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Insurance Market
Allianz eyes up major acquisition - report | Insurance Business America
Allianz is reportedly in preliminary discussions to acquire Capital Four, a Copenhagen-based European credit manager overseeing over €23 billion in assets, including approximately €8 billion in private credit. This potential acquisition aligns with Allianz's strategic focus on expanding its private credit capabilities, enhancing its offerings in senior loans, high-yield bonds, and structured credit for institutional investors.
AM Best's latest Market Segment Report reveals that managing general agents (MGAs) and other delegated underwriting authority enterprises (DUAEs) achieved a 15% year-over-year increase in direct premiums written (DPW), reaching $89.9 billion in 2024—marking the fourth consecutive year of double-digit growth. The number of MGAs producing $500 million or more in DPW rose from 12 in 2023 to 19 in 2024, with six surpassing the $1 billion mark. Additionally, non-exclusive MGA arrangements accounted for 57% of U.S. property/casualty DPW in 2024, up from 33% in 2017, reflecting insurers' preference for diversified distribution and flexible portfolio management.
Guidewire’s total revenue increased 22% to $293.5m in Q3’25
Guidewire's Q3 2025 revenue grew 22% to $293.5M, with subscription revenue up 32% and ARR reaching $960M. GAAP net income was $46M, reversing a prior loss. Strong cloud sales and operational performance exceeded guidance, prompting an upward revision of full-year targets and reinforcing confidence in long-term growth.
Markel announces completion of MECO acquisition
Markel Group Inc. (NYSE: MKL) has completed its acquisition of The MECO Group Limited, a specialist marine managing general agent (MGA), following regulatory approvals. This strategic move enhances Markel's capabilities in marine insurance and aligns with its focus on specialty underwriting.
May the Combined Ratio R.I.P. (for Measuring Profit) – Viewpoint
The combined ratio reflects underwriting performance, not true profitability. Many insurers profit mainly from investments, not underwriting, making the operating ratio a better metric. Misunderstanding this misleads the public and weakens industry credibility. Firms with financially savvy leadership outperform, especially in hard markets where deep financial insight drives success.
Trucordia Gains $1.3B Investment From Carlyle to Propel Growth
Trucordia announced a $1.3 billion strategic investment from Carlyle’s Global Credit platform, valuing the firm at $5.7 billion. The deal will reduce debt, simplify governance, and support Trucordia’s “Ascend” strategy focused on integration, organic growth, and efficient operations. Carlyle brings financial flexibility and strategic expertise to the employee-owned company.
United Risk has launched Applied Logistics Underwriters (ALU), a new division based in Miramar, Florida, to provide specialized insurance solutions for logistics, transport, and marine sectors. Led by industry veteran Alex Rosas, ALU aims to modernize underwriting practices through technology and analytics, offering coverage for areas such as ocean cargo, inland transit, and warehouse liability, with plans to expand into key global markets.
Reinsurance Market
Aspen sees net income dip in Q1'25 as CoR deteriorates to 96.1%
Aspen reported a drop in Q1 2025 net income to $36.8 million, down from $111.8 million the prior year, as its combined ratio worsened to 96.1% due to $91.4 million in catastrophe losses. Gross written premiums grew to $1.28 billion, but underwriting income declined significantly, with the reinsurance segment posting a $4 million loss.
Centauri Insurance and Lilypad Insurance Sponsor $30 Million Koi Re Private Catastrophe Bond Centauri Insurance and Lilypad Insurance have jointly sponsored a $30 million private catastrophe bond, Koi Re Series 2025-1, to provide indemnity-based reinsurance protection against named storms across U.S. coastal states including Florida, Texas, and Hawaii. Structured and placed by Lockton Re Capital Markets and issued through Sailfish Re Ltd., the bond offers per-occurrence coverage through May 31, 2026, marking both insurers' inaugural entry into the catastrophe bond market.
Guidewire’s total revenue increased 22% to $293.5m in Q3'25
Guidewire Software reported a 22% year-over-year revenue increase in Q3 FY2025, reaching $293.5 million, driven by a 32% rise in subscription and support revenue. The company achieved a GAAP net income of $46 million, reversing a $5.5 million loss from the previous year, and raised its full-year revenue guidance to $1.178–$1.186 billion, reflecting strong cloud adoption and robust sales momentum.
HCI Group Announces Completion of its 2025 – 2026
HCI Group, Inc. (NYSE: HCI) has successfully completed its 2025–2026 catastrophe reinsurance programs, securing over $3.5 billion in excess-of-loss coverage across three reinsurance towers covering its subsidiaries and sponsored reciprocal insurers. The programs include full reinstatement premium protection, with statutory retentions of $18 million for the first and second events in Towers 1 and 2, and $3 million for Tower 3, while Claddaugh Casualty Insurance Company Ltd., HCI’s Bermuda-based reinsurance subsidiary, participates selectively across all towers.
Lloyd’s of London: Syndicate Evolution Signals a Market in Strategic Transition
Howden Re's latest analysis reveals that Lloyd’s of London achieved nearly £10 billion in pre-tax profit for 2024, marking its second consecutive year at this level, despite a slight uptick in the combined ratio due to major losses like the Dali Bridge collapse and hurricanes Milton and Helene. The market is experiencing a strategic shift, with growth increasingly driven by small and medium-sized syndicates focusing on property and specialty lines, while larger syndicates reduce exposure to casualty, cyber, and marine risks amid pricing pressures and geopolitical uncertainties.
Commercial Lines
Q1 Shows ‘Clear’ Signs of Commercial P/C Softening, Says CIAB
In Q1 2025, commercial property/casualty premiums increased by 4.2%, marking a 22% decline from the previous quarter and signaling a softening market, particularly in medium-sized accounts where average increases slowed to 3.6%. The Council of Insurance Agents & Brokers attributes this trend to heightened competition and underwriting flexibility, with cyber, D&O liability, and employment practices liability premiums experiencing modest decreases, while commercial auto and umbrella lines saw continued premium growth.
Renewal Rates Continue Upward YOY for Most Commercial Lines: Ivans Index
According to the Ivans Index for Q1 2025, premium renewal rates increased year-over-year for all major commercial lines except workers’ compensation, which saw a decline of 1.8%. Notably, umbrella coverage experienced the highest increase at 9.4%, while commercial auto and business owner’s policies (BOP) saw slight decreases from the previous month, indicating a nuanced shift in the commercial insurance market.
Emerging Risks & Technologies
Cyber Claims Report Shows Ransomware Claims Frequency Remains Steady
Cowbell’s 2025 Cyber Claims Report reveals that while overall cyberattacks are rising, ransomware claim frequency has remained stable at around 17% to 19%, with average ransom payments down 20.5% due to improved response strategies. The report highlights phishing as the leading attack vector and names five major ransomware groups responsible for nearly half of severe incidents, particularly targeting industries like professional services, healthcare, and construction.
Cyberwrite has expanded its partnership with Markel Insurance to enhance underwriting and cyber risk modeling capabilities across Europe. Utilizing Cyberwrite’s AI-driven technology, Markel aims to provide underwriters and brokers with real-time, predictive analytics, enabling more accurate assessments of cyber risks and facilitating data-driven decision-making.
Funding Cuts Threaten Safety Training for Workers in America’s Most Dangerous Jobs
Funding cuts to the National Institute for Occupational Safety and Health (NIOSH) are threatening essential safety training programs for high-risk workers in industries such as fishing, farming, and logging. With the termination of approximately 875 NIOSH employees and the impending loss of funding for key training centers, organizations like Fishing Partnership Support Services and the Alaska Marine Safety Education Association may be forced to scale back or cease operations, potentially compromising worker safety in some of America's most dangerous jobs.
OpenAI Finds More Chinese Groups Using ChatGPT For Malicious Purposes
OpenAI has reported an increase in the misuse of its AI tools by Chinese-affiliated groups for malicious activities, including generating politically charged content and supporting cyber operations. These activities have involved creating fake social media posts with AI-generated images and assisting in cyberattack preparations, prompting OpenAI to ban several accounts involved in such operations.
OSHA’s Updated Inspection Program to Focus on Workplaces with Highest Injury, Illness Rates
The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) has updated its Site-Specific Targeting (SST) inspection program to focus on non-construction workplaces with 20 or more employees reporting the highest injury and illness rates. Using OSHA Form 300A data from 2021 to 2023, the program will prioritize inspections based on high or rising injury rates, significantly low rates, or failure to submit required data, replacing the previous directive from February 2023.
Recalls and Claims Amid A Sea of Regulatory Change
The current regulatory and claims environment for products, food and beverage, automobiles, medical devices, and more, is rapidly shifting amid layoffs at the federal level, slowdowns on inspections, and the potential for reduced enforcement. In response, business leaders are working to stay up to date on policy changes to maintain compliance. However, diligence should remain a top priority to protect their brands and safeguard themselves from litigation.
Tariff Gloom Weighs on US Manufacturing; Delivery Times Lengthening
U.S. manufacturing contracted for the third consecutive month in May 2025, with the Institute for Supply Management's (ISM) Purchasing Managers' Index (PMI) falling to a six-month low of 48.5. This decline is attributed to ongoing tariffs causing supply chain disruptions and increased input costs, leading to longer delivery times and financial distress among suppliers.
Tariffs Stoke Supply Chain Worries for US Businesses, Gallagher Survey Shows
A recent Gallagher survey indicates that 90% of U.S. business owners are concerned about supply chain disruptions stemming from President Trump's tariff policies, which have already resulted in over $34 billion in lost sales and increased costs. The survey also highlights that 72% of respondents are very concerned about cyberattacks, 69% about severe weather, and nearly all expressed at least some concern regarding the impact of AI on their businesses in the coming year.
Tax Bill’s Bid to Ban New AI Rules Faces Bipartisan Blowback
A provision in a recently passed House tax bill aims to prevent states from enacting new artificial intelligence regulations for the next decade, sparking bipartisan opposition. Lawmakers from both parties, including Rep. Marjorie Taylor Greene and Senators Ed Markey and Elizabeth Warren, argue that this measure undermines state authority and poses risks by allowing unchecked AI development. The controversy highlights the broader debate over federal versus state control in regulating rapidly evolving technologies.
Apple published a study that investigates Large Reasoning Models (LRMs), which produce detailed reasoning before answers. While promising, LRMs’ core abilities and limitations remain unclear. Using controlled puzzle environments, researchers found that:
These findings question the depth and reliability of current LRM reasoning capabilities.
Litigation & Mass Torts
After $66M Florida Boat Crash Award, Judge Says TPA Can’t Halt Claims Adjustments
Aaron Hirschhorn, a Miami entrepreneur and “Shark Tank” alum, died in a 2021 boating accident. His widow won a $66 million arbitration award, but legal disputes continue over denied insurance coverage. The case has sparked ongoing litigation involving Clear Blue Insurance and Yachtinsure Services over contract obligations and high-end boat insurance claim handling.
Homeowners Suing AAA Insurers and USAA over LA Wildfires
Homeowners affected by the January 2025 Los Angeles wildfires have filed lawsuits against USAA and two AAA-affiliated insurers, alleging that the companies underestimated the replacement costs of their homes, leaving them underinsured and unable to rebuild. The lawsuits, filed in Los Angeles County Superior Court, claim fraud and negligence, citing significant discrepancies between the insurers' coverage estimates and actual rebuilding costs, which plaintiffs argue have left them stranded and homeless.
Mattel Settles Baby Sleeper Death Suits Before Start of a Trial
Mattel Inc. and its Fisher-Price unit have settled lawsuits alleging their recalled Rock 'n Play baby sleeper was defectively designed, leading to infant deaths and injuries. The settlement, disclosed in a Delaware court filing, resolves lawsuits over six death cases and four allegations of injuries, including flattened heads, associated with the product.
Reddit Sues Anthropic, Says AI Company Exploited User Data
Reddit has filed a lawsuit against AI company Anthropic, alleging unauthorized use of its platform's content to train AI models, with over 100,000 data access attempts since July 2024. Reddit claims this breaches its policies and exploits user data without consent, while Anthropic denies the allegations and plans to defend itself vigorously.
SEC Dismisses Lawsuit Against Binance Crypto Exchange
The SEC has voluntarily dismissed its civil lawsuit against Binance, citing policy discretion, and cannot refile due to "with prejudice" terms. This marks a shift under the Trump administration toward a more crypto-friendly stance, following similar dismissals like the one involving Coinbase. Regulatory enforcement actions are being scaled back.
US Supreme Court Makes ‘Reverse’ Discrimination Lawsuits Easier to Pursue
The U.S. Supreme Court unanimously ruled that majority-group individuals, like white or heterosexual people, face no higher legal burden in workplace discrimination claims under Title VII. The decision revives a lawsuit by Marlean Ames, who alleged she was demoted and denied a promotion due to her heterosexuality.
People Moves
Aon appoints Andy Marcell to serve as CEO of Global Solutions - Jun 2, 2025
Aon has appointed Andy Marcell as CEO of Global Solutions, where he will lead the integration of the firm's Risk Capital and Human Capital capabilities across Reinsurance, Commercial Risk, Health, Wealth, and Talent teams. Marcell, who joined Aon in 2015 and previously served as CEO of Risk Capital, will continue in his reinsurance role until John Neal assumes the position on September 1, 2025.
Arch Insurance International Appoints Chapman to Lead Construction - Arch Insurance
Arch Insurance International has appointed Tim Chapman as Head of Construction, a newly created role aimed at expanding the company's global construction portfolio. With over 25 years of industry experience, including senior positions at SCOR and Allianz, Chapman will focus on growing Arch's open-market offerings and providing insurance solutions for large-scale, complex construction projects worldwide.
Arch Reinsurance Group Promotes William Soares, Pierre Jal and David Seyller
Arch Reinsurance Group has announced key leadership promotions: William Soares has been appointed President of Arch Reinsurance Ltd., Pierre Jal has been named President of Arch Reinsurance Europe Underwriting dac, and David Seyller has been promoted to Chief Underwriting Officer of Arch Re Europe. These strategic appointments aim to strengthen Arch Re's global operations and reinforce its commitment to delivering specialized reinsurance solutions worldwide.
Gallagher has appointed Steve Parker as Managing Director of Vasek Insurance, its specialist UK property insurance provider. Bringing over 30 years of broking experience from roles at Staysure Group, Jensten Underwriting, and Coversure Insurance, Parker will lead Vasek’s 80-person team, focusing on product development and strengthening insurer partnerships to enhance offerings in the non-standard property market.
Lloyd’s announces Executive Team
Lloyd’s has announced a restructured Executive Team under new CEO Patrick Tiernan, effective 1 June 2025. Key appointments include Rachel Turk as Chief of Market Performance and Caroline Sandeman-Allen as Chief of Market Oversight, both assuming responsibilities previously held by the former Chief of Markets role. Jonathan May joins the Executive Team as CEO of Lloyd’s Insurance Company, while Dawn Miller continues as Chief Commercial Officer and CEO of Lloyd’s Americas, now also overseeing Corporate Affairs. Other members retaining their roles are Alexandra Cliff (Chief Financial Officer), Nathan Adams (Chief People Officer), Claire Schrader (General Counsel), and David Sansom (Chief Risk Officer), with George Marcotte serving as interim Chief Operations Officer during the search for a permanent appointee.
McCall Named Gallagher Bassett Chief Financial Officer
Patty McCall has been appointed Chief Financial Officer at Gallagher Bassett, a leading provider of claims and risk management services. With over 20 years of experience in the insurance and risk management industry, including roles at ESIS, Arthur Andersen, and Unisys, McCall has been a key leader on Gallagher Bassett’s finance team for the past nine years.
Mosaic Insurance has promoted Yosha DeLong to the newly established role of Global Engagement Officer, where she will oversee product distribution, broker and client relationships, and digital business development across multiple regions. Additionally, the company has appointed Brian Bonkoski as Global Head of Cyber, effective June 16, bringing over 20 years of underwriting and distribution leadership experience from previous roles at Chubb and AIG.
Strengthening Our Foundations for Global Growth With 3 New Hires | Rokstone Underwriting
Rokstone has appointed Eddie Hughes as Head of Specialty Reinsurance, Rob Winsley as Capacity Manager and Broker Relationship Director, and Nicola Chapman as Global Head of Claims. These strategic hires aim to bolster Rokstone's global growth, enhance broker relationships, and reinforce its commitment to efficient, client-focused claims handling.
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