Apr 20-26, 2025

Insurance Market

Aon Reports First Quarter 2025 Results - Apr 25, 2025

Aon reported first-quarter 2025 adjusted earnings per share of $5.67, falling short of analysts' expectations of $6.02, primarily due to a 25% increase in operating expenses to $3.27 billion, driven by higher compensation costs and debt incurred from the NFP acquisition. Despite this, the company achieved 5% organic revenue growth, with notable increases of 11% in Commercial Risk Solutions and 40% in Health Solutions.

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Aon Reports Global Natural Disasters Cost Insurers $53B in Q1, With Economic Losses of $83B

Aon's Q1 2025 Global Catastrophe Recap reports that global insured losses from natural disasters reached $53 billion, significantly higher than the 21st-century Q1 average of $17 billion, with the Los Angeles wildfires alone accounting for approximately $38 billion. Total economic losses were estimated at $83 billion, and over 6,000 fatalities were recorded, primarily due to the Myanmar earthquake, marking a substantial increase from the previous year.

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Capgemini: Demographic Shifts Force P&C Insurers to Evolve

Capgemini’s World Property and Casualty Insurance Report 2025 highlights how aging populations and urbanization are reshaping P&C insurance. By 2050, seniors will outnumber youth globally (excluding Africa), raising dependency ratios and creating urban risk hotspots. Consumer priorities are shifting toward experiences over possessions, impacting risk and protection needs. Commercial insurance is set to outpace personal lines growth, with liability shifting toward manufacturers. Insurers must adapt with geographic, technological, and risk management strategies for long-term success.

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Chubb Reports First Quarter Per Share Net Income and Core Operating Income

Chubb Limited reported first-quarter 2025 net income of $1.33 billion, or $3.29 per share, and core operating income of $1.49 billion, or $3.68 per share. Consolidated net premiums written increased by 5.7% in constant dollars to $12.6 billion, with property and casualty premiums up 5.0% and life insurance premiums up 10.3%, while the P&C combined ratio improved to 88.4%.

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Changing Market Dynamics, Tech Advances Continue to Disrupt Insurance Industry: Report

Deloitte's "2025 Financial Services Industry Predictions" report highlights significant shifts in the insurance sector driven by technological advancements and changing market dynamics. Key forecasts include a surge in fee-based risk management services, with U.S. property and casualty insurers' revenues projected to grow from $21.6 billion in 2023 to $49.5 billion by 2030, and the adoption of AI-driven technologies in claims processing potentially saving the industry between $80 billion and $160 billion by 2032.

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Donegal Group Inc. Announces First Quarter 2025 Results

Donegal Group Inc. reported Q1 2025 net income of $25.2 million ($0.71 per diluted Class A share), up from $6.0 million in Q1 2024. Net premiums earned rose 2.2% to $232.7 million, with a combined ratio improving to 91.6% from 102.4%. Book value per share increased to $16.24. Investment income grew 9.2% to $12.0 million, though net investment losses of $0.4 million were recorded. Annualized return on equity jumped to 17.8%.

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Global Q1 Commercial Insurance Rates Drop 3%, but US Casualty Bucks the Trend

Global commercial insurance rates declined by 3% in the first quarter of 2025, marking the third consecutive quarterly decrease, driven by heightened competition and increased capacity in lines such as property, financial, and cyber insurance. However, U.S. casualty insurance rates rose by 8% due to factors like large jury verdicts and reduced underwriting capacity, influencing global casualty rates to increase by 4%.

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IUA announces new Board members

The International Underwriting Association (IUA) has appointed three new Board members: Charlotte Lach (AIG UK and Global Specialty COO), Nick Hobbs (Chief Distribution Officer, Allianz Commercial), and Stav Tsielepis (Chief Actuary, International General Insurance). Chris Jones, newly appointed Chief Executive of the IUA, also joins the Board.

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RLI Reports First Quarter 2025 Results

RLI Corp. reported first-quarter 2025 net earnings of $63.2 million ($0.68 per share) compared to $127.9 million ($1.39 per share) in Q1 2024. Operating earnings were $84.9 million ($0.92 per share), slightly down from $87.4 million ($0.95 per share) last year. Gross premiums written increased 5%, underwriting income reached $70.5 million on a strong 82.3 combined ratio, and book value per share rose 6% to $17.48. Net investment income grew 12%. RLI completed a two-for-one stock split in January 2025. Management highlighted continued premium growth, profitability, and resilience across their casualty, property, and surety segments.

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Tariff pressures mount for US insurers, says KBRA

KBRA warns that persistent tariffs and trade tensions are straining U.S. property and casualty insurers, particularly in auto and homeowners lines, due to rising claims costs from increased prices on imported materials like steel and auto parts. Regulatory delays in approving rate increases exacerbate the issue, compressing underwriting margins and potentially challenging insurers' profitability and capital buffers if inflation continues or tariffs remain over the medium term.

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Tech Update: Lloyd’s Backs BreachBits; ZoJacks Prevents Water Claims; Eagleview Expands Drone Options

Lloyd’s has invested in BreachBits, a U.S.-based cyber risk startup founded by former military cyber warfare experts, to enhance automated underwriting tools like the Cyber Questionnaire Validator and Cyber Pre-Claim Intervention, aiming to improve efficiency and profitability in the growing cyber insurance market. Additionally, ZoJacks introduced a leak detection system to prevent costly water damage claims, while EagleView expanded its drone-based property inspection platform to include AI-driven damage assessments and repair estimates, streamlining claims processing for insurers.

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The Hartford - The Hartford Announces First Quarter 2025 Financial Results

The Hartford reported a 16% decline in first-quarter 2025 net income to $625 million, or $2.15 per share, primarily due to $467 million in catastrophe losses, including $325 million from California wildfires. Despite these losses, the company experienced a 9% increase in property and casualty written premiums and a rise in investment income to $656 million, reflecting strong demand and effective capital deployment.

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Why New York and New Jersey Are at Risk of Spring Wildfires

A wildfire in southern New Jersey has burned 21 square miles despite recent rains, fueled by dry, windy conditions and an improperly extinguished bonfire. Climate scientists note that spring’s brief, intense rains have failed to soak into the soil, increasing fire risk. Human-driven climate change is causing more erratic weather patterns, with alternating periods of dryness and deluges. Experts warn that the New York metro area faces elevated wildfire threats this spring due to these shifts.

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W. R. Berkley Corporation - W. R. Berkley Corporation Reports First Quarter Results

W. R. Berkley Corporation reported a 5.6% decline in first-quarter 2025 net income to $417.6 million, or $1.04 per share, primarily due to increased catastrophe losses totaling $111.1 million, largely from severe natural disasters in California. Despite this, the company achieved record net premiums written of $3.13 billion, a 9.9% increase from the previous year, and a 12.6% rise in net investment income to $360.3 million, reflecting strong demand for coverage amid economic uncertainty and improved returns from investment fund holdings.

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Reinsurance Market

Allstate anticipates $123m of reinsurance recoveries from aggregate tower

Allstate anticipates approximately $123 million in reinsurance recoveries from its Sanders Re catastrophe bond program, following March catastrophe losses that pushed total pre-tax losses for the annual risk period (April 1, 2024, to March 31, 2025) to around $6.4 billion. These recoveries are expected to reduce Allstate's reported March catastrophe losses, estimated at $1.04 billion pre-tax, with the majority of March's losses stemming from four significant wind and hail events.

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AXIS, Enstar complete loss portfolio transfer for pre-2022 casualty business

AXIS Capital and Enstar Group finalized a US$3.1 billion loss portfolio transfer, retroceding 75% (US$2.3 billion) of AXIS’s reinsurance segment reserves to Enstar’s Cavello Bay Re. AXIS retains claims control while Enstar assumes some administrative duties. AXIS expects a US$60 million benefit over time. The deal, covering mostly casualty portfolios from 2021 and prior, follows regulatory approvals and reflects Enstar’s ongoing strategy of managing legacy liabilities through major reinsurance transactions in 2024 and 2025.

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Compre posts $128.5m net loss in 2024 amid lower deal volume

Compre Group posted a $128.5 million net loss for 2024, compared to a $279.4 million profit in 2023, driven by lower deal volume, unwinding liabilities, and tail risks. Operating loss reached $45.3 million. Tangible net asset value fell to $620 million, but investment income rose to $92.1 million. Despite fewer transactions, Compre maintained underwriting discipline and a 188% solvency ratio. In April 2025, it acquired CSE Group.

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Reinsurance market finds balance in 2024, Arundo Re sees continued growth

The reinsurance market in 2024 experienced a gradual easing of the hard market, leading to improved conditions, particularly in terms of reinsurance terms and program structures. Arundo Re reported a 15% year-on-year increase in turnover to €1.361 billion, with an improved combined ratio of 94.7%, despite challenges such as inflation, geopolitical instability, and climate-related events.

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Reinsurers to be only 'mildly affected' by existing tariffs: Morningstar DBRS

Morningstar DBRS reports that while U.S. trade tariffs are increasing costs in property insurance, global reinsurers are expected to be only mildly affected due to their diversified portfolios, including life and casualty lines less exposed to tariff-related inflation. The firm notes that U.S. property insurers face the greatest impact from rising claims costs linked to imported materials, whereas reinsurers' broader global operations and varied business lines help mitigate these effects.

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Reinsurance must embrace AI or risk falling behind

At the [Re]Connect reinsurance conference, Tanya Beattie of Grant Thornton emphasized that the reinsurance industry must actively adopt artificial intelligence to remain competitive, noting that legacy systems and low AI literacy hinder progress. She advocated for a cautious yet proactive approach, integrating AI to enhance efficiency while maintaining human oversight, especially in underwriting, and considering the environmental impact of AI technologies.

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RenaissanceRe Reports Q1 2025

RenaissanceRe Holdings Ltd. reported first-quarter 2025 net income of $161.1 million, or $3.27 per diluted share, despite incurring an operating loss of $69.8 million due to significant catastrophe losses, notably the California wildfires, which had a net negative after-tax impact of $702.8 million. The company's combined ratio deteriorated to 128.3%, reflecting substantial underwriting losses, while strong investment performance, including $405.4 million in net investment income and $332.9 million in mark-to-market gains, contributed to a total investment result of $738.3 million.

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Sustained demand key to long-term cyber re/insurance market growth: Gallagher Re

Gallagher Re emphasizes that sustained demand is crucial for the long-term growth of the cyber re/insurance market, advocating for increased investment and innovation in product design to offer comprehensive, tailored solutions that position cyber coverage as an essential, value-driven investment. The firm also highlights the importance of strategic partnerships and technological advancements to manage evolving risks and ensure market resilience.

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Commercial Lines

How the Key Bridge Collapse Continues Reshaping Infrastructure Insurance

The 2024 collapse of Baltimore's Francis Scott Key Bridge has significantly disrupted the infrastructure insurance market, prompting major carriers to reduce coverage limits or withdraw from certain infrastructure categories. As a result, municipalities are now compelled to assemble layered coverage from multiple insurers, often facing higher premiums, coverage gaps, and increased demands for engineering assessments and pre-coverage maintenance, all of which strain already limited public budgets.

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Renewal rates down for nearly all commercial lines quarter over quarter: Ivans

In Q1 2025, the Ivans Index reported that average premium renewal rates declined quarter-over-quarter across nearly all major commercial insurance lines, with the exception of Umbrella policies. Despite these quarterly decreases, year-over-year comparisons showed that all major commercial lines, except Workers’ Compensation, experienced increases in premium renewal rates.

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Don’t Forget Tariff Impacts on Workers’ Compensation: Berkley

W.R. Berkley CEO W. Robert Berkley Jr. cautioned that tariffs could significantly impact workers' compensation costs, particularly through increased pharmaceutical expenses, and emphasized the company's focus on analyzing potential effects on loss ratios and pricing. He also noted that while wage inflation has recently provided a buffer against rising medical costs, the fluid nature of tariff policies necessitates ongoing evaluation to inform rate adjustments.

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Emerging Risks

Aging global population to drive changes in P&C insurance by 2050: Report

A Capgemini Research Institute report forecasts that by 2050, the aging global population will significantly reshape the property and casualty insurance industry, prompting a shift toward more flexible, lifestyle-focused products and preventive models. Insurers are expected to leverage AI and predictive analytics to adapt underwriting practices, address evolving consumer behaviors, and manage emerging risks such as climate change and automation.

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Cyber Crime Costs Increased to $16B in 2024

According to the FBI's Internet Crime Complaint Center, global cybercrime losses surged to over $16 billion in 2024, a one-third increase from the previous year, driven largely by low-tech scams such as investment fraud and business email compromise. The report, based on nearly 860,000 complaints, highlighted that individuals aged 60 and older were the most frequent victims, though the FBI acknowledged that actual losses, especially from ransomware attacks, are likely underreported.

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Nine of 10 global firms hit by cyberattacks – report

A recent report by Rubrik Zero Labs reveals that 90% of global organizations experienced at least one successful cyberattack in 2024, with nearly 20% facing over two dozen incidents, highlighting the escalating threat landscape. The study identifies data breaches, malware, cloud vulnerabilities, phishing, and insider threats as prevalent attack vectors, prompting many firms to increase cybersecurity budgets and reevaluate risk management strategies.

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Safeguarding the Marine Transportation System: New Cybersecurity Rules

The U.S. Coast Guard has issued a final rule mandating cybersecurity measures for U.S.-flagged vessels, facilities, and offshore platforms to strengthen the marine transportation system against escalating cyber threats. Effective July 16, 2025, the rule requires entities to develop Cybersecurity Plans and Incident Response Plans, designate a Cybersecurity Officer, and implement controls such as multifactor authentication, system inventories, and encryption, with compliance deadlines extending up to 24 months.

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"Don't wait": Businesses warned as trade tariffs threaten supply chains

James Crask, global head of resilience advisory at Marsh, warns that escalating U.S. trade tariffs pose unprecedented risks to businesses, urging immediate action to assess and fortify supply chains. He emphasizes the critical need for companies to gain visibility beyond their first-tier suppliers, as dependencies on second- and third-tier suppliers in tariff-impacted countries can lead to significant operational vulnerabilities.

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FERMA CEO on the changing landscape of risk management

Typhaine Beaupérin, CEO of FERMA, emphasizes that risk management must evolve to address growing challenges such as climate change, digital transformation, and geopolitical uncertainty. She encourages a more strategic role for risk managers and brokers, focusing on long-term resilience and integrated risk planning.

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Pipelines, politics and power grids - how risk managers can cope within unstable geopolitics

Geopolitical instability is increasingly influencing infrastructure investments, with risk managers needing to assess not only financial viability but also political and regulatory exposures, supply chain vulnerabilities, and sustainability risks. The global shift towards clean energy, driven by national policies aiming to enhance energy security, underscores the importance of robust risk management strategies to navigate market volatility and geopolitical uncertainties.

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Litigation & Mass Torts

Class Action Accuses Toyota of Illegally Sharing Drivers’ Data With Progressive

A federal class action lawsuit filed in Texas accuses Toyota and its affiliate, Connected Analytic Services (CAS), of unlawfully collecting and sharing drivers' telematics data—including location, speed, and braking behavior—with Progressive Insurance without proper consent. The plaintiff, who discovered Progressive already possessed his driving data despite opting out of its Snapshot program, alleges that Toyota failed to provide adequate notice about data sharing practices, raising significant privacy concerns.

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Insurer faces pushback over repeat IMEs in worker's comp case

A Hawai‘i appellate court partially vacated an order requiring a former employee to undergo two additional independent medical examinations (IMEs) in a workers' compensation case, citing the Labor and Industrial Relations Appeals Board's failure to provide necessary findings of fact or conclusions of law as mandated by state law. The case, involving claims of neck injury and sleep disorder allegedly resulting from a 2007 medical evaluation, underscores the importance of procedural compliance in workers' compensation proceedings.

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Marsh Sues Aon, Ex-Team Leader Over Exit of 20 Construction Surety Employees

Marsh USA has filed a federal lawsuit against competitor Aon and former Marsh executive Robert McDonough, alleging that McDonough orchestrated the coordinated resignation of 20 employees from Marsh's construction surety team within 38 minutes on March 10, 2025. The complaint accuses Aon and McDonough of misappropriating confidential information and violating non-solicitation agreements, resulting in significant client losses and reputational harm to Marsh.

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Merck Faces Patent Lawsuit Over Easier-to-Use Keytruda

Halozyme Therapeutics has filed a lawsuit against Merck & Co., alleging that Merck's new injectable version of its cancer drug Keytruda infringes on 15 of Halozyme's patents related to subcutaneous drug delivery enzymes. This legal dispute arises as Merck seeks to transition patients to the more convenient shot form of Keytruda, which generated nearly $30 billion in 2024, ahead of anticipated generic competition and pricing negotiations in 2028.

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Uber Sued by FTC Over ‘Deceptive’ Subscription Sign-Ups

The U.S. Federal Trade Commission has sued Uber, alleging that the company engaged in deceptive billing and cancellation practices related to its Uber One subscription service, including charging users without consent and making cancellations excessively difficult. Uber disputes the claims, asserting that its sign-up and cancellation processes are straightforward and comply with legal standards

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Walgreens to Pay $300 Million in US Opioid Settlement

Walgreens has agreed to pay $300 million over six years, plus interest, to settle U.S. Justice Department allegations that it illegally filled millions of invalid opioid prescriptions and improperly billed federal healthcare programs, while denying liability. This settlement adds to the approximately $50 billion that pharmaceutical companies and distributors have collectively paid to resolve claims related to the U.S. opioid crisis.

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People Moves

Brit appoints Jonathan Mudd as Active Underwriter for Syndicate 2988

Brit Group Holdings appointed Jonathan Mudd as Active Underwriter for Syndicate 2988. Mudd, who joined Brit in 2003 and currently serves as Managing Director FinPro and Cyber, will retain his current role while assuming new responsibilities. Syndicate 2988, which wrote £181 million in 2024, supports Brit’s lead Syndicate 2987 and third-party business. CUO Jon Sullivan praised Mudd’s leadership, as Brit plans to expand third-party business under Mudd’s direction in 2025.

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CRC Group Names Insurance Industry Veteran Todd Jones as Chief Growth Officer

CRC Group appointed Todd Jones as Chief Growth Officer, joining from Aon where he served as EVP for Risk Capital. Jones, a seasoned leader with experience at QBE North America and WTW, will drive strategic initiatives focused on organic growth and client alignment. CEO Dave Obenauer praised Jones’ leadership and transformational growth track record. Jones, who holds degrees from NYU Stern and Wake Forest, will join CRC Group in June, reporting directly to Obenauer.

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Everest Expands Executive Leadership for U.S. Wholesale Insurance Business

Everest announced three leadership appointments in its U.S. Wholesale business, Everest Evolution™, on April 24, 2025. Matt Meserole was named Head of Excess Casualty, Adam Birch was appointed Head of Industry Specialties, and Cristin McCarthy became Head of Excess Construction. The moves strengthen Everest’s focus on excess and surplus lines growth, particularly in construction and energy. Everest Evolution™ specializes in customized wholesale solutions, supporting the firm’s strategy to deepen industry specialization and expand market presence.

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Falcon Risk Services Appoints Laura Coppola as New Head of Management Liability

Falcon Risk Services announced the appointment of Laura Coppola as EVP, Head of Management Liability. Based in New York, Coppola will oversee growth, portfolio management, and product development for management liability and financial institutions D&O/E&O. She brings over 30 years of underwriting leadership experience from QBE, Swiss Re, Allianz, and Arch. CEO Craig Landi highlighted her expertise and brokerage relationships as key to Falcon’s growth. Coppola also serves on the board of The Bridge Transcends.

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New North American Head of Claims | Allianz Commercial

Allianz Commercial has appointed Melissa Hill as Regional Head of Claims for North America, succeeding Frank Sapio, who is retiring at the end of April 2025. Hill brings over 25 years of experience in claims leadership, most recently serving as Strategic Claims Transformation Lead at Sompo, where she implemented AI, machine learning, and robotic process automation to modernize claims operations.

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Swiss Re appoints Bernhard Kaufmann Group CRO as Patrick Raaflaub retires | Swiss Re

Swiss Re has announced that Bernhard Kaufmann will become Group Chief Risk Officer on October 1, 2025, succeeding Patrick Raaflaub, who is retiring after a 25-year tenure with the company. Kaufmann brings 17 years of experience as a Chief Risk Officer in the re/insurance industry, having held senior positions at Helvetia, NN Group, and Munich Re, and holds a PhD in theoretical physics from the Technical University of Munich.

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Xceedance Appoints Subramanian Sankaran as Global Chief Operating Officer - Xceedance

Xceedance has appointed Subramanian ("Subbu") Sankaran as its Global Chief Operating Officer to support the company's ongoing expansion and operational scaling. With over 30 years of experience in global operations and transformation roles across organizations such as Wipro, Accenture, GeBBS Healthcare Solutions, WNS, GE Capital, and Pfizer, Sankaran is expected to enhance service delivery, align business execution with strategic objectives, and drive consistent, high-quality operations across Xceedance's global footprint.