3 Things – Chubb Q3, Berkley E&S, Earnings & Kin Credit Line

Hello Friends!  Results continue to come in from Q3 with Ian losses explained and other industry dynamics.  It was hard to fit into our usual 3 things so some bonus content is included this week as we are following Chubb earnings, W.R. Berkley’s launch of an E&S vehicle, more earnings and Kin’s credit facility:


Chubb Q3

Chubb released their earnings results that had about all you needed to get a pulse of the state of insurance.  How many other insurers could endure a difficult quarter and still close a multi-billion dollar deal?  Their net income is reduced by more than half, mostly due to big losses from Hurricane Ian.  CEO Evan Greenberg, in his comments, said that pricing may be inadequate for catastrophe risks and expects more rate increases will be needed to keep up with increased reinsurance costs and loss costs, this appears to be a theme.  Despite the difficult quarter, Chubb closed the $5.4 B acquisition of Cigna’s Asian life operation which will more than double their global life insurance premiums.


WR Berkley Launches E&S Carrier

WR Berkley announced their Q3 earnings that show mild effects from catastrophe losses.  They are on track to have a solid profitable growth year and continue to build value for investors.  They also announced the creation of an E&S insurance company.  This strategic move is well-timed.   E&S has been an area of growth for the insurance industry.  The risks of middle to large market commercial accounts are falling into E&S territory more than ever due to their complexity and uncertainty around global issues.  The hardening market will create further headwinds for surplus lines growth.


Kin Credit Facility and Other Earnings

Kin Insurance, reported last week that they have received 6,800 claims so far from Ian.  This week they announced they were able to secure a $145M credit facility to help them recapitalize.  So while borrowing money after a large cat is usually not good news it appears they will live to fight another day.  Next week, we will get earnings from other insurtechs that will give more of a picture of how they were affected by Ian.  Arch had a tough quarter, taking a 60% reduction in underwriting income.  In the earnings call, their CEO suggests that the industry should be charging more for Cat Risk echoing Evan’s comments.   Everest Re and Axis also detail their Ian losses and while it was a difficult quarter they remain optimistic for better days ahead.

Thank you for following us, we appreciate your feedback and continued support.  Stay safe in this world, take care of each other and good luck!