Hi Friends!
March is here, bringing more earnings reports with it.
Most insurers have shared their 2024 results, though a few remain. This week’s topics include a big section on these results, with highlights from Berkshire Hathaway and Insurtechs Root & Lemonade, among others.
Meanwhile, private equity continues to shape the E&S market through acquisitions and investments. Companies like Zurich NA and NormanMax are also making strategic moves to strengthen their focus on specialty market segments.
With spring conference season approaching, we’re preparing for the 2025 WSIA Underwriting Summit and other important events.
Now, let’s dive into three key takeaways from this week.
NormanMax, Bishop Street & NSM Continue M&A Private Equity Investment Trend
NormanMax has acquired parametric insurtech company FloodFlash, boosting its ability to assess risk using real-time sensor technology. FloodFlash specializes in instant flood-triggered payouts through IoT sensors, perfectly aligning with NormanMax’s push into data-driven insurance solutions. This deal enhances NormanMax’s ability to underwrite and settle catastrophe claims quickly and accurately. As climate risks grow, investments in automated, data-backed underwriting like this are transforming how insurers handle disaster coverage.
Bishop Street has acquired London-based MGA Landmark Underwriting, expanding its presence in the specialty insurance market. The deal enhances Bishop Street’s ability to underwrite complex and niche risks across multiple lines, supporting its strategy for growth in the MGA sector. Landmark Underwriting brings expertise in specialty and emerging risks, along with a strong distribution network and international reach, making it a valuable addition to Bishop Street’s portfolio.
NSM Insurance Group is selling its U.S. commercial insurance division to New Mountain Capital. The sale allows NSM to focus more on specialty insurance while giving New Mountain a platform to expand in the commercial sector. The deal highlights ongoing private equity interest in insurance as firms continue to see value in scaling specialized underwriting businesses.
Rokstone & Zurich NA Sharpen Their Focus on E&S and Middle Market
Rokstone is shaking up its approach to the E&S insurance market with a new direct-to-retail commercial risks division. Instead of going through traditional wholesale channels, the company will now work directly with retail brokers, making it easier to offer specialized coverage for complex risks. This move not only expands Rokstone’s reach in the U.S. E&S market but also highlights the growing role of MGAs in bringing innovative solutions and better market access to specialty insurance.
Meanwhile, Zurich North America is doubling down on the U.S. middle-market segment by expanding its underwriting team across key industries. By adding more talent, the company aims to serve mid-sized businesses with customized risk solutions better while strengthening its regional expertise. With competition heating up in the middle-market space, Zurich’s expansion signals its confidence in the segment’s growth and long-term profitability.
Earnings in Summary: RT Specialty, Berkshire Hathaway, Lemonade/Root and Others
Ryan Specialty wrapped up 2024 on a high note, delivering record revenue growth. Fourth-quarter revenue jumped 21.6% year-over-year to $552 million. CEO Patrick Ryan credited the company’s success to its commitment to innovation and top-notch client service. With its wholesale, binding, and MGU segments continuing to thrive, Ryan Specialty is proving that specialty distribution remains strong, even in an evolving risk landscape.
Berkshire Hathaway’s re/insurance division had a solid year, posting a $9 billion underwriting gain—despite taking a $1.3 billion hit from the Los Angeles wildfires. The company’s disciplined approach to risk and pricing continues to drive profits, even as catastrophe losses pile up. Meanwhile, GEICO made a big comeback, raking in $7.8 billion in profit after struggling with underwriting challenges in previous years.
Lemonade had a positive fourth quarter—CEO Dan Schreiber even called it the company’s “Best Quarter Ever.” Revenue and in-force premium kept growing, but the company is still in the red, with a net loss of $187 million for the year. Lemonade is now focusing on lower-premium policies to bring in more customers while keeping risk in check. Loss ratios are improving, but profitability remains a tough nut to crack as the company works to scale smartly.
Root Insurance hit a major milestone in 2024, reporting its first-ever annual net income of $30.9 million—a huge turnaround from the $147 million loss in 2023. The company’s gross combined ratio improved to 94.7%, thanks to better underwriting and growth in partnership distribution channels. CEO Alex Timm credits the win to Root’s cutting-edge technology and data science, which are helping the company stay competitive on pricing and efficiency.
Hamilton had a banner year, with net income soaring 55% to $400.4 million. The company’s gross premiums written grew 24.2%, hitting $2.4 billion. CEO Pina Albo pointed to disciplined underwriting and smart market positioning as the key drivers behind the success.
Skyward Specialty kept its momentum going, posting $118.8 million in net income, up from $86 million the previous year. CEO Andrew Robinson highlighted the company’s ability to navigate market ups and downs while still delivering strong growth.
Ambac reported a 2024 net loss due to its planned exit from the Legacy Financial Guarantee business. But there’s a silver lining—once the sale is complete, Ambac will be in a stronger, more focused position moving forward. CEO Claude LeBlanc pointed to explosive growth in the Specialty P&C segment, where premiums skyrocketed 74% year-over-year to $876 million. With record performance, MGA expansion, and a solid growth pipeline, Ambac is setting itself up for a big 2025.
