3 Things – MGA Developments, Key Cyber Partnerships & Earnings Highlight Steady Gains

Hi Friends! The calendar has turned to November and insurance is powering ahead to finish 2024 strong. Earnings were in focus this week with major carriers and the public insurtechs taking center stage. We could spend a whole issue on the results we see and what it means but other stories deserve our attention. So, this week it took a lot of work to fit everything into our format. Still, in addition to the earnings, we followed a significant MGU platform pending transaction along with new cyber offerings and other focused solutions attracting investment. Once again, let’s explore the three things we learned this week.

MGA Momentum Continues with Key Developments

The MGA sector is continuing its momentum. Another strategic acquisition was announced to expand MGU distribution capabilities, while others are making technology-driven expansions and investments to expand their platforms.

First, Ryan Specialty reported they are nearing the acquisition of Innovisk Capital Partners, a platform with seven MGUs specializing in various lines, such as environmental and professional liability. This integration is expected to enhance Ryan Specialty’s innovation and market reach, with the deal slated for completion soon. It will mark a nice strategic exit for private equity investors BHMS and Arby and fit nicely with the recent acquisition of Ethos, the MGU unit of Ascot.

Meanwhile, Accelerant has launched an AI-powered platform, app.accelerant.ai, aimed at optimizing underwriting through advanced risk scoring and real-time analytics. Supporting over $2.4 billion in premiums, this platform promises to modernize the insurance value chain with capabilities that enhance decision-making and efficiency.

Finally, Delos Insurance Solutions has raised $9 million in Series A funding. This funding fuels Delos’ expansion beyond California, leveraging AI and satellite technology to deliver targeted wildfire insurance solutions in high-risk areas. The move supports its mission to fill gaps left by traditional carriers, providing more accessible and affordable coverage.

Key Cyber Partnerships, Other Solutions & Investments

The cyber insurance sector is evolving through key partnerships and product advancements. The Hartford has partnered with Coalition to meet the growing demand for cyber coverage in the UK. This partnership leverages The Hartford’s US expertise and Coalition’s proactive cyber insurance approach, recently expanded to Germany, to support comprehensive risk management for clients.

In related moves, Howden launched Cyber+, a rapid-coverage product enabling businesses to secure insurance in minutes, supporting global operations with simplified policy terms and minimal underwriting. Falcon Risk Services and Arx Nimbus partnered to enhance cyber risk quantification. By combining tailored risk assessments from Arx Nimbus and Falcon’s underwriting capabilities, this collaboration aims to help businesses strengthen their cyber resilience with data-driven insights.

Outside of the cyber-related news, there were distribution innovations led by Bindable’s turnkey agency launch solution, which empowers adjacent industries to enter the insurance market with tools like the Policy Crusher® CRM, enabling branded, flexible distribution. Bolt’s partnership with Salesforce boosts agents’ capabilities through Bolt for Salesforce, automating quotes directly within the platform for streamlined workflows and enhanced client service.

Finally, HOMEE secured $12 million in Series C funding, led by W.R. Berkley Corporation, underscoring investor confidence in its AI-powered Smart-Claim platform. CEO Doug Schaedler emphasized the platform’s role in quick, efficient claim processing, especially during challenging events like hurricanes Helene and Milton.

Big Earnings Week Highlights Steady Gains Across the Insurance Sector

As mentioned, It’s been a packed week for earnings, with many major players showcasing strong Q3 results despite some tough challenges. The reports emphasize the robust and steady financial health within the sector, showcasing adaptability and strength that continues, mirroring the resilience of the overall economy.

Brown & Brown saw an 11% revenue increase with CEO J. Powell Brown noting that rates continue to rise in many P&C lines, but at a slowing pace. Chubb’s underwriting income rose 12% despite hurricane losses. CEO Evan Greenberg highlighted strong P&C pricing, especially in North America, and expressed confidence in continued earnings growth through strategic underwriting and investment income. Arch Capital reported 20% growth in premiums, boosting net income to $978 million. Arch’s diversified operations and disciplined approach were credited for sustaining profitability amidst challenging conditions, according to CEO Nicolas Papadopoulo.

Everest Group and AXIS Capital maintained profitability. CEO Juan C. Andrade highlighted the company’s disciplined underwriting and strategic growth in high-return property and specialty lines, positioning Everest for continued strong returns as it approaches year-end renewals. AXIS CEO Vince Tizzio highlighted their resilience and strategic growth heading into year-end.

Markel Group and Allstate showcased strong rebounds through investments and underwriting. CEO Tom Gayner expressed confidence in Markel’s long-term resilience and diversified performance while Allstate CEO Tom Wilson highlighted strategic growth, profitability in homeowners insurance, and successful execution of the auto insurance profit plan.

Root achieved its first net income profit of $23 million, followed by Lemonade, which saw customer growth but faced a net loss of $68 million. Skyward Specialty Insurance reported a 12.4% increase in GWP, driven by niche strategies. CEO Andrew Robinson highlighted the company’s “Rule our Niche” strategy and expressed confidence in continued strong growth, citing disciplined underwriting and strategic investments.

Join us as we continue to explore the headlines and news 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!