Inside FAC May 2018
Big is beautiful, right? That’s what we’re led to believe by the McKinsey folk.
For facultative writers, it seems that the brief moment of promise which showed in Q4 2017 and Q1 2018 has also now sadly also dissipated, replaced by the hard reality of a market still awash with capacity, where rating levels are just about holding firm.
In a further indication of the leading reinsurance groups’ investment in the competitive primary space, Hannover Re parent Talanx is to create a specialty powerhouse, HDI Global Specialty.
A 29 percent expansion in gross written premium (GWP) for Beazley’s global property book was the standout surprise in the direct and facultative stalwart’s first quarter results.
A swathe of markets on Verizon Communications’ directors’ and officers’ (D&O) programme face the prospect of $40mn losses following a seminal US court ruling.
The fragile space (re)insurance market is staring down the barrel of a difficult 2018 with news of a possible $310mn hit from the failure of a Viasat satellite.
A significantly lower large loss burden in the first quarter of the year helped propel Hannover Re’s property and casualty division to a 9.4 percent increase in its operating profit (EBIT) to EUR338.9mn ($404.5mn), compared with the prior-year period.
ProSight Specialty has rebounded in 2018 with an impressive set of results which have seen pre-tax profits surge by 103 percent year on year to $17.7mn for the first quarter.
A series of violent storms hit parts of the US in April, leading to at least $1.5bn in losses expected to be covered by private or public insurers, according to Aon Benfield’s Impact Forecasting.
At-Bay, the cyber insurance digital start-up managing general agency which writes on Hartford Steam Boiler (HSB) paper, has acquired an additional $13mn in funding as it plans to target the US mid-market.
Global insured losses from catastrophes reached $144bn in 2017, the highest-ever recorded in a single year, according to Swiss Re’s latest Sigma report.
AmTrust saw revenue surge by 58 percent to $2.3bn in the first quarter, boosted by its specialty division and the partial sale of its US-based fee business.
The Corporation of Lloyd’s has told syndicates to stop underwriting National Rifle Association (NRA) insurance programmes.
The UK’s RSA said first quarter gross written premiums rose by 1 percent to £2.1bn ($2.8bn) at constant foreign exchange rates, as underlying pre-tax profit fell as a result of higher winter weather costs.
Munich Re’s property and casualty (P&C) reinsurance division reported a 70.6 percent increase in its first quarter operating result, to EUR838mn ($999mn), compared with the same period last year.
Swiss Re Corporate Solutions (SRCS), the primary insurance unit of Swiss Re, saw net income fall to $41mn during the first quarter of 2018 (2017 Q1: $55mn) as the effect of business written during difficult trading conditions began to tell.
Beazley has launched an event cancellation cover for registered charities, via its online trading platform. The policy, which covers charities for additional costs and/or loss of revenue associated with events, also encompasses income derived from donations made at events.
Underwriters hope to avoid another lingering pain from med mal
With digital technology playing an increasingly bigger role in both business and personal life, the facultative reinsurance sector has the ability to seize opportunities both internal and external
Growing confidence in Africa’s insurance markets is focusing attention once more on the opportunities arising from the continent’s low insurance penetration
Aon Benfield has snatched Geoffrey Leathem from Guy Carpenter to join its Africa unit, with a focus on South African business.
The best things in life are worth the wait… or at least that’s what those good folk at Capsicum Re surely think.