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PartnerRe Ltd has announced its results for the first half and second quarter of 2021, bannered by a return to profitability after being struck by losses last year.

According to a statement by PartnerRe, the company’s net income was US$314 million for the second quarter, compared to income of US$229 million for the same period of 2020. For the first half of 2021, net income was US$248 million, compared to a loss of US$204 million for the same period last year.

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The model of Accelerant allows it to simultaneously focus on its MGA partners and the risk bearers on the back end, backed by extensive partnerships with reinsurers as well as other risk capital forms. Since it launched in 2018, the group has gone from strength to strength, and recently expanded into the UK through its acquisition of Kinnell Holdings. The reason for this ongoing success, Radke believes, is simple – MGAs are generally treated “unbelievably badly” by their capacity providers and have seized on the opportunity to be supported and valued.

Examining how MGAs are currently being let down, Radke noted that, especially in the small commercial space, these firms are under consistent pressure because it’s almost impossible that one or another line of business is underperforming at any given point. Thus, MGAs continually find themselves under pressure from one underwriter or another and are constantly fighting the “product versus customer” conundrum.

“The second thing is every MGA is inconsequential to every capacity provider because of the way that the market [works], where you’ll have five or six syndicates on a binder,” he said. “So the easiest thing in the world to do is just nonrenewal [when there’s a problem] – there’s no sense in working to fix the relationship as it’s not big enough. So you have this incredibly brittle relationship, where the MGAs are treated somewhere in between incompetents and criminals by their capacity providers.”

Even look at the Lloyd’s set-up, Radke said, where MGAs have to audit their accounting and underwriting twice a year. It’s hard to imagine any other situation where, twice a year, a third party comes into your business on the premise that you are breaking your contracts.

Accelerant is changing that conversation by applying simple common sense to the relationship. He highlighted that this means embracing the fact that supportive relationships are the key to long-term success and prosperity. Accelerant wants its MGA partner relationships to be big, to be long-standing and to be founded on the premise that neither party can afford for the other to fail.

Read more: Pro MGA Solutions CEO discusses the evolution of the MGA sector

“We are in this for the long term,” he said. “And the way we manage that is multi-faceted. Firstly, we say ‘we want to write all your business, 100%’. Of course, there are some occasions where we don’t do that because there’s a mitigating reason, but our philosophy is, we want the diversification of their entire book, because history has shown that’s more profitable than trying to pick particular lines or particular products.

“Secondly, we say ‘as long as your behaviour is appropriate, your loss ratio is appropriate and you are completely transparent with your exposure data, we are happy to give you a five-year commitment of capacity. And that’s usually the point where the MGA stops listening to our other benefits and just start smiling.”

It makes such a difference for the senior people in the firm to get to spend their time on the business as opposed to in London, trying to get their binders renewed, he said. The time sink of that renewal is incredible, so to have the chance just to focus on brokers, producers and customers means the world to these professionals.

“It comes down to a few solid values that our parents could have taught us if we had listened,” Radke said. “That is to treat people like adults, to give them accountability, and trust, and then have the technology and [data analytical tools] in place to follow up and make sure that they’re living up to that trust.

“And then on the other end, just play with a fair deck of cards, where you’re not withholding information. If you share openly with partners and treat partners like partners, so they can participate in the entire probability distribution, then you’ve created a revolutionary business completely fueled by technology and data and underpinned by incredibly strong relationships. And that’s only by following the lessons that we were probably all taught when we were eight years old.”

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Lloyd’s has announced the appointment of Vicky Carter as deputy chair of Lloyd’s Council, effective Sept. 1. Carter will be the first woman in the company’s 335-year history to hold the post.

Carter has been an elected member of Lloyd’s Council since 2019 and has worked for the Lloyd’s market for 40 years. She began her career in medicine before moving to reinsurance broking in 1980. Carter joined Guy Carpenter in 2010 as vice-chair of international operations and, in 2018, she became chair of Global Capital Solutions International. She also holds positions on the company’s board and executive committee.

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Kevin S. Ingram (pictured directly above), executive vice president and chief financial officer, a 31-year company veteran, has been promoted to senior executive vice president and chief financial officer. He will continue to oversee the company’s financial and risk management operations. He started at FM Global in 1990 as an associate controller, and has since held positions including treasurer, finance director and senior vice president of finance. Ingram will report to Roberts effective Aug. 1.

The following appointments will take effect Sept. 1:

Deanna Fidler (pictured directly above), senior vice president and chief human resources officer, will become executive vice president and chief administrative officer. She will be based in FM Global’s corporate offices in Johnston, R.I., and will oversee human resources, diversity and inclusion, strategy and business enablement, and the FM Global Academy. Fidler joined FM Global in 2018. Previously, she served as chief human resource officer for T. Row Price. She has also held leadership roles at Aetna. Fidler will report to Robert.

Randall E. Hodge (pictured directly above), senior vice president and chief underwriting officer, will be promoted to executive vice president, staff insurance operations. Hodge, a 31-year company veteran, will be based in FM Global’s Johnston corporate offices and oversee underwriting and reinsurance, engineering and research, FM Approvals, claims, client service and marketing, and data analytics. Hodge joined FM Global in 1990 and has served in several roles, including field engineer, account manager, and Atlanta operations manager. He will report to Roberts.

George J. Plesce (pictured directly above), senior vice president and chief client experience and sales officer has been named executive vice president, US, Latin America and sales, with oversight of regional insurance and engineering operations and global business development. Plesce, a 30-year company veteran, will be based in the Johnston corporate offices. He joined the company in 1991 as a senior account representative. In his new role, he will report to Ahnell.

James R. Galloway will continue as executive vice president, overseeing FM Global’s international operations and AFM, a division that provides commercial property insurance for the middle market. He will also assume responsibility for the company’s Canada and specialty industries division. Galloway will report to Ahnell.

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Specialist insurance group Beazley Plc has bounced back – posting a US$167.3 million (around £121.6 million) pre-tax profit for the first half of 2021. The corresponding figure in the period ended June 30, 2020, was a loss before tax of US$13.8 million.

Gross written premium, meanwhile, grew 22% to US$2.04 billion; net earned premiums, 14% to US$1.39 billion. Earnings per share stood at 18.9 pence, or 24 cents. Additionally, Beazley reported a combined ratio of 94% for the six-month span.

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Furness, who has held the role of chief operating office at Covéa Insurance since December 2019, was formerly claims director of the company and its predecessor Provident Insurance. Discussing his appointment, he paid tribute to Reader and highlighted that the firm was “extremely grateful” to him for the legacy he leaves within Covéa.

“I’ve worked with him for 18 years and he has been a brilliant leader of the business and, from both a professional and personal perspective, I will miss him greatly and wish him all the very best for the future,” he said. “Taking over from James is an absolute honour.”

Furness noted that he had been with Covéa for many years and that it is a company he loves and believes in. The business has an “agreed and progressive” strategy in place, he said, backed up by great people and he intends to continue to propel this forward, together with the rest of Covéa’s team.

Commenting on his decision to step down, Reader said that after nine years as CEO, he decided that now is the right time to hand over the role. It had been a privilege to lead such a great business, he said, and he is very proud of all the team has achieved together.

“Covéa Insurance has an exciting future ahead of it,” he said, “and I’m delighted to be handing the baton on to Adrian, who I’ve no doubt will be a more than worthy successor.”

Meanwhile, Covéa Insurance’s chairman Dominique Salvy added: “While the board of directors and our shareholder regret James’s personal decision to leave, we respect his choice. We are grateful for his leadership of the company throughout his tenure, which has delivered a solid strategic positioning for the business and has helped navigate the unprecedented challenges brought about by the pandemic.”

Salvy said he believes that, going forward, no-one is better positioned than Furness to continue to guide the business and build on its strengths and that the board wishes him every success. 

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Among these future leaders is Miranda Mote (pictured), claims manager at Talbot Jones Ltd, who only joined the insurance broking sector in March of last year, but has already made tremendous waves. She counts herself among those who “fell” into insurance, she said, having graduated in 2017 with a degree in philosophy and taken an initial role in a claims management company.

While that wasn’t her dream job, she said, it did give her a taste for insurance and, after 18 months, she applied for a role with Talbot Jones, which was seeking a recent graduate who would be willing to undertake professional qualifications. Since she has joined the firm, Mote has successfully completed her Cert CII and is now embarking on a Master’s degree, supported all the way by the firm’s co-founders, Clare and Richard Talbot-Jones.

Read more: Clare Talbot-Jones discusses her recent TEDx talk

“To be recognised with this award, is just lovely, that Clare and Richard thought to put my name forward is so nice. But then there’s such a focus on people at Talbot Jones,” she said. “The MSc that I’m doing is very focused on leadership and strategic management, and I’m very much an aspiring leader, so I think a lot about that and about the kind of leader I want to be.”

What sets the senior team at her firm apart, Mote said, is their excitement about the work that they do, and their enduring commitment to constantly achieving more. The Talbot-Jones’s are about non-hierarchical leadership, she noted, and they go out of their way to ask the opinion of the team before making decisions. That kind of ‘servant leadership’ matches up to her own ethical values and to see it played out at a business level is very rewarding.

Read more: Touchstone Underwriting MD on driving professionalism through qualifications

Being recognised for the role she is playing in promoting professionalism, both through her certifications and her role as a committee member of the British Insurance Brokers’ Association (BIBA), has given Mote food for thought about what insurance can offer young talent. She recalled back when she took on her first role how her peers were surprised that she had taken on such an entry-level job.

“I think there’s a sense of people wanting the sort of perfect job that’s going to tick all their boxes,” she said, “but having a more realistic approach allows you to explore something that you might be interested in and you might not. Thankfully, for me, insurance was something that I ended up wanting to have a career in, but that [flexibility] is important because there’s probably no such thing as the perfect job.”

For Mote, it was the atmosphere and people involved in the broking industry that drew her in and she encourages other young people to explore opportunities they have not previously considered. In turn, insurance businesses must meet the expectations that young people have from their place of work she said. And, from looking at her peer group, Mote noted that there is a strong sense that young adults are looking for a safe harbour. They want a sense of belonging, particularly given such increased remote working which is making that harder than ever to achieve, especially for larger firms.

“And people often talk about making a difference, and there’s no doubt that’s really important to young people,” she said. “When I think of my own role and what it means to receive a really good review, it’s so nice that people go out of their way to tell you that. People these days love to feel that they are making an impact.”

Having worked at Talbot Jones and seen for herself what it means to be supported, Mote noted that she understand how imperative it is that companies validate and encourage their people. People want recognition and affirmation, she said, whether that’s for extra hours or extra work, or simply for a job well done. That kind of appreciation is becoming an expectation, particularly for younger people, and firms need to understand that recognition is the key to making people feel valued for the job that they do, and to helping them see the impact that their job is having.

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The report found that rapid acceleration of technological change is driving companies to continuously innovate to transform their business and differentiate themselves from competitors. It also found that geopolitical uncertainty, ESG/climate crisis and awareness, and inclusion & diversity realisations are impacting capital, strategic, and operating decisions like never before. Supply chain shocks are also likely to be more frequent.

Adam Garrard, the global head of CRB at WTW, commented: “Clients in the technology, media, and telecoms sector have been impacted by the changing business environment as a result of COVID-19.

“While some companies have struggled with the rapid acceleration of technological change, many have embraced innovation and successfully maintained and grown their business despite the challenges faced.

“We are delighted to have collaborated with the Mack Institute’s Collaborative Innovation Program (CIP) at the Wharton School, University of Pennsylvania to create the Willis Towers Watson Technology, Media, and Telecommunications Futures Report. This is an important insight for all businesses in this sector as they deal with such a challenging risk landscape.”

In the past 18 months, the industry had seen a massive and accelerated tech investment and new ways of working. WTW expects the “new normal” way of working to remain, and to continue to alter the risk reality that corporates must address.

The report also found that “breaking barriers” is becoming essential, perhaps even existential, and critical to an effective risk strategy. Moreover, new operating requirements have transformed the workplace with the consequences of remote working and digital transformation affecting companies, employees, and investors.

“This report is essential reading for the technology, media, and telecoms sector. The future risk horizon highlights the need for organisations to re-examine operations to determine what worked and what didn’t during the height of the COVID-19 crisis,” said Sara Benolken, TMT global industry practice leader at WTW.

“Although the idea of resilience has been kicked around corporate offices for years, the virus has added a greater sense of urgency.”

WTW expects new efforts by TMT companies to continue building further and genuine resilience into business strategies and operations in 2021 and beyond.

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As the economy grapples with the forced change in working practices caused by COVID-19, cyber-attacks and data loss remain the top risks facing directors & officers (D&Os), according to a global survey from Willis Towers Watson and international law firm Clyde & Co.

The survey, which covered the UK, Europe, Asia-Pacific, and the US, found that cyberattacks were identified by 56% of respondents as a very significant or extremely significant risk. This was followed by data loss (49%), regulatory risk (46%), health and safety risk (41%) and employment claims (38%) to round out the top five.

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“We believe a key reason for Claudio being listed is due to his very strong core values,” she said. “He believes that kindness in leadership and trusting and respecting all employees is crucial to instilling a positive workplace culture. The award is also testament to the inclusive, rewarding and collaborative culture at AXA, where employees are encouraged to bring their full selves to work every day.”

Exploring what it means to build a culture that allows people to be authentic to themselves, Ashdown noted that it starts with the realisation that insurance businesses rely on the talent, courage and resilience of their people to succeed. Thus, AXA strives to provide a workplace culture that is always open, supportive, challenging and empowering.

“We respect and value the individual differences of our people because it’s these differences that make us stronger,” she said. “A diverse workforce helps us more effectively meet diverse market and customer needs, and helps us attract the most talented people, fosters internal morale and employee engagement and enhances employee wellbeing. This is why diversity and inclusion are key priorities at AXA.”

Read more: AXA’s Zoe Ashdown on reducing the gender pay gap

The group’s brand promise is ‘Know You Can’, and Ashdown said this embodies empowerment and self-belief. This is a mindset not a strapline, she said, and it is this mindset that helps people develop the confidence to progress both professionally and personally. To allow this development to occur, the right tone must be set at the very top of an organisation’s structure and, particularly when it comes to D&I, that means being accountable and having diversity at a senior level.

There is little doubt that the COVID crisis has increased many people’s focus on health and wellbeing and Ashdown noted that this, in turn, has accentuated their desire to find a good balance in their lives. At AXA, she said, employee wellbeing has long been an important focus and, during the pandemic, it really ramped up its activity in this area.

“In line with the virtual workplace our employees have been experiencing,” she said, “we focused on using technology to treat employees like consumers, giving them access to services when, where and how they needed them. But our proposition isn’t just technology-led and we’ve tried to find variety both in solution and delivery methods to engage as wide an audience as possible.”

These include a focus on wellbeing, she said, through a variety of programmes including a virtual GP service for employees and their immediate family, Cycle2Work, gym discounts, free online fitness classes and more. Mental wellbeing is not being left of the equation, however, with provisions made via a mental wellbeing app, an employee assistance programme and access to mental health seminars.

The insurer has moved beyond just the realm of the physical and mental, she said, by providing tools to support its people’s financial wellbeing and social wellbeing. The former includes tools such as Nudge, a financial wellbeing app to help employees manage their finances better and the latter includes services virtual volunteering opportunities via the AXA Hearts in Action programme and community programmes.

Read more: Assessing the long-term impact of coronavirus on insurance working practices

As a business, AXA has made a commitment that it will not go back to pre-pandemic ways of working. This is a real chance to take something positive out of what has been an incredibly challenging time, she said, and to reimagine the way we work. 

The insurer is rolling out its ‘Smart Working’ strategy – a hybrid way of working which provides increased flexibility by combining remote work and office presence. Ashdown said the business is convinced that its new smart way of working will build organisational resilience and help it attract and keep the best talent.   

What smart working means, she said, is that organisations can attract a more diverse pool of talent, increase the geographical reach of many of its roles and encourage talent to join and to stay given the increased level of balance and choice they enjoy. This will help staff to get the best out of their working day while still ensuring AXA delivers great service to our customers.

“The pandemic has been a huge and transformative moment for working practices,” Ashdown said. “As a result, organisations that don’t transform, adapt or reflect what employees want and expect from the workplace today may struggle to attract the best talent going forward. This is why we have developed a Smart Working strategy, which will enable employees to be much more location agnostic and to be in the right place to do their job and serve their customers.

“This is a new approach and we intend to test and learn as we go along. But we believe that by providing this enhanced level of flexibility we can take a new step in our overall ambition to become one of the most inspiring companies to work for.”

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