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Argo pay review; James River ends cover for Uber affiliate; record insurance M&A

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Argo pay review; James River ends cover for Uber affiliate; record insurance M&A

The independent directors of Argo Group International Holdings Ltd. are conducting a review of the company's governance and compensation matters, following the board's approval of compensation-related changes in August. The review also comes after Argo received a subpoena from the SEC for documents related to the company's disclosure of certain compensation-related perquisites.

James River Group Holdings Ltd. will cancel all insurance policies issued to its largest customer, Rasier LLC, and its affiliates, effective Dec. 31. James River said the account did not meet its expectations for profitability. Rasier is an affiliate of ride-hailing company Uber Technologies Inc.

Former Blue Cross and Blue Shield of North Carolina CEO Patrick Conway was found guilty of charges arising from a car crash on an interstate while his children were in the back seat, The Charlotte Observer reported. A district court judge found him guilty of driving while impaired and misdemeanor child abuse following the June 22 traffic accident.

Fitch Ratings warned that measures under consideration by the U.K. Financial Conduct Authority for the U.K. motor and home insurance markets could lead to lower profits in 2020. The rating agency is anticipating a "negative short-term impact" to profitability as insurers may have to change their premium rates for loyal customers. The measures are expected to be clarified in the first quarter of 2020.

On the same topic, Moody's said that of the FCA's proposed remedies, a cap on renewal prices would have the most credit-negative effect on profit and revenue for insurers, in that it would limit their ability to raise prices as claims inflation escalates.

There were 490 announced insurance agency mergers and acquisitions during the first three quarters, according to OPTIS Partners' M&A database. It was the highest nine-month total ever, beating the 481 deals announced in 2018. There were 158 transactions in the third quarter, making it the second-most active third quarter on record.

Typhoon Hagibis has rapidly gained strength and is now comparable to a Category 5 hurricane, The Japan Times reported. The typhoon could pass directly over the Kanto region during the weekend. A possible landfall is anticipated on the night of Oct. 12 or early the next day.

British Columbia Investment Management Corp. and Preservation Capital Partners have completed their equity investment in BMS Group Ltd., Reinsurance News reported. The investment values BMS at £500 million.

Risk Strategies President John Mina was appointed CEO of the company. He succeeds founder Michael Christian, who will transition to an executive chairman role.

Now featured on S&P Global Market Intelligence

Big multiple in Tokio Marine/PURE tie-up does not necessarily make deal rich: Certain of the relative valuations Tokio Marine will pay for the group that manages Privilege Underwriters Reciprocal Exchange is in line with recent trading multiples for shares of the target's nearest publicly traded comparable.

Shares of Florida homeowners insurers tend to weather natural disasters: Universal Insurance, FedNat and Heritage Insurance usually see their stocks gain ground and sometimes even outperform the S&P 500 when tropical cyclones make impact and in the ensuing weeks.

Low-volatility trading strategy continues winning streak in 3rd quarter: Low Volatility was the best performing of the S&P 500 factor indexes in the three months through September as the High Beta index brought up the rear.

In other parts of the world

Asia-Pacific: Hyundai Card sets IPO in motion; India's IDBI Bank to resume lending

Europe: Dexia CEO out; comdirect ups profit guidance; Helaba, Deka tie-up talk

Middle East & Africa: Saudi vets banks' Aramco exposure; Shuaa reshuffles ranks; KCB hunts defaulters

The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, the Hang Seng fell 0.81% to 25,682.81, and the Nikkei 225 declined 0.61% to 21,456.38.

In Europe, around midday, the FTSE 100 climbed 0.45% to 7,175.70, and the Euronext 100 was up 0.63% to 1,066.43.

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 Job Openings and Labor Turnover Survey, the wholesale trade report, the U.S. Energy Information Administration Petroleum Status Report and the Federal Open Market Committee minutes are due out today.

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