Capital markets

The selloff may hint at headwinds for equity investors.

E&S is most exposed to growth normalization, private credit is hunting P&C and fronting is deadlocked on exits.

It is understood around $1bn of premiums could be ceded to the proposed vehicle.

Industry stocks were firmly behind the S&P 500 in Q3.

Sources said that the carrier has held preliminary talks with private debt investors.

Fleming’s attempt follows those of other legacy carriers that have had recent successes raising capital.

The fundraising focus comes after it was acquired by The Baldwin Group in Q1.

Ryan Alternative Capital Re was launched in partnership with Axis Capital.

The Japanese carrier has agreed to buy Aspen for a realization of $3.5bn.

The insurer has chosen a “take two” deal after buying Endurance, betting again on Bermuda.

Third Point purchased 50,000 shares of the E&S insurer, which represents roughly 0.1% of its shares outstanding.

The lawsuit is the latest development in the multi-billion dollar reinsurance scandal.

The S&P 500 outperforms as P&C tumbles on mixed earnings.

The president expects to see benefits from the deal in H2 2026.

The vehicle will support Ascot’s casualty business in the US and Bermuda.

Brown & Brown fell 10% and Ryan Specialty 8% as investors digest the deteriorating outlook.

The broker posted a 6.5% drop in organic growth YoY.

The Bermuda SPI will write a quota share of SageSure’s captive Anchor Re.

P&C’s outperformance lead dwindles, while specialty rises above other segments.

Additional buybacks are more feasible if P&C stocks slip and pricing moderates.

Above-market organic growth, mid-market M&A and talent infusions were all heralded.

The aggregate gross proceeds from the offering are expected to be $113.3mn.

The latest update brings the agency’s combined estimate for Milton and Helene to $32.4bn.

Insurance outperformance slows as markets recover from tariff shock.

The latest E&S player planning to IPO remains a “show me” story.

Fox highlighted the increasing role of alternative capital and creative financial vehicles.

The bond will provide named storm and quake coverage in the US.

Unpacking how much excess capital there really is and dissecting the source of its returns.

The program will succeed the previous buyback launched in 2023.

The conglomerate’s insurance subsidiaries will have to make do without some of their prior strategic advantages.

P&C held up better than the S&P 500, but there are causes for longer term concern.

We assess the Bermudian’s standing amid waning investor sentiment and economic uncertainty.

The state insurer of last resort is set to purchase $2.89bn of reinsurance this year.

Inflection sets in for insurance stocks as macro albatross gets heavier.

Macroeconomic volatility could also create top-line headwinds.

The firm acted as the front for Trouvaille Re, the E&S property sidecar for MGA AmRisc.

The program will provide excess casualty coverage across a broad range of industries.

The business will still look at large non-life deals in particular in-the-money ADCs.

The investment recovery will be welcome but Chinese tariffs will contribute to loss-cost inflation.

Erik Manning is joining the business from BMS as head of ceded reinsurance.

The announcement spurred a quick spike in stock market valuations.

Trade credit and marine are among the lines facing direct impacts amid a broader inflationary challenge.

Markets have taken a battering across the globe following the “Liberation Day” announcement.

Insurance’s demand inelasticity will be its greatest strength in 2025.

Trouvaille II raised $580mn for 2025, compared to $325mn in 2024.

Insurance share prices were resilient amid today’s market meltdown.

The insurer also pointed to accelerating growth, M&A to come, and a sub-30% ER.

Total reinsurer capital grew by $45bn in 2024 to $715bn.

The company’s stock jumped 14% within 30 minutes of the market’s open.

The vehicle will take a quota share of all of the risks underwritten by Ryan Specialty’s MGA arm.

Industry sources estimate the market to be around $3bn.

The insurance market remains generally immune to tariff uncertainty, but not all is well.

The big brokers are lining up London capacity to write follow lines on US risks.

On Monday, the firm reported a Q4 CoR of 155.1%, versus 98.1% a year ago.

The investment firm’s holdings were down to $59mn at the end of Q4.

Jana holds around 109,000 shares and 69,000 call options, at a $307mn total value.

The loss aggregator has classified the fires as two separate events for reinsurance purposes.

Insurance stocks are lukewarm amid earnings season, cats and political changes.

The board will lead the review following feedback from shareholders including activist investor Jana.

The PE firm held over 6.7 million Axis shares, around 8.2% of shares outstanding.

The carrier’s Q4 operating EPS declined to $0.41 from $0.77 in Q4 2023.

Most insurers outperformed the S&P 500 last year, but the trend is unlikely to continue.

The company’s stock price has plummeted in the wake of the LA wildfires.

In June 2023, Hale Partnership got its license from the Cayman Islands Monetary Authority for HP Re.

The state insurer is budgeting for an extra 43% of overall coverage in 2025-26.

The 2025 target would be ~25% larger than the $3.56bn it placed for 2024.

The activist investor’s position at the end of Q3 was valued around $116.3mn, SEC filings show.

The firm had owned 3.45 million shares in Q2, then valued at over $256mn.

Multiple reinsurance brokers have pitched the firm for sidecars.

Republican tariffs and higher Democratic corporate taxes would hurt the sector.

The stock was hovering around $40 per share just before closing.

The loss tally is considerably lower than estimates issued by model vendors.

The Floridian insurer anticipates that it will remain profitable in Q3 and Q4 despite hurricane activity.

Grandisson's sudden retirement could mean a complicated future for Arch.

Milton’s significant but less-than-expected hit shifts our expectations for industry recovery.

Shares gained after Hurricane Milton did less damage than anticipated.

Milton threatens to make landfall in Florida shortly after Helene.

The raise includes minority investments from Nationwide, Enstar and others.

Interest in these vehicles has increased recently, but market softening could throw a curve ball at growth.

The move comes less than a year after AssuredPartners’ sale process reached a stalemate.

While Republicans are typically perceived as best for business, there are several factors at play.

The move comes just days after the Warren Buffett-controlled conglomerate reached the $1tn market cap mark for the first time.

Westaim reported roughly $79mn in net proceeds from the sale.

Reagan Consulting has been retained to advise the ~$125mn Utah-based brokerage.

The conglomerate now owns around 27 million Chubb shares valued at roughly $6.9bn, compared to nearly 26 million in Q1.

The industry could weather a recession, unless loss costs and reserving pressures worsen.

S&P’s Insurance Select industry index had fallen by 2.7% at market close.

The funds were contributed to support the specialty carrier’s growth.

BHMS joins a group of Boost backers that includes Markel, Canopius US and management.

With the deal, 1970 secured capital to boost its liquidity management services for insured companies.

The Hartford and Aon also posted notable, though more muted, stock bumps.

Travelers and Selective’s releases point to ongoing reserving challenges this earnings season.

The news follows a string of deals that the stop-loss segment has seen in recent months.

The carrier’s CoR increased 15.9 points YoY to 116.1% on unfavorable GL development.

Longstanding investor Stone Point will continue as a partner and board member.

It is understood that the company expects to launch its Florida reciprocal in Q4.

Stable first half insufficient to counterbalance concerns on reserving trends.

Sources said the deal between the PE firms valued the broker at in excess of 16x Ebitda, or $4bn+.

It is understood that the goal is to use a capital injection to form a reciprocal.

Investor skepticism visible in stock prices and short interest data over first half of 2024.

Insurance Insider US recently revealed the parties were in advanced sale talks.

The executive gave his view on the (re)insurance landscape and the impact of PE on the sector.

In January, this publication revealed that the Southern retailer retained Piper Sandler to run an auction to bring in a new PE investor.

Onex has proposed an alternative sale structure, which includes R&Q’s potential liquidation.

Analysis of company performance post-IPO shows varying trajectories over time

The company increased its full year 2024 adjusted net income guidance.

Changes in investment strategy and strong results show carriers can weather financial storms.

The proposals include increasing either statutory or CRTF funds.

The start-up's founder set out the new broker’s strategy, M&A goals and structure.

PE house Vistria will back the buy-and-build strategy in the independent agency space.

The $6.7bn Chubb investment is an outlier in the Berkshire portfolio.

Citizens also secured $1.1bn of limit for its Everglades Re cat bond.

The conglomerate exited its $620mn position in Markel, which it has held since 2022.

An overview of Q1 earnings shows upsides, but also plenty of concerns going into the rest of 2024.

New leaders of these reinsurers have started strong, but Axis still has work to do.

The broker’s opening price on Friday was $272.10 per share, versus Thursday’s closing price of $306.

Earlier today, the carrier reported that its Q1 combined ratio came in at 88.8%, down from last Q1’s 90.6%.

Sources said Piper Sandler will run the auction for the CIVC-backed firm.

P&C buybacks have continued to decline, but large authorizations keep companies flexible.

It is understood that the company aims to launch in Q3 or Q4 of this year.

Sources said the process will target buyout firms and will not be open to trade bidders.

Hiscox, Intact Ventures, Weatherford and RPM Ventures participated in the fundraise.

Shares had fallen over 20% since Monday.

James River is suing Flemming Intermediate while a potential sale of the company is ongoing.

This publication revealed that the company was raising capital earlier this year.

The InsurTech’s shares gained over 50% in value on Thursday.

SEC filings show that Travelers’ equity ownership was valued at over $107mn in Q4.

The company would ideally like to target a minority investment.

Enstar acquired 637,640 shares of James River in Q4 last year valued at nearly $6mn.

The company provides a platform for brokers to value, buy and sell books of business.

The company will hold its Q4 earnings call on Friday February 16.

The company's reinsurance panel has expanded to over a dozen risk capital providers.

Intact Ventures, Era Ventures, Greenlight Re and Spark Capital also participated.

Commercial carrier earnings continue to show mixed prior-year development.

Last year, this publication revealed that TPA SCM and Rimkus launched sales processes.

Markel, Axis and Selective booked sizeable reserve charges in their liability segments.

It is understood that the InsurTech began fundraising late last year.

Axis’s reserve cleanup removes longstanding overhang and narrows the credibility gap.

On Wednesday, the insurer reported 12% growth in net written premiums.

Sources said that the retailer will be marketed off an Ebitda of $40mn-$45mn, pointing to a potential valuation in the $650mn-$750mn range.

Participating in the funding round were Caffeinated Capital, Altai Ventures, Zigg Capital, 8VC, Buckley Ventures, Habitat Partners and Arch Capital.

The Aspen IPO provides an opportunity to benefit from the specialty market without commensurate prior-year reserve risks due to an LPT cover.

The agency said TRUE’s ratings will remain under review until there is additional clarity surrounding a new business plan.

TRUE will use the capital injection to provide underwriting capacity in Florida “at a crucial time” and to expand its footprint nationally, according to a statement.

A more consistent trading rhythm returned to the property market, with capacity deployment outside of frequency-exposed layers and more heavily loss-impacted segments bouncing back.

Insurance Insider US dissects the largest and hottest deals of the year across broking, reinsurance and other segments of the industry.

The deal’s consideration consisted of a cash payment of $119mn and the 13.5% equity interest that Enstar held in Northshore, the parent of Lloyd’s underwriter Atrium.

Leading the decline was AJ Gallagher, with a 7.5% drop as of mid-afternoon, after having traded down over 8% earlier in the day.

Earlier this morning, SiriusPoint announced it had been informed that major shareholder CMIH had been taken into private receivership by lenders in Singapore.

The suspension of Global Indemnity’s effort to sell its E&S arm is likely specific to the franchise rather than an indicator of a dealmaking slowdown.

Sources said the Gemspring Capital-backed group retained investment bank Baird earlier this year as adviser in the sale process.

The lawsuit, filed Thursday on behalf of Clear Blue and its subsidiaries, alleges that Aon conducted insufficient due diligence on the ILS InsurTech.

A quick roundup of this week’s biggest stories.

The latest short interest data shows continued pessimism on InsurTechs and Florida insurers.

The fundraise was led by Golub Capital and jointly arranged by Antares Capital, both existing lenders to Patriot Growth.

This latest funding round brings total committed capital for the collateralized reinsurer to $75mn.

In addition to Lightyear’s capital injection, current backer BHMS agreed to roll a material portion of its existing equity and made an additional investment alongside Lightyear.

The offering sold 3.6mn shares priced at $30.50 apiece and brought in approximately $104.9mn.

Amynta Ease-of-Business president Arthur Seifert said he expects MGAs to move away from the popular Dutch auction process and instead find one party that’s a good fit.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

SEC filings show that, in Q3, the activist shareholder liquidated its remaining 508,880 shares in WTW — worth around $120mn at the end of Q2.

With the fundraising, Skyward will capitalize on market opportunities within existing lines of business, but also continue to expand into new products.

Last month this publication reported that the 777 Partners-backed company was close to signing a deal with Charlesbank.

James River’s stock price plummeted more than 30% on Thursday, after the firm sustained downgrades from equity analysts over concerns around the insurer’s E&S casualty reserves.

Broker and commercial carrier trends separate as inflation slows but rates stay elevated.

The challenging funding environment has left InsurTechs with limited options for capital raising and liquidity.

The pendulum that swung towards a focus on growth for the past few years is now swinging towards profitability and increased partnership.

The Bermudian firm said it expects the acquisition could drive more growth than the prior forecast of $2.7bn incremental premium.

In 2021, SiriusPoint acquired a “significant ownership stake” in the firm, which meant the specialty insurer and reinsurer providing multi-year capacity and paper to the ILS house.

Will this year be a repeat of a shift from “growth at all costs” to “flight to quality”, or will we see the InsurTech space bounce back in the direction of 2021 optimism?

As of 14:00 ET, the broker’s stock stood at $232.24 per share, 11.9% higher than the previous close of $207.74.

The new business unit will target firms with between $10mn and $50mn of Ebitda and will deploy up to $500mn of equity capital over time.

Sources said the PE heavyweight shelved the stake sale plans earlier this year as multiples in the adjusting segment remain under pressure.

White Mountains’ final stake could range between 62%-81% of Bamboo, and the Bermudian’s investment in connection with the deal could be around $246mn-$323mn.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

First-round bids for the company were due in late September.

The fronting carrier space is seeing increased M&A activity due to a rise in private equity interest over the past two years.

Backed by private equity firm 777 Partners since 2019, Sutton National booked $230mn DPW last year — up from $71mn in 2021 according to AM Best — ranking 13th among US fronting firms.

The carrier has suffered five quarters of losses, largely spurred on by hefty natural catastrophe losses.

Sources said the specialty underwriter retained boutique firm Insurance Advisory Partners earlier this year as an adviser.

Inside P&C’s news team brings you all the top news from the week.

Canopius’s investment was made as part of a broader round of financing with participation from a number of new and existing investors including RRE Ventures, Fin Capital, and IA Capital Group.

Now that the tides have turned from a “growth-only” to a “profitability first” mindset, companies are letting go of the additional hires and focusing on insurance fundamentals and insurance expertise.

Inside P&C’s news team brings you all the top news from the week.

A summary of commentary from the second day of Inside P&C New York, with insights on InsurTechs, MGAs and Vesttoo.

A summary of commentary from the first day of Inside P&C New York, with insights on capital raising, E&S and reinsurance expectations.

As part of the deal, PE house Corsair Capital sold its stake in the company while Oakbridge leadership and employees retained a position in the broking firm.

Performance overall has been good, but there have been insurance M&A missteps and its share price has lagged.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

This publication revealed last month that Doxa Insurance was preparing to launch a sale process after earlier attempts to reach a bilateral deal for the Century-backed MGA platform fell apart.

Yesterday, Inside P&C revealed that the secondary deal takes the total equity raised to $4.1bn, with ~30% of the equity set to change hands.

Inside P&C’s morning summary of the key stories to get you up to speed fast.