3 Things – E&S Expansion, Financial Performance & Deals / Partnerships

Hi Friends! Insurance continues to move forward with expansive growth and strategic collaborations this week, reflecting its inherent resilience and innovative prowess. With the specialty insurance landscape witnessing novel entries and market expansions, and significant broker deals shaping the horizon, the industry is evolving rapidly. Let’s delve into the intricacies of these developments, unraveling the story of our industry through three pivotal learnings from this week.


E&S Expansion and Market Entry

The Excess and Surplus lines sector continues a significant expansion trajectory. Everest is making headlines by launching a US wholesale division, aiming to enhance their service offerings and broaden product accessibility. Canopius is making a strategic entry into the U.S. excess casualty market, focusing on specialized solutions for commercial risks in niche sectors. Meanwhile, Aspen is exploring the possibility of an IPO, indicating a pivotal stage in the company’s evolution under Apollo’s ownership. This move is closely aligned with Hamilton Insurance Group’s recent announcement of their intention to launch an IPO later this year.


Financial Performance and Corporate Developments

More financial updates came into view this week. Progressive reported an increase in the combined ratio and a slowdown in policy growth for August. In a similar vein, Allstate faced significant catastrophe losses, continuing rate increases to bolster profitability. These developments coincide with AM Best revising the US Homeowners Insurance Segment outlook to negative, highlighting challenges from weather perils and reinsurance pricing trends. The impending rise in home insurance costs due to underpricing of climate risks is making waves, with new entrants like Openly capitalizing on the situation. Across the Atlantic, Intact is strategically refocusing on commercial insurance, divesting RSA’s personal insurance business in the UK.


Broker Deals, Innovation, and Partnerships

The momentum in broker deals continues unabated. Arthur J. Gallagher & Co. is acquiring Eastern Insurance Group LLC for a significant $510 million, while Brown & Brown is set to acquire London-Based MGA Occam Underwriting and Beech Underwriting Agencies Ltd. Additionally, HUB has reached a valuation of $23 billion following a substantial minority investment from Leonard Green & Partners. The innovation and partnership front is equally bustling, with Transamerica and Bestow forming a strategic allianceAuthentic securing $5.5 million in seed funding, Corvus Insurance expanding its underwriting relationship with Travelers, and Advent International considering the sale of CCC Intelligent Solutions Holdings Inc.

Join us as we continue to explore the dynamic shifts and promising collaborations 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!