Dorian has weakened to a Category 3 hurricane with maximum sustained winds near 120 mph. Dorian is stationary just north of Grand Bahama Island, but a slow north-northwestward motion is expected to begin this morning, the National Hurricane Center said in a 5 a.m. ET bulletin. The hurricane is about 105 miles east of West Palm Beach, Fla., and a hurricane warning is in effect from Jupiter Inlet to Ponte Vedra Beach.
The U.K. stands to lose as much as £61 billion in insurance business to other financial centers in the EU due to Brexit, with the country's departure terms not being a factor, Bloomberg News reported. The European Insurance and Occupational Pensions Authority had ordered U.K.-based insurers to shift the policies of European clients to their subsidiaries in Europe.
HealthEquity Inc. completed its acquisition of WageWorks Inc. HealthEquity also disclosed it will invest between $80 million and $100 million over the next 24 to 36 months to improve service and strengthen data security and privacy protections.
Aviation insurers are still waiting on progress in the assessment of their liability connected to design flaws in the Rolls-Royce Trent 1000 turbofan engine, The Insurance Insider wrote. Sources said progress is being hampered by concerns that Rolls-Royce senior management may have had prior knowledge of possible defects with the engine, which is used on the Boeing 787 Dreamliner. Global Aerospace is reportedly the lead insurer in the Marsh-brokered policy, with some London market insurers also said to be exposed.
Aspen Insurance Holdings Ltd. named Jonathan Ritz president, effective immediately, the Insider reported. Executive Chairman and CEO Mark Cloutier said in an internal company announcement obtained by the Insider that Ritz will take on some "day-to-day" responsibilities from him and assume a number of initiatives, which includes a review of the company's structure. Ritz most recently served as CEO of the U.S. insurance operations of Validus Holdings Ltd.
Lloyd's of London Syndicate 1200 plans to exit underwriting operations in Asia owing to "unsustainable" combined ratios for the business. The syndicate also plans to exit most of its hull underwriting business for a similar reason.
Proxy advisory company Institutional Shareholder Services has recommended that EMC Insurance Group Inc. shareholders vote for Employers Mutual Casualty Co.'s proposed acquisition of the company's shares that it does not already own.
Australia's PSC Insurance Group Ltd. received approval from the U.K. Financial Conduct Authority for its acquisition of Paragon International Holdings Ltd. The acquisition remains subject to a minor precedent condition, the company said, adding that it is confident that the transaction will be completed by the end of September.
Japanese insurer T&D Insurance Group, through subsidiary T&D United Capital Co. Ltd., will become a shareholder of Paris-based alternative asset management and investment group Tikehau Capital as part of a business and capital alliance between the companies.
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Pricing in the balance as reinsurers head to Monte Carlo: A continued lack of natural catastrophes in the second half of the year could ease the upward pressure on reinsurance rates, but another series of losses could have a big impact.
Stagflation conundrum looms for Carney as Brexit hammers pound: The U.K. economy could be set for a period of stagnant growth and rising inflation — a phenomenon known as stagflation — as the country lurches towards an exit of the European Union.
In other parts of the world
Asia-Pacific: UK approves PSC Insurance deal; IFC names Singapore head
Europe: UK PM warns of snap elections; Lloyds, Tesco in £3.8B deal; Rabobank sells CoCos
Middle East & Africa: Emirates NBD hikes foreign ownership cap; Old Mutual plans share buybacks
The day ahead
Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, the Hang Seng fell 0.39% to 25,527.85, and the Nikkei 225 rose 0.02% to 20,625.16.
In Europe, around midday, the FTSE 100 dropped 0.30% to 7,259.44, and the Euronext 100 was down 0.47% to 1,061.71.
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 Purchasing Managers' manufacturing index, the Institute For Supply Management's manufacturing index and the construction spending report are due out today.
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