From Best's Review: The Write Stuff

The best underwriters bring more than just technical skills to the table. Increasingly, they are the business builders of their organizations.

October 01, 2019 Full Story

Craig W. Kliethermes

RLI Operations Chief: Competitors Throwing in Towel in Some Products and Geographies

RLI Corp. is benefiting from industry disruption in liability and casualty lines, according to the company’s chief operating officer.
October 17, 2019 Full Story

Warren Buffett

Berkshire Hathaway Sells Workers’ Compensation Insurer Applied Underwriters for $920 Million

Workers’ compensation insurer Applied Underwriters Inc. and its subsidiary North American Casualty Co., majority owned by Berkshire Hathaway Inc., have been sold to Applied’s founder, Steve Menzies, and management group, the Quasha Group, for $920 million.
October 17, 2019 Full Story

Pinnacle Actuarial Resources

Canada

IBC: British Columbia Regulator Stifles Competition in Province
The association representing most of Canada’s home, automobile and business insurers is frustrated by the state-owned Insurance Corporation of British Columbia, which it says is thwarting auto insurance competition in the province.
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Capital Markets

Nasdaq Grants Atlas Delisting Reprieve; Listing Moves to Capital Market
The Nasdaq Hearings Panel is allowing Atlas Financial Holdings Inc. to remain listed and granted the company’s request to transfer to the Nasdaq Capital Market.
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Commercial Coverage

Derek Broaddus

Allied World SVP: Activist Jurors Launch ‘Nuclear Verdicts’
Derek Broaddus, Allied World’s senior vice president for North American excess casualty, said some juries appear to be practicing social activism, delivering outsized verdicts against large corporations. Broaddus spoke with AM BestTV at the 2019 WSIA Annual Marketplace conference, held in San Diego.
Full Story

Courts

Lawsuit Challenges $250,000 Limit on Injury Coverage in Michigan
The administrator of a plan that covers medical expenses for uninsured pedestrians and passengers injured in automobile accidents has sued Michigan’s insurance regulator, claiming her recent orders conflict with an automobile insurance reform law signed earlier this year.
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Europe

Darag Acquires Guernsey Captive as Part of Growth Strategy
As part of what its parent has described as a continuing program of expansion, Darag Guernsey has acquired Guernsey-based captive Thames Water Insurance Co. Ltd. from its parent Kemble Water Finance Ltd. Terms were not disclosed.
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Homeowners

Rick McCathron

Hippo Chief Insurance Officer: Homeowners Coverage Should Be Proactive
Rick McCathron, chief insurance officer, Hippo, said the managing general agent focuses on communicating with insureds about risks, claims, developing exposures and other matters. McCathron spoke with AM BestTV at InsureTech Connect 2019, held in Las Vegas.
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Mergers & Acquisitions

Foresters Financial to Sell Holding Company, Life Insurance Unit to Nassau Financial
Foresters Financial said it has agreed to sell Foresters Financial Holding Co. Inc. and its subsidiary, Foresters Life Insurance and Annuity Co., to Nassau Financial Group L.P. Financial terms of the deal were not released.
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People in Insurance

AIG Names Asia-Pacific Head of Claims, General Insurance
American International Group Inc. has named Steve Gibbs as Asia-Pacific head of claims, general insurance.
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Guy Carpenter Names Global Facultative Leader and Marsh Taps Head of JLT Specialty Asia
Guy Carpenter has named Dominic Samengo-Turner as global facultative leader.
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Property/Casualty

Markel CATCo Sets Loss Reserves for Storms Dorian, Faxai; Eyes Hagibis
Markel CATCo Investment Management Ltd. has established specific loss reserves for Hurricane Dorian and Typhoon Faxai, which made landfall in Japan. A specific loss reserve for Typhoon Hagibis is forthcoming, the company said.
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United Insurance Estimates $46 Million in Third-Quarter Cat Losses
United Insurance Holdings Corp. said it has incurred an estimated $46 million in pretax net catastrophe losses in the third quarter in addition to $15 million in pretax adverse development on prior-year events.
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Ratings

AM Best Affirms Credit Ratings of Arch Capital Group Ltd. And Its Subsidiaries
AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” of Arch Reinsurance Ltd. (Arch) (Bermuda) and its strategic affiliates. Concurrently, AM Best has affirmed the Long-Term ICR of “a-” and the Long-Term Issue Credit Ratings (Long-Term IRs) of Arch Capital Group Ltd. (Arch Capital) (Bermuda) [NASDAQ: ACGL], the ultimate holding company; Arch Capital Group (US) Inc (Delaware); and Arch Capital Finance LLC (Delaware). (See below for a detailed listing of the companies and ratings.) The outlook of these Credit Ratings (ratings) is stable.
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AM Best Affirms Credit Ratings of Pozavarovalnica Sava d.d.
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Pozavarovalnica Sava d.d. (Sava Re) (Slovenia), the operating holding company of the Sava Re group. The outlook of these Credit Ratings (ratings) is stable.
Full Story

AM Best Affirms Credit Ratings of Transmonde Services Insurance Company Limited
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Transmonde Services Insurance Company Limited (Transmonde) (Hamilton, Bermuda). The outlook of these Credit Ratings (ratings) remains stable.
Full Story

AM Best Affirms Credit Ratings of UnipolRe Designated Activity Company
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of UnipolRe Designated Activity Company (UnipolRe) (Ireland). The outlook of these Credit Ratings (ratings) remains stable.
Full Story

AM Best Assigns Credit Ratings to National Insurance Company
AM Best has assigned a Financial Strength Rating of B- (Fair) and a Long-Term Issuer Credit Rating of “bb-” to National Insurance Company (NIC) (Jordan). The outlook assigned to these Credit Ratings (ratings) is positive.
Full Story

AM Best Comments on Credit Ratings of James River Group Holdings, Ltd. and Subsidiaries
AM Best has commented that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” of the rated operating entities of James River Group Holdings, Ltd. (JRG Holdings) [NASDAQ: JRVR], along with the Long-Term ICR of “bbb” of JRG Holdings, remain unchanged following the disclosure of relevant public information. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the subsidiaries.)
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AM Best Comments on Credit Ratings of Sagicor Financial Corp Ltd and Sagicor Life Following Announced Acquisition Agreement
AM Best has commented that the Credit Ratings (ratings) of Sagicor Financial Corporation Limited (SFC) (Bermuda) and its subsidiary, Sagicor Life Inc. (Sagicor) (St. Michael, Barbados), remain unchanged following the announcement that Sagicor has entered into an agreement to acquire approximately USD 1.2 billion of life, annuity and health liabilities of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad) and British American Insurance Company Trinidad Limited (BAT) (Trinidad). These portfolios were held under the control of the Central Bank of Trinidad and Tobago under certain special powers of the Central Bank Act. These liabilities are a combination of universal life, whole life, term life, annuities, group life, health and creditor policies. As part of this announced deal, Sagicor will receive approximately USD 1.2 billion in assets, which matches the anticipated amount of liabilities.
Full Story

AM Best Downgrades Credit Ratings of Foresters Life Ins and Annuity Co; Places Ratings Under Review With Negative Implications
AM Best has downgraded the Financial Strength Rating to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Rating to “a-“ from “a+” of Foresters Life Insurance and Annuity Company (FLIAC) (New York, NY). Concurrently, AM Best has placed the Credit Ratings (rating) under review with negative implications.
Full Story

AM Best Downgrades Credit Ratings of Members of Kansas Medical Mutual Group
AM Best has downgraded the Financial Strength Rating (FSR) to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) to “bbb+” from “a-” of Kansas Medical Mutual Insurance Company, and its subsidiary, KAMMCO Casualty Company, Inc. These companies are referred to collectively as Kansas Medical Mutual Group (the group). The outlook of the FSR has been revised to stable from negative, while the outlook of the Long-Term ICRs remains negative. Both companies are domiciled in Topeka, KS.
Full Story

AM Best Revises Issuer Credit Rating Outlook to Negative for British American Insurance Company
AM Best has revised the outlook to negative from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and Long-Term ICR of “a+” of British American Insurance Company (BAIC) (Dallas, TX). The outlook of the FSR remains stable.
Full Story

Regulation

Dennis Funa

Philippine Nonlife Insurer Meridian Assurance Corp. Surrenders License
Philippine nonlife insurer Meridian Assurance Corp. has ceased its operations, surrendered its license and requested approval to withdraw its security deposits, according to Philippine Insurance Commissioner Dennis Funa.
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Reinsurance

Maiden Reinsurance Ltd. Redomesticating From Bermuda to Vermont
Maiden Reinsurance Ltd., the principal operating subsidiary of Maiden Holdings Ltd., has submitted filings to redomesticate from Bermuda to Vermont.
Full Story

Special Report

Best’s Commentary: Typhoons Faxai, Hagibis, Not Likely To Materially Impact Japanese Non-Life Insurers’ Capitalization
The recent mega-typhoons in Japan are unlikely to affect the financial stability of the country’s three major non-life insurers due to their appropriate catastrophe risk management and strong capitalization levels, according to a new AM Best commentary.
Full Story

Terrorism

Head of War and Terrorism Named at StarStone
StarStone has named Henry Gillingham as head of war and terrorism in its crisis management division.
Full Story

Washington

Seema Verma

House Democrats to Question CMS’ Verma Over Stonewalling, Attempts to Undermine ACA
House Democrats have called upon Centers for Medicare & Medicaid Services Administrator Seema Verma to explain why the CMS has refused to release documents related to the Trump administration’s campaign to undermine the Affordable Care Act.
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Announcements

AM Best’s 2019 London Briefing to Focus on Shifting EMEA Insurance Market Trends; Lloyd’s CEO to Deliver Keynote Address
AM Best will host its annual Insurance Market Briefing – Europe and Methodology Review Seminar on Tuesday, 12 November 2019, from 8:30 a.m. to 4:15 p.m. (GMT) at etc.venues St. Paul’s in London.
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