Insurance news

Troubled insurtech Vesttoo is pivoting to an asset sale to “monetise valuable technology,” according to court documents.

A new filing in the Chapter 11 bankruptcy case indicates the Israeli startup’s push to create a reorganisation and trade forward plan has been pulled back and that it is now seeking a “quiet, private sale.”

Explaining the move, Vesttoo’s interim CEO Ami Barlev said creditors calling for liquidation aren’t seeing the value in the firm’s artificial intelligence and machine learning technology. Vesttoo has asked for time to deliver on a “value-maximising” transaction.

Where is the Vesttoo saga now?

Late last month, a committee of Vesttoo creditors sought to take control of court proceedings, pushing for a swift liquidation of the insurtech, which has been embroiled in an international reinsurance letter of credit (LOC) fraud investigation.

According to a Bloomberg report, the committee called Vesttoo “the Madoff of insurance” and said remaining cash should be preserved so it can pursue potential litigation against former corporate insiders and other parties involved in the alleged fraud.

The committee is composed of insurance companies and an insurance underwriter.

Vesttoo countered by accusing the committee of disrupting its restructuring efforts. It also pointed out that the insurtech has valuable technology and a viable business plan that it will pursue in Chapter 11.

What are your thoughts on Vesttoo’s planned asset sale?

Swiss Re has made a huge turnaround, bouncing back from a net loss in the first nine months of 2022 to a net income in the same period this year.

Of the total net profit in the first nine months, US$1 billion came from the third quarter.

“Swiss Re’s performance in the first nine months of 2023 is the result of our continued focus on underwriting quality,” group chief executive Christian Mumenthaler said. “This has enabled us to navigate a heightened risk environment that continues to be characterised by significant loss events for the insurance industry.

“In light of the good performance year to date, we maintain our targets for the full year including a group net income of more than US$3 billion. We continue to focus on our disciplined underwriting strategy that provides a strong base for the future.”

Swiss Re’s full-year 2023 results will be announced in February 2024, while the company’s 160th annual general meeting will take place in April.

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Jensten Group’s acquisition of East Anglia-based One Broker Group has been finalised following approval from the Financial Conduct Authority.

This acquisition marks the largest one for Jensten to date, offering the company a substantial new regional centre in East Anglia, with operational offices in Norwich and Cambridge. The acquisition brings on board 115 staff members and contributes £60 million in gross written premiums to Jensten’s business portfolio.

With the successful integration of One Broker, Jensten reiterated its commitment to further expansion within East Anglia, both through organic growth and additional acquisitions. The company anticipates announcing further business deals in the region soon.

“The acquisition of One Broker highlights the strength of Jensten’s proposition to brokers contemplating a sale where a clear commitment to retaining a regional presence is important. One Broker is one of the outstanding regional assets in the UK broking sector, and we are delighted to welcome Robin Plaster, Sean Clark and the rest of the team to the Jensten family. We look forward to working with the team to achieve further growth in East Anglia,” Jensten CEO Alistair Hardie said.

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AXA has completed the acquisition Laya Healthcare for a consideration of €650 million, contingent to the deal’s unveiling earlier in May.

The French insurer acquired Laya from AIG, with the latter confirming details of the deal back in August. Laya Healthcare is one of the largest private healthcare insurers in Ireland with close to 700,000 policyholders and a 28% market share.

Laya also generates €800 million in premiums per annum and operates as a managing general agent (MGA) with a highly digitalised platform and robust distribution network. It is underwritten by Elips Insurance, a Swiss Re subsidiary. The firm was integrated into AIG back in 2015.

AIG’s sale of Laya is in line with the company’s recent restructure. A few weeks ago, the group laid out its plans to trim its stake in Corebridge Financial, its life and retirement business, by the end of the year. AIG also revealed that it is selling off its Validus Re business to RenaissanceRe.

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Beazley has announced the appointment of Brenna Westinghouse as the new corporate head of strategy, effective Nov. 1. Westinghouse will be succeeding Rachel Turk, who is transitioning to Lloyd’s as its chief underwriting officer.

Having previously spearheaded the professions PI book, Westinghouse has played a vital role in driving Beazley’s expansion and strategic positioning worldwide. In her new capacity, as the corporate head of strategy, she holds a critical position in shaping the company’s strategic priorities. Her responsibilities encompass identifying novel growth opportunities and ensuring Beazley maintains a pioneering stance in innovation.

With over two decades of industry experience, Westinghouse has most recently held the role of focus group leader, professions PI, within Beazley’s specialty risks division based in London. Her tenure at Beazley commenced in 2017 after over 10 years at Marsh, where she occupied several senior positions in its international financial and professional lines practice, spanning London, UK, and Boston, USA.

“Beazley has an ambitious strategic agenda and Brenna’s track record of achievement as a leader of our successful professional PI business, make her ideally placed to take on the role of corporate head of strategy,” Beazley CEO Adrian Cox said.

Cox also expressed gratitude to Turk for her contributions to Beazley’s success.

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Endsleigh Insurance has inked an agreement with Unite Students, a leading student accommodation provider in the UK, to deliver a 24/7 wellbeing and mental health support program to benefit 70,000 students.

The wellbeing initiative, crafted to complement Unite Students’ existing support services, encompasses Endsleigh’s 24/7 Student Wellbeing Helpline and Digital Therapy. These services offer students unrestricted access to a British Association for Counselling and Psychotherapy-accredited counselling helpline available round the clock.

Additionally, students can access an interpretation service supporting over 240 languages, as well as online resources, including cognitive behavioural therapy.

This collaboration with Endsleigh ensures that students can access support via their mobile devices, providing them with the opportunity to engage in clinician-led therapy through a digital platform precisely when they need it most. This approach bridges the gap before students can secure face-to-face therapy through their university or GP.

According to the Unite Students 2023 Applicant Index, one in three university applicants missed lessons due to mental health issues in the last two years, highlighting the urgency of such support. A quarter of the surveyed applicants planning to start an undergraduate degree in the 2023-24 academic year reported feeling lonely all or most of the time.

“We are thrilled to be providing Unite Students and their residents with our Student Assistance Programme. Students are at a higher risk of mental health issues developing due to loneliness, financial worries, and academic stress. We believe mental health support should be easily accessible to all students as they undergo the challenges and changes that coincide with studying,” Endsleigh CEO Alison Meckiffe said.

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Markel has announced the forthcoming retirement of Bryan Sanders, the current president of its Markel Specialty division, alongside leadership appointments to bolster this high-profile exit.

Sanders is set to retire by Dec, 31, 2024. In his place, Alex Martin, the current chief financial officer of Markel, will step into the position of president, Markel Specialty, reporting to Bob Cox, the president of global insurance operations.

Concurrently, Brian Costanzo, who currently serves as the senior vice president and chief accounting officer for Markel Group, will assume the role of chief financial officer of Markel, reporting to Jeremy Noble, Markel president.

As part of this transition, effective Dec. 1, 2023, Sanders will take on the role of chairman, Markel Specialty. With a career spanning over four decades in the insurance industry, he is retiring after making significant contributions to the transformation of the company’s US and Bermuda operations. Sanders has been an integral part of the leadership team, facilitating the company’s ability to meet the evolving needs of its clients.

Alex Martin, who has been with Markel for 17 years and has held various management positions, has experience that includes operations, underwriting, business development, strategy, and finance. He has a history of leading transformation efforts and building high-performing teams while driving operational efficiency and process improvement through technology and data utilisation.

Brian Costanzo has been with Markel for 14 years. He has experience in various leadership roles within finance. He has played a crucial part in driving strategic initiatives related to operational efficiency, actuarial transformation, technology, and data.

Other Markel appointments

Within Markel Specialty, Guenter Kryszon is set to assume the role of chief underwriting officer, bringing with him experience in driving growth and profitability through initiatives such as portfolio optimisation and addressing climate change and environmental, social, and governance concerns. He will lead and direct underwriting strategy and operations across all product lines within Markel Specialty.

Ryan Oosterheert, who has been with Markel since 2019, will become chief operations officer. With over 20 years of industry experience, Oosterheert has expertise in underwriting, product management, strategy, and operations. She has been instrumental in working on various strategic, data, technology, and operational efforts within the organisation.

“We are grateful to Bryan Sanders for his many contributions, including his support for developing an outstanding leadership team at Markel — one that reflects the strength of our people-powered culture. This thoughtful and intentional transition speaks to the depth of talent within Markel. With an exceptional set of leaders across our business, I am extremely optimistic that we will further strengthen our position in the marketplace, as well as execute on our continued transformation as we build the leading global specialty insurer,” Noble said.

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