3 Things – State of the Industry, $250M Capital Raise, M&A update – 4/2/2021

Many of you are enjoying a Spring Break and holidays this weekend.  A bit of a slower week but here are the three things we learned:


State of the Industry 2020/2021

As the quarter ends, more of the 2020 picture becomes clear and the outlook for 2021 takes shape.  We found this summary of rating agencies review of the industry, showcasing much of what we already know about COVID effects both positive and negative.  In 2021, economic growth that has started will help power the industry forward to improve combined ratios and increase return on equity but there has already been two unexpected loss events in winter storm Uri and the Suez Canal blockage.


$250M Raise by Small Business Insurtech

The provider of small business insurance, Next raises another $250M raising their valuation to $4B.  They keep making news as they grow to be a major player in small commercial.  Key to their success is their tech-forward approach using AI/machine-learning and embedded distribution through platforms gaining steam in the post-pandemic era.


Allstate Exits Life Business

Allstate completes exit from the life business announcing a deal for their New York operation to Wilton Re.  This was a planned move as they are focusing on P&C going forward.  There is another significant L&A business in play when AIG decides to sell or do a spinoff IPO of their business.  The latest on the Hartford is that Chubb is disappointed and Allianz could be preparing it’s own bid.

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