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Hello Friends! There was a lot to digest and analyze this week, a trove of earnings reports and other interesting news. This week we are following carriers results, broker news and other items from the world of insurance. Here are the three things we learned: |
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Carrier Results Similar themes continue to emerge in results such as challenging market conditions especially in personal lines, the winners tend to be diversified and specialized / focused in commercial lines. Chubb net income fell due to cat losses but still had a strong quarter. Mr. Greenberg sees opportunity in Asia and continues to speak about US / China tensions creating headwinds. Arch’s net income grew 279% to $705 million driven by expense management and investment gains. Their P&C underwriting teams are taking advantage of hard market conditions. The Hartford results were somewhat positive carried by net income of $421 million in commercial lines offsetting the $1 million loss in personal lines. AXIS Capital and W.R. Berkley saw their combined ratios increase slightly but remain profitable. Erie Insurance’s P&C combined ratio worsened to 127.4 from 109 in personal lines and 115 from 96.8 in commercial lines. Cincinnati Financial was hurt by March storms. Universal Holdings reports gaining share in the Florida property market post-Ian and is optimistic that the Florida legislation will help market conditions going forward. |
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Broker Results Aon and WTW both reported this week and are beginning to clear the aftermath of their abandoned merger. Aon’s total revenue and net income rose and they see strong demand for their advice and solutions as volatility, complexity and uncertainty increase. WTW reported a slight increase in revenue and continues to rebuild following the abandoned merger with Aon. They lost numerous staff before the deal fell apart and have largely completed the staff rebuild since. The new team has begun to contribute in a meaningful way, as exemplified by the solid organic growth numbers. Brown & Brown did not include Florida policies in their first quarter numbers but noted that ‘personal lines in Florida, Louisiana and Texas continued to be challenging due to loss experience.” Net income rose to $235.5 million from $220.3 million a year ago. HUB International secures private investment bringing their valuation to $23 billion. The investment will help HUB with their growth strategy by investing in new technology and continuing to make strategic acquisitions. |
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Investments, Launches & Acquisitions AIG is getting out of high net worth personal lines and has finalized the deal with Stone Point Capital to create an independent MGA for those risks. The formation of this MGA is part of AIG’s ongoing efforts to streamline its operations and focus on core business areas. Next Insurance has launched a COI Analyzer that will use cutting edge machine learning capabilities to generate free, instant and custom-made COIs to show valid insurance coverage to potential employers in under one minute. Clearcover has partnered with Experian to deliver an embedded solution that allows customers to purchase car insurance directly within the car buying process. The integration with Experian’s platform will allow Clearcover to better assess risk and price policies more accurately. Policygenius becomes the latest insurtech to be acquired by Insurance technology and digital services company, Zinnia. The acquisition expands Zinnia’s reach into digital distribution solutions and will offer products and services spanning life and annuities, disability, and property and casualty insurance. |
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