Earnings

The legacy carrier has made huge gains through its hedge fund strategy through 2020.

The reserve charge reported in quarterly earnings may have opened the door for activists.

The insurer also failed to file its annual report on time last year.

The company closed six partner acquisitions in Q4, which brought in around $133.7mn in revenue for the 12-month period pre-acquisition.

While vehicle miles traveled dipped in January, likely due to the Omicron variant, the auto insurer said February’s preliminary results indicate a rebound and frequency is expected to rise.

CEO Frank D’Orazio said in an investor call that the company had entered a deal with Fortitude to protect against further reserve volatility.

The carrier will recognize a $6.8mn after-tax loss associated with the LPT agreement during the first quarter of 2022.

The auto InsurTech’s accident period loss ratio grew to 78.1% during the quarter, up from 56.9% at the same point last year.

Specialty primary business also delivered better underwriting profits, as BHSI grew 36%.

Inside P&C’s news team runs you through the key developments from the past week.

Erie Indemnity Company’s combined ratios for both personal and commercial lines swelled in the fourth quarter as its service area was hit hard by tornadoes in December and inflation pushed auto costs higher.

The (re)insurer completed a $450mn redemption from hedge fund exposures, to be deployed in cash and fixed income, with an additional $100mn redemption in January 2022.