3 Things – Farmers Acquisition, GM Insurance & Q1 Trends 4/09/2021

Hi Friends!  This week in insurance we are following a deal closing, GM’s plans for insurance and things to watch as we look back at Q1.  Here are the three things we learned:




“We Are Farmers”…Soon to be an Employee Benefit

We’ve been following since it was first rumored last December, the acquistion of MetLife’s P&C business was closed by Zurich through it’s Farmer’s subsidiary this week.  An condition of the deal is an exclusive 10-year distribution agreement allowing Farmer’s access to MetLife’s Group Benefits platform “which reaches 3,800 employers and approximately 37 million eligible employees.”  The deal was not only a traditional acquisition of a book of business but also a new distribution channel that could be game-changing for Farmers (Zurich).


GM’s New Ventures Include Insurance

GM’s Innovation Chief lays out the automaker’s many side ventures that include insurance powered by telematics from OnStar.  They hired an industry veteran some time ago but it is interesting that they are speaking about insurance being a large part of their transformation to address future markets they estimate to be worth $1.3 trillion beyond traditional vehicles.


We’re Watching Q1 Results

Official earnings reports and other lookback data are starting to come in.  The winter weather event losses are likely to influence P&C insurers results, some are already warning of big losses.  M&A activity so far has exceeded 2019 & 2020 combined with AIG’s life business and The Hartford deals on the horizon.  Inflation is a big topic on the economic front with the Fed keeping close watch.  This is an interesting report about how inflation may affect the insurance industry.

More thought leadership and insights are on the way.  Please provide feedback on topics and insights you would like to hear.  You can also schedule a meeting if you would like to discuss anything further.  Stay productive, stay in touch!