Allianz acquiring European Reliance for €207M; India's LIC files for $8B IPO

TOP NEWS IN GLOBAL INSURANCE

* Allianz SE is looking to acquire European Reliance General Insurance Co. SA for €207 million through share purchase agreements covering 72% of European Reliance and a voluntary tender offer for the remaining shares. The transaction would create the fifth-largest insurance company in Greece based on gross written premiums. The tender offer is subject to approval by the Bank of Greece, the Hellenic Competition Commission and the Hellenic Capital Market Commission.

* Life Insurance Corp. of India has filed a draft IPO prospectus relating to the sale of 316.25 million shares, equivalent to nearly 5% of its post-offer paid-up share capital, Reuters reported. The company intends to raise nearly $8 billion through the offering.

➤ Insurers lower workers' compensation rates again in Q4'21

Travelers received approval for 93 rate decreases during the final quarter of 2021. When combined, these rate cuts could reduce the group's cumulative premiums by $40.7 million.

➤ Argo shares plummet on reserve charge; Assurant rises after earnings

Equity markets suffered modest losses for the week ending Feb. 11, with the S&P 500 declining 1.82% to 4,418.64. The S&P 500 Insurance Index edged down 0.39% to 563.49.

EARNINGS SPOTLIGHT

* Tokio Marine Holdings Inc.'s net income attributable to owners of the parent jumped year over year to ¥374.12 billion in the fiscal nine months ended Dec. 31, 2021, from ¥112.78 billion.

* MS&AD Insurance Group Holdings Inc. booked net income attributable to owners of the parent of ¥204.62 billion for the fiscal nine months ended Dec. 31, 2021, compared with ¥150.05 billion in the prior-year period.

* Sompo Holdings Inc.'s net income attributable to shareholders of the parent rose year over year to ¥183.73 billion in the fiscal nine months ended Dec. 31, 2021, from ¥85.73 billion.

* Japan Post Insurance Co. Ltd.'s fiscal nine-month net income attributable to the company fell to ¥119.53 billion from ¥129.02 billion, in the nine months ended Dec. 31, 2020.

PROPERTY AND CASUALTY

* Lancashire Holdings Ltd. CEO Alex Maloney is "surprised" that some peers are beginning to release provisions that had been set aside to pay for COVID-19 claims, noting that it feels "premature" and that the company had not seen evidence that it should reduce its own COVID-19 reserves.

* A Willis Towers Watson PLC report found that the framework of the Prudential Regulation Authority's Quantitative Impact Study do not satisfy the objectives of the government's Solvency II review, as it would lead, if implemented, to material reductions in, and increasing volatility of, insurers’ funds available to withstand shocks.

LIFE AND HEALTH

* MetLife Inc. is working with an investment bank on a possible divestment plan for its U.S. variable annuity book as part of its strategy to reallocate resources to higher-growth parts of its business, Reuters reported.

* Brighthouse Financial Inc. management holds a strong preference for share repurchases even as the company's stock trades at its highest level in years, with CEO Eric Steigerwalt remarking that Brighthouse intends to carry out buybacks at any time when it gets buyback authorization.

* Fairfax Financial Holdings Ltd. executives disclosed an internal loss portfolio transfer of prior-year reserves involving Crum & Forster Holdings Corp. and RiverStone.

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