Insurance news

Meanwhile, its gross written premiums (GWP) totalled $3,238.3 million, a 31.8% jump from $2,424.4 million in 2020 at constant FX rates. In its earnings release, Brit noted that this reflects strong, targeted growth in the company’s core direct and reinsurance books and the successful first year of trading for Ki Syndicate (Ki), its first fully digital and algorithmically-driven Lloyd’s of London syndicate.

Brit interim group chief executive officer (CEO) Martin Thompson, who took on his current role in early October following the announcement of Matthew Wilson’s leave of absence, commented that the company performed well in FY21 due to “continued successful execution against our strategy of leadership, innovation, and distribution”. He also paid tribute to the dedication of the company’s people and the unique culture that Wilson and his team have created across the organisation.

“Our clear strategy saw us deliver a combined ratio for the year of 95.7%. This reflected the combination of an excellent attritional ratio, prior-year reserve releases and increased income from our third-party capital management and MGA businesses,” Thompson said. “That we delivered this performance despite exposure to a number of major loss events and the continued impact of COVID-19 was particularly encouraging, demonstrating the increased resilience of our business and our firm focus on disciplined underwriting.”

Brit also invested in data and technology during FY21, including significant milestones in claims, using data to empower its lead underwriters, and its plans to appoint a chief technology officer and a chief data officer in January 2022.

For the 2022 financial year, Brit remains optimistic despite the remaining uncertainty around COVID-19, rising inflation, and the potential for the increased frequency and severity of major loss events.

“Ongoing rate rises, continued improvement in our attritional claims ratio, and our clear strategy give us confidence that Brit is well placed to respond to the opportunities and challenges ahead,” Thompson said.

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Group CEO of Lancashire, Alex Maloney commented on the results and highlighted that 2021 saw the organisation successfully continue the long-term build-out of its franchise and expand into several new classes. Much of the GWP seen by the group will continue to earn throughout 2022, he said, and is expected to provide earnings resilience in later years.

However, Maloney also noted that 2021 was also a poor one for returns. Several natural catastrophes saw industry-wide estimates place insured losses from these at between $105 billion and $130 billion making it one of the costliest years on record. These events show the critical role of the insurance industry in delivering risk solutions to protect people, economies and businesses from uncertainty, he said.

“Financial losses are always disappointing but 2021 was only the second full financial year that Lancashire made an overall loss since its inception,” Maloney commented. “Strong underlying profitability after nearly four years of rate increases, as illustrated by improvement in our attritional loss ratio, was offset by weather and large risk events during the year.

“Given the magnitude and frequency of industry losses in 2021, these insurance losses were in line with our expectations and risk tolerances. Importantly, we have followed our usual conservative reserving philosophy to estimate the impact, which has served us well over time. Nevertheless, the overall impact of these events was a comprehensive loss of $92.9 million, a combined ratio of 107.3%, and a negative change in FCBVS of 5.8% for the year. Of this comprehensive loss $31.6 million relates to unrealised investment losses.”
 
He added that despite the disappointing returns of the past year, Lancashire are “fully energised” by the prospects for 2022 and profitable growth remains its main goal. Maloney highlighted the organisation’s strong capital position which will allow it to continue to execute its ambitious business plans and thanked all Lancashire’s colleagues investors, clients, and broker partners for their support during 2021.

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Participants also included Tokyo’s Sony Financial Ventures/Global Brain, US venture capital firm MS&AD Ventures, and Berlin-based PropTech1, plus existing backers Pentech, Local Globe, and Insurtech Gateway.

“This investment is an endorsement of our parametric cover and how we’re using it to solve real-world issues,” asserted FloodFlash chief executive Adam Rimmer, whose business pays catastrophic flood claims within 48 hours. “The group of investors for the round couldn’t be better tailored to supporting our efforts in solving the issues around underinsurance in the face of climate change.”

Citing data from the US National Oceanic and Atmospheric Administration’s National Centres for Environmental Information, FloodFlash said only 5% to 15% of homeowners and less than 5% of SMEs in the US carry flood insurance.

Commenting on the funding round, Munich Re Ventures investment principal Ben Bergsma stated: “Parametric insurance is finally having its moment in insurtech, and we believe the FloodFlash approach will appeal to hundreds of thousands of companies in the US and beyond.

“Successfully writing natural catastrophe parametric insurance is no simple task. FloodFlash’s holistic solution, which includes sophisticated building-level underwriting and monitoring as well as an intuitive cloud platform for brokers and agents, is a game changer for the industry.”

Meanwhile, “thrilled to lead this first-class syndicate of investors” is the camp of Buoyant Ventures partner Amy Francetic, who said real solutions are needed to address flood risk. In Buoyant Ventures’ view, the British insurtech is well positioned for global expansion and success.

A registered coverholder at Lloyd’s, FloodFlash entered the insurance market in 2019.

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Colosso has been acting as non-executive director for PIB since April 2018. In his new role, he will use his vast industry experience to play a major part in managing PIB Insurance Brokers and work closely with CEO Steve Redgwell to continue its growth and development.

Meanwhile, Andrew Walsh will take on the role of CEO for Citynet, focusing on specialty risks among Lloyd’s and London Market insurers. He brings a significant amount of industry experience to his new role, having held numerous senior positions in his career spanning over 25 years, all of which he gained while working at Lloyd’s and in the London Market.

Read more: PIB Group CEO on culture, M&A and why people come first

PIB has also appointed Tony Powis as a new non-executive director for PIB Employee Benefits, pending regulatory approval.

Powis’s financial services career spans over 30 years, having held several senior positions in the UK and global markets, including financial services firms such as Willis Employee Benefits. His proven track record in delivering growth and retention and managing major acquisitions aligns with PIB Employee Benefits’ goals to undertake a more global approach facilitated through investment in technology.

Meanwhile, Bernard Mageean will continue leading the specialist MGA known as Q Underwriting and PIB’s Schemes & Affinities division as the CEO. He will also take on additional responsibility as chairman for these two areas to ensure leadership continuity until a natural transition arises to act solely as chairman.

Having joined PIB in February 2016, Mageean has a solid background in underwriting and product development – spanning a diverse range of roles from SME to major corporations, company to Lloyd’s, UK to multinational and broker to MGA.

Commenting on the changes at the top, PIB CEO Brendan McManus said: “I’m very excited about these executive changes, which reflect our proactive approach to being prepared for the next phase in PIB’s future. Their immense experience will support PIB’s continued evolution and rapid expansion plans and help to take us to the next level.”

In addition to its leadership team overhaul, PIB shared an update on its recent acquisition trail, which has led to an increasing international footprint covering retail, wholesale, reinsurance, and MGAs and markets in Ireland, Germany, Denmark, Poland, Spain, and the Netherlands.

In a recent announcement, PIB confirmed that it had finalised its acquisition in Spain: independent specialist insurance intermediary Cicor Internacional Correduria de Seguros y Reaseguros (Cicor), which has been operating as a (re)insurance broker since 1988 and offers comprehensive insurance solutions to small, medium, and large businesses, as well as trade groups, associations, and individuals.

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Read next: Does wedding insurance provide COVID-19-related cover?

So, what does a standard wedding insurance policy cover? There are several typical key areas of coverage including venue problems such as flooding, fire and bankruptcy; cancellation due to illness, accident, or the death of a family member; weather-related cancellation; lost or damaged items; photo or video issues; and personal liability.

And how much does wedding insurance cost? IB’s wedding insurance guide highlighted that insurance rates depend on a variety of considerations, including how much the wedding costs and the type of coverage needed. Premiums can start at as little as £49 for ceremonies costing less than £2,500 and can go up to £300 for weddings worth £100,000.

Given the range of coverage areas a wedding insurance policy typically covers, and the cost it entails, the natural question for a lot of would-be insureds is whether getting wedding insurance is required. The answer, it emerges, is both ‘yes’ and ‘no’.

The COVID-19 crisis gave everybody new insight into how unexpected factors can impact even the most meticulously planned celebrations and events. Surveys by wedding services providers For Better For Worse and Hitched.co.uk put the average cost of a wedding in the UK at between £30,000 and £32,000. With an expenditure of this magnitude, investing in wedding insurance looks like a wise decision.

However, as noted by Hitched.co.uk, you do not require wedding insurance if you’re hosting a small celebration and you have agreements in place with your venue and/or suppliers making it easy for you to postpone or cancel with little to no financial repercussions

“If it would be easier for you to rearrange your day by yourselves without the assistance of an insurance company, then this may be the preferred option for you,” the firm wrote in an article posted on its website. “However, in most cases, we do recommend having at least basic cover in place.”

Find out more about the ins and outs of wedding insurance in this free guide, available here

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Overall, 82.3% of all workers working from home (31.5%) are happier working remotely versus having to work on-site in an office.

But 35% are reporting they are burned out. The top reasons for the good feelings? Workers:

• can take care of household chores when necessary (51.2%);
• no longer have to order out for lunch everyday (35.4%);
• can shower in the middle of the day (30.3%);
• can listen to podcasts while working (22.5%).

Remote workers are also able to alleviate stress in a variety of ways, including:

• listening to music (48.1%);
• going for a walk (39.7%);
• scrolling through social media (34.5%) ;
• taking a nap (26.8%);
• mid-day workouts (17.5%).

Nearly one in five (18.1%) go so far as reporting they don’t have stress while working from home, finds the survey of more than 1,000 adults working full time conducted in the fall of 2021.

Also, 43.8% of respondents say their physical health has improved, with 39.5% reporting they now have time to work out.

What’s the best change for people now working from home? Work-life balance, according to an earlier report.

‘All about balance’

But not every employee will be able to manage the change to remote work “with equal skill”, says David Powell, Prodoscore president, adding that intelligence data on productivity will be critical.

“While throwing a load of laundry in the washing machine is completely acceptable, you don’t want your employees to spend four hours during the workday cleaning their house. On the other hand, you don’t want your employees to work 10 to 12 hours on a daily basis and ignore their family and friends and good health,” he says.

“It’s all about balance – and having the right data can help managers ensure that their teams are working productively, and also just as importantly not ignoring their mental or physical well-being.”

Remote workers think that they typically spend 42 minutes per day for breaks while working remotely. But when you factor in biological needs, entertainment, time spent communicating with co-workers and other chores and errands at home, they are actually taking breaks that average 2.7 hours, according to a previous report.

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Regarding shares, Aon revealed that its earnings per share (EPS) for Q4 soared despite the dire circumstances last year, reporting a 72% increase to $3.90. Meanwhile, its EPS after adjustment for certain items jumped by 42% to $3.71.

Meanwhile, its total operating expenses for Q4 2021 decreased by 6% to $2.1 billion compared to the same period in 2020 due mainly to a $200 million favourable impact from the repatterning of discretionary expenses within the year, a $64 million decrease in expenses related to divestitures, net of acquisitions, a $44 million drop in transaction costs, and a $12 million positive impact from foreign currency translation, partially offset by an increase in expense associated with 10% organic revenue growth and investments in long-term growth.

“In the fourth quarter, our colleagues delivered 10% organic revenue growth, an outstanding finish to a very strong year, contributing to full year organic revenue growth of 9%, margin expansion of 160 basis points, and EPS growth of 22%.” said Greg Case, Aon CEO. “These results are a direct outcome of our Aon United strategy. We’re accelerating innovation, with a focus on developing and scaling proven solutions to serve new and existing clients. This gives us confidence in our ability to build even greater momentum in 2022.”

Breaking down its individual units, its Commercial Risk Solutions business saw 11% growth in the final quarter, Reinsurance Solutions was up 13%, Health Solutions dropped 13% and Wealth Solutions grew by 2%.

For the whole financial year of 2021, Aon boasted a 10% increase in total revenue to $12.2 billion, including 9% organic revenue growth. However, its operating margin decreased by 800 basis points to 17.1%.

Focusing on shares, Aon saw a 34% decrease in EPS to $5.55 for FY21 and a 22% increase in EPS after adjustment for certain items to $12.00.

In addition, the cash flows from its operations dramatically dropped by 22% ($601 million) to $2,182 million compared to the previous year, mainly driven by the $1 billion termination fee payment and additional payments related to terminating the combination with WTW, partially offset by solid revenue growth.

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Now, the LMA has announced that several underwriting committees confirmed that most syndicates represented will be at the box or in the office on Tuesdays, Wednesdays, and Thursdays.

LMA underwriting director Patrick Davison revealed that during the first week of February, around 1,200 brokers and underwriters entered the Lloyd’s underwriting room each Tuesday, Wednesday, and Thursday – the same as the figures in November 2021, when the market first returned to more normal levels of attendance.

“The commitment from LMA members to return to trade in-person in the room is made in support of the efficient negotiation and placement of complex risks as part of a hybrid working approach. In a dynamic marketplace made up of multiple carriers and brokers, different working practices are to be expected, but managing agents have shown clear support for a structured and transparent approach which incorporates working in the room, in the office, and at home,” Davison continued.

Andrew Brooks, LMA chairman and Ascot Underwriting Ltd CEO, said the agreement emphasises the need for face-to-face trading in Lloyd’s because the ability to discuss specific risks personally in detail is part of the singular value chain that the organisation provides.

“Brokers, underwriters, and insureds all stand to benefit from ensuring this type of trading, unique to Lloyd’s, continues well into the future,” Brooks added.

“This availability agreement allows everyone to trade as they wish: at the box, in the office, or remotely, without accidentally losing the advantages of trading in the room. Personally, I’m looking forward to meeting our broker partners and underwriting colleagues at Lloyd’s or in their offices in the months to come.”

Details of these committees and underwriters’ availability will be published on the LMA website and may be updated in due course.

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Here’s how the insurance group performed in the year ended December 31, 2021:

Metric	2021	2020
Net income to shareholders	US$2.4 billion	US$816 million
Underwriting profit	US$628.1 million	US$127.6 million
Net investment income	US$374.6 million	US$371.8 million
Markel Ventures net income	US$174.4 million	US$145.4 million

The group’s insurance segment posted an underwriting profit of US$696.4 million, a 312% increase from the corresponding figure in 2020. The reinsurance unit, however, suffered an underwriting loss worth US$55.2 million.

In a joint statement, Markel co-chief executive officers Thomas S. Gayner and Richard R. Whitt commented: “Our 2021 results show what we can achieve when all three of our operating engines – insurance, investments, and Markel Ventures – power us forward.

“Each contributed in meaningful ways to a record-setting 2021 across many financial metrics, including operating revenues and operating income, among others.”

The Markel Ventures segment spans a portfolio of businesses from different industries.

Meanwhile, the co-CEOs added: “Our underwriting operations delivered a 90% combined ratio, which reflected the impact of recent underwriting actions we’ve taken to enhance our profitability while growing gross premium volume to US$8.5 billion.”

The duo also thanked Markel’s employees, trading partners, and customers for their “tremendous” role in the latest set of financial results.

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The 2022 annual Insurance Business UK 5-Star MGAs survey will end next Friday. Brokers are encouraged to give feedback on their top three MGAs’ performance and services over the past 12 months.

Participation is free through this online form. MGAs will be assessed based on nine key areas such as underwriting responsiveness, technical expertise, compensation, claims support and others.

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