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Weekly news: Icahn backs AmTrust; man-made disasters pose $320B GDP risk

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Weekly news: Icahn backs AmTrust; man-made disasters pose $320B GDP risk

Risk and regulation

Some insurers will pre-emptively boost their capital buffers in the run-up to the introduction of new global accounting rules in 2021, S&P Global Ratings has predicted.

Man-made risks such as cybercrime, conflict and financial market crashes are putting $320.1 billion of global GDP at risk each year, eclipsing the $226.4 billion potential hit to economic output from natural catastrophes, Lloyd's of London has estimated.

Federal regulators in charge of labeling companies as systemically important financial institutions may be getting ready to remove Prudential Financial Inc.'s designation once and for all, according to Chairman, President and CEO John Strangfeld Jr.

A change in accounting for equity securities brings volatility to some re/insurance companies' 2018 net earnings, Fitch Ratings said. The accounting change was a bid to make the U.S. more in line with international accounting practices.

Property and casualty

American International Group Inc. is planning to expand its life and retirement business overseas and would consider another multibillion-dollar deal, CEO Brian Duperreault told the Financial Times.

Activist investor Carl Icahn agreed to support AmTrust Financial Services Inc.'s go-private transaction after the parties agreed to raise the deal price by $1.25 per share.

Aon estimates that public and private insurers are on the hook for more than two-thirds of the estimated $2.3 billion in total combined economic losses from four separate severe weather outbreaks that hit the U.S. in May.

Worldwide cyber insurance premiums will touch about $4 billion by 2021, which would amount to a 14.1% compound annual growth rate., according to Aon. Global commercial property and casualty premiums would increase at an annual rate of 5.3% to almost $900 billion by 2021, compared to about $730 billion in 2017.

Revised capital requirements for mortgage insurance companies present an opportunity for reinsurers looking to diversify, according to John Doucette, Everest Re Group Ltd.'s reinsurance president and CEO.

Life and health

The U.S. Department of Justice said the Affordable Care Act's individual mandate is unconstitutional under a tax law that President Donald Trump signed in 2017, Reuters reported.

Cigna Corp. erroneously sent out private data of some of its customers in Asia due to a system error, Bloomberg reported.

The Delaware Department of Insurance received an amendment to the Form A statement regarding the acquisition of Genworth Life Insurance Co. by China Oceanwide Holdings Group Co. Ltd. and certain of its affiliates.

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