3 Things – WTW Returns to Re Broking, Climate Change Impacts & Acquisitions / Int’l Expansions

Hi Friends! It is good to be back with you after a Thanksgiving break. I hope you all had a chance to pause and enjoy the holidays for a few days. The year end is now fast approaching and everyone is busy with activities getting the year closed out on a high note. In the news this week, a big announcement became official after previous speculation. Climate change is in focus with a new report from Swiss Re on 2024 catastrophe losses and as we have seen in the past weeks, other entities were making moves to acquire, expand, and partner for growth. Let’s dive in and explore the three things we learned this week.

WTW Announces Return to Reinsurance Broking with Bain Capital

WTW has announced its return to the treaty reinsurance broking market through a joint venture with Bain Capital. This move marks a significant re-entry after selling its reinsurance arm, Willis Re, to Gallagher in 2021 due to antitrust concerns from the Aon merger, which did not come to fruition. It also highlights the continuing trend of private equity capital flowing into insurance investments, particularly targeting services businesses that do not take on risk.

The new entity will leverage WTW’s extensive global network and expertise in insurance broking, combined with Bain Capital’s financial strength and investment acumen. WTW’s CEO, Carl Hess, indicated that the company could eventually acquire full ownership of the joint venture, underscoring WTW’s commitment to expanding its presence in the reinsurance broking market.

Bain Capital has been active in its investments in insurance after previously announcing it would devote over $1 billion to the sector. We should expect to see more of their investment moves make major headlines in 2025.

Climate Change Impacts in 2024, Zurich and SCOR Moves to Address

Climate change remains a significant concern, and as we reflect on 2024, it has been another year marked by substantial losses due to weather events, including hurricanes. However, what were once considered ‘secondary perils’ have now taken center stage. This week, a report from the Swiss Re Institute projected that insured losses from natural catastrophes in 2024 will exceed $135 billion, marking the fifth consecutive year with losses surpassing $100 billion. The United States accounts for about two-thirds of these losses, with Hurricanes Helene and Milton alone causing nearly $50 billion in damage. The report attributes the increasing loss burden to factors such as the concentration of urban value, economic growth, rising rebuilding costs, and the escalating effects of climate change. This situation highlights the urgent need to address these challenges, prompting insurers to take action.

Two major international insurers have announced initiatives to address climate change. Zurich Resilience Solutions (ZRS), the risk advisory unit of Zurich Insurance Group, has launched Climate Spotlight, an interactive digital tool designed to help businesses and public entities understand and manage climate-related risks. This platform provides data-driven insights into various climate scenarios, assisting in risk anticipation, mitigation, and compliance with reporting standards such as the Task Force on Climate-related Financial Disclosures (TCFD). This initiative highlights ZRS’s commitment to helping clients build resilience against evolving climate challenges.

Additionally, SCOR’s Corporate Foundation for Science is funding Lancaster University Management School’s (LUMS) Climate Risk and Uncertainty Collective Intelligence Aggregation Laboratory (CRUCIAL). This initiative uses prediction markets to aggregate diverse expertise, thereby enhancing long-term forecasts of climate-related risks. The collaboration aims to improve decision-making in policy and planning by providing more accurate climate risk assessments.

Bishop St and HUB Acquisitions, Other International Expansions

Insurance continues to see expansion activity as companies drive growth and innovation through strategic acquisitions and partnerships. From expanding geographical footprints to enhancing technological capabilities, these moves showcase a commitment to adapting in a competitive and evolving market.

Bishop Street Underwriters announced its acquisition of Landmark Underwriting, a London-based MGA specializing in complex and specialty (re)insurance solutions. The move broadens Bishop Street’s reach beyond the US and adds product offerings across various classes, including professional indemnity, property, and marine insurance. Landmark’s co-founder, Sitki Gelmen, praised the deal as a platform for ambitious growth, while Bishop Street emphasized the value of a multi-jurisdictional footprint. This acquisition aligns with their expansion strategy through targeted acquisitions in the specialty insurance market.

HUB International is finalizing the acquisition of Insuritas, an embedded insurance platform serving nearly 200 banks and credit unions. Post-acquisition, Insuritas will operate under VIU by HUB, HUB’s digital insurance platform launched in June 2022. This move enhances HUB’s embedded insurance offerings and follows its recent acquisitions of EINSURANCE and Insureon, marking its first purchase of a non-traditional insurance agency in 2024.

Rokstone, an international specialty (re)insurance MGA under the Aventum Group, has acquired a second underwriting box at Lloyd’s of London, just six months after establishing its first. This expansion, aims to enhance face-to-face interactions with brokers and broaden their portfolio to include financial lines and casualty. Managing Director Ian Anson emphasized that this move reflects Rokstone’s rapid growth and commitment to the London market, with plans to continue expanding their presence and offerings.

CyberCube, a leading provider of cyber risk analytics, is expanding its reach and impact through strategic partnerships with key industry players. Collaborating with Penguin Tech, an integration firm specializing in Duck Creek Technologies, CyberCube is embedding its analytics into solutions for Duck Creek clients, enhancing underwriting, portfolio management, and risk assessment capabilities. Simultaneously, CyberCube has joined forces with HUB International, leveraging its Broking Manager platform to deliver actionable insights on financial exposures to cyber threats across North America.

The Fortegra Group, Inc., a global specialty insurer and subsidiary of Tiptree Inc., has received approval from the UK’s Prudential Regulation Authority to establish Fortegra Insurance Company UK. This development enables Fortegra to expand its specialty insurance underwriting services throughout the UK, reinforcing its commitment to the region and building upon its European operations initiated in 2018.

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!