Suncorp, Zurich revive general insurance deal; Russian waters on high-risk list

TOP NEWS IN GLOBAL INSURANCE

* Suncorp Group Ltd. and Zurich Insurance Group AG are in talks to revive a potential deal for Zurich Insurance's general insurance business, The Australian Financial Review reported, citing sources. The companies are reportedly working to finalize the agreement in the coming weeks. The transaction would likely exclude Zurich Insurance's travel insurance business, CoverMore.

* The Joint War Committee of the Lloyd's Market Association and the International Underwriting Association of London added all of Russia's waters to its list of high-risk areas in a move that will likely raise shipping costs and add logistical pressures on Moscow, Reuters reported. Vessels would need to notify underwriters when sailing into ports and pay additional premiums for a seven-day cover period.

* Insurance executives overseeing over $13 trillion in global balance sheet assets now see rising inflation and tighter monetary policy as the largest threats to their portfolio, with rising interest rates displacing low yields as the primary investment risk, according to an annual survey of The Goldman Sachs Group Inc. About 63% of respondents in the 2022 survey believe that an economic recession in the U.S. will occur in the next two to three years. Insurers expect to most significantly increase their allocation to private equity and green or impact bonds.

➤ US P&C insurers' expense ratio falls to lowest level in 5 years

The U.S. P&C industry saw a significant decline in its expense ratio mainly due to a sharp year-over-year increase in net premiums written in 2021.

➤ Use of surplus lines for homeowners coverage surging in California

Homeowners direct premiums written in California by excess and surplus filers have almost tripled since 2018, rising in 2021 to $235 million, according to an S&P Global Market Intelligence analysis of regulatory statements submitted to the National Association of Insurance Commissioners.

➤ Nationwide raises homeowners rates in February

Nearly half of Nationwide's calculated premium increase, about $21.9 million, is expected to come from a single 6.98% rate hike approved in California.

PROPERTY AND CASUALTY

* Insurers in France are increasing tariffs and imposing stricter conditions on clients taking out cyberattack insurance as they brace for claims from losses due to cyberattacks resulting from the war in Ukraine, Les Echos reported.

* Insurance Commissioner Dennis Funa disclosed that a Southeast Asian insurer that will establish life and non-life operations is scheduled to enter the Philippines in April, BusinessWorld reported.

LIFE AND HEALTH

* The Indian government is considering seeking about $6.6 billion from Life Insurance Corp. of India's IPO, Bloomberg News reported. A sale of up to 7% stake in the state-owned insurer is reportedly up for discussion.

* HDFC Bank Ltd. is seeking approval from the Reserve Bank of India to hold HDFC Ltd.'s 47.82% stake in HDFC Life Insurance Co. Ltd. or buy an additional stake in the insurer from the market to raise its total shareholding to 50%, Business Standard reported.

* Empower Retirement LLC has completed its acquisition of Prudential Financial Inc.'s full-service retirement business in a $3.5 billion deal. The transaction also includes more than 1,800 employees who will provide retirement record keeping and administration services to financial professionals, plan sponsors and participants.

* Eric Del Monaco resigned as chief risk officer of Midwest Holding Inc., effective March 31.

* BOB-Cardif Life Insurance Co. Ltd. has received approval from the Dalian Banking and Insurance Regulatory Bureau to raise its capital to 3.57 billion yuan, Asia Insurance Review reported. Bank of Beijing Co. Ltd. and BNP Paribas Cardif SA will inject 450 million yuan each into the joint venture.

REINSURANCE

* United Services Automobile Association is seeking $375 million of annual aggregate multiple-peril reinsurance protection through the Residential Reinsurance 2022 Ltd. series 2022-1 catastrophe bond, Artemis reported.

* Vantage Risk Ltd. is looking to secure at least $65 million of catastrophe reinsurance protection against certain losses from North American named storms and earthquakes through the Vista Re Ltd. series 2022-1 catastrophe bond, Artemis reported.

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