Insurance news

Arch Insurance International has unveiled its new intangible assets division, with operations starting forthwith. This development follows the acquisition of select components of Aon’s intellectual property (IP) liability MGA business.

The newly formed unit is under the leadership of Ian Lewis (pictured above), appointed as the head of intangible assets. The team, consisting of five specialists transitioning from Aon, will provide a suite of insurance products targeting the rapidly shifting landscape of intangible assets.

Businesses of various scales will have access to coverage for intellectual property infringement, contractual liabilities, invalidation risks, and business interruption losses. Lewis will operate under the direction of Duncan Smith, head of professional lines at Arch.

With a career spanning over three decades, Lewis is acknowledged for his expertise, especially in the intellectual property and intangible risk sectors. Before his new role, he was the global head of intellectual property underwriting solutions at Aon and has previously held positions at Tokio Marine Kiln, Samian Underwriting Agency, and Miller Insurance Services.

The London-based underwriting group also includes Justyn Hardcastle as senior underwriter, Carys Bickmore and Ben Kemsley as underwriters, and Chris Sclimenti, who is based in the US, as a senior underwriter. Sclimenti will liaise closely with the London team and will lead the development of Arch’s life sciences practice.

“The launch of our intangible assets team is a natural progression for Arch as we continue to expand our professional lines offerings,” said Hugh Sturgess, CEO of Arch Insurance International. “We see significant opportunities for growth in this class and are well positioned to offer our brokers and mutual clients comprehensive solutions to respond to the evolving risks to their intangible assets. By bringing on board an established and respected team led by Ian, we seek to establish Arch as a lead market in the intangible assets space.”

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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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