Warren Buffett – Berkshire Hathaway, AIG and MMC

Buffett now linked with AIG stake following MMC position

2021-02-26T21:21:00+00:00

Berkshire Hathaway’s in-house P&C insurance business is credited by Warren Buffett as the “engine” that has propelled the investment giant’s growth since 1967, when it entered the sector. But the recent $499mn investment in MMC and recent Wall Street rumours about a separate stake-building in AIG hints at a cycle ...

California Fair  Plan

Cali FAIR Plan program gets home despite reinsurers’ wildfire concerns

2021-02-26T20:25:00+00:00

The California FAIR Plan and its broker Aon have successfully completed the placement of a restructured cat reinsurance program with a new $75mn xs $125mn occurrence sub-layer and added a $250mn occurrence layer at the top despite a challenging market for securing capacity for wildfire risk, The Insurer can reveal.

Sid Sankaran  – Sirius Point

SiriusPoint launches as $3bn+ (re)insurer

2021-02-26T14:36:00+00:00

SiriusPoint has formally launched following the completion of the merger of Sirius Group and Third Point Re to create what the Bermudian says is one of the first “substantial” (re)insurers of the Class of 2020 with over $3bn in initial capital.

Verizon

Court rules Verizon can recover $24mn in defence costs from insurers

2021-02-26T20:28:00+00:00

A Delaware court has ruled that Verizon’s insurers including AIG should cover $24mn defence costs for litigation related to the 2008 spinoff of its landline business.

II-JAmedRiverGroup-FrankNDOrazio

“Underwriters dream about” Q1’s E&S metrics: James River’s D’Orazio

2021-02-26T19:04:00+00:00

James River CEO Frank D’Orazio has commented that early indicators in 2021 suggest a continuation of the buoyant excess and surplus lines (E&S) rate environment, while the executive also stated he is open to options to reduce exposure to the run-off Uber book.

California Fair  Plan

Cali FAIR Plan program gets home despite reinsurers’ wildfire concerns

2021-02-26T20:25:00+00:00

The California FAIR Plan and its broker Aon have successfully completed the placement of a restructured cat reinsurance program with a new $75mn xs $125mn occurrence sub-layer and added a $250mn occurrence layer at the top despite a challenging market for securing capacity for wildfire risk, The Insurer can reveal.

Sid Sankaran  – Sirius Point

SiriusPoint launches as $3bn+ (re)insurer

2021-02-26T14:36:00+00:00

SiriusPoint has formally launched following the completion of the merger of Sirius Group and Third Point Re to create what the Bermudian says is one of the first “substantial” (re)insurers of the Class of 2020 with over $3bn in initial capital.

Verizon

Court rules Verizon can recover $24mn in defence costs from insurers

2021-02-26T20:28:00+00:00

A Delaware court has ruled that Verizon’s insurers including AIG should cover $24mn defence costs for litigation related to the 2008 spinoff of its landline business.

II-JAmedRiverGroup-FrankNDOrazio

“Underwriters dream about” Q1’s E&S metrics: James River’s D’Orazio

2021-02-26T19:04:00+00:00

James River CEO Frank D’Orazio has commented that early indicators in 2021 suggest a continuation of the buoyant excess and surplus lines (E&S) rate environment, while the executive also stated he is open to options to reduce exposure to the run-off Uber book.


MMC

MMC commitment to de-levering and dividend should dispel unrealistic M&A rumour

As the Aon-Willis Towers Watson deal continues to grind through the regulatory approval process, there has been plenty of speculation about how the other member of the big three brokers will respond.

AIG – Peter Zaffino

AIG details lower PMLs and reduced reinsurance limit

AIG has detailed the reduced gross exposure in property probable maximum losses (PMLs) that was a driver of its decision to cut back overall cat reinsurance limit purchased at 1 January, including on its US and Caribbean personal lines protection and aggregate shared limit placement.

Liberty Mutual Insurance

Casualty leads the way as Liberty GRS posts 15% average renewal rate rises in 2020

Liberty Mutual’s P&C, specialty and reinsurance-focused Global Risk Solutions (GRS) business has become the latest US carrier to highlight strong rate momentum in 2020 with average renewal rate increases of 15 percent and casualty classes leading the way.

MMC

MMC commitment to de-levering and dividend should dispel unrealistic M&A rumour

As the Aon-Willis Towers Watson deal continues to grind through the regulatory approval process, there has been plenty of speculation about how the other member of the big three brokers will respond.

AIG – Peter Zaffino

AIG details lower PMLs and reduced reinsurance limit

AIG has detailed the reduced gross exposure in property probable maximum losses (PMLs) that was a driver of its decision to cut back overall cat reinsurance limit purchased at 1 January, including on its US and Caribbean personal lines protection and aggregate shared limit placement.

Liberty Mutual Insurance

Casualty leads the way as Liberty GRS posts 15% average renewal rate rises in 2020

Liberty Mutual’s P&C, specialty and reinsurance-focused Global Risk Solutions (GRS) business has become the latest US carrier to highlight strong rate momentum in 2020 with average renewal rate increases of 15 percent and casualty classes leading the way.

Texas

Uri – unmodelled and under-priced?

The giant winter storm that froze Texas (and other states) last week has been described in some quarters as being closer to a hurricane in its footprint and some of its attributes than a typical extreme weather event at this time of year.

IG P&I Golden Ray

A year’s pause for the IG

Tomorrow – 20 February – is a well-known date in the marine (re)insurance calendar for two reasons. 

Comment

Rising replacement costs – the next major claims inflation challenge?

Escalating replacement costs are threatening to drive up the cost of recent US catastrophe events, with broker Aon likening the challenge to the assignment of benefits (AOB) issue which pushed up claims costs in Florida following Hurricane Irma in 2017.

Texas

Uri – unmodelled and under-priced?

The giant winter storm that froze Texas (and other states) last week has been described in some quarters as being closer to a hurricane in its footprint and some of its attributes than a typical extreme weather event at this time of year.

IG P&I Golden Ray

A year’s pause for the IG

Tomorrow – 20 February – is a well-known date in the marine (re)insurance calendar for two reasons. 

Comment

Rising replacement costs – the next major claims inflation challenge?

Escalating replacement costs are threatening to drive up the cost of recent US catastrophe events, with broker Aon likening the challenge to the assignment of benefits (AOB) issue which pushed up claims costs in Florida following Hurricane Irma in 2017.