Travelers

Shares rose to over $213 at one point – from their previous close of $198.35 – after this morning’s Q4 results, which included an 8.7 point combined ratio (CoR) improvement driven by a rebound in personal lines.

The carrier also renewed the 20% quota share with Fidelis, maintaining the same loss ratio cap the parties agreed in 2023.

The program’s retention remained the same at $3.5bn.

The personal insurance segment’s CoR slashed to 86.8% from 105.3% in the prior year quarter, as the contribution of cat losses declined by 7.3 points to 2%.

The announcement closes the $435mn-deal which was announced in early November.

Travelers is set to expand its core cat treaty by between $1bn and $1.5bn, in a further sign of increased demand for cat reinsurance coverage at 1 January, this publication can reveal.

Sources agree that there are others that could follow a similar playbook, but there are three key considerations to keep in mind when pursuing a strategic-on-InsurTech transaction.

The Insurance Insider US Research team walks buyers through valuation considerations for InsurTech MGAs, as capital constraints point to further consolidation.

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

Kemper’s current results and historical trends suggest continued difficulty and remains a TBD story.

The transaction is expected to close in the first quarter of 2024, subject to regulatory approvals.

A clear commonality is already emerging much as it did in the previous quarter, when severe convective storms – particularly hail – also dominated.