Industry News

  Workers Compensation Claim Form-SF

Rising Medical Costs Threaten Workers Compensation Profitability

The US workers compensation segment continued its positive performance in 2017, boosted by another year of growing payrolls that helped offset rate decreases and overall soft market conditions. While lost-time claims frequency continues to decline, claims severity continues to rise due to a host of factors.
January 02, 2019 Read More
  Handshake Merger-SF

Compre Set To Complete Generali Legacy Transaction

Independent re/insurance legacy specialist Compre is approved to acquire two portfolios from Assicurazioni Generali S.p.A. (Generali) in an undertaking intended to provide legal finality for the legacy liabilities held by Generali's UK branch.
January 02, 2019 Read More
  Bermuda flag-SF

BMA Releases Two Reports on Alternative Capital and Captives

The Bermuda Monetary Authority (BMA) has released two new reports. These include the BMA's first annual "BMA Alternative Capital Report 2018" and its second annual "BMA Captive Report 2018."
December 21, 2018 Read More
  Capstone 480x377

Policy Selection: Capstone Releases Third "Reserve Mechanical" Commentary

Capstone Associated Services Ltd. has released its third commentary, "How the Tax Court Rewrote the Standards for Insurance Policy Selection," where it examines the issues involving insurance policy selection and related issues raised in the June 18, 2018, small insurance company Tax Court case "Reserve Mech. Corp. v. Commissioner."
December 21, 2018 Read More
  Cyber Burglar

Marriott Breach Losses Estimated Up to $600 Million According to AIR

AIR Worldwide (AIR) has projected the direct cyber-incident losses for the recent Marriott breach will be between $200 million and $600 million.
December 20, 2018 Read More
  Two businessmen shaking hands-SF

EPIC Set To Acquire Integro USA

EPIC Holdings, Inc., announced that it will acquire Integro Holdings, Inc., which houses substantially all of the US operations of Integro Group Holdings, LP. Financial terms of the proposed transaction have not been disclosed.
December 19, 2018 Read More
  Leadership Key 480x377

Marsh Reveals Further Leadership Appointments

Marsh has revealed appointments for key leaders for its regional, specialty, and placement teams worldwide to be effective upon closing of the transaction between Marsh & McLennan Companies and JLT Group, subject to certain approvals.
December 19, 2018 Read More
  Guernsey Flag-SF

Guernsey Spells Out ILS Collateral Rules for ILS Cells

The Guernsey Financial Services Commission, a Guernsey regulator, has clarified the collateral rules surrounding the authorization process for insurance-linked securities (ILS) cells.
December 18, 2018 Read More
  Natural Disasters 480x377

Swiss Re: Global Insured Loss Estimates Reflect Sigma's Fourth Highest

Swiss Re's latest preliminary sigma estimates found that total economic losses from natural and man-made catastrophes in 2018 declined to $155 billion from $350 billion in 2017. Findings also showed that estimated global insured losses are currently around $79 billion, higher than the annual average for the previous 10 years.
December 18, 2018 Read More
  Stress Test-SF

EIOPA "Stress Test" Finds European Insurers Adequately Capitalized

The "2018 Insurance Stress Test Report" on the European insurance sector was recently released by the European Insurance and Occupational Pensions Authority (EIOPA). The results revealed that, on aggregate, the sector is adequately capitalized to absorb the test's prescribed shocks.
December 17, 2018 Read More
  Court Ruling Gavel

831(b) Captive Owners File Lawsuit Against Gallagher and Artex

Arthur J. Gallagher & Co. and its captive management unit, Artex Risk Solutions Inc., are being sued by a group of small employers alleging they have had to pay back taxes and other penalties to the Internal Revenue Service, involving their participation in 831(b) captives.
December 14, 2018 Read More
  Up and Down Graph 480x377

IVANS: Commercial Lines Renewal Rates Reflect Variable Changes

IVANS has announced the "IVANS Index: Premium Renewal Rate Index" November results. For the first time this year, rate changes are split evenly, with an uptick in premium renewal rate across businessowners policy, commercial property, and umbrella, while commercial auto, general liability, and workers compensation experienced a downward shift.
December 14, 2018 Read More
  Green "Stability" button on computer keyboard

Demotech Releases Third Quarter 2018 Financial Analysis of RRGs

Demotech has released its "Analysis of Risk Retention Groups—Third Quarter 2018," reporting on the overall financial performance of risk retention groups (RRGs). Douglas Powell, Demotech's senior financial analyst, has concluded that "RRGs have a great deal of financial stability and remain committed to maintaining adequate capital to handle losses."
December 13, 2018 Read More
  A Rating - SF

KBRA Assigns A Rating to Hamilton Re

Kroll Bond Rating Agency (KBRA) assigned an insurance financial strength rating of A to Hamilton Re, Ltd. (Hamilton Re), a Bermuda, Class 4 property-casualty reinsurer. KBRA also assigned an issuer rating of BBB+ to Hamilton Insurance Group, Ltd., the Bermuda-based holding company for Hamilton Re.
December 13, 2018 Read More
  Contract Pen Sign 480 x 377

R&Q Runoff Deal Set To Close on Reinsurance Corporation of America

Randall & Quilter Investment Holdings Limited (R&Q) is set to acquire GLOBAL US Holdings Incorporated, the parent company of Reinsurance Corporation of America, a New York-domiciled reinsurance company in runoff.
December 12, 2018 Read More
  acquisition 480x377

Gallagher Acquires Chicago-Based Captive Insurance Consultant

Arthur J. Gallagher & Co. has acquired Chicago-based Captive Insurance Company Design and Operations, a captive consultant focused exclusively on medical and professional liability.
December 11, 2018 Read More
  Profits and Losses-SF

NAIC Property-Casualty Profitability Report by Line by State Released

The National Association of Insurance Commissioners (NAIC) released its "Report on Profitability by Line by State in 2017." The report estimates and allocates profitability in property-casualty insurance on a countrywide basis by state and by insurance line and can be utilized in further analysis of competition and market performance.
December 10, 2018 Read More
  Happy Man Rebound 480x377

Fitch Ratings: US P&C Insurers' Profitability Rebounds in 2018

After a difficult 2017, a notable rebound by US property and casualty (P&C) insurers this past year has led Fitch Ratings to revise its fundamental sector outlook to stable from negative, according to Fitch's 2019 outlook report.
December 07, 2018 Read More
  Profitability Report-SF

Alternative Capital Made Up 22 Percent of Property Cat Limits in 2017

According to a recent report from Swiss Re, alternative capital made up 22 percent of all property catastrophe limits in 2017, and the amount of alternative capital was around $95 billion in the first half of 2018.
December 07, 2018 Read More
  Global Success 480x377

Third-Quarter Global Commercial Insurance Pricing Increased but Limited

Marsh's "Global Insurance Market Index" for the third quarter of 2018 found that average commercial insurance pricing has increased for the fourth consecutive quarter driven by increases in property and financial and professional lines.
December 06, 2018 Read More