3 Things – Earnings Week 3, PayPal / Aon & ATG II – 05/06/2022

Hello Friends!  It has been a busy week here at Wikifri but we have stayed tuned to the industry and are following more earnings, a PayPal / Aon embedded partnership and another new venture fund for fintech / insurtech.  Here are the three things we learned:


Earnings Week 3  

More earnings this week including from big carriers that give a clue about market conditions and how the macro trends are affecting the industry.  Allstate previewed this tough quarter already.  They saw significant drops in net income.  They are combating inflation by increasing rates and changing investment allocations.  Liberty blames their sharp decline on investment performance, though with less cat expense.  They must be feeling some of the same inflation pressure as the other big personal lines carriers.  AIG is taking rate increases in especially in commercial lines to have a better net income than one year ago.  Bottom line : if you are niche focused you are probably doing well if you are in personal lines you probably are facing some tough conditions.


PayPal Offers Insurance with Aon

PayPal, the digital payment platform, has partnered with Aon to offer insurance to it’s small business customers.  The partnership will leverage Aon’s CoverWallet, an insurtech acquisition they made last year, to offer commercial products to the business owners that use PayPal.  Aon has done well to utilize CoverWallet to create an embedded product.  For PayPal, they may try this out and take a chance at offering personal lines to their customers as we’ve seen more and more financial services


Aquiline Closes Technology Growth Fund II

Financial services focused PE shop Aquiline closed a new fund with $365M to invest in innovative early-stage technology companies in fintech and insurtech.  Aquiline has a great track record and will do good things with this fund.  While overall investment has slowed, we have seen over the past several weeks many new funds being created.  So the opportunity is ripe for innovators who have good value proposition to grab funds from ATG II and others.

Thank you for following us, we appreciate your feedback and continued support.  Stay tuned for more info to come.  Until next week… stay safe, stay productive!