Hi Friends! It was a short week with the Monday holiday and other festivities so the insurance news cycle was slower than usual but we still found interesting things to follow. The weather was abnormal in many parts of the country, making it feel strange and fueling concerns about climate risk. This week, earnings reports begin, more tech-enabled insurers are expanding their capabilities while others are investing in additional technology. As we look forward to more insurer results and other news flowing in the coming weeks, let’s explore the three things we learned this week. |
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MGT Insurance Launches E&S Company to Expand Market ReachMGT Insurance, an tech-enabled small commercial insurer, has launched MGT Specialty, a surplus lines company that addresses unique and hard-to-place risks in the E&S market. This follows MGT’s earlier acquisition of CM Select to expand its capabilities in admitted lines, providing them with both platforms to underwrite risk. They will bring in Chad Nitschke, a seasoned leader with experience at Hiscox, as General Manager, MGT Specialty seeks to expand its products to underserved customers in the specialty market. Graham Topol, Co-CEO of MGT, described the launch as a “pivotal moment” for insuring small businesses, emphasizing the opportunities to serve entrepreneurs nationwide. |
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Aventum Group Invests $12 Million, ReSource Pro Partners with INSTANDAAventum Group, owner of MGA platform Rokstone, has announced a $12 million investment over the next two years to develop ATOMX, a proprietary, cloud-native platform designed to enhance operational efficiency across its global operations. ATOMX comprises 10 API and AI-driven products, including tools for claims, bordereau management, pricing, and workbenches for brokers and underwriters. Aventum has integrated a 130-member tech and IT team and established an Innovation Lab to support this initiative. Chief Technology Officer Hasani Jess emphasized the company’s commitment to innovation, while CEO David Bearman described the project as one of the most ambitious technology programs undertaken in the London Market. ReSource Pro and INSTANDA have partnered to integrate INSTANDA’s no-code digital platform with ReSource Pro’s extensive tech-enabled insurance services. This collaboration highlights ReSource Pro’s continued investment in innovative technology to enhance insurers’ automation and operational efficiency. By combining advanced digital product development tools with ReSource Pro’s expertise in business process management, the partnership aims to streamline carrier operations, reduce time to market, and deliver significant value. Together, they provide a comprehensive solution for carriers looking to accelerate digital transformation and improve customer outcomes. |
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Travelers and RLI Kick Off Earnings Report with Strong Results and Resilient GrowthAs earnings season kicks off, early reports from insurers signal a strong start, highlighting their resilience and strategic focus in navigating market challenges. These performances set a positive tone for the upcoming reports, underscoring the insurance industry’s adaptability and innovation in delivering value despite headwinds like rising catastrophe losses. Travelers Companies reported a significant increase in net income for the fourth quarter of 2024, reaching $2.1 billion, up from $1.6 billion in the same period the previous year. This growth was achieved despite a rise in catastrophe losses. The company’s combined ratio improved to 83.2%, enhancing underwriting profitability. CEO Alan Schnitzer highlighted the company’s strong financial position, emphasizing its ability to support customers, especially in the wake of recent wildfires in Los Angeles. RLI Corp. achieved strong results in 2024, maintaining underwriting profitability for the 29th consecutive year with a combined ratio of 86.2%. Despite challenges like Hurricane Milton, CEO Craig Kliethermes highlighted the company’s ability to navigate risks effectively while continuing to grow across all segments. The year also marked a milestone, with gross premiums exceeding $2 billion, driven by contributions from casualty, property, and surety lines. |
Join us as we continue to explore the headlines and news shaping the insurance sector, and stay tuned for more insights on the unfolding narrative of our industry! Stay productive, stay safe and stay in touch! |