Cigna closes sale of APAC business; Axa completes reinsurer transformation

TOP NEWS IN GLOBAL INSURANCE

* Chubb Ltd. completed its acquisition of Cigna's personal accident, supplemental health and life insurance business in six Asia-Pacific markets for $5.36 billion. The transaction includes Cigna's accident and health and life business in Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia. The share of Asia-Pacific in Chubb's global portfolio will grow to approximately $7 billion in premium from $4 billion thanks to the addition of Cigna's business.

* Axa SA completed its transformation into Axa Group's internal reinsurer following its merger with captive reinsurer Axa Global Re on June 30. Axa SA will reinsure some of its European property and casualty carriers for 2022 through annually renewable 25% quota-share reinsurance treaties, retroactively effective Jan. 1.

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Banning marine insurers from covering oil cargoes that breach a price limit is "too complicated," industry specialists say.

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Direct premiums written growth is unlikely to contract the way it did in both 2008 and 2009 as there are several key structural and cyclical distinctions between the global financial crisis era and the present day.

PROPERTY AND CASUALTY

* The National Security Group Inc. completed its merger with VR Insurance Holdings Inc. Under the terms of the merger, National Security's common shares were converted into rights to receive $16.35 in cash for each share owned. Ross Aron will become the CEO of VR Insurance Holdings and its subsidiaries, while Brian McLeod will become CFO. McLeod will also serve as COO of the insurance subsidiaries.

* Insurers have agreed on a schedule for discovery and a bankruptcy court trial related to a proposed $147 million settlement to cover sex abuse claims against the Roman Catholic Diocese of Rochester, New York, Insurance Journal reported. The settling insurers include London Market insurers, Lloyd's underwriters, Interstate Fire & Casualty Co., National Surety Corp. and Continental Insurance Co. and its affiliates.

* Compre Holdings Ltd. has redomiciled to Bermuda as part of its diversification strategy to broaden its market focus to include Lloyd's of London and North American legacy markets. Group COO Simon Hawkins moved to the newly created CEO for Europe role, effective July 1.

* Tokio Marine Highland Insurance Services Inc. named Norman Heinrich CEO, succeeding Pat Blandford. Heinrich was chief underwriting officer at Tokio Marine Highland.

* Paul Brand will take over the group CEO role at Convex Group Ltd. from Stephen Catlin, effective July 1, Reinsurance News reported. Catlin will remain executive chairman at Convex Group. Brand, who co-founded the company with Catlin in 2019, was deputy CEO.

* Mudum, Crédit Agricole Assurances SA's non-life insurer in Portugal, intends to strengthen its product offering to Novo Banco SA's customers, Economia Online reported. Mudum will develop the bancassurance channel it contracted with the bank until 2042.

* Philippine Crop Insurance Corp. was placed under the regulatory oversight of the Insurance Commission, which will regularly examine the state-run agricultural insurance firm's financial affairs, condition and method of business.

LIFE AND HEALTH

* Rothesay Life PLC has completed a £640 million bulk annuity buy-in transaction covering the benefits of more than 8,750 pensioners and deferred members under the Smiths Group PLC-sponsored TI Group Pension Scheme.

REINSURANCE

* MS Amlin Underwriting Ltd. is getting ready to bring a reinsurance-to-close deal, encompassing over £1 billion of net reserves, for Lloyd's Syndicate 2001 to the legacy market, Insurance Insider reported. The deal would cover the 2018 year of account and prior, as well as some of the 2019 year of account.

* Aon PLC's Reinsurance Market Dynamics report found that reinsurer capital decreased to $645 billion at the end of March, compared with $675 billion at the end of December 2021. Reinsurance buyers faced a "near-perfect storm" during the renewals period as insurers' rising demand for protection exacerbated reinsurance capacity constraints, with the property natural catastrophe capacity contracting for the first time since the U.S. hurricanes of 2004 and 2005.

Nelson Siqueira contributed to this report.

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