3 Things – Q3 Results, Zurich API Marketplace & Layoffs

Hello Friends!  Another week has passed with a lot to unpack in terms of carrier results and news.  Most of the focus has been on the same common macro economic trends and themes with the industry adjusting.  This week we are following Q3 results from AIG, Allstate, Liberty & CNA, the launch of a Zurich API marketplace, Everest Re-Brand & layoffs in traditional carrier operations:


Q3 Result Highlights

Again a landslide of results were reported.  AIG has a strong Q3 despite taking a $450M loss from Ian.  Net income rises and they get a lift from the spinoff IPO of Corebridge.  Allstate warned of a difficult quarter weeks ago and announced they are suspending several businesses including California, where they are the 3rd largest home writer, commercial coverage in 5 states and non-telematics transportation network providers.  Liberty Mutual reports an $835M Ian loss but had a $319M reserve set up in the prior accident year, their combined ratio is creeping up.  CNA, who largely focuses on commercial insurance, has a Q3 profit reduction attributed mainly to investment losses.


Zurich Launch & Everest Re-Branding

Coverager reports that Zurich has launched an API marketplace to integrate their products with digital partners.  As is pointed out in the article, other large insurers have been going down this path lately, behaving more like big tech companies than old line insurers unwilling to change.  Zurich, Chubb and other large established carriers have the ‘gold standard’ of insurance and risk products.  As the insurance distribution landscape changes and becomes digital and tech-enabled it is wise for carriers to expend resources to enable partners to leverage them in their ecosystems.  Everest Re Group has undergone a re-brand.  They join other insurers who have recently undergone similar conversions see Amica Mutual and Prosight Speciality.  The new look suits them, though we will fondly remember the red flag and mountain concept from before.


Layoffs and Signs of Trouble

The economic conditions still dominate much of the discussion within business right now.  Throughout the earnings season it appears that most carriers are positioned well to withstand inflation and high interest rates.  Less mature companies have been experiencing layoffs.  This week a couple of established companies had difficult earnings and announced layoffs.  SiriusPoint is shutting down several offices and staff associated with those operations after a tough quarter.  Kemper announced layoffs last week and reading their results explains the reasoning.  Their business plans include setting up a reciprocal exchange for personal lines.

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