Weekly Articles
Insurance Market
In 2024, global insurance carriers achieved improved underwriting performance and capital recovery, despite concerns about reserving volatility and increasing losses from secondary perils like severe convective storms and wildfires. Pricing stabilized after prior increases, with January 1, 2025, renewals showing modest growth but remaining below the previous year's levels, highlighting the need for disciplined underwriting amid evolving market dynamics.
Insurers remain steady - LMU March 2025
In 2024, U.S. P&C insurers saw strong growth and returned to profitability, but 2025 projections point to normalization with reduced returns due to rising loss severity and increased competition. Despite these headwinds, the insurance market remains stable and buyer-friendly, though insurers are cautiously tightening underwriting in response to emerging risks like social inflation and natural catastrophes.
According to Lockton's March 2025 Market Update, liability insurance premiums are continuing to rise due to escalating loss trends influenced by social inflation. Insurers are responding with more conservative underwriting, adjusting attachment points, restricting capacity, and tightening terms and conditions to mitigate unpredictable liability losses.
SiriusPoint, Broker Holmes Murphy’s Umbrella Excess for Captives
SiriusPoint Ltd., a Bermuda-based specialty insurer and reinsurer, has partnered with independent insurance broker Holmes Murphy and its managing general agent subsidiary, Innovative Program Solutions (IPS), to introduce an umbrella excess insurance product tailored for captives managed by Holmes Murphy and its subsidiaries. SiriusPoint will underwrite this umbrella excess line for captive members on a non-admitted basis, aiming to provide businesses with enhanced control and opportunities in managing their risk exposure.
Premium Growth Is Good but Disciplined Growth Is Better: Lloyd’s Execs
Lloyd's reported a pre-tax profit of £9.6 billion ($12.4 billion) for 2024, with a combined ratio of 86.9, reflecting a 6.5% increase in gross written premiums to £55.5 billion ($71.7 billion). Executives emphasized the importance of maintaining underwriting discipline to ensure sustainable profitability amid evolving market conditions.
States’ AI-Related Legislation Aimed at Insurance Is ‘Unfounded’, Says NAMIC
The National Association of Mutual Insurance Companies (NAMIC) has criticized recent artificial intelligence (AI) legislation in 18 states as "unfounded" and potentially harmful to policyholders. NAMIC contends that concerns over AI-induced bias in insurance underwriting are misplaced, emphasizing that risk-based pricing, grounded in actuarial science, is essential for maintaining fair and effective insurance practices.
U.S. Corporate Profits Surged in Q4 2024
U.S. corporate profits experienced a significant rebound in the fourth quarter of 2024, with a $204.7 billion increase following a $15.0 billion decline in the previous quarter. This surge contributed to an upward revision of the annualized GDP growth rate to 2.4%, though concerns persist about the economic outlook due to ongoing trade policy uncertainties and tariff actions.
Wall Street Brokers Start Trading Insurer Claims From LA Fires
Wall Street brokers, including Oppenheimer & Co. and Cherokee Acquisition, have begun trading insurers' subrogation claims related to Los Angeles' recent wildfires, allowing investors to acquire insurers' rights to compensation from utilities deemed liable for fire damages. These transactions aim to help insurance companies recover losses from the disasters, though the outcomes depend on ongoing investigations into the fires' causes.
What Claims Pros Must Know About Small Businesses’ Insurance Blind Spots
Many small businesses are unknowingly underinsured, exposing them to devastating financial risks. Claims professionals play a crucial role in identifying coverage gaps, educating business owners, and collaborating with agents to prevent denied claims, reduce disputes, and protect long-term business viability. Proactive guidance can make the difference between recovery and closure.
Reinsurance Market
Ardonagh reports FY'24 income increase of 24%
In 2024, The Ardonagh Group reported a 24% income increase to $1.99 billion and a 31% rise in adjusted EBITDA to $683 million. This growth was driven by an 8% organic income increase and 68 acquisitions, including the significant purchase of PSC Insurance Group. Additionally, Ardonagh refinanced its borrowings in February 2025, reducing the average cost of debt from 9.3% to 7.5% and simplifying its capital structure.
China Re’s net profit up ~91% in 2024
China Re, the state-owned reinsurance company, reported a 91% increase in net profit for 2024, reaching RMB 11.08 billion (USD 1.53 billion), up from RMB 5.79 billion (USD 797 million) in 2023. This growth was driven by improved underwriting and investment performance, with insurance revenue rising to RMB 101.36 billion (USD 13.9 billion) and investment income totaling RMB 6.83 billion (USD 941 million), a significant turnaround from the previous year's loss.
DARAG enters loss portfolio transfer deal with Soteria for UK run-off business
DARAG Group has agreed to a loss portfolio transfer with Soteria Insurance Ltd. for UK commercial policies in run-off, with liabilities to move to DARAG Deutschland and later to DARAG UK. The deal supports DARAG’s European focus following its 2024 exit from North America and multiple captive legacy transactions.
HDI Global reports improved CoR of 90% for FY’24
HDI Global reported a 2024 combined ratio of 90%, an improvement from 91.5% in 2023, with insurance revenue reaching €10 billion, driven by new business growth and inflation-related price adjustments. Operating profit increased to €702 million from €446 million, and return on equity rose to 17.6%, up from 14.3%, reflecting the company's enhanced financial performance.
Plenty of headroom left in higher reinsurance attachments, despite inflation: J.P. Morgan
According to J.P. Morgan, there is still significant room for higher reinsurance attachment points, despite the pressures of inflation and rising loss costs. The firm believes that market dynamics and improved underwriting discipline support this shift, offering reinsurers more stability and profitability.
Reinsurers must adapt strategies to align with risk introduced by GLP-1 therapies: Gallagher Re
The rise of GLP-1 therapies like Ozempic and Wegovy is altering health risk profiles, with reinsurers facing short-term cost increases and claims uncertainty despite potential long-term benefits. Gallagher Re advises reinsurers to update underwriting models to reflect evolving medical usage, patient adherence challenges, and the broader financial impact of these high-cost treatments.
Commercial Lines
Rate Reductions Begin to Fade for D&O Buyers: Lockton
According to Lockton's latest market update, directors and officers (D&O) liability insurance rates for public companies declined by 9.5% in the fourth quarter of 2024; however, insurers are now exhibiting "reduction fatigue" and are less inclined to further decrease premiums. While strong capacity and competition persist, insurers are increasingly evaluating terms and conditions on an individual risk basis, signaling a potential stabilization of rates in the D&O insurance market.
How Cincinnati Insurance Does E&S
Cincinnati Insurance Companies have distinguished themselves in the excess and surplus (E&S) lines market by exclusively partnering with selected regional independent agents, avoiding wholesalers and managing general agents. This unique distribution strategy has contributed to consistent profitability, with their subsidiary, Cincinnati Specialty Underwriters, achieving a combined ratio of 94 or better for 12 consecutive years.
Incidents of Full Container Thefts Increase, Cargo Theft Rise in California: Report
Cargo theft in the U.S. has surged over 60% in 2024, with California accounting for 45% of cases, per TT Club’s latest bulletin. Full-load thefts from cargo depots have nearly doubled. Fraudulent carriers posing as legitimate operators are a growing threat, highlighting serious vulnerabilities in U.S. supply chains.
Markets/Coverages: Westfield Adds Inland Flood Option; Rokstone Launches Farm & Ranch in 14 States
Westfield Insurance has introduced an inland flood coverage add-on for U.S. homeowners, aiming to close the insurance gap for those in areas previously deemed low risk, as flash floods increasingly affect such regions. Concurrently, Rokstone Farm Risks Underwriting launched a bundled farm and ranch insurance package—including property, auto, and excess coverage—in 14 states, providing stability amid a market facing capacity restrictions and rising premiums.
Worker’s compensation - LMU March 2025
According to Lockton's March 2025 Market Update, the U.S. workers' compensation insurance market remains favorable for buyers, characterized by competitive conditions and declining rates. This trend is attributed to strong underwriting results and enhanced workplace safety measures, positioning workers' compensation as a key area of stability amid broader market uncertainties.
Emerging Risks
Climate risks rise, but businesses stay focused on short-term challenges: Beazley report
A recent Beazley report reveals that despite the increasing frequency of extreme weather events, only 20% of executives consider climate-related catastrophic risk a top concern, with many focusing on immediate economic challenges instead. This reactive stance may lead to higher insurance premiums and coverage limitations, as businesses lacking proactive climate risk strategies face greater financial exposure.
Concerns Raised Over Contamination of Farm Fields with PFAS-laden Biosolids
The U.S. Environmental Protection Agency has raised concerns about the contamination of agricultural fields with per- and polyfluoroalkyl substances (PFAS) due to the application of biosolids—nutrient-rich byproducts of wastewater treatment used as fertilizers. The PFAS levels in these biosolids vary based on the incoming wastewater composition, potentially posing health risks when applied to farmland.
The cyber insurance market remains favorable for buyers, with median pricing for total cyber insurance programs decreasing by 4.5% in the fourth quarter. However, signs of firming are emerging as insurers push for flat renewals amid rising claims frequency and severity, driven by sophisticated ransomware attacks, increased technology disruptions, and evolving privacy regulations.
Recent catastrophic wildfires have exposed the limitations of traditional risk assessment tools like ISO Protection Class ratings and wildfire hazard scores, prompting insurers and brokers to reassess their approaches. Jeffrey Benson of Victor Insurance highlights the increasing frequency and severity of wildfires, even in areas previously considered low risk, underscoring the need for updated underwriting models and proactive risk management strategies
Triple-I Blog | Personal Cyber Risk Is Up; Why Isn’t Adoption of Personal Cyber Coverage?
Despite rising personal cyber threats like identity theft and phishing, adoption of personal cyber insurance remains low due to consumer skepticism, lack of awareness, and perceived complexity. To close this protection gap, insurers must focus on educating consumers, training agents, and simplifying policy offerings to better convey the value of coverage.
What Chief Claims Officers Can Do About a Growing Trend of Alleged Bad Faith Claims
In response to the rising trend of bad faith claims against insurers, Chief Claims Officers (CCOs) can mitigate exposure by implementing best practices such as comprehensive documentation, adherence to a clear Target Operating Model (TOM), ongoing staff training, and mentorship programs. Additionally, leveraging advanced analytics and AI can enhance claims handling by proactively managing timelines, ensuring fair claim evaluations, and identifying potential issues early in the claims’ lifecycle.
Litigation & Mass Torts
Bankrupt 23andMe’s DNA Data Gets Sale Nod as Concerns Linger
Bankrupt genetic testing firm 23andMe seeks court approval to sell customer genetic and ancestry data, its most valuable asset, triggering privacy concerns. A judge delayed the sale timeline slightly and may appoint a privacy ombudsman. The auction must exceed $214 million to pay shareholders after debts are settled.
Delaware Rushes to Reverse Firms’ Threats to Leave State
Facing threats of a corporate exodus dubbed “DExit,” Delaware passed emergency legislation to reaffirm its business-friendly status. Prompted by rising litigation concerns and pressure from companies like Meta, Senate Bill 21 clarifies corporate governance laws to protect directors and balance shareholder rights—preserving a franchise that generates one-third of the state’s revenue.
Kroger Fights Suit by Albertsons Over Failed $24.6 Billion Deal
Kroger Co. is contesting a lawsuit filed by Albertsons Cos. regarding their failed $24.6 billion merger, asserting that Albertsons' claims, including a $600 million termination fee, are unfounded and that Albertsons' major shareholder, Cerberus Capital Management, is driving the suit for financial gain. Kroger seeks unspecified damages for expenses incurred during the regulatory approval process, while Albertsons maintains that Kroger did not fulfill its contractual obligations and looks forward to presenting its case in court.
Litigation, cyber risks dominate D&O insurance decisions: Willis report
A recent Willis Towers Watson survey indicates that directors and officers are increasingly concerned about litigation and cybersecurity risks, with 63% highlighting civil litigation and third-party claims, and 77% emphasizing data loss and cyber-attacks as significant threats. Despite these growing concerns, cost remains the primary factor influencing D&O insurance purchasing decisions, underscoring the need for companies to adopt proactive risk management strategies to mitigate financial and reputational exposures.
NAIC, Legislators Push to Abolish the Federal Insurance Office
The National Association of Insurance Commissioners (NAIC) and Congressman Troy Downing are advocating for the abolition of the Federal Insurance Office (FIO), arguing that insurance regulation should be returned to state authorities. They contend that the FIO's existence conflicts with state regulatory roles, complicates international engagement, and duplicates state functions.
Novogratz’s Galaxy to Pay $200 Million in NY Luna Settlement
Michael Novogratz's Galaxy Digital Holdings has agreed to pay a $200 million penalty to the New York Attorney General over its promotion of the failed Luna cryptocurrency between 2020 and 2022. While not admitting wrongdoing, Galaxy will pay the fine in installments through 2028, following allegations of promoting Luna without disclosing its intent to sell.
Top Fund Managers Ask Federal Court to Dismiss Climate-Related Antitrust Lawsuit
BlackRock, Vanguard, and State Street have petitioned a federal court in Texas to dismiss a lawsuit led by Texas Attorney General Ken Paxton, which accuses them of colluding through climate activism to reduce coal production, arguing that the claims are based on "half-baked and untested" legal theories. They assert that the lawsuit lacks evidence of any directive to coal companies to cut output and contend that their standard investment practices are being mischaracterized as antitrust violations.
Supreme Court Refuses to Revive Youths’ Climate-Change Lawsuit
The U.S. Supreme Court declined to reinstate a lawsuit filed by 21 young people seeking to compel the federal government to address climate change, leaving in place a federal appeals court's decision that the plaintiffs lacked legal standing due to insufficient concrete injury. The lawsuit, initiated a decade ago, alleged that government policies exacerbated global warming in violation of constitutional rights; however, both the Trump administration and 43 Democratic members of Congress opposed its progression
People Moves
Argo Group Promotes CFO Donahue to CEO; Chan Now CFO
Argo Group International Holdings has promoted Chief Financial Officer Chris Donahue to Chief Executive Officer, succeeding Jessica Buss, who is departing the company. David Chan, previously the Chief Accounting Officer since 2022, has been appointed as the new CFO.
Everest Group Chair Taranto to Retire, Graf to Succeed
Joseph V. Taranto, who has served as Everest Group's board chairman since 1994 and was CEO from 1994 to 2013, will retire from his role when his term expires in May 2025. The board has nominated John Graf, an independent member since 2016 and non-executive vice chairman of Global Atlantic Financial Group, to succeed Taranto as chair at the upcoming Annual Shareholders Meeting.
Everest promotes Jeanmarie Giordano to North America CUO
Everest has promoted Jeanmarie Giordano to North America Chief Underwriting Officer. With nearly 30 years in the industry, Giordano joined Everest in September 2024 as Chief Underwriting Officer for Financial Lines & Specialty, following a 15-year tenure at AIG in senior roles including Global Head of Multinational for Financial Lines.
Joshua Hackett named Head of Casualty for Munich Reinsurance America
Munich Re has appointed Joshua Hackett as Head of Casualty for Munich Reinsurance America, Inc., effective March 31, 2025. Hackett, previously Chief Underwriting Officer for U.S. Longtail Casualty & Specialty lines at Arch Re, brings extensive experience in managing large reinsurance portfolios across casualty and personal lines.
People Moves: Cotton Named COO at Mangrove, Thomas VP at Summit
Mangrove Property Insurance Co., a newly established Florida-based firm, has appointed Tim Cotton, formerly of Olympus Insurance, as its chief operating officer, along with four other key management hires. Additionally, Summit, a regional workers' compensation insurer in Lakeland, Florida, has promoted Greg Thomas to vice president of its mid-Atlantic region.
Markel Boosts Wholesale Claims With 3 Promotions, Technical Claims Hire
Markel has strengthened its wholesale claims service by appointing Dan Thomas as marine technical claims lead and promoting Debbie Larkin to claims manager for energy, liability, and terrorism. Additionally, Rachel Tighe has been elevated to claims manager for professional indemnity, and Natalie Myhill to claims manager for financial institutions, enhancing the company's expertise across these sectors.
Tokio Marine Kiln appoints James Wilson as Head of Special Risks
Tokio Marine Kiln (TMK) has appointed James Wilson as Head of Special Risks, effective autumn 2025. Wilson, with 16 years in the industry, previously led Political Risks at The Hartford and held roles at Chubb and Catlin. Reporting to Chief Underwriting Officer Vivek Syal, he will focus on expanding TMK's Special Risks portfolio, which includes Political Risk, Political Violence and Terrorism, consequential loss and trade disruption, and surety.
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