Weekly Articles
Commercial Lines
Allstate expects $1.07 billion in net pretax catastrophe losses | Insurance Business America
Allstate Corporation anticipates net pretax catastrophe losses of $1.07 billion from the January wildfires in Los Angeles, which includes its share of the California FAIR Plan's $1 billion assessment and expected reinsurance recoveries of $1.4 billion. The company has also reduced its market share in California's homeowners insurance sector from 12.6% in 2008 to less than 5.8% last year
Progressive estimates $43 million in losses from Los Angeles wildfires | Insurance Business America
Progressive Corporation has estimated approximately $43 million in catastrophe losses from the Los Angeles wildfires that occurred in January 2025, with personal property accounting for 72% of the total estimated losses. Despite these losses, the company reported a 19% year-over-year increase in its fourth-quarter net income, reaching $2.36 billion.
AM Best: US P/C Industry Improves Despite 2024 Underwriting Loss - Insurance Journal
In 2024, the U.S. property/casualty insurance industry reported an underwriting loss of $2.6 billion, a significant improvement from the $24.6 billion loss in 2023, with a combined ratio of 98.9. AM Best attributes this progress to rate increases and refined risk selection, particularly in personal lines, and anticipates continued improvement in 2025 despite challenges like secondary perils and adverse litigation trends.
Rebuilding Costs Rose More Than 60% in the Last Decade: Verisk
In 2024, the U.S. property/casualty insurance industry reported an underwriting loss of $2.6 billion, a significant improvement from the $24.6 billion loss in 2023, with a combined ratio of 98.9. AM Best attributes this progress to rate increases and refined risk selection, particularly in personal lines, and anticipates continued improvement in 2025 despite challenges like secondary perils and adverse litigation trends.
How to Operate in Today’s ‘Bananas’ Casualty Insurance World - Insurance Journal
In the current casualty insurance market, insurers and brokers face challenges due to a prolonged period of rate increases, particularly in general liability and auto lines. To navigate this environment, industry leaders recommend that insureds enhance their liability risk management efforts, focusing on contract certainty and adopting technologies to manage auto risks effectively.
Tesla Recalls 380,000 Vehicles in US Over Power Steering Assist Issue - Claims Journal
Tesla is recalling nearly 380,000 vehicles in the United States due to a potential power steering assist failure that could increase steering effort at low speeds, raising the risk of a crash. The recall affects certain 2023 Model 3 sedans and Model Y crossovers running older software; Tesla has released an over-the-air software update to address the issue and is not aware of any crashes or deaths related to this condition.
Startup E&S Broker’s Goal: Say Yes to Almost Anyone for Wildfire Cover - Carrier Management
Stand Insurance, a newly launched surplus-lines broker, aims to provide wildfire coverage to high-risk homes across California and the United States, focusing on properties that struggle to secure insurance in the admitted market. Co-founder and CEO Dan Preston believes that by collaborating with homeowners to implement targeted risk mitigation measures, Stand can offer more affordable premiums over time.
Delta Offers $30,000 to Each Passenger in Toronto Crash Landing - Claims Journal
Delta Air Lines is offering $30,000 to each passenger of a regional jet that crash-landed at Toronto-Pearson International Airport, coming to rest upside down. The payment is a "good-faith gesture" with no strings attached and does not affect passengers' rights. The incident involved 76 passengers and four crew members, resulting in 21 injuries but no fatalities. Canadian aviation safety officials are investigating the cause.
MSCI and Swiss Re partner to boost climate risk assessment for financial sector - Reinsurance News
MSCI and Swiss Re Reinsurance Solutions have announced a partnership to enhance the financial sector's ability to assess and manage physical climate risks. This collaboration integrates MSCI's GeoSpatial Asset Intelligence with Swiss Re's proprietary natural catastrophe and climate risk data, providing financial institutions with detailed, asset-level insights to develop strategies for mitigating risks across portfolios and loan books.
Zurich Insurance Sees $200 Million LA Wildfire Loss - Claims Journal
Zurich Insurance Group AG anticipates pretax losses of $200 million from the January 2025 California wildfires, primarily affecting its Farmers division and commercial business in the state. Despite these anticipated losses, Zurich reported a 5% increase in group operating profit for 2024, totaling $7.75 billion, with net income rising 34% to $5.81 billion.
MGAs
Viewpoint: Are Carriers and MGAs Leaving Revenue on the Table? - Insurance Journal
In today's competitive insurance landscape, carriers and managing general agencies (MGAs) face significant challenges in customer acquisition and retention, often exacerbated by limited marketing budgets and brand recognition compared to industry giants. To address these issues, Bill Suneson suggests that insurers can form strategic partnerships to offer alternative products when they cannot underwrite certain policies, thereby maintaining customer relationships and generating additional revenue streams without overhauling their core business models.
Emerging Risks
What are the rising emerging casualty insurance risks? | Insurance Business America
Emerging casualty insurance risks include climate change-related lawsuits against oil and gas companies, litigation over PFAS chemicals, human trafficking allegations involving corporations, and the impact of social inflation on claims. These complex and interconnected challenges, often originating in the United States, are increasingly becoming global concerns for insurers.
Marc Schein Discusses the Evolving World of Cyber Risk and Claims Management : Risk & Insurance
Marc Schein of Marsh McLennan Agency discussed the evolving cyber risk landscape, noting that while the cyber insurance market remains relatively soft, increased scrutiny on privacy and e-crime coverages is emerging. He highlighted the growing collaboration between industry stakeholders and the potential for generative AI to enhance claims efficiency, despite current challenges in its integration.
Middle-Market Businesses Face Risk Protection Gaps - Risk & Insurance : Risk & Insurance
A Nationwide survey found that nearly half of middle-market businesses feel unprepared for key operational threats, despite 90% having formal risk management policies, with one in five lacking a business continuity plan. While financial, economic, and technological risks are top concerns, only 5% prioritize natural disaster preparedness, highlighting a critical protection gap.
Litigation & Mass Torts
J&J Begins Crucial Battle Over $10 Billion Baby Powder Settlement -Insurance Journal
Johnson & Johnson (J&J) is presenting a $10 billion settlement proposal to U.S. Bankruptcy Judge Christopher Lopez in Houston, aiming to resolve over 62,000 lawsuits alleging that its talc-based baby powder caused ovarian and other cancers. This marks J&J's third attempt to use a subsidiary's bankruptcy to address these claims, with previous efforts rejected by courts; the current hearing will assess the settlement's validity and the legitimacy of the votes supporting it.
On February 7, 2025, U.S. Representatives Darrell Issa, Scott Fitzgerald, and Mike Collins introduced the Litigation Transparency Act of 2025 (HR 1109), aiming to mandate the disclosure of third-party funding in civil lawsuits. The proposed legislation seeks to address concerns over undisclosed investments in litigation by requiring parties to reveal any financial backers and their agreements, thereby enhancing transparency in the legal system.
Insurance Market
Annual & Half-Yearly Financial Reports & Presentations | QBE Insurance Group
QBE Insurance Group reported a profit after tax of $1.779 billion for FY2024, with gross written premiums of $22.395 billion, driven by a strong combined operating ratio of 93.1% and net investment income of $1.488 billion. Leadership highlighted the company’s financial resilience and strategic execution while acknowledging potential challenges from inflation, security concerns, and global economic uncertainties.
Buffett's Berkshire Hathaway reports surge in Q4 operating earnings – Insurance Business Mag
Berkshire Hathaway’s Q4 operating earnings surged 71% to $14.5 billion, driven by higher interest rates and improved insurance performance. GEICO’s underwriting profit more than doubled, while reinsurance earnings rose 44%. Cash reserves hit $334.2 billion. Buffett remains cautious on stock purchases, signaling economic concerns despite strong annual earnings growth.
Polished Gem GEICO Fuels Berkshire Hathaway Operating Gains – Carrier Management
GEICO’s turnaround under CEO Todd Combs earned praise in Warren Buffett’s 2024 annual letter, with underwriting profit surging to $7.8 billion. Berkshire Hathaway’s operating income rose 27% to $47.4 billion, driven by GEICO’s efficiency gains and investment income. Despite challenges like social inflation, Buffett remains bullish on Berkshire’s insurance and reinsurance businesses.
Donegal Group Inc. Announces Fourth Quarter and Full Year 2024 Results
Donegal Group Inc. reported strong 2024 results, with net income rising to $50.9 million from $4.4 million in 2023. Net premiums earned increased 6.2% to $936.7 million, and the combined ratio improved to 98.6% from 104.4%. Book value per share grew 6.7% to $15.36, reflecting solid financial performance.
Zurich Insurance Group reported a net income of $5.81 billion for 2024, a 34% increase from the previous year, and a business operating profit of $7.75 billion, up 5%. The company anticipates approximately $200 million in pretax losses from the January 2025 California wildfires, primarily affecting its commercial business and participation in the Farmers Exchanges. Despite these challenges, Zurich's financial position remains robust, with a Swiss Solvency Test ratio of 252% as of December 31, 2024. The board has proposed a dividend of CHF 28 per share, reflecting an 8% increase.
CIAB Commercial Property/ Casualty Market Index 2024
In the fourth quarter of 2024, U.S. commercial property/casualty premiums increased by an average of 5.4%, consistent with previous quarters, marking the 29th consecutive quarter of premium hikes. Notably, cyber insurance premiums decreased by 1.8%, attributed to increased underwriting capacity and competition among carriers, while commercial auto premiums saw the highest rise at 8.9%, influenced by a reported uptick in claims.
Commercial Insurance Premiums Rise Steadily in Q4 2024: CIAB - Risk & Insurance : Risk & Insurance
In the fourth quarter of 2024, the U.S. commercial property/casualty insurance market experienced an average premium increase of 5.4%, slightly up from 5.1% in the previous quarter. Notably, cyber insurance premiums declined by 1.8%, marking the third consecutive quarter of decreases, indicating a stabilizing trend in this sector.
Reinsurance Market
Conduit Re reported strong 2024 results, with gross premiums written rising 25% to $1.16 billion and a 12.7% return on equity despite elevated catastrophe losses. The reinsurer expanded across all segments and maintained favorable underwriting conditions. Looking ahead, Conduit expects continued growth and improved pricing opportunities following significant industry losses.
AM Best Affirms Credit Ratings of Ocean International Reinsurance Company Limited- AM Best
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) for Ocean International Reinsurance Company Limited (Ocean Re), with a positive outlook. This decision reflects Ocean Re's very strong balance sheet, adequate operating performance, neutral business profile, and appropriate enterprise risk management, alongside its disciplined underwriting and expanding global presence across 96 countries as of December 2023.
Strong potential LA wildfires very serious in terms of market impact: Conduit Re - Reinsurance News
Conduit Re executives have highlighted the significant impact of the recent Los Angeles wildfires on the insurance and reinsurance markets, noting that the event is expected to be one of the most expensive in history. The Palisades and Eaton fires have led to substantial losses for insurers, with companies like Chubb estimating $1.5 billion in net pre-tax losses. The California FAIR Plan, the state's insurer of last resort, has also sought an additional $1 billion to cover claims, indicating the widespread financial strain caused by these disasters.
AXIS Capital announced a quarterly dividend of $0.44 per share, payable on April 17, 2025, and approved a new $400 million share repurchase program, replacing the previous $300 million authorization. The company, which holds strong financial ratings, reported shareholders’ equity of $6.1 billion as of December 31, 2024.
SiriusPoint Ltd. reported its ninth consecutive quarter of underwriting profits, achieving a Core combined ratio of 90.2% in Q4 2024 and 91.0% for the full year, resulting in $200 million in Core underwriting income. The company experienced a net loss of $21 million in Q4, primarily due to strategic repositioning efforts, but reported an underlying net income of $44 million for the quarter and $304 million for the year, reflecting a 14% increase from the previous year. As of February 21, 2025, SiriusPoint Ltd. (SPNT) shares are trading at $14.00, with an intraday high of $14.34 and a low of $13.97.
Technology and Innovation
Triple-I Blog | Executive Exchange: Insuring AI-Related Risks
In a recent interview, Michael Berger, head of Insure AI, emphasized the necessity of insurance to cover residual risks inherent in AI models, noting that most claims arise from data science-related issues leading to unexpected errors. Triple-I CEO Sean Kevelighan highlighted the insurance industry's long-standing expertise in data modeling, positioning it well to assess and mitigate AI-related risks, while also advocating for insurers to guide forthcoming AI regulations to address the sector's complexities.
Triple-I Blog | Insurtech Funding Hits Seven-Year Low,</BR> Despite AI Growth
In 2024, global insurtech funding declined to a seven-year low of $4.25 billion, a 5.6% decrease from 2023, with deal counts dropping by 18.5% to 344, indicating a more cautious investment climate. Despite this downturn, AI-focused insurtechs demonstrated resilience, securing $2.01 billion across 119 deals, accounting for 34.6% of all insurtech deals, and achieving higher average deal sizes compared to non-AI counterparts.
Apollo enhances drone insurance offering with product liability coverage - Reinsurance News
Apollo, the integrated insurance group, has expanded its drone insurance offerings to include product liability coverage. This enhancement aims to address the evolving needs of drone operators and manufacturers, providing comprehensive protection against potential liabilities arising from product defects or malfunctions.
BriteCore adds five tech partners to its ecosystem – Insurance Business Mag
BriteCore expanded its Solution Partner Marketplace with five new vendor integrations, enhancing AI inspections, risk assessment, and workflow automation. New partners include AcrisureIQ, Bees360, DataCrest, Howden Re, and Verisk. These additions strengthen BriteCore’s cloud-native platform, improving efficiency for P&C insurers and MGAs while enhancing underwriting, claims, and risk management capabilities.
People Moves
Hiscox appoints Alexandra Furth as Head of Claims in the US | Hiscox
Hiscox has appointed Alexandra Furth as Head of Claims in the US, effective February 11, 2025. With over 20 years of experience in claims and legal leadership, Furth previously served as AIG's Head of Casualty Claims.
Travelers Europe names Mike Lawton as Chief Operating Officer - Reinsurance News
Travelers Europe has appointed Mike Lawton as Chief Operating Officer. With nearly 20 years of experience in insurance broking and underwriting, Lawton joined Travelers Europe in 2016 to lead its distribution function.
PartnerRe names Ruth Damian as Senior Client Partner for NA Life Financial Solutions
PartnerRe has appointed Ruth Damian as Senior Client Partner for North America Life Financial Solutions. With over 25 years of experience, she previously held roles at SCOR, Brighthouse Financial, MetLife, and Reinsurance Group of America. PartnerRe’s Mike Green welcomed her addition to the Financial Solutions team.
Kris Westall named COO of BMS Re US – Insurance Business Mag
MS Group appointed Kris Westall as COO of BMS Re US, replacing John Canavan, who is retiring. Westall, a BMS veteran since 2011, brings extensive reinsurance experience. Previously EVP – Reinsurance Operations Officer, she held roles in business optimization and transformation. The company anticipates continued growth under her leadership.
Sedgwick Completes Strategic Sales Team Reorganization – Claims Journal
Sedgwick reorganized its U.S. sales team, creating a national and regional framework for optimized operations. Brad Krauss was promoted to EVP, head of casualty and specialty business development. Regional zone leaders were also appointed to oversee casualty services across key areas, enhancing Sedgwick’s personalized claims management and risk solutions.
Mergers and Acquisitions
Sedgwick Acquires Bottomline’s Legal Spend Management Business - Claims Journal
Sedgwick has announced its acquisition of Bottomline's legal spend management (LSM) division, which provides cloud-based software applications and legal bill review services to the property/casualty insurance industry. The LSM business will operate as a separate division within Sedgwick, with approximately 300 employees expected to transition as part of the deal, pending customary conditions and regulatory approvals.
Xceedance Acquires CIS Claim Services - Claims Journal
Xceedance has acquired CIS Claim Services, the claims division of CIS Group, expanding its team by 155 members and enhancing its capabilities in alternative dispute resolution, litigated claims management, and field adjusting. This strategic move aims to strengthen Xceedance's position in the insurance services industry.
Bishop Street completes acquisition of MGA Landmark Underwriting - Reinsurance News
Bishop Street Underwriters, a multi-boutique insurance platform owned by RedBird Capital Partners, has completed its acquisition of Landmark Underwriting, a specialty-focused managing general agent (MGA). This strategic move aims to enhance Bishop Street's specialty insurance offerings and expand its market presence.
Resilience expands RSA partnership to underwrite US cyber risks via London market - Reinsurance News
Resilience, a cyber risk solutions firm, has expanded its partnership with RSA Insurance Group to underwrite U.S. cyber risks through the London market. This initiative complements Resilience's domestic operations, providing U.S. clients with access to London-based cyber insurance capacity.
Arthur J. Gallagher Announces Acquisitions of 2 Firms in Northeast - Insurance Journal
Arthur J. Gallagher & Co. has acquired Agilis Partners LLC, an investment and retirement plan consulting firm based in Waltham, Massachusetts, with offices in Boston, New York, and Denver. Additionally, Gallagher has acquired Dominick Falcone Agency, Inc., and its affiliate Falcone Associates, Inc., both based in Syracuse, New York, expanding its presence in the Northeast region.
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