3 Things – Strategic Options, Event News & Insurtech Org Changes

Hello Friends! Earnings season has slowed but there are still interesting things to follow in insurance this week including two speciality company strategic moves, updates from events and insurtech org changes.  We will be taking next week off for the Thanksgiving Holiday in the US but will be back.  We sincerely hope you and your loved ones have a great holiday and want you to know how Thankful we are to have you:


Strategic Moves for Specialty Insurers

As has been noted in various industry updates, the speciality / E&S space has tailwinds and is an area of opportunity to attract capital that is looking for a place to grow.  A couple of interesting items that came about this week were, Skyward Specialty filing an S-1 with the SEC to launch an IPO.  IPOs have slowed this year compared to the past two so the timing of this in a higher interest rate environment seems to indicate they feel they have a valuable company to attract capital.  Argo released a letter to shareholders outlining the progress they have made with reviewing their strategic options.  They have reached out to 80 parties that may be interested in buying the company or participating in another strategic transaction.  It would appear something will happen in early 2023 if the businesses they have up for sale are healthy enough.


Events of the Week

Insurance Innovators put on a UK-based Summit and provided Day 1 and Day 2 highlights for people like us who couldn’t make the trip abroad.  The summaries feature thoughts from AXA XL, Ping An, wefox and others.  Lemonade held their investor day, an event they mentioned in their Q3 earnings.  They continue to proclaim that cutting edge AI technology is driving down costs and ability to ‘graduate’ renters and increase lifetime value.  They are very concentrated on both coasts and midway through the presentation discussed shifting business in California, where it would appear they are retooling their product to avoid stem heavy losses.


Insurtech Org Changes

Insurtech changes continue along with other industries with companies reorganizing.  FOXO Technologies, a life insurance tech platform, announced the departure of their CEO.  They just went public in September and the stock has lost most of its value since, so the change was necessary but did not inspire confidence with markets.  Insurance comparison site The Zebra goes through another round of layoffs.  Back in May the reduced headcount by 40, this time they are eliminating 50 positions which represents something like 17% of their staff.  Both companies are struggling with the macro economic conditions as they struggle to stay alive and grow.

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