3 Things – Insurer Strategic Moves, Broker Branding & Digital Capability, Bankruptcy & SVB D&O

Hello Friends!  Happy Memorial Day Weekend!  We owe gratitude to those that sacrificed for our country and remember those that we’ve lost.  Hope everyone can enjoy some rest and recharging.  This week we are following insurer strategic moves, broker branding, digital capability, insurtech bankruptcy and D&O judgement regarding the SVB bankruptcy. Here are the three things we learned:


Insurer Strategic Moves

In a the biggest move of the week, Renaissance Re has announced its acquisition of Validus from AIG for nearly $3 billion. This deal positions Renaissance Re as a top-5 global P&C reinsurer and aligns well with their existing book.  It’s expected to increase their Gross Written Premium (GWP) by 30%. Renaissance Re will see a boost in its balance sheet with $4.5 billion of investable assets from Validus. For AIG this strategic move allows them to sharpen focus on core insurance while continuing to invest in Ren Re Capital Partners business.  There were several other moves this week including Pan-American Life buying Encova’s life business.  Argo forming a partnership with Trisura Group to replace their surety underwriting team who has departed.  Global Atlantic announced a $19.2 billion reinsurance agreement with MetLife, a move that will support both companies transformation strategies.


Broker Brand Strategy and Digital Capability

Acrisure is set to roll out a new corporate branding strategy. They plan to apply the Acrisure name to its units, departing from their previous approach of allowing acquired agencies to operate under their existing names.  This follows suit with other major acquires who typically replace the name of the operations they acquire.  EPIC Brokers & Consultants, on the other hand, has partnered with Bindable to enhance their personal lines digital strategy. Through the PolicyCrusher technology, EPIC will serve up quotes to their existing agents and offer additional products to their current customers via an embedded digital marketplace.  The core benefits and consulting business will be complimented nicely and create an affinity market for personal lines products.


Insurtech Bankruptcy and SVB D&O

In the insurtech space, Benefytt Technologies has filed for bankruptcy.  This move comes as no surprise following the $100 million fine imposed by the FTC 11 months ago. Benefytt, operating in the Medicare and private health insurance marketplaces, is planning to reorganize into an operations and cash flow company, with ownership transferred to current lenders and equity owners.  This could create acquisition targets of the healthy parts of the company for acquirers that remain active.  Turning to another headline in the bankruptcy world, a bankruptcy judge has allowed current and former officials of Silicon Valley Bank’s parent company to use $210 million in D&O insurance coverage to defend themselves against litigation. This decision, despite objections from creditors, paves the way for potential large losses in the D&O market, which is already facing headwinds in the current economic climate.

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