S&P Global Market Intelligence offers our top picks of insurance news stories and more published throughout the week.
Regulatory action
* The U.K.'s Financial Conduct Authority is considering a slew of "remedies" to prevent about 6 million policyholders from paying what it says amount to approximately £1.2 billion too much in premiums per year. The report found that insurers often sell policies at a discount to new customers and increase premiums when customers renew, targeting increases at those less likely to switch.
* The regulator, meanwhile, fined Prudential PLC's Prudential Assurance Co. Ltd. £23.9 million for failures relating to nonadvised annuities sales between July 2008 and September 2017. As Prudential accepted the FCA's findings, the regulator discounted its fine by 30%.
Deal talk
* Germany-based Allianz Group is in pole position to invest in Spain-based Banco Bilbao Vizcaya Argentaria SA's bancassurance business, although it must still fend off a U.S. rival, Liberty Mutual. A deal, said to be valued at more than €1 billion, is likely by the end of 2019. A deal is anticipated to be built as a partnership or a joint venture involving insurers in Spain, Mexico and Latin America.
* Italy-based Generali is likely to invest at least €3 billion for growth through midsize acquisitions in insurance and asset management. In insurance, the target is midsize continental European insurance companies with a focus on nonlife, health, benefits and assistance.
* Luker Rowe & Co. Ltd. acquired Trident Insurance Brokers Ltd., effective Oct. 1. The Trident team relocated with immediate effect to Luker Rowe's offices in Amersham, U.K. Luker Rowe is a firm of Chartered Insurance Brokers.
* London-based Markel International has sold its Brazilian insurance operations to several of its executives. Markel International is a subsidiary of Markel Corp.
Executive moves
* ASR Nederland NV CFO Chris Figee will resign from his position, effective Feb. 1, 2020. He will take up a similar role at Dutch landline and mobile telecommunications company KPN NV.
* NN Group NV has named Tjeerd Bosklopper CEO Netherlands ad interim, subject to approval by the Dutch central bank. The appointment is expected to be effective from early November. Bosklopper, currently chief transformation officer, succeeds David Knibbe, who was appointed CEO of NN Group.
* Sedgwick Claims Management Services Inc. has made several changes to its U.K. and international operations. Stewart Steel, currently CEO of Sedgwick U.K., Middle East and Africa, will oversee a newly combined operating division as CEO of continental Europe, Middle East and Africa. Paul White, currently deputy CEO of Sedgwick U.K., has been promoted to Sedgwick U.K. CEO. Also, Neil Gibson has been appointed COO of Sedgwick U.K.
In other news
* Insurance market place Lloyd's of London has published a long-awaited modernization plan that sets out six key ideas to revamp the marketplace. Among those six key ideas is a digital platform for complex risk that will enable digital placement of risks that are hardest to cover, and an exchange through which less-complicated risks can be placed in a more efficient and cost-effective manner, called Lloyd's Risk Exchange. The central governing body, the Corporation of Lloyd's, will change to deliver the 330-year-old insurance market's new modernization plan.
* The European insurance industry's assets under management went down slightly to €10.3 trillion in 2018 from a year ago. The insurance sector is the largest institutional investor in the EU with AUM equivalent to 58% of EU GDP.
* U.K.-based MS Amlin PLC is set to exit nine classes of business and operations after an underwriting review. The business classes are aviation and P&C U.K. insurance, which includes corporate property, real estate, casualty, package binders and fleet. The insurer is considering a sale of its aviation book, which consists of about $100 million in premiums.
* Chubb Ltd. will stop writing wholesale international liability business in London, and is understood to be only offering short-term renewals. Three underwriters are under consultation, indicating that their jobs are at risk.
Featured during the week on S&P Global Market Intelligence
UK life insurers exposed to no-deal Brexit house-price falls: Insurers' growing interest in equity release mortgages and other illiquid assets means they are at risk if property prices drop after a disorderly exit from the European Union. Ratings analysts, however, believe companies are sufficiently cushioned.
Munich Re will launch 1st Lloyd's 'Syndicate-in-a-Box': The new venture will be ready to start trading Jan. 1, 2020, and will write "a range of innovative products" according to Lloyd's Performance Management Director Jon Hancock.
