3 Things – 3 Things – Progressive Earnings, Coalition Reinsurer & Thought Leaders

Hello Friends!  Lots of continuing themes this week as earnings season begins and loss estimates continue to become clearer.  This week we are following Progressive earnings, Coalition launching reinsurance capacity and insights from the industry’s thought leaders:


Progressive Kicks Off Q3 Earnings Reports

Progressive announced their September 2022 and Q3 results.  They report incurring a loss of $760 M due to Hurricane Ian but despite that setback, net premiums increase 5% and combined ratio improves 1.2 points.  They are the largest private passenger auto writer in Florida so the bulk of these losses are auto-related.  We had been hearing that auto losses would be affected by the storm and flood damage.  Fortunately, Progressive appears to have been prepared and well capitalized for this event, but others may not fare so well.  One of the themes we will continue to watch as more earnings unfold.


Coalition Launches Ferian Re

Cyber insurer, Coalition announces the launch of a Bermuda-based reinsurer that will provide excess capacity for their cyber programs.  They were able to partner with investors and pool $300M of starting capital for this venture.  This is just the latest in a series of moves we have been following to see capital flowing into the cyber world.  It would appear that increasing capacity and the entrance of tech-driven players has lead to pricing moderation, rate increases for renewals are not as high as they have been.  That is certainly good news but cyber remains an uncertain risk and we hope a bubble is not forming.


Extra Things

There was not a 3rd thing that stood out but instead 3 very insightful blog posts from some of our industry thought leaders.  Ian provides a very interesting math lesson to explain the potential disaster that faces the Florida home market in the post-Ian world.  Matteo recaps ITC and gives insights on telematics in his latest newsletter.  Paul from Insurance Thought Leadership writes about the worries from industry executives and other insights.  Thank to all for this content.

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