trending Market Intelligence /marketintelligence/en/news-insights/trending/ZOsW4PVYMUw0rAwyeU_ZPA2 content esgSubNav
In This List

Reinsurance takes center stage; BGC hiring; Markel ILS fund manager

Blog

The Big Picture 2022 Insurance Industry Outlook

Podcast

Next in Tech | Episode 37: Insurance impacts on technology and vice versa

Case Study

A Prestigious Global Business School Gains a Competitive Edge

Video

S&P Capital IQ Pro | Unrivaled Sector Coverage


Reinsurance takes center stage; BGC hiring; Markel ILS fund manager

French reinsurer Scor SE is planning to set up an external balance sheet backed by investors as it looks to expand the capacity it provides to insurers, Jean-Paul Conoscente, CEO of nonlife reinsurance division Scor Global P&C. said in Monte Carlo. This is part of a wider initiative to use more alternative capital — money provided by capital markets investors rather than traditional insurers and reinsurers — as it looks to satisfy increasing demand for reinsurance.

Aviva PLC is aiming to increase the percentage of multiyear insurance cover it buys at the Jan. 1, 2020, renewal, according to group reinsurance and credit director Scott McIntosh. He said about 40% of Aviva's reinsurance program was bought on a multiyear basis last year. He hopes to see that number increase at the coming renewals.

London-based insurance broker BGC Insurance Group is planning to double the number of hires it has already made for its new aviation division by the end of 2019, according to CEO Steve Hearn. He said the new aviation broker, which has not yet been named, had hired 20 people so far and is "just at the start."

Buyers expect reinsurance prices to remain flat or rise moderately during 2020, according to a survey by Moody's. That represents a shift, Moody's said, as its survey last year showed an overall expectation of flat-to-lower pricing.

Troubled utility PG&E secured limited insurance coverage from August onward, The Insurance Insider reported.

Markel Corp. launched a retrocessional insurance-linked securities fund manager in Bermuda, Lodgepine Capital Management Ltd., together with reinsurer Lodgepine Re. Initially, Lodgepine's product offering will be the Lodgepine Fund, a property catastrophe retrocessional investment fund ahead of the 2020 renewal period.

Bermuda-based Nephila Capital Ltd. expects to launch its own Lloyd's of London managing agency, Nephila Syndicate Management Ltd., on Oct. 11.

Insured losses from Hurricane Dorian, which hit the Bahamas, are likely to reach several billion U.S. dollars, according to Munich Re, Reuters wrote. AIR Worldwide in a note said it estimates insured losses attributed to Dorian in the Caribbean will be between $1.5 billion and $3 billion.

The Caribbean Catastrophe Risk Insurance Facility will pay the Bahamas approximately US$10.9 million due to the impact of Dorian. The Bahamas has three tropical cyclone policies with the facility, each one covering a section or zone of the archipelago – northwest, southeast and central.

The New York Department of Financial Services released industry guidance for life and health insurers in the state, notifying them of their obligations to provide insurance to nurses and first responders carrying naloxone or Narcan to cut overdose deaths.

The U.S. Federal Trade Commission filed a lawsuit to block Fidelity National Financial Inc.'s proposed acquisition of Stewart Information Services Corp. Stewart in a statement said it disagrees with the FTC's decision and is "reviewing the lawsuit."

Malta-based DARAG Group Ltd. agreed to acquire Zurich Insurance PLC's German architects and engineers professional indemnity insurance portfolio.

Suncorp Group Ltd. appointed Steve Johnston group CEO and managing director, effective Sept. 9. Johnston served as Suncorp's acting group CEO when Michael Cameron stepped down from the managing director and CEO roles.

Westpac Banking Corp. subsidiaries BT Funds Management Ltd. and Westpac Life Insurance Services Ltd. are facing a class-action lawsuit for allegedly not acting in the best interest of superannuation fund members and pocketing their returns.

Ping An Insurance (Group) Co. of China Ltd. and Hong Kong Exchanges and Clearing Ltd. signed a memorandum of understanding to cooperate in financial technology and data analytics.

Now featured on S&P Global Market Intelligence

Fla. insurers breathe easier, see stocks pop after Dorian's near-miss: The S&P 500 rose 1.79% to 2,978.71 for the week ending Sept. 6, while the SNL U.S. Insurance Index ticked up 0.85% to close at 1,062.36.

5 US insurance stocks trading at least 40% below analysts' price targets: W. R. Berkley was trading 11.7% above its mean one-year price target as of Aug. 30, the most of any insurance underwriter or broker in this analysis.

In other parts of the world

Asia-Pacific: Japan's negative rates may continue; HKEx, Ping An to explore fintech

Europe: Lloyds faces £1.8B PPI charge; US probe finds faults in Deutsche's AML controls

Middle East & Africa: Fawry eyes new markets; Shuaa to sell units; Access Bank H1 income up YOY

The day ahead

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

In Asia, Hang Seng slipped 0.04% to 26,681.40, while the Nikkei 225 inched up 0.56% to 21,318.42.

In Europe, around midday, the FTSE 100 shed 0.57% to 7,240.79, and the Euronext 100 lost 0.06% to 1,081.84.

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 TD Ameritrade IMX and Consumer Credit consensus are due out today.

The Daily Dose has an editorial deadline of 7:30 a.m. ET. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.