Monte Carlo (Inside P&C Daily lead story): Reinsurers are the most bullish they have been for years as the inflationary environment spurs major new cat reinsurance demand at a time when de-risking is causing supply to shrink. Combined with a growing conviction that ceding commissions in long tail lines have peaked, and a rising flow-through of earnings from higher interest rates, sentiment in Monte Carlo was upbeat. But external capital remains incredibly bearish on the sub-segment due to a flight from volatility and a loss of faith in underwriters. For US cedants, tough choices loom with reinsurers preparing to strip away cheap earnings protection.
Argo: The embattled carrier has moved quickly to reboot its group-level sale process after it sealed a deal to sell its Lloyd’s syndicate to Westfield. Sources said financial adviser Goldman Sachs has approached potential bidders around the asset and invited them to engage ahead of a sales process. In a recent investor deck, Argo presented the business as a pure play specialty insurer with $2bn+ of premiums and $950mn if bet reserves are transferred to the legacy market.
TransRe: CEO Ken Brandt told this publication that Berkshire Hathaway’s acquisition of Alleghany comes at “excellent” timing but will not change the way the reinsurer operates its business. He said the transaction allows the company to take on more volatility under Berkshire, as (re)insurers navigate inflationary pressures, recessionary fears, shrinking capacity in property and effects of the Ukraine-Russia war.
News
Liberty Mutual: The company's expansion of its global risk solutions unit continues with the appointment of Julia Chu as head of underwriting planning, performance and portfolio management and Thomas Leahy as global product leader of financial lines. Read more
InsurTech funding: InsurTech Patra has secured a $146mn growth investment as a part of a recapitalization from FTV Capital. Read more
Westfield/Argo: Westfield Specialty president Jack Kuhn said the purchase of Argo’s Syndicate 1200 gives the carrier “an accelerated entry into the international marketplace”. Read more
Amwins: Amwins CEO Scott Purviance said that consolidation in the wholesale brokerage space creates challenges for major retail players looking to make M&A moves in the sector. Read more
August CPI: The annual price increase for motor vehicle insurance accelerated to 8.7% in August, even as the all-items Consumer Price Index moderated to an 8.3% gain compared with the same month last year. Read more
