Hi, Friends!
February is flying by! As we wrap up the third week of the month, spring and March are just one week away.
The news cycle has stayed busy, with some key themes popping up: insurers making strategic moves to boost growth, continued investment in AI, and reinsurance capacity solutions—all while earnings season keeps giving us a clearer picture of the insurance industry’s health and future.
Let’s explore the ‘Three Things We Learned’ this week.
DUAL, NEXT & Others with Strategic Moves Power Growth and Expansion
Insurers and MGAs continue to make bold, strategic moves to drive growth, enhance underwriting capabilities, and expand market reach.
From global rebranding efforts to AI-driven underwriting partnerships and market expansions, these developments reflect a clear industry shift toward operational efficiency, innovation, and customer-centric solutions.
DUAL Group, part of Howden, has unified its global underwriting operations under a single brand, strengthening its position as a top MGA with $3.5 billion in gross written premiums. By streamlining its identity across 21 countries and launching a centralized global website, DUAL aims to simplify market access, enhance partner experiences, and reinforce its long-term growth strategy.
Meanwhile, NEXT Insurance has partnered with ZestyAI to integrate AI-driven risk assessment into its underwriting processes. NEXT uses advanced property and wildfire risk models to better price small business insurance, supporting its digital-first approach to make decisions faster and evaluate risks more accurately.
Product innovation is also fueling growth, as Falcon Risk Services launched SOAR, a professional liability solution tailored for insurance agents and brokers. SOAR offers primary and excess coverage with limits up to $10 million, backed by in-house claims expertise and AM Best A+ rated security, covering the complex risks faced by industry professionals.
Expanding geographic reach, Roamly, the insurtech arm of Outdoorsy Group, has entered the Canadian market through the acquisition of Canadian Access and a strategic partnership with Aviva. With plans to introduce tailored home, auto, and mobility insurance solutions, Roamly is positioning itself to capture demand in specialty markets, like carsharing and RV rentals.
COVU and Specialty Risk Show Investment Accelerates as Capital Flows into AI and Reinsurance
Investors are still eager to fund insurance innovation, with recent investments focusing on AI-driven customer management and expanding reinsurance capacity.
COVU, an AI-native insurance customer management and risk advisory firm, expanded its Series A funding to $22 million, bringing its total to $32 million. Initially planned as a $4 million extension, the round was increased to $10 million due to strong investor interest, signaling confidence in AI-driven automation and efficiency solutions for the insurance ecosystem.
Meanwhile, Specialty Risk Re (SRR), a collateral reinsurance provider launched in 2024, secured $50 million in institutional funding led by NMS Capital Group. This investment helps SRR better handle reinsurance capacity shortages, providing program carriers and MGAs with a stable, well-funded partner focused on careful underwriting.
These funding rounds highlight a trend where money is going into tech-driven insurance solutions and efforts to build capacity, showing how the industry is focusing more on improving risk management and efficiency.
Zurich, SiriusPoint, and Trisura Deliver Strong Earnings, Underscoring Industry Resilience
Leading insurers continued to post strong 2024 earnings, highlighting sustained profitability, disciplined underwriting, and strategic expansion despite evolving market challenges. Their results reflect a broader industry trend of financial strength and operational adaptability.
Zurich led the way with a record $7.8 billion in operating profit, a 34% rise in net income, and an 8% dividend increase. Despite a $200 million impact from California wildfires, the insurer maintained a 94.2% combined ratio, reinforcing its underwriting strength.
SiriusPoint followed with $200 million in underwriting income and a 91.0% combined ratio, marking its ninth consecutive profitable quarter while optimizing capital through share repurchases.
Trisura also delivered impressive results, with Q4 net income surging 70.1% to $19.3 million and full-year revenue climbing 11.8%. The company nearly tripled its U.S. Surety platform, supporting its expansion. These results highlight the industry’s resilience, profitability, and focus on underwriting excellence and market growth.
Join us as we continue to explore the headlines and news shaping the insurance sector, and stay tuned for more insights on the unfolding narrative of our industry! Stay productive, stay safe and stay in touch!