3 Things – Stonepoint Moves, AIG/Arch/Kin Results & Cyber update

Hello Friends!  This week we are following Stonepoint Capital partnering with AIG and Truist, More Q4 results including the start of insurtech reports, cyber news and a bonus report from Bain & Co.  Here are the three things we learned:


Stonepoint Capital Making Moves

Private equity firm Stonepoint Capital is making investments in insurance, specifically niche distribution strategies.  They have a background and experience in banking and insurance so these partners make sense.  AIG will partner with them to launch an MGA focused on ultra high net worth personal lines in the E&S market.  The joint venture will provide a unique capital structure to capture a growing market opportunity, especially with the ultra rich acquiring highly valued coastal property and other assets in need of protection.   Truist Insurance Holdings, the 6th largest broker and division of Truist Financial, announced they will sell a 20% stake to Stonepoint.  The strategic partnership will give them an advantage and flexibility for growth through acquisition. The CEO described the market remains active for broker M&A despite the economy and slowdown in other industries.


Results from AIG, Arch and Kin

AIG’s earnings report this week shows their strategy to focus is delivering results with general insurance premium growth and combined ratio improvement.  Arch is looking strong and growing.  Their net income increased 38.6% and combined ratio is 73.5%. They appear to be benefiting from rate increases and the ability to control underwriting costs.  Insurtech results are starting to roll in.  Kin was one of the first to announce theirs this week.  They more than doubled their GWP and have an improved loss ratio of 49.2% helping them to break even for Q4 as they look to be profitable in 2023.


Cyber Updates and Bonus Report

Liberty Mutual has launched a Global Cyber Office to better manage complex cyber risks.  The new office brings together a team of experts to advise clients, risk managers and brokers enhancing the service they provide around what they refer to as a growing and complex risk.  Coalition is now offering their cyber protection to larger enterprises with revenue up to $5B.  They are counting on these larger enterprises to have stronger cybersecurity posture than smaller ones.  Their previous limit for Coalition’s Active Insurance was $1B so a big jump was made possible by placement across their syndicate of capital partners.  Bonus content this week: a report from Bain & Co outlines customer behavior and loyalty in insurance.  Net promoter scores for insurance continue to struggle to get above 50 and customers are disappointed with digital experiences insurers have created.

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