Alan Gray Selected to Provide Run-Off Administration Services for ECRA and CMC Reinsurance Pools
Weekly Articles
Insurance Market
HDI Global Reports Strong 2025 Financial Results as New Business Drives Growth
HDI Global reported strong full-year 2025 results with solid premium growth across its international property and casualty operations, improved combined ratios reflecting disciplined underwriting and favorable reserve development, and robust profitability driven by moderated catastrophe losses and higher investment income. The company highlighted continued execution of its strategy focused on profitable growth, operational efficiency, customer-centric innovation, and capital strength, while announcing shareholder returns through dividends and expressing confidence in sustained performance into 2026 despite ongoing economic and geopolitical uncertainties.
Insurance Broker Valuations – The Elephant in the Room
Broker valuations remained resilient overall in 2025, but Brown & Brown (BRO) stood out as the bellwether. After surging >15% in Q1, its stock fell nearly one-third from the June peak, driving its EBITDA multiple down from 17.8x to 12.9x by year-end. Midmarket agencies ($1M– $10M EBITDA) held steadier, slipping only from 11.9x to 11.4x.
The decline at Brown & Brown was not driven by leverage or interest rates (its leverage is low at ~2.4x), but by a sharp slowdown in organic growth (Q2 2025: 3.6% vs. 10.0% in Q2 2024). Larger public brokers also fell 21% since March, underperforming the S&P.
Large PE-backed deals saw multiples compress (AssuredPartners ~14.5x, Risk Strategies ~16x), reflecting higher financing costs and a shift from 17–19x expectations. Midmarket resilience has been supported by strong premium growth (~10% annually), multiple arbitrage, and heavy PE buyer demand (~50 bidders per deal).
Looking ahead: Slower organic growth at larger brokers should increase M&A appetite, potentially supporting valuations. Interest rates have eased ~50 bps, and further cuts are likely. However, with Brown & Brown now at 12.9x, traditional multiple arbitrage is under pressure. Institutional demand and strategic needs are expected to keep midmarket valuations relatively stable through at least the remainder of 2026, despite AI-related volatility and softening commercial P&C rate increases (now near 0.2%).
Mosaic Insurance has restructured its Singapore and Dubai underwriting platforms to strengthen its global operating model and improve efficiency in serving clients across Asia-Pacific and the Middle East. The changes include enhanced regional leadership, streamlined processes, and better alignment of underwriting teams to support continued growth in specialty lines while maintaining strong service standards for brokers and insureds.
SiriusPoint Ltd. - SiriusPoint announces new partnership with property MGA Steadily
SiriusPoint has announced a new partnership with Steadily, a U.S.-based property MGA specializing in landlord insurance, to underwrite and grow its property insurance portfolio through Steadely’s digital platform and distribution network. The collaboration allows SiriusPoint to expand its presence in the U.S. property market while leveraging Steadely’s technology-driven underwriting and claims capabilities to deliver efficient, scalable solutions for residential property owners.
Strategic Partnership with Berkshire Hathaway Group
Tokio Marine Holdings reported strong consolidated results for the fiscal year ended March 31, 2025, with ordinary revenue rising 13.7% year-on-year to ¥8,440.1 billion and net profit attributable to owners of the parent increasing 51.7% to ¥1,055.3 billion, driven by robust performance in domestic and international insurance operations, favorable investment results, and effective capital management. The company also announced a strategic partnership with National Indemnity Company involving a ¥287.4 billion third-party allotment of treasury shares, while maintaining a focus on profitable growth, shareholder returns through dividends and buybacks, and long-term value creation.
US P&C industry achieved higher underwriting profit in 2025: AM Best
A.M. Best reports that the U.S. property and casualty industry achieved a higher underwriting profit in 2025, with a net underwriting gain of $35 billion through the first nine months compared to $3.7 billion in the prior year period, supported by a combined ratio of 94.0 and lower catastrophe impacts. The improvement was driven by 7% growth in net premiums earned, $18 billion in favorable reserve development, and steady pricing, though challenges such as social inflation in casualty lines and elevated property loss costs remain.
Reinsurance Market
A secondary market for reinsurance
Howden Re has highlighted the growing importance of the secondary market in reinsurance, where portfolios or books of business are transferred between reinsurers to optimize capital, manage legacy exposures, or exit underperforming lines. This segment provides liquidity and flexibility in a market facing softening rates and increased competition, allowing participants to rebalance portfolios, release trapped capital, and improve overall risk-adjusted returns.
Compre has announced an in-the-money adverse development cover for a European reinsurer, providing protection on a €250 million Europe-wide liability portfolio that includes long-tail lines such as motor, general liability, and professional indemnity. The transaction allows the cedent to achieve immediate capital relief and finality on legacy exposures while leveraging Compre’s expertise in managing and reinsuring run-off portfolios across the European market.
Swiss Re Says Wildfires, Storms, Floods Account for 92% of Global Insured Losses
Secondary perils (wildfires, severe convective storms/SCS, floods) drove a record 92% of global insured natural catastrophe losses in 2025, totaling US$107 billion.
• Wildfires hit a new high with US$40 billion from the January Los Angeles Palisades and Eaton fires. • SCS losses reached US$51 billion (third-costliest year on record). • Flood losses were well below average at US$3.4 billion (vs. $15.4B 5-year avg).
Overall insured losses were below the long-term trend line, mainly due to no major U.S. hurricane. However, Swiss Re expects insured losses to average US$148 billion in 2026 and rise to US$186 billion by 2030 under trend conditions. A modeled peak-loss scenario for 2026 points to US$320 billion.
Insured losses continue growing 5–7% annually in real terms, driven structurally by rising exposure and secondary peril frequency/severity. Wildfire risk is growing fastest (~12% per year).
Global economic losses were US$220 billion, with a record 49% insured share — the highest on sigma records — indicating progress in closing protection gaps, though gaps remain very wide (80–90%) in emerging markets. Even advanced economies show significant underinsurance for events like earthquakes.
Litigation & Mass Torts
Albany Diocese Reaches $148 Million Agreement With Abuse Survivors Committee
The Roman Catholic Diocese of Albany has reached a $148 million settlement agreement with the survivors’ committee to resolve ~440 Child Victims Act claims in its Chapter 11 bankruptcy (filed March 2023).
• Parishes will contribute $50 million (mainly from savings). • The diocese and affiliates will contribute the remaining $98 million. No insurance proceeds are included yet. The diocese and survivors will continue negotiating with carriers (including Hartford and London Market Insurers) with the goal of a global settlement expected to fund a substantial portion of the final package. Insurers previously attempted to object but were ruled to have no standing after denying liability.
The plan includes:
• An independent claims reviewer to assess individual payments. • Strengthened child protection protocols.
Bishop Mark O’Connell issued a direct apology for the diocese’s past handling of predator priests. The settlement still requires U.S. Bankruptcy Court approval and a vote by survivors. It covers the diocese’s territory across 13 upstate New York counties plus part of southern Herkimer.
This is another significant legacy abuse resolution with ongoing insurance recovery potential.
Lawsuit Alleges Microbetting Product by DraftKings, FanDuel, NFL Leads to Addiction
The Public Health Advocacy Institute (PHAI) has filed a product liability lawsuit in Philadelphia on behalf of two Pennsylvania residents against DraftKings, FanDuel, Genius Sports, and the NFL. The suit alleges that the companies’ live in-game microbetting product is an “inherently dangerous product” designed to maximize addiction through AI, algorithms, push notifications, personalized VIP hosts, and real-time data supplied by Genius Sports/NFL.
Plaintiffs Christopher Sage and Terry Thompson claim catastrophic financial, emotional, and physical harm (anxiety, depression, near-suicide) after rapid escalation of microbetting losses: Sage lost >$170,000; Thompson lost ~$1.856 million. They assert design defect, failure to warn, negligence, intentional infliction of emotional distress, and violations of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law.
The complaint highlights the explosive growth of sports gambling (from $430M in 2018 to $16.96B in 2025 nationally; $775M Pennsylvania revenue on $8.7B wagers in the latest fiscal year). Companies have not yet responded. PHAI, known for actions against tobacco and predatory gambling, frames microbetting as engineered to hijack users’ brains and convert sports fans into non-stop gamblers.
Medical Journal Lancet Retracts 49-Year-Old Baby Powder Paper Over J&J Breach
The Lancet has retracted a nearly 50-year-old unsigned 1977 commentary that asserted cosmetic talc use posed no cancer risk. Editors learned the author was Francis J.C. Roe, a paid J&J consultant and cancer researcher, who shared the manuscript with the company for suggested changes before publication — a clear breach of publishing ethics that was undisclosed at the time.
Historians David Rosner and Gerald Markowitz brought the ghost-writing to light using documents from J&J talc lawsuits. The paper had been cited by the industry to oppose asbestos regulation in talc and has been used in litigation defense.
J&J strongly disagreed, calling the retraction part of “underhanded litigation tactics” and noting that Roe’s authorship was known to FDA officials at the time. Plaintiff attorneys plan to use the retraction in upcoming trials. J&J faces over 73,000 talc-related lawsuits (as of September 2025) and has already lost several large verdicts.
This development adds further scrutiny to J&J’s historical handling of talc safety claims as federal trials approach and cosmetic talc remains in some beauty and pharmaceutical products.
Meta, Google Found Liable in Social Media Addiction Case
A Los Angeles jury found Meta Platforms and Alphabet’s Google liable for damages to a 20-year-old woman who alleged her addiction to Instagram and YouTube caused a severe mental health crisis, awarding at least $2.1 million against Meta and $900,000 against Google. The verdict, the first of its kind to go to trial, highlights the financial and legal risks facing the companies from thousands of similar lawsuits claiming their platforms are intentionally designed to addict young users without adequate regard for their well-being, with the jury still to decide on potential punitive damages.
Meta, Google verdicts could reshape long-tail risk pricing – Moody’s
Meta and Google face growing liability risk from social media addiction lawsuits that could reshape long-tail casualty pricing, according to Moody’s. Recent verdicts include a $375 million New Mexico penalty against Meta for misleading safety claims and a $6 million California award split between Meta and Google. Over 40 attorneys general have sued Meta, with similar actions against TikTok and Snap. Courts are increasingly rejecting Section 230 protections for claims targeting addictive design. Moody’s warns of potential coverage disputes across GL, D&O, and cyber lines, plus reinsurance aggregation issues, as the legal theory spreads.
Takeda, Lilly Rejected by Supreme Court on Actos Fraud Lawsuit
The U.S. Supreme Court declined to review a lower court ruling that allowed a multibillion-dollar racketeering class-action lawsuit against Takeda Pharmaceutical and Eli Lilly to proceed on behalf of third-party payers who covered Actos diabetes drug prescriptions. The suit alleges the companies marketed Actos without adequately disclosing its link to bladder cancer, with the class covering payers that reimbursed five or more separate prescriptions and seeking damages under RICO for alleged economic harm caused by higher utilization and pricing.
Commercial Lines
Berkshire Hathaway Specialty Insurance has launched Executive First D&O Liability Insurance policies in Switzerland, providing tailored coverage for directors and officers against claims arising from alleged wrongful acts in their corporate roles. The new product is designed for Swiss companies seeking comprehensive, flexible protection in a market with evolving regulatory and litigation risks, complementing BHSI’s existing European specialty offerings.
Marsh secures insurance for first commercial-scale advanced nuclear power plant in US
Marsh has placed the first advanced nuclear power plant construction insurance program in the U.S., providing comprehensive coverage for the build of a next-generation nuclear facility, including property, liability, and delay in start-up risks. The placement demonstrates Marsh’s leadership in structuring complex, high-value construction insurance solutions for emerging energy technologies and supports the growing demand for risk transfer in the advanced nuclear sector.
Emerging Risks & Technologies
Agentic AI poised to shape both offensive and defensive cyber measures: Munich Re
Munich Re highlights that agentic (autonomous, adaptive) AI is rapidly becoming mainstream and will significantly shape both offensive and defensive cyber operations. It enables faster, more precise multi-stage attacks, deepfakes, hyper-personalized phishing, synthetic content, and misinformation — exponentially expanding attack surfaces. AI models themselves will face new vectors like prompt injection and data poisoning. While risk owners remain largely optimistic (66% expect positive impact, 57% trust AI-using companies), Munich Re expects agentic AI to increase attack frequency more than severity in the near term. Potential impacts include higher claims in first-party covers (system failure, contingent BI, incident response, data restoration, cyber extortion) and third-party lines (privacy violations, media liability, tech E&O).
Key takeaway: Technology evolves quickly, but the human factor remains both the strongest defense and weakest link. The report underscores the need for proactive, disciplined risk management amid geopolitical tensions and complex threat landscapes.
Aviva launches insurance app on ChatGPT - Aviva plc
Aviva has launched an insurance app on ChatGPT, enabling customers to interact with the insurer through natural language conversations to obtain quotes, manage policies, and receive support for personal and commercial insurance products. The integration leverages OpenAI’s technology to deliver a more intuitive, accessible, and efficient customer experience while maintaining human oversight for complex queries and ensuring regulatory compliance.
Bessent says Hormuz ships insurance programme to start soon - The Business Times
U.S. Treasury Secretary Scott Bessent stated that the maritime insurance program for ships transiting the Strait of Hormuz will start soon, as part of efforts to restore trade flows disrupted by the conflict with Iran. The program, backed by the U.S. International Development Finance Corporation and led by insurer Chubb, aims to provide hull, machinery, and cargo coverage to reduce risk premiums and encourage shipping through the critical oil route.
Cyber insurance: Risks and trends 2026 | Munich Re
Munich Re has released its 2026 outlook on cyber insurance risks and trends, noting continued strong demand for cyber coverage amid rising frequency and severity of attacks, evolving ransomware tactics, and increasing regulatory scrutiny on data protection and incident response. The report highlights that while primary rates remain competitive in some segments, reinsurers are focusing on improved wordings, clearer sub-limits, and better aggregation management to sustain profitability as systemic cyber risks and potential for correlated losses grow.
Lloyd’s Market Association states that safety concerns rather than insurance availability are the primary factor driving reduced vessel traffic in the Strait of Hormuz amid ongoing conflict with Iran. While war risk premiums have increased significantly, coverage remains available on a case-by-case basis, and the market continues to support shipping in the region through dynamic pricing and risk assessment.
Shepherd Raises $42M Series B to Power the Insurance Behind AI Infrastructure Boom
Shepherd has raised $42 million in Series B funding to accelerate development of its insurance platform tailored for AI infrastructure projects, including data centers, hyperscale facilities, and related construction and operational risks. The capital will support expansion of coverage solutions, technology integration, and market reach to address the unique and rapidly growing exposures in the AI-driven digital infrastructure sector.
Stephen Catlin has stepped down as Chairman of Convex Group while remaining on the board, and Onex CEO Bobby Le Blanc has been appointed as the new Chairman. The leadership transition supports Convex’s continued strategic development and long-term growth in specialty insurance and reinsurance as the company maintains its focus on underwriting excellence and market expansion.
Howden Re has conducted a stress test showing that a prolonged closure of the Strait of Hormuz would trigger significant reinsurance sector losses, particularly in energy, marine, and property lines, due to disrupted oil flows, supply chain shocks, and secondary economic impacts. The analysis highlights broader macro risks including oil price spikes, inflation, and geopolitical contagion, urging reinsurers to enhance scenario planning, aggregation management, and capital resilience in response to heightened systemic threats in critical trade routes.
Swiss Re Sigma Insights 07/2026: Insuring AI: data centre value accumulation risks | Swiss Re
Swiss Re Institute has published a report on insuring AI data centre risks, highlighting the rapid growth of hyperscale facilities driven by artificial intelligence and the unique challenges they pose for insurers, including high asset values, complex supply chains, cyber-physical threats, and potential business interruption from power outages or cooling failures. The analysis emphasizes the need for specialized risk assessment, improved data centre resilience standards, and tailored insurance solutions to address protection gaps as the sector expands toward a multi-trillion-dollar market by 2030.
Swiss Re Says Wildfires, Storms, Floods Account for 92% of Global Insured Losses
Swiss Re Institute reports that wildfires, severe convective storms, and floods accounted for a record 92% of global natural catastrophe insured losses of US$107 billion in 2025, with the Palisades and Eaton wildfires in Los Angeles generating US$40 billion in insured losses and severe convective storms contributing US$51 billion. Despite the absence of a major U.S. hurricane landfall keeping total insured losses below the long-term trend, Swiss Re warns that natural catastrophe losses remain on a structural upward path of 5% to 7% annually in real terms and could reach US$186 billion by 2030, or up to US$320 billion in a peak-loss scenario, underscoring the need for stronger adaptation measures and broader insurance coverage to address persistent protection gaps.
People Moves
Aon announces new leadership structure for US reinsurance specialty distribution segment
Aon has established a dedicated leadership team for its U.S. specialty distribution segment within Reinsurance Solutions, focused on E&S carriers, MGAs/MGUs, program-specific carriers, hybrid fronts, and delegated authority platforms. Key appointments:
• Sarah Freitag – U.S. Specialty Distribution & E&S Segment Leader (strategy, growth priorities, capability investment, and cross-team integration with Commercial Risk, Reinsurance, Capital Advisory, and Analytics). • Cory Schilling – MGA Segment Leader (overall MGA/MGU/delegated authority strategy and primary client contact). • Cory Anderson – MGA Growth Leader for Programs & MGAs/MGUs (new program development and platform growth). • Max McClure – Program-Focused Carrier Growth Leader (growth with program-specific carriers and hybrid fronts, plus reinsurer coordination).
The structure aims to enhance specialized expertise, strengthen carrier/MGA relationships, and deliver more coordinated, data-driven solutions. Steve Hofmann, CEO Americas – Reinsurance Solutions, noted it builds on Aon’s recent talent investments to better serve clients and trading partners in this complex segment.
Aviso Specialty has announced several key developments in March 2026, including new leadership appointments and strategic initiatives aimed at strengthening its specialty insurance and reinsurance offerings in the Australian and Asia-Pacific markets. The updates reflect the company’s focus on expanding technical expertise, enhancing broker relationships, and delivering innovative solutions across targeted lines such as property, casualty, and professional risks.
AXA XL has appointed a new Head of Marine for UK and Lloyd’s and Global Chief Underwriting Officer for Hull to lead its marine underwriting strategy and portfolio growth across key international markets. The appointee brings extensive marine insurance expertise to strengthen technical capabilities, broker relationships, and profitability in hull and related specialty lines.
Canopius Strengthens Global Claims Capabilities With Senior Appointments | Canopius
Canopius has strengthened its global claims capabilities with several senior appointments, bringing experienced professionals to key leadership roles across its claims teams to enhance service delivery, technical expertise, and operational efficiency. The moves support the company’s focus on improving claims handling, client and broker relationships, and overall performance in specialty insurance and reinsurance lines.
Conduit Re Announces New Appointments
Conduit Holdings has appointed Richard Lightowler, Peter Mullen, and Penny Shaw as Non-Executive Directors with effect from 26 March 2026. Richard and Penny will serve on the Audit and Remuneration Committees, while Peter will serve on the Remuneration Committee, bringing extensive insurance industry expertise in audit, risk management, governance, capital markets, and operational transformation to strengthen the board and support Conduit's long-term growth strategy.
Crawford & Company Names Swain President & CEO
Bruce Swain has been named president and CEO of Crawford & Company after serving as interim president and CEO since January 1. Swain, who has been with the company for more than three decades including 19 years as chief financial officer, will continue to serve on the executive leadership team and board of directors.
Farmers Insurance® Appoints John Pham as Chief Strategy & Risk Officer
Farmers Insurance has appointed John Pham as Chief Strategy and Risk Officer, effective immediately. Pham will lead the company's enterprise strategy development, risk management framework, and capital optimization efforts while reporting to senior leadership to support Farmers' long-term growth and resilience in a competitive insurance market.
Oakbridge Leadership Transition Announcement | Oakbridge
Oakbridge Insurance has announced a leadership transition with the appointment of a new Chief Executive Officer and other senior executive changes to support the company’s continued growth and strategic direction in the specialty insurance market. The moves reflect a focus on strengthening leadership, enhancing operational capabilities, and positioning the firm for long-term success in a competitive environment.
Safety National Expands Leadership Team with Key Management Promotions
Safety National expanded its leadership team with several key management promotions to strengthen operational oversight, underwriting discipline, and strategic growth across its excess workers’ compensation and specialty insurance lines. The appointments reflect the company’s focus on talent development, succession planning, and enhancing its position as a leading provider of alternative risk transfer solutions in a competitive market.
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