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Hello Friends! This week we are following insurer results, the next generation of insurtech, investment trends and a GM trademark filing. Here are the three things we learned: |
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Q4 & 2022 Results Many Insurer results to digest this week. Chubb has a 38.7% drop in Q4 profit due in large part of catastrophe losses but also crop insurance. Overall they remain “balanced and broad-based” and have a combined ratio of 88%. Commercial and speciality lines continue to be a growth area. Allstate reports a Q4 loss of $310M less than predicated and a full loss for 2022 of $1.04B. They are getting hit across the board by loss severity and unfavorable reserves in auto insurance. Their combined ratio in auto has risen to 112.6 and they stated that improving the profitability is a strategic priority. It is a tough market right now where they can only raise rates so much while they wait for inflation to cool. Other reports include: Markel, The Hartford, Hanover & Aon. Our friend Ian shares an approach to analyzing insurer earnings. |
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Next Generation of Insurtech This week featured interesting developments as we follow the evolution of the ‘next generation’ of insurtech innovation. Full-stack, tech-enabled, Slide Insurance annoucned a deal to acquire the renewal rights of 91,400 Florida homeowners policies from UPC Insurance. Founded by Florida property veterens, it will be interesting to see how they are able to use data science to price risk differently and attract reinsurance capital. Another cyber security and insurance provider BOXX Insurance has arrived. They announced a $14.4M Series B funding round from Zurich. Like others, they are hoping to focus on prevention first by providing security products and other protection. |
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Gallagher Insurtech Report & GM Gallagher Re, formerly Willis, released their Global InsurTech report for Q4 2022. Among other key findings, insurtech funding has decreased by 57% with less overall ‘mega’ rounds. 2022 was the first one year drop since 2016. It is clear that funding has become harder to raise and startups have to focus on profitability more than growth. General Motors, who also reported earnings this week, also filed a trademark for “GM Financial Insurance Company” last week. This could be a step towards setting up a full stack carrier to underwrite their embedded connected vehicle insurance product. |
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