Target Markets in focus (lead story on Inside P&C): As the MGA sector descends on Scottsdale, Arizona for the Target Markets Program Administrators Association (TMPAA) annual conference, Inside P&C explores four questions for the program manager space. Some recent topics affecting the delegated authority market include a capacity contraction in recent months, the need for more transparency in the wake of the Vesttoo scandal, the growth of the E&S sector and its impact on MGAs, and valuations, as higher interest rates weigh on M&A.
Howden-Guy Carp settlement: Howden has agreed to pay Guy Carpenter in excess of £50mn ($61mn) to settle the poaching suit relating to Massimo Reina and a European team of executives to swerve a High Court case. Sources said that Howden has also agreed to a substantial period of hiring restrictions and client non-solicitations as part of the settlement deal, details of which are confidential.
The latest from MarshBerry: Agency valuations remained steady in Q3 from H1 but ticked up slightly from 2022, insurance distribution-focused boutique investment bank MarshBerry reported. MarshBerry said that the average maximum purchase price as Ebitda multiple for platform assets was 16.53x, while average firms recorded 14.16x at Q3, up 1.1% and 2.7% from 2022, respectively.
News
Impact of rising rates: US agencies are considering returning to internal financing to create more flexibility and provide lower rates than outside banks and lenders, according to a Reagan Consulting report. Read more
Intact cat losses: The carrier posted C$611mn ($446mn) in projected pre-tax losses for Q3, an update from the C$570mn ($419mn) estimate the carrier reported on August 31 for the first two months of the quarter. Read more
Down more than up: The number of ratings downgrades from AM Best outpaced upgrades in H1 2023, with 32 downgrades during the period compared to 22 upgrades, “reflecting a difficult period for the personal lines segment”, the company said in a report. Read more
Creditors seek Aon discovery: The committee of unsecured creditors in Vesttoo’s bankruptcy case have filed a motion to conduct discovery on Aon and its Bermuda subsidiary White Rock. Read more
Greenberg condemns Hamas: Chubb CEO Evan Greenberg has voiced “unequivocal condemnation of Hamas and its barbaric acts of terrorism” following the invasion of Israel. Read more
