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Hi Friends! It is Super Weekend, and we hope everyone enjoys the Big Game. It is hard to bet against Patrick Mahomes and the Chiefs but it feels like Fly Eagles Fly will prevail. We spent the week following the news and have another edition of our weekly post that uses the headlines from insurance to tell our story. This week, there were several interesting moves made with acquisitions continuing to roll, integrations and re-branding, along with continued earnings reports that help us see the impact of economic conditions and climate events on the industry but also show that we continue to be strong and resilient. So let’s explore the 3 things we learned this week. |
Bridge Acquires Nationwide Brokerage as M&A Keeps RollingM&A continues to be a theme for both buyers and sellers, with each transaction meaning something strategic for both sides. The top deal of the week looks like Bridge Specialty Group, a subsidiary of Brown & Brown, coming to agreement to acquire Nationwide Brokerage Services, their E&S lines wholesale business. The deal strengthens Bridge Specialty’s position in the specialty insurance market, expanding its product offerings and distribution capabilities. This move aligns with Brown & Brown’s broader strategy to enhance its footprint in the E&S space and allows Nationwide to divest a valuable asset to strengthen its balance sheet. Elsewhere, Howden is in discussions to acquire Risk Strategies, a leading privately held U.S. brokerage firm. The deal, if finalized, would significantly expand Howden’s footprint in the U.S. retail insurance market, aligning with its broader growth strategy. iA Financial Group has acquired Global Warranty, a prominent independent warranty provider in Canada’s used vehicle sector. This acquisition aligns with iA Financial’s strategy to expand in the used car market. London-based re/insurance broker Miller has announced its acquisition of AHJ Holdings Ltd. While AHJ is known for its presence in the Nordic, Caribbean, and North American treaty markets, this move strengthens Miller’s global reinsurance capabilities, making U.S. expansion increasingly likely. |
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Ryan Specialty Integration & The Hartford New LookInsurers continue to evolve through integrations and transformations aimed at strengthening market positions and enhancing customer engagement. Ryan Specialty has merged CorRisk Solutions and Celerity Pro—formerly part of Innovisk Capital Partners—to create Celerity Risk, a newly unified underwriting division. This move integrates Ryan Specialty’s recent acquisition of Innovisk, streamlining operations, enhancing underwriting capabilities, and providing a more cohesive approach to professional liability and specialty insurance. The Hartford has refreshed its iconic stag logo, introduced new branding for its business segments, and renamed its holding company to The Hartford. CEO Christopher Swift emphasized the brand’s evolution as a commitment to innovation and customer focus. |
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Everest, Allstate, WTW Continue Solid Earnings SeasonOverall, we continue to see solid results in Q4 2024, balancing premium growth and investment income against challenges like catastrophe losses and reserve adjustments. The emphasis on disciplined underwriting, client retention, and strategic investments has been pivotal in navigating the complexities of the market. Everest Group reported a net loss of $593 million in Q4, primarily due to reserve strengthening in U.S. casualty lines. Despite this, the company achieved a record net investment income of approximately $2 billion for the year, highlighting robust investment strategies. Allstate reported a 30% increase in net income for Q4, totaling $1.9 billion, despite incurring $410 million in catastrophe losses. The improvement was driven by better underwriting results in its property-liability segment and higher investment income. Willis Towers Watson (WTW) reported a 4% increase in total revenue, reaching $3.04 billion. The risk and broking unit saw a 6% rise, attributed to heightened new business activity and strong client retention. The health, wealth, and career segment also experienced growth, driven by increased project work and brokerage income in North America. American Financial Group announced strong fourth-quarter earnings, reflecting effective underwriting and investment strategies. Disciplined risk selection and favorable market conditions bolstered the company’s performance. SCOR’s premium growth was 9.6% during the January 1 reinsurance renewals, while terms and conditions remained stable. This growth underscores SCOR’s effective client engagement and strategic positioning in the reinsurance market. |
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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! |