After that, he joined AXA Next, where he led the P&C business innovation centre. Prior to AXA, he was a senior engagement manager at McKinsey in Paris. (Kenneth Araullo, 10/5/2023, Insurance Business UK, 'AXA XL instals global innovation lead')

Ki, the first fully digital Lloyd’s syndicate, has appointed Catherine Barton as Commercial Director. Barton joins the company from Zego, where she held the role of Chief Insurance Officer. Prior to this, she was the Chief Financial Officer at Talbot Underwriting Limited. She also held senior executive management roles at Bupa UK and was a Partner at both EY and Deloitte. (Kenneth Araullo, 10/5/2023, Insurance Business UK, 'Ki taps commercial director')

AXIS Capital Holdings has announced two appointments to newly created positions within its specialty insurance business. The company has appointed Mark Gregory as Head of Global Markets and Michael J. McKenna as Head of North America. Gregory previously served as CEO of AXIS Capital’s International Division. Prior to joining AXIS, McKenna held chief underwriting officer roles with Falvey Insurance Group, The Hartford (Global Specialty Division) and Navigators (US Insurance Segment). He also served as senior vice president of Aon Benfield’s specialty reinsurance division. (Ryan Smith, 9/5/2023, Insurance Business UK, 'AXIS Capital makes leadership appointments')

Alton Kizziah has joined Lodestone Security LLC – the global cybersecurity firm that is wholly owned by specialist insurer Beazley Plc – as Chief Executive. An information security expert with 22 years of experience, Kizziah made the switch from MGT Consulting Group where he was Executive Vice President and General Manager of the company’s technology solutions group. At Lodestone, Kizziah will be leading a newly expanded senior leadership team. (Terry Gangcuangco, 9/5/2023, Insurance Business UK, 'Beazley subsidiary Lodestone gets new chief executive')