Fidelity National Financial Inc. and Stewart Information Services Corp. agreed to terminate their proposed transaction owing to the Federal Trade Commission's issuance of an administrative complaint seeking to block the deal. Under the terms of its proposed acquisition, Fidelity National will pay Stewart $50 million in connection with the termination.
The U.S. commercial insurance sector saw prices increase by nearly 4% during the second quarter, an increase of about 1% from the prior-year quarter, according to Willis Towers Watson PLC's Commercial Lines Insurance Pricing Survey. Excess/umbrella liability and directors and officers all experienced price hikes, with increases approaching double digits for the first time in several years.
The gap between economic losses from catastrophes and the amount the insurance industry pays is "potentially a reputational risk for the whole industry," according to new Hannover Re CEO Jean-Jacques Henchoz. He said narrowing the so-called protection gap "should remain a big imperative for the whole industry — primary insurance and reinsurance."
Root Insurance Co. reached a $3.65 billion valuation after closing its $350 million series E funding round. This brings its total funding to $523 million with an additional $100 million in debt financing.
MBIA Inc. subsidiary National Public Finance Guarantee Corp. agreed to join the restructuring support agreement struck by the Puerto Rico Electric Power Authority with bondholders and other parties. Syncora Guarantee Inc. also agreed to join.
The Centers for Medicare and Medicaid Services will use stricter penalties and regulation to help curb fraud and abuse by providers that participate in health insurance programs operated by the federal government.
Insured losses from Hurricane Dorian in the Caribbean will be between $3.5 billion and $6.5 billion, catastrophe risk modeling company Risk Management Solutions Ltd. estimated. Nearly all of the estimated losses will come from the Bahamas, particularly the two most heavily impacted islands, Grand Bahama and Abaco.
Hartford Financial Services Group Inc. anticipates losses from Dorian to be under $50 million, The Insurance Insider wrote, citing CFO Beth Costello. She added that the storm was "a very manageable event."
AXIS Capital Holdings Ltd. has pulled back from the marine hull, management liability, power and product recall lines in London, but will continue to cover financial institutions, the Insider reported.
Aegon UK CEO Adrian Grace will retire from the company on March 31, 2020. He will be succeeded by Mike Holliday-Williams, who will join Aegon UK on Oct. 1.
Suncorp Group Ltd.'s new CEO, Steve Johnston, rejected speculation that the group may sell its banking unit, The Sydney Morning Herald reported. Johnston said the banking unit is core and strategically important to the group, adding that the company will focus on strengthening the unit.
Tokyo Century Corp. will acquire the remaining 75.5% stake in aircraft leasing company Aviation Capital Group LLC that it does not own from U.S.-based Pacific Life Insurance Co. for approximately US$3 billion.
India-based Reliance Capital Ltd. has ended talks with Hero FinCorp Ltd. for a potential sale of its Reliance General Insurance Co. Ltd. unit, Bloomberg News reported, citing people familiar with the matter.
A.M. Best maintained its negative outlook on China's nonlife insurance sector due to execution risks as the market shifts to a business model that is not focused on the motor segment, "persistent pressure" on the motor business and the industry's reliance on investment returns to buoy earnings. The rating agency also said the U.S.-China trade war has impacted consumer and business sentiment in China.
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Cyber insurance-linked securities will come 'sooner than later': Aon Securities CEO Paul Schultz said the evolution of cyber ILS will mirror that of property catastrophe bonds. "We'll find a place ... where there is a client need and not enough supply of capacity, and we'll use that to learn and to grow."
Trump tweets whipsawed S&P 500 in August as energy stocks led declines: Volatility on the benchmark U.S. stock index rose to the highest level since early January as the trade war between the U.S. and China escalated.
In other parts of the world
Asia-Pacific: Home Credit HK IPO may list this month; Suncorp CEO denies sales plan
Europe: Barclays sees up to £1.6B PPI hit; Dexia H1 loss widens; Portugal fines banks
Middle East & Africa: Kenya's Equity targets Congo lender; Standard Bank Namibia takes Mobipay stake
The day ahead
Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, the Hang Seng rose 0.01% to 26,683.68, and the Nikkei 225 gained 0.35% to 21,392.10.
In Europe, around midday, the FTSE 100 dropped 0.26% to 7,217.27, and the Euronext 100 was down 0.64% to 1,073.50.
Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.
On the macro front
The Redbook Index for retail sales and the Labor Department's Job Openings and Labor Turnover Survey are due out today.
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