Of Special Interest


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2nd August 2015

NewslinkTrends: Weekly Global Insurance Analysis

This week, Zurich indicated that it was considering a bid for RSA-RSA's interim results are expected within the next week and its capital requirements for Solvency II are still to be finalised by the regulator PRA-other majors could be interested.
An interesting survey from CSC/Post Magazine showed that UK insurers are increasingly moving to the cloud to reduce IT running expenses. Conning reported that US P & C insurers were facing an erosion of the barrier for new entrants to the market, and a Consumer Intelligence review in the UK showed that the recent announcement of a significant increase in Insurance Premium TAx(IPT) would result in a higher level of renewal churn in main personal lines sectors. A new UK report called for a public-private approach to cyber catastrophe reinsurance, and actuaries Barnett Waddingham looked at trends in the UK bulk annuities market. The Assocation of British Insurers(ABI) commented on the Government consultation on pension transfers and early exit fees, and its Quarterly Premium Tracker showed that motor insurance premiums were beginning to rise.
Exchanging's ceo Ken Lever, who is to retire at the end of the year, said that the Xuber pipepine was strong and he was confident about year end results. eBao Tech announced
that it is to partner with Alibaba Cloud, and Towers Watson introduced DataValidator to streamline actuarial and risk analytics calculations. Sapiens is to acquire a software provider in Poland, and Texas-based HIIG chose risk exposure solution Sequel Impact, which has been well received, particularly in the London Market. Lanware was awarded a four-year IT outsourcing contract by MSIG.
Vienna Insurance Group is to acquire a Latvian insurer, and AIG moved for an investment management company and appointed it's ceo as its chief Investment officer. Asta Capital announced the launch of a new platform to focus on the MGA market. Lloyd's, represented in the UK Prime Minister's trade visit to South East Asia, announced that it will apply for an onshore reinsurance licence in Malaysia, and also is to partner with the Monetary Authority of Singapore and the UK Government to support and nurture insurance markets across Asia. UK-based telematics specialist, The Floow, was also in the trade delegation.
Early second quarter and interim financials were as usual, dominated by Bermudian reinsurers-they mainly showed a decline in net and/or operating income-they included Arch Capital and PartnerRe(of particular interest because of merger discussions), Arch Capital, Aspen, Everest Re, Lancashire, Validus, White Mountains, and RenaissenceRe(who improved operating income). Reinsurance majors, Swiss Re and SCOR, both produced strong half year figures. Hiscox highlighted record profits from its retail business, Chubb's operating income was higher, prior to its merger with ACE, and St James's Place continued to impress, despite the major changes taking place in the UK life sector. JLT predicted that organic growth would compare with 2014, Marsh Mac was happy with half year results, and Willis produced an encouraging second quarter ahead of its getting together with Towers Watson.
There were management appointments at the Financial Conduct Authority(FCA) where Megan Butler is to move on secondment from the Prudential Regulatory Authority(Director of Supervision-Investments, Wholesale, and Specialists), and at Tokio Marine Kiln(cro).
Articles on the above topics are included in those added to the Insurance Newslink and Financial Newslink global database service on Wednesday and today at www.onlystrategic.com