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Chubb expects $250M gain from tax reform; GEICO's private auto loss ratio rises

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Insight Weekly: Banks pursue deals; offshore wind transmission; UK broadcasters vs. streamers


Chubb expects $250M gain from tax reform; GEICO's private auto loss ratio rises

Chubb Ltd. estimates a one-time benefit in excess of $250 million in the fourth quarter of 2017 as a result of the new U.S. tax law. The preliminary estimate reflects the impact of the reduced U.S. corporate income tax rate and the assumed repatriation of foreign subsidiary earnings on the company's net deferred tax liability position.

Hurricanes Harvey, Irma and Maria significantly impacted the Bermuda reinsurance market this year, according to 69% of respondents to an online Bermuda:Re+ILS poll. Some respondents said California wildfires also hit the market. Further, many felt the pending U.S. tax reforms could affect Bermuda's reinsurers in 2018.

By eliminating the Affordable Care Act mandate that requires most Americans to buy insurance, Republicans are making the health law increasingly government-funded, The New York Times argues. With fewer healthy people buying insurance after the repeal, costs for the remaining pool of buyers will rise, which would lead to higher premiums making consumers eligible for larger federal subsidies, the report said. It said the move may quicken the flight of customers who currently pay full insurance costs.

The indexed universal life insurance line sales measured by annualized premium rose 7% in the first nine months of the year as compared to the year-ago period, Insurance News Net reported, citing LIMRA data.

Hannover Re completed a $27 million private catastrophe bond Seaside Re series 2018-3 transaction through its Kaith Re reinsurance vehicle, Artemis reported. The bond program defines covered perils as being U.S. property catastrophe risks.

GEICO Corp. reported the highest loss ratio for any quarter going back to 2001 on its private auto line of business, according to an S&P Global Market Intelligence analysis.

Chubb Ltd.The largest health insurers used M&A or diversified contracts this year to boost their enrollment in the industry's most lucrative business line, Medicare Advantage, to set themselves up for a more profitable 2018.

Biglari Holdings Inc. terminated an agreement to buy all the outstanding capital stock of Pacific Specialty Insurance Co.'s parent company, Western Service Contract Corp., and its affiliated agency, McGraw Insurance Inc.

Featured news

Fresenius warned over plant violations; US FDA to review Sun Pharma's Seciera: The China Food and Drug Administration granted priority review and approval status to Eisai Co. Ltd.'s Lenvima for treating hepatocellular carcinoma, a type of liver cancer. The treatment is currently approved for refractory thyroid cancer in over 50 countries.

Financial news in other parts of the world

Asia-Pacific: MUFG to buy stake in Bank Danamon; Australia pushes for banks' 'living wills

Europe: Credit Suisse unveils US tax law impact; Natixis sells stake in CACEIS

Middle East and Africa: Sudan eyes currency devaluation; Liberians head to polls; Mozambique cuts rates

Latin America: BCI estimates loss due to US tax reform; Argentina central bank holds key rate

The day ahead

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

In Asia, the Hang Seng was up 0.07% to 29,597.66. The Nikkei 225 rose 0.08% to 22,911.21.

In Europe as of midday, the FTSE 100 was up 0.14% to 7,603.56, while the Euronext 100 was down 0.13% to 1,039.67.

On the macro front

The Redbook, Pending Home Sales Index and the Consumer Confidence Index are due out today.