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Argo Group International Holdings – purported shareholders of which have filed lawsuits and sent demand letters in respect of the company’s merger deal with Brookfield Reinsurance – has described the claims as having no merit.

In a US Securities and Exchange Commission filing, Argo noted: “On March 7, 2023, March 8, 2023, March 28, 2023, March 29, 2023, and April 1, 2023, complaints were filed alleging, among other things, that the proxy statement [for the merger agreement] omitted material information that rendered it incomplete or misleading.

“The lawsuits, each filed by a purported shareholder of the company in an individual capacity and/or on behalf of all others similarly situated, were filed in federal court… As a result of the alleged omissions, one or more of the lawsuits seek to hold the company and/or its directors liable for violating Sections 14(a) and/or 20(a) of the Securities Exchange Act of 1934, as amended, as well as Rule 14a-9 promulgated thereunder.”

According to Argo, the relief sought in one or more of the complaints includes enjoining the consummation of the merger unless and until certain allegedly material information is disclosed.

Similarly, separate demand letters are alleging that the proxy statement omitted material information that rendered it false and misleading or otherwise had disclosure deficiencies in violation of federal securities laws.

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The credit ratings of R&Q Insurance Holdings and its rated subsidiaries have been placed under review with negative implications, following the group’s revelation that its board is looking at strategic options to separate R&Q’s program management and legacy insurance businesses.

In an announcement by AM Best, the rating agency said: “AM Best has placed under review with negative implications the financial strength rating of A- (excellent) and the long-term issuer credit ratings (long-term ICR) of ‘a-‘ (excellent) of Accredited Surety and Casualty Company, Inc. (ASC), Accredited Specialty Insurance Company (ASI), and Accredited Insurance (Europe) Limited (AIEL).

“Concurrently, AM Best has placed under review with negative implications the long-term ICR of ‘bbb-’ (good) of R&Q Insurance Holdings Ltd, the non-operating holding company of the group. ASC, ASI, and AIEL are wholly owned subsidiaries of R&Q.”

According to AM Best, it had previously considered the abovementioned Accredited firms to be strategically important to the group and it will now examine the impact of the planned split on their rating fundamentals.

The credit rating agency added: “The expected operating loss for 2022, driven by R&Q’s legacy operations, will likely lead to a material weakening of the group’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio.

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Insurance data provider Verisk has appointed Chris Sawford as new managing director of claims for its UK branch. Verisk said that Sawford’s expertise and strategic initiatives will be integral to the firm’s goal of boosting automation, increasing efficiency, and containing costs as the industry continues to face high inflation and supply chain disruptions.

Sawford is an industry expert who co-founded Validus-IVC, a top provider of claims management solutions based in the UK. Validus-IVC was acquired by Verisk in 2018. He is a bachelor of laws graduate from the Nottingham Trent University, as per his LinkedIn page, as well as a holder of a master of business administration degree from the University of East Anglia.

This latest development is part of Verisk’s continued focus on operational efficiency and digital transformation, Verisk president of claims solutions Maroun Mourad said in a news release.

“Chris’s leadership and ongoing initiatives throughout the business have accelerated our efforts to better support the operational and digital aspirations of our clients in the UK and Continental Europe,” Mourad said.

As part of its overall plan to focus on the insurance industry, Verisk has recently offloaded its energy business to Veritas Capital for £2.69 billion.

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The humble – and somewhat bizarre – genesis of the professional indemnity (PI) insurance industry belies the scope, complexity and society-shaping impact this coverage has had in the last 90 years. Digging into the rich history of the market, Edward Ambrose – UK head of professional indemnity at RSA highlighted that it all began with an (alleged) snail in a bottle of ginger beer in a Paisley café near Glasgow.

The resulting court case went to the House of Lords, he said, which set the global precedent that you do have a duty of care to third parties. The story has proven an effective framing device for the origins and evolution of the PI offering, particularly during RSA’s recent Broker Roadshow tour, which saw experts across the insurer’s professional risks division travel out to six regions of the UK to share insights into what’s happening in the space.

PI insurance – a fast-changing landscape

Having served the PI market for 30 of those 90 years in operation, Ambrose knows better than most how subject it is to the winds of change that blow in from every direction – economic, legal, technological, environmental, political and social.

“It has been great to get out into the market and break down the current trends impacting PI, which includes changes to the economy, changes to legal decisions, shifting global dynamics and future trends such as the impact of artificial intelligence in insurance,” he said. “And our brokers seem to have enjoyed it. We’ve had lots of interaction with our Q&A in the end, and hopefully have given the brokers we’ve been talking to things to think about and discuss with their clients.”

RSA’s tour of the regions – taking the temperature of the PI marketplace

Getting out to take the temperature of the market is critical, Ambrose said, because, despite the critical role e-trading has to play, insurance is still fundamentally heavily relationship-based. Having good service, good products and good people is what it takes to create a fit-for-purpose offering – and underpinning that is RSA’s commitment to be out there on the front foot with its broker partners, explaining what it’s doing and why.

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Boost your industry profile and be one of the best workplaces in the UK!

Entries for Insurance Business UK’s 5-Star Diversity, Equity and Inclusion report will close this Friday, April 7.

This showcase aims to celebrate companies in the insurance industry that demonstrate effective DE&I programs to help foster change. Let us know how much progress your organisation has made and what challenges lie ahead by completing this short online form.

The 5-Star Diversity, Equity, and Inclusion report, proudly supported by the ISC Group, will be published in Insurance Business UK in July.

Complete the form now.

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For the first time in a decade, reinsurers’ average underlying return on equity (ROE) exceeded the industry’s weighted average cost of capital (WACC), according to the latest Reinsurance Market Report by Gallagher Re.

The report found that the total capital dedicated to the global reinsurance sector sat at $638 billion by the end of 2022, indicating a 12% decline from the restated year-end 2021 capital of $725 billion.

The drop in capital was largely driven by the decline in the value of investments, Gallagher Re said in its report, as there was no new capacity despite tightened pricing and terms and conditions.

However, this US GAAP / IFRS accounting view of capital does not provide a complete picture of the situation, the report argued, noting that it masks how, in economic terms, solvency remained strong and actually increased during the year.

“Gallagher Re’s view is that economic views of capital are more relevant than pure unadjusted accounting measures and that they are more relevant for management decision-making at most (re)insurers,” the report said. “In our view, the global reinsurance industry’s capital position remains robust.”

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US-headquartered brokerage Acrisure has forayed into Central and Eastern Europe (CEE) by acquiring the region’s biggest insurance distribution platform, Unilink Group, for an undisclosed sum.

Placing nearly seven million policies per year, Unilink Group provides non-life and life products through a network of 15,000 external agents and 2,500 points of sale. It employs more than 1,300 people across Poland, Bulgaria, Romania, Czechia, Slovakia, and Moldova.

“Bringing the Acrisure brand to a new part of the world is an exciting proposition,” said Unilink Group chief executive Igor Rusinowski, who will remain at the helm.

Aligned ambitions

“In the last several years we transformed Unilink Group from insurance distribution market leader in Poland to the largest player in CEE, spearheading the segment in six countries and operating through all distribution channels. In that regard, we’re very aligned with Acrisure’s commitment to growth, innovation, and entrepreneurship.”

Echoing Rusinowski’s sentiments, Acrisure co-founder, chair, and CEO Greg Williams cited the strong CEE presence that will be provided by the acquired group.

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Cyber insurer Cowbell has appointed industry expert Simon Hughes (pictured) as general manager for its newly launched UK operations. This new branch is part of the San Francisco-based insurer’s further extension of its global focus; Cowbell also recently opened a new technology centre in Pune, India for further innovation.

Hughes’ 13-year career in the industry last saw him as cyber team lead for CFC Underwriting, where he worked for the past six years. Before this, he worked at SOVAG, the multinational reinsurer. He began his insurance career at Lloyd’s of London. Hughes has focused on SMEs in his career, which is the target market for Cowbell as a cyber insurance provider for this demographic.

According to his LinkedIn, Hughes graduated as a bachelor of arts in modern history and politics from the Royal Holloway, University of London.

Cowbell chief strategy officer Matthew Jones said that Hughes’ appointment is testament to the insurer’s mission of closing the insurability gap and making cyber insurance accessible to all businesses.

“Simon brings the expertise to roll out to the UK the adaptive cyber insurance products that we have successfully validated in the U.S., underpinned by our continuous risk assessment approach,” Jones said.

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Arch Insurance International has promoted its senior underwriter Jason Page (pictured below) to the position of head of marine hull and war effective immediately. Page succeeds Mark Watters, who is retiring.

As Arch Insurance International’s new head of marine hull and war, Page will be responsible for the company’s underwriting activities across the globe, overseeing the underwriting for various sectors such as ship-owners of blue and brown water tonnage, construction and repair yards, marine war, and yachts. He will be based in Arch Insurance International’s London office and report to its head of marine and energy, Jake Gibbs.

Prior to joining Arch Insurance, Page was a senior underwriter and head of marine and war at marine insurance leader Markel, where he worked for roughly two decades. Page joined Arch Insurance in 2020 and was most recently a senior writer within the company’s marine hull and war team.

INSERT PHOTO OF ARCH INSURANCE INTERNATIONAL MARINE HEAD – JASON PAGE

Gibbs described Page’s promotion as “very much a natural transition” within the company.

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