Hi, Friends!
Another busy week in the markets—lots of economic news and trade policy shifts making waves. But through it all, the property and casualty (P&C) insurance sector is holding strong, with solid earnings from State Farm, Liberty Mutual, and some insurtech players.
On the M&A front, deals keep rolling, especially in specialty distribution and wholesale operations—perfect timing with the WSIA Underwriting Summit happening next week in Phoenix. We’re expecting plenty of conversation around this as carriers, wholesalers, and MGAs come together to connect and collaborate. Can’t wait to see many of you there!
We’re also keeping an eye on new investments and product launches from both insurtechs and traditional insurers.
Stick with us as we dive into three big takeaways from the week!
M&A Highlights: Gallagher Acquires Woodruff Sawyer While Bridge Unveils LocalEdge
Mergers and acquisitions show that insurers are planning for the future, with a strong focus on specialty insurance and wholesale distribution. This week was marked by Gallagher’s $1.2 billion acquisition of Woodruff Sawyer, which significantly expanded its capabilities in management liability, cyber, construction, and real estate insurance while strengthening its presence on the West Coast.
Woodruff Sawyer, one of the biggest independent brokerages, knows the ins and outs of Directors and Officers (D&O) insurance—an area that’s becoming more important as corporate risks grow. Their latest move is part of a bigger trend in the industry, where firms are joining forces to stay competitive and offer more specialized expertise..
Bridge Specialty Group has rebranded NBS Insurance Agency, Inc. as LocalEdge, following its acquisition of the former Nationwide Brokerage Solutions. The new brand is all about providing more personalized, local insurance solutions while still tapping into the resources of Bridge Specialty Group. Ted Stuckey, president of LocalEdge, says this rebranding isn’t just a new name—it’s a promise to offer even better service and expertise to agents and brokers.
Investment and Product Launches from Mitsui, Berkeley, Ascot & Others
Smart investments and new product innovations are helping improve risk management and the way insurance is delivered. From cyber insurance to integrated solutions and AI-powered platforms, these changes are shaping the future of insurance products and services.
Coalition, a leading cyber insurance provider, has secured a $30 million equity investment from Mitsui Sumitomo Insurance Co. (MSI), a subsidiary of MS&AD Insurance Group, Japan’s largest non-life insurance company is deepening its partnership with Coalition. They’re teaming up on a long-term insurance agreement in Australia and working together to offer cybersecurity solutions for small and midsize businesses in Japan using Coalition’s risk management platform. With this investment, Coalition can now grow its Active Insurance model globally, helping businesses of all sizes monitor and reduce risks in real time.
CoverForce, an insurtech platform, has raised $13 million in a Series A funding round led by Insight Partners. This investment will help CoverForce improve its platform, grow its network of insurance carriers and distributors, and build AI tools to make insurance processes easier. The company is working to modernize the commercial insurance industry by offering a simple system that handles everything from quotes to payments and policy issuance, solving the inefficiencies of outdated systems.
R. Berkley Corporation has launched Berkley Embedded Solutions, and the goal is to integrate customized insurance options into the buying process seamlessly. This project blends new technology with digital-first insurance, in line with Berkley’s commitment to strong underwriting practices. W. Robert Berkley, Jr., CEO of W. R. Berkley Corporation, expressed optimism about the company’s role in the embedded insurance market and is confident in the success of this new venture.
Ascot has launched AscotEXEC™, and this new brand will grow its management liability business. This move shows Ascot’s commitment to offering strong insurance options for businesses and non-profits in the commercial and financial worlds. Over the past year, they’ve rolled out new products and nearly doubled their teams to provide better support for clients dealing with today’s unpredictable risks
P&C Profits Continue As Insurers Report Strong Results
Insurance companies and tech-driven insurers are adjusting to market challenges by getting their finances back on track, teaming up with others, and expanding their reach. This is part of a bigger trend where insurers are focusing on making money, managing risks, and growing in smart ways to stay ahead in a constantly changing market.
State Farm reported a net income of $5.3 billion in 2024, a major improvement compared to the $6.3 billion loss in 2023. The positive change is mainly due to a big drop in losses from underwriting, especially in auto insurance, thanks to better practices and favorable market conditions. These results show that State Farm is in a stronger financial position and is focused on adjusting its strategies to boost profits.
American Family Insurance reported a strong financial rebound in 2024, AmFam turned things around with an underwriting profit after two years of losses. Even though they dealt with big catastrophe claims, they managed to improve by raising rates and seeing better returns on investments. While it lost a few policies as a result, AmFam made sure to take care of their employees with better benefits and pay raises. This recovery shows how the company adjusted to market challenges.
In its 2024 financial report, Liberty Mutual reported a net income of approximately $4.4 billion, a significant increase from $213 million in 2023. The company’s combined ratio improved to 95.9, almost reaching its goal of 95 by 2025. CEO Tim Sweeney said this success is thanks to smart decision-making and keeping expenses in check, which sets the company up for growth in key areas. Liberty Mutual Insurance also shared plans to retire the Safeco name and bring all its personal insurance products under the Liberty Mutual brand, aiming to make operations smoother and unify marketing across all sales channels.
Meanwhile, home-focused insurtech companies like Kin and Hippo are changing the homeowners insurance market by using technology-based approaches. Kin reported strong growth in 2024, fueled by market expansion and premium growth, including its re-entry into California. Hippo, leveraging real-time data and smart home technology, has strengthened its financial resilience while positioning itself as a leader in proactive home protection. Both companies are taking advantage of changing customer expectations and new risks, showing how digital-first insurers are shaping the future of home insurance.