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General Insurance Newsletter Friday 11th August 2023

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​International insurance giant Allianz has shared its financial results for H1 2023, revealing that its operating profit soared 14.9% to €7.5 billion during the six-month period. Now it’s the turn of Allianz Group in the UK to reveal how it fared in a period remarked on by Allianz SE’s CEO Oliver Bate as one of “inflation and polarisation”. Allianz Holdings CEO Colm Holmes spotlighted the business’s revenue of £3.28 billion – which is up 12.6% year-on-year and reflects “incredibly strong growth” across all areas of the business. Revenue for Allianz Holdings is up 7.1% year-on-year to approx. £2.1 billion, while Allianz Commercial (formerly Allianz Global Corporate & Specialty (AGCS) UK) is up 22.5% to £841.6 million. Meanwhile, Allianz Trade increased its revenue by 22.2% to £131.8 million while Allianz Partners saw a spike of 31.1% to £211 million. (Mia Wallace, 10/8/2023, Insurance Business UK, 'Allianz's Colm Holmes on H1 results, inflation trends and broker partnerships')

Liberty Mutual Insurance has released its second quarter results, reporting a net loss of $585 million. This is higher than the $343 million net loss experienced by the insurer during the same quarter in 2022, driven in part by catastrophe losses that totalled $2.27 billion. President and CEO Tim Sweeney said the elevated catastrophe losses were due to widespread wind and hail events in Texas, Oklahoma, and Colorado. (Mika Pangilinan, 10/8/2023, Insurance Business UK, 'Liberty Mutual sees net loss in second quarter')

Munich Re has posted its results for the second quarter of 2023, revealing that the group is well on its way to achieving its annual target. In line with the two new financial standards – IFRS 9 and IFRS 17 – Munich Re generated a profit of €1.154 billion in the quarter ending June 30, 2023, and a half year result worth €2.425 billion. The higher results in H1 2022 can be attributed to lower unwinding-of-discount effects and lower major-loss expenditure. (Kenneth Araullo, 10/8/2023, Insurance Business UK, 'Munich Re posts Q2 results')

A series of widespread thunderstorms, known as severe convective storms, have caused significant insured losses in the United States, accounting for 68% of global insured natural catastrophe losses in the first half of 2023, according to a new report from Swiss Re. This trend underscores the escalating impact of secondary perils. “With severe thunderstorms as the main driver for above-average insured losses in the first half of 2023, this secondary peril becomes one of the dominant global drivers of insured losses,” said Martin Bertogg, Head of Catastrophe Perils at Swiss Re. “The above‑average losses reaffirm a 5-7% annual growth trend in insured losses, driven by a warming climate but even more so, by rapidly growing economic values in urbanised settings, globally." (Steven Byerley, 10/8/2023, Insurance Business UK, 'Severe thunderstorms accounted for almost 70% of insured cat losses in H1 – Swiss Re')

Results season is in full swing, with Zurich Insurance Group among the latest to outline its interim financials. Lifting the lid on the numbers, Zurich noted: “Net income after tax attributable to shareholders (NIAS) increased 6% to US$2.5 billion compared with the prior-year period, mainly due to a more favourable net impact from capital gains and losses. NIAS also included US$0.1 billion of costs incurred related to the repurposing of some of Zurich’s own use real estate portfolio.” Zurich described the company’s interim results as “strong,” with its operating profit matching the record-high BOP posted in the same span in 2022. (Terry Gangcuangco, 10/8/2023, Insurance Business UK, 'Zurich Insurance Group releases first-half results')

Global specialist insurer Hiscox posted its figures for the six months ending June 30, 2023, revealing significant growth in the underwriting division and overall better performances across its lines. The insurer saw a 19.9% return on equity (ROE) thanks to a surge in revenue, insurance service result, and profits across every business unit. Hiscox recorded $1.945 billion in net insurance contract written premiums (net ICWP), an increase of 11.4% as it benefitted from strategy execution. ICWP itself rose by 6.3% to $2.617 billion, which, while lower than net ICWP, is to be expected at this point in the cycle. (Kenneth Araullo, 9/8/2023, Insurance Business UK, 'Hiscox posts financial results')

​The Generali Group has outlined its half-year performance, releasing the company’s financial results for the first half of 2023. The international insurer’s net result in the first half grew from €864 million to €2.24 billion. In the second quarter, Generali’s net result stood at €1.04 billion – an improvement from €383 million. “The excellent first half of 2023 results continue to prove the effectiveness of our ‘Lifetime Partner 24: Driving Growth’ strategy and demonstrate that Generali is increasingly profitable, diversified, and resilient, with a strong financial position,” Group Chief Executive Philippe Donnet said in a release. (Terry Gangcuangco, 10/8/2023, Insurance Business UK, 'Generali reports first-half financials')

QBE Insurance Group has published its financial results for the half year ended June 30, 2023. In terms of GWP growth per region, North America posted a 6% increase in H1; International, 18%; and Australia Pacific, also 18%. QBE’s combined operating ratio stood at 98.8% (2022: 94.9%). Commenting on the numbers, Group Chief Executive Andrew Horton said in a release: “While underwriting performance was challenged by catastrophe events, we are encouraged by our ongoing business momentum and remain confident in the outlook." (Terry Gangcuangco, 10/8/2023, Insurance Business UK, 'QBE posts profit surge in half-year results')

Global insurance group Howden has unveiled its latest blended insurance product that brings together professional indemnity, crime, and cyber liability into one policy and under one limit. This latest proposition brings potential cost savings and improved efficiencies for financial institutions and was developed with a panel of other specialist insurers, including the Lloyd’s market. It was developed as an answer to the rise of sophisticated cyber claims such as ransomware and phishing. With this blended offering, claims responsiveness and communications with the insurer are simplified, given that a single cyber event can trigger multiple insurance products including professional indemnity, crime, and cyber liability. (Kenneth Araullo, 9/8/2023, Insurance Business UK, 'Howden unveils new triple-line product')

Hagerty, a lifestyle brand and leading specialty insurance provider focused on the global automotive enthusiast market, has announced its financial results for the second quarter of 2023. The company experienced robust growth, driven by its diverse range of products and services. “We delivered first half revenue growth of 28% as the Hagerty ecosystem of products and services is resonating with car enthusiasts,” said McKeel Hagerty, CEO of Hagerty. “These excellent results were powered by robust written premium growth of 17%, earned premium growth of 34%, and membership and marketplace revenue growth of 53%. Our revenue engine is firing on all cylinders, and we now expect full year 2023 revenue to grow 23-27%."(Steven Byerley, 9/8/2023, Insurance Business UK, 'Hagerty reveals Q2 results')

Sun Life Financial has reported its financial results for the second quarter of 2023, revealing an underlying net income of $920 million. This is a 14% increase from $808 million in Q2 2022, which Sun Life attributed to strong insurance sales, as well as momentum built from key partnerships and acquisitions. In particular, CEO Kevin Strain pointed to “strong growth” in health and protection sales, as well as “solid results” from dental benefits provider DentaQuest, which it acquired in 2021. (Mika Pangilinan, 9/8/2023, Insurance Business UK, 'Sun Life reports higher underlying earnings in second quarter results')

International underwriter Argo Group has announced its financial results for the quarter and half year ended June 30, 2023. During the quarter, Argo’s underwriting loss amounted to US$22.4 million, while the underwriting loss for the six-month span stood at US$54.1 million. A year ago, the group enjoyed positive underwriting results in both periods. Commenting on the quarterly results, Argo Executive Chair and Chief Executive Thomas A. Bradley said: “Our second quarter performance further reflects the proactive steps we are taking to prioritise improving profitability. Our top line results reflect our deliberate and disciplined actions in certain lines of business." (Terry Gangcuangco, 9/8/2023, Insurance Business UK, 'Argo Group posts wider half-year loss')

MS&AD Insurance Group, part of which is MS Amlin, has released its interim earnings report for the quarter ended June 30, 2023. According to MS&AD’s announcement, of the ordinary income, the group’s underwriting income stood at ¥1.39 trillion – a jump from the previous year’s ¥903.42 billion. Investment income for the quarter also improved, to ¥576.09 billion. Other ordinary income, meanwhile, grew to ¥10.61 billion. (Terry Gangcuangco, 9/8/2023, Insurance Business UK, 'MS Amlin parent reports quarterly results')

London-based managing general underwriter Eaton Gate has become a partner of SiriusPoint International. In SiriusPoint’s announcement, the specialty (re)insurer said: “Eaton Gate is the first MGA (managing general agent) partnership to have emerged from SiriusPoint International’s new MGA Centre of Excellence, which was launched earlier in the year to deliver an efficient and collaborative onboarding experience for new MGA partners. The approach mirrors the company’s North American structure and enables operational efficiencies and access to expertise across the company’s global platform, allowing partners to benefit from the ‘one SiriusPoint’ ethos.” According to Eaton Gate Group Chief Operating Officer Jonathan Matthews, adding a global partner to their panel will support the next stage of Eaton Gate’s growth. It was noted that the partnership will primarily focus on UK property & casualty insurance. (Terry Gangcuangco, 8/8/2023, Insurance Business UK, 'Eaton Gate seals SiriusPoint partnership')

​Cyber risk platform Resilience has announced a successful US$100 million equity financing round aimed at accelerating its global expansion and driving the adoption of its cyber risk solution, the Resilience Solution. The Series D funding round was led by Intact Ventures, an affiliate of Resilience's primary capacity provider, Intact Insurance's underwriting companies. Other participants include Lightspeed Venture Partners, General Catalyst, and Founders Fund. With cybercrime projected to surpass US$10.5 trillion by 2025, organisations are realising that the existing siloed approach to cybersecurity decision-making is no longer sufficient. The Resilience Solution aims to address this issue by bringing together leaders in finance, risk, and security to provide clients with an innovative way to assess, measure, and manage their cyber risk, the company said. Leveraging its AI platform, the Resilience Solution enables policyholders to quantify their cyber risk and prioritise their security measures based on a comprehensive return-on-investment analysis of their controls. (Steven Byerley, 8/8/2023, Insurance Business UK, 'Resilience announces US$100m funding round')

Tokio Marine Holdings has released its earnings report for the quarter ended June 30, which is considered the first quarter in the international insurer’s financial results reporting. In the three-month period, Tokio Marine posted a 12.5% increase in the group’s ordinary income – from ¥1.62 trillion in 2022 to ¥1.82 trillion this time around. (Terry Gangcuangco, 8/8/2023, Insurance Business UK, 'Tokio Marine publishes quarterly earnings report')

RSA Insurance Group, which announced its exit from the UK personal lines motor insurance market earlier this year, posted a loss in the first half of 2023. In its interim management report, RSA said: “Profit before tax of £55 million consists of £82 million underwriting profit (2022: £86 million profit), investment result £79 million (2022: £59 million), £7 million central costs (2022: £10 million), and (£99 million) of other income and charges (2022: £89 million)." (Terry Gangcuangco, 7/8/2023, Insurance Business UK, 'RSA Insurance Group suffers loss in first half')

AbbeyAutoline, Northern Ireland’s largest insurance broker, has announced the launch of its new community-based programme called “50 Ways of Giving Back” just in time for its 50th anniversary. According to the broker, the programme aims to support 50 charities and voluntary organisations across the region in 2023. AbbeyAutoline staff across the broker’s 15 branches, working together to perform meaningful community service, will support charity organisations in completing as many as 50 projects. (Jonalyn Cueto, 7/8/2023, Insurance Business UK, 'AbbeyAutoline marks 50th anniversary with launch of new programme')

​Global Risk Partners Limited (GRP), a Brown & Brown company, has entered the pet insurance market for the first time after completing the acquisition of Petsmedicover Limited, trading as VetsMediCover. VetsMediCover is a pet insurance broker based in Sutton Coldfield, West Midlands. The business was founded in 2016 and is led by Sarah Bascombe. Its primary focus is cat and dog insurance. Jon Norman, Managing Director at Insync, said the addition of VetsMediCover to the Insync portfolio is a “very exciting opportunity for us to apply our digital capabilities to a growing brokerage. We’re looking forward to working with the VetsMediCover team to build out our presence in the pet market.”(Global Risk Partners, 7/8/2023, youTalk Insurance, 'GRP enters pet market following acquisition of specialist broker')

​The Association of British Insurers (ABI), which has been collecting data on prices paid for motor insurance since 2012, has released its latest Motor Insurance Premium Tracker. Spanning more than seven million policies sold during the second quarter, the ABI’s tracker shows that the average premium paid for private comprehensive motor insurance in Q2 2023 was £511 – the highest on record. Compared to Q2 2022, the current average is 21% higher; 7% when compared to Q1 2023. (Terry Gangcuangco, 11/8/2023, Insurance Business UK, 'Average price paid for motor insurance at its highest – ABI')

Hannover Re has published its financial results for the second quarter and first half of 2023. Of the group’s operating profit in the half year, €829 million came from property & casualty; €525 million from life & health. Both segments posted an increase – by 28% and 11%, respectively. (Terry Gangcuangco, 11/8/2023, Insurance Business UK, 'Hannover Re announces interim results')

Following the conclusion of exploratory discussions between (re)insurer SiriusPoint and investor Daniel Loeb in relation to a prospective deal, the two have now entered into a standstill agreement. In its announcement, SiriusPoint said: “The agreement provides that Mr Loeb will not, subject to certain limited exceptions, make a takeover or purchase proposal for the company or acquire more than 9.5% of the outstanding shares of the company or an amount of ownership requiring regulatory approval." (Terry Gangcuangco, 11/8/2023, Insurance Business UK, 'Daniel Loeb signs standstill agreement with SiriusPoint')

Lancashire Holdings posted its results for the six months ending June 30, and under the new reporting standard IFRS 17 it reached $1.184 billion in gross written premiums (GWP). GWP for H1 2023 increased by 26.2% over the same period last year. In total, Lancashire recorded an insurance revenue of $720.9 million, while the insurance service (underwriting) results reached $188.8 million. The undiscounted combined ratio was a healthy 79.2%, or 71.4% on a discounted basis. (Kenneth Araullo, 11/8/2023, Insurance Business UK, 'Lancashire posts H1 results')

The number of insurance mergers and acquisitions across the globe has plummeted in the first half of 2023, according to global law firm Clyde & Co's Insurance Growth Report mid-year update. The report revealed that the number of completed M&A deals in the global insurance industry decreased from 242 completed deals in the first half of 2022 (H1 2022) and 207 in the second half of 2022 (H2 2022) to 171 in the first half of 2023 (H1 2023). (Roxanne Libatique, 11/8/2023, Insurance Business UK, 'Global insurance M&A activity drops in H1 2023 – report')

Mergers & Acquisitions

​Seventeen Group has announced its acquisition of Mint Insurance Brokers Limited, marking its third deal of 2023. The deal completed August 3. Mint, a City of London-based brokerage, places retail and wholesale business within the London Market, handling a broad range of clients. Its specialisms include professional liability, real estate, casualty/contract works and medical malpractice. The business, which brings a GWP of £13 million to Seventeen Group, is headed up by MD Brian Bendle and Manjit Gill along with Director Oliver Wharmby. Mint has been an AR of Seventeen Group’s broking subsidiary James Hallam since 2020. (Mia Wallace, 9/8/2023, Insurance Business UK, 'Seventeen Group continues M&A spree')


​Specialist insurer Beazley has revealed that its long-standing Chief Financial Officer Sally Lake has informed the board of her intention to leave the business in 2023. Commenting on her decision, Lake said: “As I approach five years as CFO and after 18 years at Beazley, I believe now is the right time for the board to begin an open, formal search for my successor. Beazley’s continued success remains my priority and I will look forward to remaining focused on delivering on our goals and a structured handover to my successor in 2024.” In a press release, Beazley revealed that the board will now conduct an “orderly process” for an external successor, which will complete during Lake’s 12-month notice period. (Mia Wallace, 10/8/2023, Insurance Business UK, 'Beazley CFO to step down')

In a recent announcement, Lloyd's confirmed the decision of Peter Spires, its General Counsel, to step down from his role. Spires joined Lloyd’s in 1995. He dedicated his early years to the reconstruction and renewal efforts at Lloyd's. Subsequently, he played a crucial role in the Chairman's Strategy Group, a team responsible for introducing the performance management directorate, which aimed to enhance the efficiency and effectiveness of operations at Lloyd's. Spires earned the position of General Counsel in 2016 and became a member of Lloyd's executive committee. As part of the transition, Claire Schrader, the current Head of Legal, will assume the role of General Counsel on an interim basis. Caroline Sandeman-Allen will step into the role of Company Secretary on an interim basis. (Steven Byerley, 10/8/2023, Insurance Business UK, 'General counsel to exit Lloyd's')

Markel Corporation has announced the addition of Steven Feng as an Underwriter for its warranty and indemnity (W&I) team. Prior to joining Markel, Feng spent nine years at professional services firm PwC. He was an Accountant in PwC's assurance team and later transitioned to the London mergers & acquisitions (M&A) tax team, where he advised private equity clients on a variety of mid-market to high-value transactions. Throughout this tenure, he held senior roles such as Senior Associate for M&A tax and M&A Tax Manager. (Mika Pangilinan, 10/8/2023, Insurance Business UK, 'Markel adds underwriter to its warranty and indemnity team')

​Ami Barlev has been appointed by the board of insurtech Vesttoo as interim Chief Executive. Vesttoo, which is in the middle of a fraud-related controversy, used to be led by Co-Founders Yaniv Bertele and Alon Lifshitz. The two served as CEO and Chief Financial Engineer, respectively, before they were put on paid leave while the board examined its options. According to his LinkedIn profile, Barlev has been a Vesttoo board member for more than two years now. (Terry Gangcuangco, 10/8/2023, Insurance Business UK, 'Vesttoo picks interim chief')

​Mark Mugge has succeeded Udai Anand as Chief Financial Officer at specialty managing general agent Optio Group. “I am delighted to announce Mark’s appointment as the new CFO of Optio Group,” Executive Chair Matthew Fosh said in an emailed release. “Mark has worked in the finance departments of both carriers and brokers throughout his career, and for the past 20 years he has operated at the highest level." The key hire’s US and London insurance markets experience spans more than two and a half decades. Mugge most recently served as Group CFO at Lucida Broking. Prior to that, he spent five years at The Ardonagh Group and nine years with Gallagher in Chicago and London. (Terry Gangcuangco, 9/8/2023, Insurance Business UK, 'Optio Group names new finance chief')

CNA Hardy, a specialist commercial insurance provider catering to clients within the Lloyd’s and company markets, is expanding its UK marine team with the addition of new Senior Underwriters. Trevor McAuley has been appointed as Senior Marine Underwriter. His experience includes positions at Allianz, XL Catlin, RSA, and Tokio Marine. Conlie Wong has been named Senior Underwriter, marine cargo and transport & logistics. Wong has held roles at Tokio Marine and Catlin. Hugh Consitt has taken on the role of Senior Marine Development Underwriter, he brings with him eight years of experience at Chubb, where he previously served as Regional Senior Cargo Underwriter. ​Additionally, Michael Slack has been promoted to the position of Senior Technical Underwriter for transport & logistics for UK company business. Slack has been with CNA Hardy since 2014. (Mika Pangilinan, 9/8/2023, Insurance Business UK, 'CNA Hardy selects senior underwriters for UK marine team')

​Global insurance group Howden has announced the appointment of Robert Green as Executive Director, Property. Green has over 22 years of industry experience, with 16 of those years dedicated to the UK multinational sector. His expertise lies in property program design and placement, and he has a proven track record of strategic market engagement across diverse client portfolios. Prior to joining Howden, Green served as Broking Director within the UK retail broking division at Aon. His credentials also include time spent as Vice President for placement at Marsh. (Mika Pangilinan, 8/8/2023, Insurance Business UK, 'Howden strengthens property division with latest appointment')

Aventum Group-owned Rokstone, the specialty MGA, has announced a major expansion with the launch of an accident and health (A&H) portfolio alongside the appointment of Darren Delande as Head of A&H. According to his LinkedIn, Delande comes to the role with nearly 20 years of experience in A&H underwriting. Prior to this new role, he worked at Optio in the same capacity as Head of A&H for the last three years. Delande also worked previously at Sure Insurance, AEGIS London, Arch Insurance, Presidio Reinsurance Management, and BritInsurance. (Kenneth Araullo, 8/8/2023, Insurance Business UK, 'Rokstone announces expansion with A&H division')

The Fine Art, Jewellers Block and Specie (FAJS) division of Lonmar Global Risks – a Brown & Brown company – has announced its appointment of a team of five specialists from Price Forbes. The new hires, which began their respective roles in July, are led by Edward Longe, Head of the specie wholesale team, who reports to Aqua Sanfelice who leads the division. Richard Phillips, David Cobb, Susan Raffel and Martyna Samec complete the new appointments, and all will report to Longe. The move will bolster the size of Lonmar’s fine art, jewellery and specie unit by a third, making it a team of 15, and will bring a range of complementary capabilities in jewellers block (JB) and cash in transit (CIT) insurance. (Mia Wallace, 7/8/2023, Insurance Business UK, 'Lonmar Global Risks swoops for specialist team of five')

RSA Insurance has revealed its appointment of James Godfrey as Transformation Director, effective immediately. Godfrey, who joins RSA from Atos where he served as a Technology and Business Change Transformation Specialist, previously worked as UK Transformation Director at Aviva. (Mia Wallace, 7/8/2023, Insurance Business, 'RSA welcomes new transformation director')

Credit and political risk insurance broker BPL Global is expanding its portfolio solutions capabilities by adding securitisation and structured finance experts Riz Sheikh and Steve Gandy to the team. Sheikh brings more than two decades of expertise to BPL Global. Sheikh’s credentials include time spent as Director of Capital Management and Portfolio Risk Mitigation at NatWest, as well as in origination, structuring, and distribution-related roles at Royal Bank of Scotland, Barclays, KPMG, and Deutsche Bank. Meanwhile, Gandy, who was Private Debt Mobilisation Head at Santander Corporate & Investment Banking, is joining BPL Global on a consultancy basis. His securitisations and other structured finance solutions experience spans nearly 30 years. (Terry Gangcuangco, 7/8/2023, Insurance Business UK, 'BPL Global adds to portfolio solutions team')

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