Hi Friends!
It was a busy week with the WSIA UW Summit in Phoenix, a gathering of over 1600 industry professionals from the E&S segment. We had a great time connecting with many industry colleagues, clients and partners in person. We were also fortunate that the weather cooperated, especially with the rain coming overnight and not during Wednesday’s golf outing.
This week, several stories stood out, including a major fundraise from insurtech Nirvana, results from international players highlighted by Lloyd’s, launches from MGAs Rokstone and CannGen, and an AI partnership between fellow insurtechs Lemonade and ZestyAI, as we see them combine to power their futures.
So, let’s explore what we learned this week in insurance!
Insurtech Momentum: Nirvana’s Funding Milestone and Lemonade’s Strategic Partnership
Insurtech companies continue to gain momentum, driven by significant investment events and strategic partnerships to add value. Nirvana Insurance secured a noteworthy Series C funding round, underscoring investor confidence in its innovative model.
By integrating telematics and artificial intelligence, Nirvana offers customized, safety-focused fleet insurance, positioning itself as a disruptive force poised to address long-standing industry challenges and inefficiencies.
Meanwhile, Lemonade strengthens its technology-driven strategy by partnering with ZestyAI. This collaboration enhances Lemonade’s property underwriting precision, particularly concerning catastrophe risks. Leveraging ZestyAI’s predictive analytics, Lemonade can now deliver more detailed and accurate property assessments, highlighting a broader industry trend where insurtechs collaborate to deliver enhanced, data-driven customer value.
Strategic Moves: Rokstone’s Aviation Initiative, CannGen’s Worker’s Comp Coverage and Gallagher Assured Partners Delay
We continue to notice strategic moves that highlight ongoing expansions of market offerings. Rokstone continues to broaden its footprint in the U.S. market by launching a comprehensive mid-market aviation insurance program supported by Lloyd’s and Tokio Marine Kiln. This new offering enhances Rokstone’s existing presence, providing brokers with robust aviation-related coverage solutions.
Simultaneously, CannGen Insurance Services addresses risk in the burgeoning cannabis sector with a tailored workers’ compensation program in partnership with Crum & Forster. Offering coverage for workers in the cannabis industry, including cultivation, manufacturing, and retail operations, CannGen looks to provide more comprehensive protection for cannabis businesses while providing flexible insurance solutions nationwide.
Meanwhile, Gallagher faces regulatory hurdles, delaying its anticipated acquisition of AssuredPartners. The FTC’s request for additional information pushes the transaction closure to the latter half of 2025, highlighting ongoing scrutiny in major industry mergers.
Lloyd’s and Others Report 2024 International Market Results
The international insurance market saw significant developments as major players like Lloyd’s of London and Canopius Group announced their 2024 financial results. Despite significant claims from catastrophes such as the California wildfires, Lloyd’s experienced notable growth in gross written premiums, driven by strong underwriting in property and reinsurance segments. Lloyd’s performance was bolstered by effective underwriting discipline and favorable investment returns amid global market volatility.
Canopius Group, a global specialty (re)insurer, also reported substantial premium growth and increased profitability. The group’s disciplined underwriting approach resulted in a favorable combined ratio, supporting its strategic focus on sustainable growth in specialty insurance markets. CEO Neil Robertson highlighted the company’s forward-looking strategy, acknowledging potential global market challenges anticipated in the next year.
Generali reported strong results for 2024, driven by growth across all business segments and an expanding global footprint. Despite facing challenges from climate-related losses and economic pressures, the company enhanced its international presence, operating in over 50 countries and making strides in key global markets.
Global Indemnity Group reported its 2024 year-end results, highlighting strong growth in its Penn-America unit. These results followed a recent corporate reorganization, which indicated the company’s strategy for growth in the E&S market. A few weeks ago, the company announced Praveen Reddy as the new President / CEO of Penn-America Underwriters, positioning him to lead the division’s continued expansion.