Global Insurance Trends 29.03.2016
By Douglas Shillito
This week, Lloyd’s reported pre-tax profit down 30% for 2015 at £2.1bn, with investment income significantly lower and pricing tighter. Nevertheless, Chairman John Nelson felt it was a “healthy return” in “the midst of a challenging micro-economic climate.” Generali, who named its new CEO, reported 2015 net profit up 21.6% at E2bn. Changes of CEOs by leading European insurers continued with AXA announcing that Henri de Castries was to retire shortly. His successor will be Thomas Burberl as CEO and Denis Duverne as Non-Executive Chairman.
EIOPA published its micro-prudential approach to the new interest rate environment in a Solvency II context, and the Lloyd’s Market Association (LMA) issued generic model clauses relating to the shortly to be introduced Insurance Act 2015. Guy Carpenter released its Global Catastrophe Review 2015 whilst Marsh reported on the incidence of explosions in property insurance losses as it launched Marsh BLAST at a Dubai conference. Willis Towers Watson, in its latest M&A survey, indicated that 77% of Lloyd’s businesses were considering legacy portfolio disposal; Willis Re looked at the growth in formal risk appetite statements relating to the purchasing of reinsurance; and Standard & Poor’s reviewed the 1st January reinsurance renewals scenario. SNL Financial compared the larger EU insurance markets with particular reference to Solvency II impact, and AXA looked at the present situation relating to claims management companies in the UK.
The Financial Conduct Authority(FCA) and the Australian Securities and Investment Commission(ASIC) are to collaborate over the introduction of innovative fintech companies in each others’ markets. Meanwhile, Insurance Europe, in response to an EC Green Paper, said that increasing digitisation would not reduce all barriers to increasing cross-border insurance trade. Startup boot camp InsurTech announced its first major Demo Day for 10 selected startups in London next month, and a competition for the best student Insurtech project across the EU was launched by NPG Wealth Management.
On the company front, Africa’s Reinsurance Solutions opened a new London subsidiary; Gallagher moved for Kane Group’s ILS operations; Crawford & Co announced a new International management structure; and Standard & Poor’s reported on Delta Lloyd’s rating after approval for a rights issue and other capital management actions. EXOR’s takeover of PartnerRe was completed and the Chairman and CEO/President for PartnerRe were announced.
Full articles on the above topics may be found on the Insurance Newslink and Financial Newslink global trends database services at www.onlystrategic.com.Category: News