Life and health
– The Cigna Group is nearing a deal to sell its Medicare Advantage business to Health Care Service Corp., which could value the unit between $3 billion and $4 billion, Reuters reported. The companies, which are in exclusive talks, are expected to announce the deal in the coming days provided the discussions do not fall apart, according to a person familiar with the matter. Health Care Service said in a statement to Reuters that it does not comment on "rumor or speculation," while Cigna did not immediately respond to a request for comment.
– Elevance Health Inc. agreed to acquire Paragon Healthcare Inc., a company specializing in infusible and injectable therapies. The acquisition is subject to customary closing conditions and is expected to close in the first half of 2024. It is not expected to have a material impact on adjusted EPS in 2024, Elevance said.
– Obra Capital Inc. acquired Unified Life Insurance Co., a life and health insurance carrier with approximately 100,000 active policyholders and 49 associated licenses. Unified has acquired more than 50 blocks of business from 27 different companies and has become a leader in reinsurance M&A, said Obra Capital, an asset management firm and an investor in life settlement longevity assets.
– Unum Group COO Michael Simonds will resign effective Feb. 9, to pursue another professional opportunity. The company said in a regulatory filing that it expects his responsibilities will initially be taken by other officers. Simonds will be available to provide transition support after leaving the company, Unum said.
Property and casualty
– Gallatin Point Capital LLC will acquire a majority stake in the attorney-in-fact for Trusted Resource Underwriters Exchange (TRUE), investing over $1.25 billion. The target is a reciprocal insurer established by American Family Insurance Group in 2020 to serve homeowners in storm-prone regions of Florida and other parts of the US.
– FG Financial Group Inc. and FG Group Holdings Inc. are combining in an all-stock transaction. The merged company will be renamed to Fundamental Global Inc., estimated to have combined assets of over $110 million and combined annual revenue of over $65 million. The common stock and series A cumulative preferred stock of the combined entity will continue to trade on the Nasdaq under the ticker symbols FGF and FGFPP, respectively.
– Kinsale Capital Group Inc. announced changes to its board of directors and management structure, effective March 1. Michael Kehoe has been appointed chairman of the board in addition to his role as CEO and Brian Haney, who is currently executive vice president and COO, will succeed Kehoe as president of the company. In addition, Robert Lippincott III, currently chairman of the board, has been appointed lead independent director.
Reinsurance
– The National Flood Insurance Program placed $619.5 million of reinsurance for 2024. The placement covers portions of NFIP losses above $7 billion arising from a single qualifying flood event. FEMA will pay a total premium of $121.1 million for the coverage. The agreement is structured to cover 8.9125% of losses between $7 billion and $9 billion, and 22.0625% of losses between $9 billion and $11 billion.
– Kingstone Cos. Inc. completed the placement of its quota share reinsurance program for 2024, under which the New York-based company will cede 27% of its personal lines written premium, down from 30% in 2023. Kingstone said it will receive a higher ceding commission rate than the previous year. The company also placed a 3% treaty into runoff, which will enable it to obtain additional coverage for the winter months in particular.
– Tony Cheng became the CEO of Reinsurance Group of America Inc., effective Jan. 1. Cheng succeeds Anna Manning, who stepped down from the role on Dec. 31, 2023. Cheng will continue as company president and on the company's board.
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