Weekly Articles
Insurance Market
Wall Street Brokers Start Trading Insurer Claims From LA Fires
Wall Street brokers are trading subrogation claims from insurers tied to LA’s deadly wildfires, betting on payouts from utilities like Edison and LADWP. These trades let investors profit if utilities are found liable, echoing past deals involving PG&E and Maui fires, as insurers seek faster, risk-adjusted recoveries.
Insurance M&A Values Surge Despite Fewer Deals in 2024
In 2024, the U.S. and Bermuda insurance industry experienced a 3% decline in merger and acquisition (M&A) activity, with total deals decreasing from 537 in 2023 to 519 in 2024. Despite this reduction in the number of transactions, the aggregate deal value surged by 72%, reaching $49.4 billion, driven by several transformative deals.
P&C returns to underwriting profit in 2024
In 2024, the U.S. property and casualty insurance industry returned to profitability with a $24.8 billion underwriting gain—its first since 2020—driven by strong premium growth and improved loss control, resulting in a combined ratio of 96.4%. However, challenges remain, as homeowners’ insurers are expected to post underwriting losses for a seventh consecutive year due to events like the January 2025 California wildfires.
US P/C Insurance Industry Income Tops $100B in 2024: Verisk, APCIA
In 2024, the U.S. property and casualty insurance industry achieved a significant financial milestone, reporting a net income of $170 billion, which includes a substantial $70 billion capital gain from Berkshire Hathaway. Excluding this, the industry's net income stands at $100 billion, marking the first underwriting profit since 2020, driven by an 8.7% increase in net written premiums and an improved combined ratio of 96.4.
Lloyd's posts strong £9.6bn profit for 2024 despite rise in major losses
Lloyd's of London reported a pre-tax profit of £9.6 billion for 2024, down from £10.7 billion in 2023, with the combined ratio increasing to 86.9% from 84.0% due to major claims from events like Hurricanes Milton and Helene, and the Baltimore Bridge collision. Despite these challenges, gross written premiums rose by 6.5% to £55.5 billion, and the market's capital position remains robust with a central solvency ratio of 435%.
The Fidelis Partnership sees GWP rise 29% in 2024
The Fidelis Partnership, a Bermuda-based managing general underwriter, reported a 29% increase in gross written premium (GWP) for 2024, reaching $4.6 billion, up from $3.6 billion in 2023. This growth includes a 23% rise in Fidelis Insurance Group's GWP to $4.4 billion and the launch of Syndicate 3123 at Lloyd's, which recorded $0.2 billion in GWP during its first six months. Additionally, the Pine Walk MGA platform expanded by introducing three new cells—Novagen, Seraphina, and Silverflame Re—bringing its total to 11 MGAs and contributing $0.9 billion in GWP.
Reinsurance Market
MS Amlin posts 12% rise in underwriting profit for 2024 as GWP hits $2.2bn
MS Amlin, the Lloyd's insurer and reinsurer managing Syndicate 2001, reported a 12% increase in underwriting profit from its continuing business, reaching $250.4 million for the full year 2024. Gross written premiums rose by 1% to $2.222 billion, and the combined ratio remained strong at 87.2%, slightly up from 86.6% in 2023.
PartnerRe reports non-life CoR of 90.6% for 2024 as GPW rises to $9.35bn
PartnerRe reported a non-life combined ratio of 90.6% for 2024, with gross premiums written increasing to $9.35 billion from $9.1 billion in 2023. The underwriting result reached $532 million, driven by contributions of $331 million from the specialty segment and $201 million from property and casualty. Additionally, the Life and Health business saw an 18.7% premium volume growth, contributing $190 million to the net allocated underwriting result. Overall, net income available to common shareholders was $1.44 billion, down from $2.32 billion in 2023, while net investment income grew by 19.7% to $773 million.
Commercial Lines
Allstate expects $1.17B in catastrophe losses for first two months of 2025
Allstate anticipates $1.17 billion in catastrophe losses for the first two months of 2025, largely driven by the devastating January wildfires in Los Angeles. In response, the insurer has enacted rate hikes, stricter underwriting, and non-renewals in high-risk areas to mitigate future exposure.
Bridging the gap: How wholesale brokers are reshaping specialty insurance
Wholesale brokers are increasingly acting as strategic advisors in specialty insurance, using their expertise to navigate complex risks and provide tailored coverage solutions, especially as the E&S market grows. Their collaborative approach with insureds, retailers, and carriers is reshaping the industry by improving communication and ensuring clients are properly protected.
Climate Hazards Projected to Hit Companies Hard by 2050s
A recent S&P Global analysis projects that by the 2050s, the world's largest companies could incur annual climate-related costs of $1.2 trillion, primarily due to extreme heat, water stress, and drought. These findings underscore the escalating financial risks associated with climate change, emphasizing the need for businesses to adopt robust mitigation and adaptation strategies.
Diversification, Risk Modeling Top of Mind for Carriers as Cyber Market Softens
As cyber insurance rates stabilize, carriers are focusing on diversification across industries, company sizes, and geographies, while enhancing risk modeling to identify technological dependencies and aggregation points. Efforts to increase cyber insurance adoption among small and medium-sized enterprises (SMEs) are also underway, aiming to expand the insured base and improve systemic risk modeling.
JD Power: Customers Not Happy With Carrier Property Claims Service
A recent J.D. Power study reveals that customer satisfaction with property insurance claims has declined, with an average satisfaction score of 682 out of 1,000. This decrease is attributed to longer claim processing times—averaging over 44 days—and higher premiums, leading to frustration among policyholders.
Litigation, cyber risks dominate D&O insurance decisions: Willis report
According to a recent Willis report, 77% of directors and officers (D&O) view data loss and cyber-attacks as significant risks, while 63% are concerned about civil litigation and third-party claims. Despite these growing liability concerns, cost remains the primary factor influencing D&O insurance purchasing decisions.
The NTSB has criticized Maryland officials for failing to conduct a risk assessment of the Francis Scott Key Bridge prior to its 2024 collapse, stating that such an assessment could have identified the bridge's vulnerability—nearly 30 times above the acceptable risk threshold—and potentially prevented the tragedy. As part of its ongoing investigation, the NTSB is recommending that 30 owners of 68 similarly aged U.S. bridges conduct vulnerability assessments, while also urging federal agencies to support bridge owners in evaluating and mitigating collapse risks due to vessel collisions.
Steering Through a Transitioning Cyber Insurance Market
The cyber insurance market is undergoing a transition marked by declining premiums and increased competition, driven by greater market capacity, improved risk management by businesses, and advanced underwriting practices. While this creates opportunities for insureds, concerns remain about the sustainability of low pricing and potential coverage gaps as cyber threats continue to evolve.
Tesla Recalls Most Cybertrucks Due to Trim Detaching From Vehicle
Tesla is recalling over 46,000 Cybertrucks produced between November 2023 and February 27, 2025, due to a potential issue where the stainless-steel exterior trim panel may detach while driving, posing a road hazard. This recall, the eighth for the Cybertruck since January 2024, affects the majority of these vehicles on the road, with Tesla acknowledging 151 related warranty claims but no reported collisions or injuries.
Emerging Risks
After the Flames: Preparing for the Growing Fraud Threat in Los Angeles
In the aftermath of California's wildfires, fraudsters are exploiting victims through contractor scams, inflated insurance claims, and other deceitful practices. Insurance professionals should educate policyholders on verifying contractor credentials, avoiding large upfront payments, and thoroughly reviewing contracts to mitigate these fraudulent activities.
Cybersecurity Officials Warn Against Potentially Costly Medusa Ransomware Attacks
The FBI and the U.S. Cybersecurity and Infrastructure Security Agency (CISA) have issued a warning about the Medusa ransomware-as-a-service (RaaS) platform, active since 2021, which employs phishing campaigns to compromise victims' credentials. Medusa utilizes a double extortion tactic, encrypting data and threatening to publicly release it unless a ransom is paid, with recent attacks affecting over 300 victims across various sectors, including medical, education, legal, insurance, technology, and manufacturing.
Gen AI Is Shaking Up Underwriting, but Can it Replace Human Judgment?
At the 2025 PLUS D&O Symposium, industry leaders emphasized that while AI is transforming administrative and legal functions in insurance, it still lacks the nuanced judgment required to fully replace human underwriters within the next five years. However, as companies increasingly adopt AI, underwriters must assess risk based on use cases, governance, and accountability, while also preparing for a more complex regulatory and litigation landscape shaped by the evolving technology.
Global Trade Disruption Reshapes Business Risk Landscape
Global trade patterns are undergoing significant shifts due to rising geopolitical tensions and protectionist policies, leading businesses to reassess traditional risk management strategies. According to a report from Marsh, government interventions in trade have quadrupled since 2018, compelling companies to navigate an increasingly complex operating environment and seek new frameworks for understanding and managing global supply chains
Litigation & Mass Torts
After Florida Report, Georgia Senator Wants Investigation into MGAs, Insurer Profits
Georgia State Senator Nabilah Islam Parkes has called for an investigation into insurance companies' financial practices, following a Florida report suggesting insurers may be diverting profits to affiliated managing general agents (MGAs). Georgia Insurance Commissioner John King responded that the state's current oversight is sufficient and an additional probe is unnecessary.
Amazon Defeats Shareholder Suit Over Third-Party Sellers, Capacity Expansion
A U.S. judge dismissed a shareholder lawsuit accusing Amazon of fraudulently concealing its treatment of third-party sellers and overexpansion plans, leading to an FTC antitrust case. The judge found insufficient evidence that executives knowingly misled shareholders or intended to defraud them.
California Man Wins $50M in Lawsuit Over Burns From Starbucks Tea
A Los Angeles County jury awarded $50 million to Michael Garcia, a delivery driver who suffered severe burns after a Starbucks employee allegedly failed to secure a hot tea in a takeout tray, causing it to spill in his lap. Starbucks plans to appeal, disputing the verdict and deeming the damages excessive.
Contractors Insurance Alert: Construction Defect Lawsuits Rising
A recent report by Seyfarth Shaw indicates that construction defect litigation is expected to rise in 2025, primarily due to ongoing skilled labor shortages and increased rebuilding efforts following natural disasters. These factors may extend the duration of general liability claims for insurers covering contractors and builders.
Google to Pay $28M to Settle Claims it Favored White and Asian Employees
Google has agreed to pay $28 million to settle a class-action lawsuit alleging that the company favored white and Asian employees over other racial groups in terms of pay and career advancement. The settlement, which received preliminary approval from a California judge, affects over 6,600 Google employees in the state who worked between February 15, 2018, and December 31, 2024.
Insurance premiums rise in Florida despite tort reform
Despite improvements in Florida’s insurance market, Citizens Property Insurance policyholders still face rate hikes. The real driver isn’t hurricanes, but legal system abuse—excessive litigation and inflated jury awards that insurers say push costs higher. Recent tort reform has curbed “social inflation,” but new bills threaten to undo that progress.
Montana bill to redirect insurance tax to property
Montana lawmakers have introduced a bill, LC 4443, proposing to redirect $10 million annually from insurance premium tax revenues to a State Property Tax Assistance Account, aiming to provide property tax relief. Industry experts express concerns that this reallocation could impact long-term investments in insurance oversight, consumer protection, and market innovation within the state.
Tesla Cited by U.S. Regulators Over Worker’s Death
Federal regulators have cited Tesla for workplace safety violations following the electrocution of a contractor at its Austin, Texas, manufacturing plant in August 2024. The U.S. Occupational Safety and Health Administration (OSHA) concluded its investigation in January 2025, issuing citations related to the incident, though specific details and any penalties imposed have not been disclosed.
People Moves
Aon’s President Andersen Steps Down; CEO Case Assumes Additional Role of President
Aon plc announced that Eric Andersen has stepped down from his role as president to become a senior adviser to CEO Greg Case until June 2026. Consequently, Case has reassumed the title of president, a position he previously held until 2018.
Markel Names Simon Wilson CEO of Insurance Division
Markel has appointed Simon Wilson, formerly President of Markel International, as the new Chief Executive Officer of Markel Insurance. In his new role, Wilson will oversee Markel's three primary underwriting businesses: Markel Specialty, Markel International, and Markel Global Reinsurance.
Marsh Appoints Andrew George as President of Marsh Specialty
Marsh has appointed Andrew George as President of Marsh Specialty, effective immediately. With over 35 years of experience at Marsh, including leadership roles in the Energy Practice across various regions, George will now oversee global operations in areas such as Aviation, Climate & Sustainability, and Financial and Professional Lines.
Marsh has named Fran Curran as U.S. surety leader and Todd Schweitzer as U.S. construction claims leader, strengthening its national leadership in construction and surety services. Meanwhile, Ryan Specialty promoted Matt Havey to president of Ryan Alternative Risk, reflecting continued growth in its alternative risk underwriting business.
Alan Gray was established in 1988 as a claims and audit advisory firm, and over the years has built a reputation as a cost-effective, reliable, and trusted resource to those involved in the management of risk.
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