Douglas Shillito
This week, It was the turn of the life insurers to hog the headlines, and not only interim financials. Aegon ("significant increase in solvency ratio in The Netherlands") is to offload its Irish book to Athene Holding and sell a major financial advisor in Holland. Legal & General (big increase in pre-tax profit) is likely to pursue more pensions/annuity books (as is Rothesay Life, where Goldman Sachs is selling its stake to existing shareholders). Prudential (growth across all main performance measures) announced that its UK/Europe division is to merge with Group asset management arm M&G, prompting media comment that it may be sold off at some time in the future, as Asia and US books boom. Standard Life (pre-tax profit up 6%) reported outflows as its merger with Aberdeen Asset Management finalises, Old Mutual (pre-tax adjusted operating profit up 37%) reported progress on its break-up strategy, MetLife (turnaround) floated Brightside Financial, and Sun Life (strong second quarter earnings across the business) prospered. Major players Ageas (good progress with strategic plan), Zurich (operating profit up 14%), Hannover Re ("pleased with interim result"), and Munich Re (consolidated profit down but "very pleasing overall") reported, as did motor specialists Hastings (growth and increased adjusted operating profit) and ERS (impacted by Ogden), as did Argo (strong second quarter), Enstar (consolidated net earnings more than doubled in second quarter), Fairfax Financial (net earnings increased), and broker Aon ("growth across all major lines of revenue").
The Association of British Insurers (ABI) commented on the Prudential Regulatory Authority's letter to the Treasury Committee re Brexit and financial services, and the PRA also consulted on future fees which reflected the introduction of Solvency II. The panel at a recent Clyde & Co seminar discussed the difference between autonomous and assisted-driven vehicles and the issues arising after a claim. The lawyers separately also highlighted concern that the upcoming General Data Protection Regulation (GDPR) legislation will continue to restrict the insurance chain from being able to process sensitive personal data without obtaining explicit consent. Insurance Europe warned on protectionist measures in Indonesia, Turkey, and Argentina which could impact European reinsurers in those key markets.
The London Market Group (LMG) reported that Structured Data Capture, one of the core solutions in the London Market Target Operating Model, had gone live for Terrorism, Financial Lines, Marine, Property and Casualty. Allstate Business Insurance enhanced the Insurity Policy Decisions solution with a newly developed quoting application, CoreLogic is to expand strategic capabilities with underwriting solutions provided by Myriad Development, and RDT has integrated software with CRIF Decision Solutions to provide insurers' greater access to customer claims history at point of quote and First Notice of Loss. Sapiens reported revenue up for the second quarter, and SSP appointed a new CEO.
Charles Taylor Adjusting moved for Criterion Adjusters, and Towergate launched the first business of its new international MGA in Scandinavia. There were senior appointments at Blenheim, Novae Group, and RSA.
Full articles on the above topics may be found on the Insurance Newslink and Financial Newslink global trends database services at www.onlystrategic.com