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<title>Commercial Insurance | Insurance Advocate</title>
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<title>Berkshire Hathaway GUARD Adds Commercial Auto Insurance in New York</title>
<link>https://www.insurance-advocate.com/2017/03/03/berkshire-hathaway-guard-adds-commercial-auto-insurance-in-new-york/</link>
<dc:creator><![CDATA[Gina Marie Balog-Sartario]]></dc:creator>
<pubDate>Fri, 03 Mar 2017 14:12:55 +0000</pubDate>
<category><![CDATA[Commercial Insurance]]></category>
<category><![CDATA[Current News]]></category>
<category><![CDATA[In The News]]></category>
<guid isPermaLink="false">https://www.insurance-advocate.com/?p=7930</guid>
<description><![CDATA[<p><img width="345" height="94" src="https://www.insurance-advocate.com/wp-content/uploads/2017/05/logo.gif" class="attachment-full size-full wp-post-image" alt="" decoding="async" srcset="https://www.insurance-advocate.com/wp-content/uploads/2017/05/logo.gif 345w, https://www.insurance-advocate.com/wp-content/uploads/2017/05/logo-720x196.gif 720w" sizes="(max-width: 345px) 100vw, 345px" /></p><p>WILKES-BARRE, PA – Berkshire Hathaway GUARD Insurance Companies recently began offering Commercial Auto coverage in New York. The product can be written on a stand-alone basis or together with other complementary lines. The policy is aimed at accommodating the needs of a broad audience, including artisan contractors, repair and service operations, delivery and distributor classes, […]</p>
The post <a href="https://www.insurance-advocate.com/2017/03/03/berkshire-hathaway-guard-adds-commercial-auto-insurance-in-new-york/">Berkshire Hathaway GUARD Adds Commercial Auto Insurance in New York</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<p><img width="345" height="94" src="https://www.insurance-advocate.com/wp-content/uploads/2017/05/logo.gif" class="attachment-full size-full wp-post-image" alt="" decoding="async" srcset="https://www.insurance-advocate.com/wp-content/uploads/2017/05/logo.gif 345w, https://www.insurance-advocate.com/wp-content/uploads/2017/05/logo-720x196.gif 720w" sizes="(max-width: 345px) 100vw, 345px" /></p><p>WILKES-BARRE, PA – <a href="http://www.guard.com/">Berkshire Hathaway GUARD Insurance Companies</a> recently began offering Commercial Auto coverage in New York. The product can be written on a stand-alone basis or together with other complementary lines. The policy is aimed at accommodating the needs of a broad audience, including artisan contractors, repair and service operations, delivery and distributor classes, vehicles associated with auto service risks, and more. Smaller fleets and local/intermediate travel exposures are targeted.</p>
<p>GUARD’s policy is ISO-based and features various liability and physical damage options; combined single limits up to $1 million; and a variety of optional coverages. According to GUARD Vice President of Commercial Auto Mike Hynes, “We have a Broad Form that allows us to address a dozen miscellaneous exposures at a single affordable price. We are pleased to be introducing this new line in New York and look forward to working with our agents in placing their accounts.” Hynes also notes that submissions are entered via an updated, online platform that takes advantage of business intelligence (such as automatically incorporated VIN data) to streamline the process.</p>
<p>CEO Sy Foguel points out that the addition of Commercial Auto in New York is part of Berkshire Hathaway GUARD’s long-term strategy to feature <em>One-Stop Insurance Shopping</em>. “From us, New York businesses can now obtain Auto, Property/Liability (via a Businessowner’s Policy that can handle total insured values up to $25 million), Workers’ Compensation, Commercial Excess, and Disability coverages. Together, these lines are the basis of our <a href="http://www.guard.com/pr/ASC/HTML/BOP/BOP_Resources_for_ASC-042808.htm"><strong><em>BizGUARD Plus</em></strong></a> product suite in New York.”</p>
<p>While Berkshire Hathaway GUARD has been writing Workers’ Compensation insurance in New York for decades, other lines were introduced in 2009. According to Executive Vice President Lyle Hitt, “New York is one of our top-five producing states, so we expect this new product to be of interest to New Yorkers. We are eager to build a solid book of Commercial Auto business and believe we have the product, the systems, and the team needed to succeed.”</p>
<p>In October of 2012, GUARD Insurance Group was acquired by National Indemnity Company, which is a wholly-owned subsidiary of Berkshire Hathaway – an international holding company with diverse interests that include insurance and reinsurance. In 2013, GUARD unveiled a new identity as Berkshire Hathaway GUARD Insurance Companies. Each of the organization’s carriers (AmGUARD, EastGUARD, NorGUARD, and WestGUARD) are rated A+ (“Superior”) by A.M. Best – a leading source of independent rating information on the insurance industry.</p>
<p>In 2016, Berkshire Hathaway GUARD surpassed $1 billion in premium and issued over 200,000 policies.</p>
<p>Agents interested in learning more can contact the company online at <a href="http://www.guard.com/apply"><strong>www.guard.com/apply</strong></a>.</p>
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<!--/themify_builder_content-->The post <a href="https://www.insurance-advocate.com/2017/03/03/berkshire-hathaway-guard-adds-commercial-auto-insurance-in-new-york/">Berkshire Hathaway GUARD Adds Commercial Auto Insurance in New York</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded>
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<title>Property and Casualty Markets Still Favor Buyers: Marsh</title>
<link>https://www.insurance-advocate.com/2015/08/10/property-and-casualty-markets-still-favor-buyers-marsh/</link>
<dc:creator><![CDATA[Phil Gusman]]></dc:creator>
<pubDate>Sun, 09 Aug 2015 23:31:05 +0000</pubDate>
<category><![CDATA[Commercial Insurance]]></category>
<guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4346</guid>
<description><![CDATA[<p>It’s still a buyer’s market, according to a Marsh webcast titled “The New Reality of Risk.” Featuring experts from Marsh’s Property, Casualty, FINPRO practices, as well as its Market Information Group, the July 22 webcast confirms alternative capital and limited catastrophes are still keeping the property market competitive. Furthermore, casualty remains generally favorable for buyers […]</p>
The post <a href="https://www.insurance-advocate.com/2015/08/10/property-and-casualty-markets-still-favor-buyers-marsh/">Property and Casualty Markets Still Favor Buyers: Marsh</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<p class="p1"><span class="s1"> It’s still a buyer’s market, according to a Marsh webcast titled “The New Reality of Risk.”</span></p>
<p class="p1"><span class="s1">Featuring experts from Marsh’s Property, Casualty, FINPRO practices, as well as its Market Information Group, the July 22 webcast confirms alternative capital and limited catastrophes are still keeping the property market competitive. Furthermore, casualty remains generally favorable for buyers across all lines except commercial auto liability. Commercial D&O rates are declining, but firming for private and nonprofit organizations, the Marsh experts say.</span></p>
<p class="p1"><span class="s1">The experts also say that mergers and acquisitions will likely continue, and that recent M&A activity among insurers will likely not have a substantial effect on overall market capacity, but could lead to capacity being withdrawn from certain areas and redeployed.</span></p>
<p class="p1"><span class="s1">See the Marsh webcast <a href="https://event.onlineseminarsolutions.com/eventRegistration/EventLobbyServlet?target=registration.jsp&eventid=1013127&sessionid=1&key=C61DBEAFF3A0B7459BE55D7D29E074A8&sourcepage=register"><span class="s2">here</span></a>.</span></p>The post <a href="https://www.insurance-advocate.com/2015/08/10/property-and-casualty-markets-still-favor-buyers-marsh/">Property and Casualty Markets Still Favor Buyers: Marsh</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded>
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<title>Alliant Insurance Services Acquires Preferred Concepts</title>
<link>https://www.insurance-advocate.com/2015/07/06/alliant-insurance-services-acquires-preferred-concepts/</link>
<dc:creator><![CDATA[Phil Gusman]]></dc:creator>
<pubDate>Mon, 06 Jul 2015 01:13:42 +0000</pubDate>
<category><![CDATA[Commercial Insurance]]></category>
<category><![CDATA[Current News]]></category>
<guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4021</guid>
<description><![CDATA[<p>Specialty brokerage firm Alliant Insurance Services has acquired program underwriter and wholesale broker Preferred Concepts, its fourth MGA acquisition in 2015. Terms of the acquisition were not disclosed. Preferred Concepts, with offices in New York, New Jersey and Connecticut, provides insurance solutions to the real estate industry, offering coverages through three operating units. “As the […]</p>
The post <a href="https://www.insurance-advocate.com/2015/07/06/alliant-insurance-services-acquires-preferred-concepts/">Alliant Insurance Services Acquires Preferred Concepts</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<p class="p1"><span class="s1">Specialty brokerage firm Alliant Insurance Services has acquired program underwriter and wholesale broker Preferred Concepts, its fourth MGA acquisition in 2015. Terms of the acquisition were not disclosed.</span></p>
<p class="p1"><span class="s1">Preferred Concepts, with offices in New York, New Jersey and Connecticut, provides insurance solutions to the real estate industry, offering coverages through three operating units. </span></p>
<p class="p1"><span class="s1">“As the MGA business continues to experience growth nationwide, Alliant has made a commitment to expanding its reach through the acquisition of companies with proven industry expertise,” says Tom Corbett, chairman and CEO of Alliant, in a statement. “Preferred Concepts has the underwriting discipline and broker-centric service that defines Alliant and solidifies our leadership position in both the real estate and MGA business.”</span></p>
<p class="p1"><span class="s1">Preferred Concepts will join Alliant subsidiary Alliant Specialty Insurance Services (ASIS), the company’s MGA and program administrator. The executive leadership team of Preferred Concepts will continue to operate the company under its existing name and the client services and business development teams of the company will remain in place.</span></p>The post <a href="https://www.insurance-advocate.com/2015/07/06/alliant-insurance-services-acquires-preferred-concepts/">Alliant Insurance Services Acquires Preferred Concepts</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded>
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<title>InVEST Awards 88 Scholarship to Students Interested in Insurance Careers</title>
<link>https://www.insurance-advocate.com/2015/07/06/invest-awards-88-scholarship-to-students-interested-in-insurance-careers/</link>
<dc:creator><![CDATA[Phil Gusman]]></dc:creator>
<pubDate>Mon, 06 Jul 2015 00:43:34 +0000</pubDate>
<category><![CDATA[Commercial Insurance]]></category>
<category><![CDATA[Current News]]></category>
<category><![CDATA[Personal Insurance]]></category>
<guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4018</guid>
<description><![CDATA[<p>InVEST, the Independent Insurance Agents and Brokers of America’s classroom-to-career education program, awarded $77,000 in scholarships to 88 students pursuing insurance-related degrees. “InVEST congratulates the 88 students representing 32 high schools, colleges and universities in 14 states and Washington, D.C., who earned scholarships this year,” says Robert G. Slocum, InVEST board chair, and president of […]</p>
The post <a href="https://www.insurance-advocate.com/2015/07/06/invest-awards-88-scholarship-to-students-interested-in-insurance-careers/">InVEST Awards 88 Scholarship to Students Interested in Insurance Careers</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<p class="p1"><span class="s1">InVEST, the Independent Insurance Agents and Brokers of America’s classroom-to-career education program, awarded $77,000 in scholarships to 88 students pursuing insurance-related degrees.</span></p>
<p class="p1"><span class="s1">“InVEST congratulates the 88 students representing 32 high schools, colleges and universities in 14 states and Washington, D.C., who earned scholarships this year,” says Robert G. Slocum, InVEST board chair, and president of Warwick, R.I.-based The Slocum Agency, Inc. </span></p>
<p class="p1"><span class="s1">Two students won the $3,000 Bob Betters Scholarship, established in 2011 and named after Watson Insurance Agency’s Bob Betters, who was appointed to the InVEST board of directors in 2009 and passed away February 2011 after battling brain cancer. The two Bob Betters Scholarship winners were:</span></p>
<ul>
<li class="p1"><span class="s1">Brooke Coughlin, St. Petersburg Catholic High School, St. Petersburg, Fla.</span></li>
<li class="p1"><span class="s1">Jessica England, Marjory Stoneman Douglas High School, Parkland, Fla.</span></li>
</ul>
<p class="p1"><span class="s1">$2,000 scholarship winners were:</span></p>
<ul>
<li class="p1"><span class="s1">Rebecca Cleppe, St. Petersburg Catholic High School, St. Petersburg, Fla.</span></li>
<li class="p1"><span class="s1">Claire Collins, William R. Boone High School, Orlando, Fla.</span></li>
<li class="p1"><span class="s1">Quinn Christian Cotilla, St. Petersburg Catholic High School, St. Petersburg, Fla.</span></li>
<li class="p1"><span class="s1">Catherine De Freitas, Marjory Stoneman Douglas High School, Parkland, Fla.</span></li>
<li class="p1"><span class="s1">Ayme Ibarra, Manatee High School, Bradenton, Fla.</span></li>
<li class="p1"><span class="s1">Kalie Rauch, Dryden High School, Dryden, N.Y.</span></li>
<li class="p1"><span class="s1">Zachary Shuman, Marjory Stoneman Douglas High School, Parkland, Fla.</span></li>
<li class="p1"><span class="s1">Matthew Sullivan, Dr. Phillips High School, Orlando, Fla.</span></li>
<li class="p1"><span class="s1">Jeremy Tromer, Marjory Stoneman Douglas High School, Parkland, Fla.</span></li>
<li class="p1"><span class="s1">Shawn Varughese, Dr. Phillips High School, Orlando, Fla.</span></li>
<li class="p1"><span class="s1">Emilio Ycaza, St. Petersburg Catholic High School, St. Petersburg, Fla.</span></li>
<li class="p1"><span class="s1">Nellie Parks, Grossmont Community College, El Cajon, Calif. won the $1,500 scholarship award.</span></li>
</ul>
<p class="p1"><span class="s1">Twenty-one students won $1,000 scholarship awards, and 51 students won $500 scholarship awards.</span></p>
<p class="p1"><span class="s1">Monique Lucas, Roosevelt Senior High School, Washington, D.C.; and Stacey Porter, Roosevelt Senior High School, Washington, D.C., were named $500 Classroom to Career Scholars, which was developed for students who would like to enter the insurance industry immediately after graduating from InVEST. These students are eligible for a $500 reimbursement for licensing or designation expenses.</span></p>
<p class="p1"><span class="s1">InVEST provides a hands-on insurance-related curriculum taught in high schools, adult education centers and colleges, designed to give students a working knowledge of the basics needed to pursue careers in the insurance industry.</span></p>The post <a href="https://www.insurance-advocate.com/2015/07/06/invest-awards-88-scholarship-to-students-interested-in-insurance-careers/">InVEST Awards 88 Scholarship to Students Interested in Insurance Careers</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded>
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<title>Willis, Towers Watson to Join in $18B Merger</title>
<link>https://www.insurance-advocate.com/2015/07/06/willis-towers-watson-to-join-in-18b-merger/</link>
<dc:creator><![CDATA[Phil Gusman]]></dc:creator>
<pubDate>Mon, 06 Jul 2015 00:10:16 +0000</pubDate>
<category><![CDATA[Commercial Insurance]]></category>
<category><![CDATA[Current News]]></category>
<category><![CDATA[Life & Health Insurance]]></category>
<guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4011</guid>
<description><![CDATA[<p>Willis Group Holdings and Towers Watson plan to merge in an all-stock deal creating a firm with an equity value of about $18 billion. As part of the transaction, Willis shareholders will own 50.1% of the combined company, while Towers Watson will own 49.9%. Towers Watson shareholders will receive a one-time cash dividend of $4.87 […]</p>
The post <a href="https://www.insurance-advocate.com/2015/07/06/willis-towers-watson-to-join-in-18b-merger/">Willis, Towers Watson to Join in $18B Merger</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<p class="p1"><span class="s1">Willis Group Holdings and Towers Watson plan to merge in an all-stock deal creating a firm with an equity value of about $18 billion.</span></p>
<p class="p1"><span class="s1">As part of the transaction, Willis shareholders will own 50.1% of the combined company, while Towers Watson will own 49.9%. Towers Watson shareholders will receive a one-time cash dividend of $4.87 per Towers Watson share, and about 2.65 Willis shares for each Towers Watson share. Reports, including a Bloomberg <a href="http://www.bloomberg.com/news/articles/2015-06-30/willis-group-and-towers-watson-agree-to-18-billion-merger"><span class="s2">story</span></a>, say this amounts to Willis buying Towers Watson for about $8.7 billion. </span></p>
<p class="p1"><span class="s1">Moody’s Investors Service affirmed Willis’ ratings after the deal was announced and changed the broker’s outlook to stable from negative due to the improved business diversification the combined firm, which will be called Willis Towers Watson, will have.</span></p>
<p class="p1"><span class="s1">“The proposed merger would transform Willis by approximately doubling its size and adding a leading benefits consulting operation,” says Bruce Ballentine, Moody’s lead analyst for Willis. “The combined firm would have good financial flexibility, given that Towers Watson carries significantly less debt than Willis,” added Ballentine.</span></p>
<p class="p1"><span class="s1">Fitch Ratings placed Willis on Rating Watch Positive, stating, “The transaction creates a larger, more diverse entity with operating franchises in several non-capital intensive fee- and commission-based businesses, including insurance brokerage and consulting services in employee benefits, human resources and risk and capital management. The transaction also creates opportunities to leverage existing Towers Watson relationships to increase penetration in the larger U.S. P&C corporate market and to expand Towers Watson’s international profile.”</span></p>
<p class="p1"><span class="s1"> </span></p>
<h2>Towers Watson shareholders</h2>
<p class="p1"><span class="s1">Some media reports however, suggest Towers Watson shareholders may feel they had the better company even though Willis shareholders will control 50.1% of the combined company. A Wall Street Journal <a href="http://www.wsj.com/articles/willis-group-towers-watson-to-merge-in-18-billion-deal-1435649451"><span class="s2">article</span></a> (subscription required) says Towers Watson shares dropped 8.8% on June 30 when “investors realized what they were actually getting….” </span></p>
<p class="p1"><span class="s1">A Forbes article reports, “A look at the structure and timing of Tuesday’s deal indicates that Towers Watson shareholders may be leaving a lot on the table, and entering a transaction with significant strategic risks, all for the benefit of revenue synergies and the tax savings that would come from shifting its corporate tax headquarters to London, where Willis is based.” the article compares the strong growth of Towers Watson’s revenue and share price over the last 12 months to Willis’ “falling profits and relatively stagnant share price over the year.”</span></p>
<p class="p1"><span class="s1">A number of law firms have already announced they are investigating Towers Watson’s board for a potential breach in fiduciary duty, contending that the $125.13 for each share of Towers Watson common stock shareholders would receive is too low based on analysts’ valuation of Towers Watson.</span></p>
<p class="p1"><span class="s1"> </span></p>
<h2>Execs focus on the positives</h2>
<p class="p1"><span class="s1">Executives from both Willis and Towers Watson, though, discuss what the combined enterprise can accomplish going forward. John Haley, chairman and Chief Executive Officer of Towers Watson, says in a statement, “We see numerous opportunities to enhance our growth profile by offering integrated solutions that leverage Willis’ global distribution network and superb risk advisory and re/insurance broking capabilities to deliver a more robust set of analytics and product solutions across a broader client base, including accelerating penetration of our Exchange Solutions platform into the fast growing middle-market.”</span></p>
<p class="p1"><span class="s1">Dominic Casserley, Willis CEO, says, “The rationale for the merger is powerful—at one stroke, the combination fast-tracks each company’s growth strategy and offers a truly compelling value proposition to our clients.”</span></p>
<p class="p1"><span class="s1">The companies also point to the potential for accelerated growth in the health exchange market, where Towers Watson’s product Exchange Solutions — which enables companies to transition an employee or retiree to individual plans — can be marketed to Willis’ “significant middle-market relationships.”</span></p>
<p class="p1"><span class="s1"> </span></p>
<h2>New structure</h2>
<p class="p1"><span class="s1">According to the companies, Willis Chairman James McCann will become Chairman of the combined Willis Towers Watson. Haley will be CEO, and Casserley will be president and deputy CEO. The company’s board will have 12 directors total — six nominated by Willis and six by Towers Watson, including Towers Watson’s and Willis’ current CEOs. Towers Watson CFO Roger Millay will be CFO of the new company.</span></p>
<p class="p1"><span class="s1">A Bloomberg story <a href="http://www.bloomberg.com/news/articles/2015-06-30/willis-ceo-entitled-to-17-7-million-golden-parachute-after-deal"><span class="s2">notes</span></a> Casserley, because he would not be the most senior executive at the combined company, is eligible for a compensation package valued at $17.7 million, but he opted against taking it. </span></p>
<p class="p1"><span class="s1">The transaction is expected to close by Dec. 31, and is subject to regulatory approvals and approval by both Willis and Towers Watson shareholders.</span></p>The post <a href="https://www.insurance-advocate.com/2015/07/06/willis-towers-watson-to-join-in-18b-merger/">Willis, Towers Watson to Join in $18B Merger</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded>
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<title>ACE to Purchase Chubb for $28.3B; Expects Revenue to Outweigh Cost</title>
<link>https://www.insurance-advocate.com/2015/07/05/ace-to-purchase-chubb-for-28-3b-expects-revenue-to-outweigh-cost/</link>
<dc:creator><![CDATA[Phil Gusman]]></dc:creator>
<pubDate>Sat, 04 Jul 2015 20:44:54 +0000</pubDate>
<category><![CDATA[Commercial Insurance]]></category>
<category><![CDATA[Current News]]></category>
<category><![CDATA[Personal Insurance]]></category>
<guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4008</guid>
<description><![CDATA[<p><img width="250" height="250" src="https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548.jpg" class="attachment-full size-full wp-post-image" alt="" decoding="async" fetchpriority="high" srcset="https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548.jpg 250w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-100x100.jpg 100w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-150x150.jpg 150w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-720x720.jpg 720w" sizes="(max-width: 250px) 100vw, 250px" /></p><p>ACE Limited will acquire rival The Chubb Corporation for $28.3 billion, or $62.93 per share in cash and 0.6019 shares of ACE stock, the companies announced July 1. ACE used the term “complimentary” a number of times to describe the two companies in the statement announcing the planned acquisition. ACE Chairman and CEO Evan Greenberg […]</p>
The post <a href="https://www.insurance-advocate.com/2015/07/05/ace-to-purchase-chubb-for-28-3b-expects-revenue-to-outweigh-cost/">ACE to Purchase Chubb for $28.3B; Expects Revenue to Outweigh Cost</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<p><img width="250" height="250" src="https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548.jpg" class="attachment-full size-full wp-post-image" alt="" decoding="async" srcset="https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548.jpg 250w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-100x100.jpg 100w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-150x150.jpg 150w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-720x720.jpg 720w" sizes="(max-width: 250px) 100vw, 250px" /></p><p class="p2"><span class="s1"><a href="http://www.acegroup.com">ACE Limited</a> will acquire rival The Chubb Corporation for $28.3 billion, or $62.93 per share in cash and 0.6019 shares of ACE stock, the companies announced July 1.</span></p>
<p class="p2"><span class="s1">ACE used the term “complimentary” a number of times to describe the two companies in the statement announcing the planned acquisition. ACE Chairman and CEO Evan Greenberg further explains, “We will be well balanced with greater presence and capabilities in product areas that have less exposure to the commercial P&C cycle. We have complementary product strengths – where one of us is not present, the other is. Where one of us is strong, the other is even stronger. Where there is overlap in product, generally one of us is more present at the large end of the corporate market while the other is serving the smaller or mid-market segment.”</span></p>
<p class="p2"><span class="s1">He adds the combined company will be able to do more than the two separately, with Chubb enhancing ACE’s ability to serve the upper-middle market while ACE can deliver more products for Chubb’s middle-market clients.</span></p>
<p class="p2"><span class="s1">Greenberg concludes, “Together, we will grow more substantially and at a faster rate, producing greater earnings, than we could achieve as two separate companies. We look forward to welcoming the talented Chubb employees and their customers and distribution partners to the ACE family.”</span></p>
<p class="p2"><span class="s1">John D. Finnegan, chairman, president and CEO of Chubb, says, “The combination brings together two highly respected and successful companies with complementary capabilities, assets and geographic footprints. We are confident that it will deliver strong value to Chubb shareholders, including an immediate premium and participation in the future growth and profitability of a well-positioned combined company.”</span></p>
<p class="p2"><span class="s1">The combined company will transition to operate under the Chubb name globally and be based in Zurich. Greenberg will lead the company as chairman and CEO while Finnegan will serve as executive vice chairman for External Affairs of North America and assist with integration. The company’s board will be expand from 14 to 18 directors with the addition of four independent directors from Chubb’s current board.</span></p>
<p class="p2"><span class="s1">Finnegan adds, “We are pleased that the combined company will adopt the Chubb brand, and view this as an affirmation that both companies share a commitment to the attributes of quality and service the brand represents. We look forward to working together as we create a best-in-class global franchise in P&C insurance.”</span></p>
<p class="p2"><span class="s1">A New York Times <a href="http://www.nytimes.com/2015/07/02/business/dealbook/ace-and-chubb-face-headwinds-of-history.html"><span class="s2">analysis</span></a> notes that ACE is paying a premium for Chubb, implying that the acquirer “believes strongly in the revenue gains it is promising.” It goes on to say previous insurance acquisitions, such as Citicorp and Travelers, and Provident and Unum, had similar goals that didn’t materialize as planned.</span></p>
<p class="p2"><span class="s1">The Wall Street Journal <a href="http://blogs.wsj.com/totalreturn/2015/07/01/what-the-ace-chubb-deal-could-mean-for-consumers/"><span class="s2">says</span></a> high-net-worth customers will have fewer options for specialized coverages after the deal, but adds that it remains to be seen if prices increase as a result.</span></p>
<p class="p2"><span class="s1">The transaction is expected to close Dec. 31.</span></p>The post <a href="https://www.insurance-advocate.com/2015/07/05/ace-to-purchase-chubb-for-28-3b-expects-revenue-to-outweigh-cost/">ACE to Purchase Chubb for $28.3B; Expects Revenue to Outweigh Cost</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded>
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<title>Commercial Lines Rates Increase in Q1, but at Slower Pace</title>
<link>https://www.insurance-advocate.com/2015/06/30/commercial-lines-rates-increase-in-q1-but-at-slower-pace/</link>
<dc:creator><![CDATA[Phil Gusman]]></dc:creator>
<pubDate>Tue, 30 Jun 2015 02:48:46 +0000</pubDate>
<category><![CDATA[Commercial Insurance]]></category>
<category><![CDATA[Current News]]></category>
<guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=3844</guid>
<description><![CDATA[<p>Commercial lines rate increases continued, but slowed in Q1 2015, according to Towers Watson’s latest Commercial Lines Insurance Pricing Survey (CLIPS). Rates overall were up 2% in the quarter compared to the same period a year ago, the survey notes, with increases in most individual lines in the low single digits. Commercial auto and employment […]</p>
The post <a href="https://www.insurance-advocate.com/2015/06/30/commercial-lines-rates-increase-in-q1-but-at-slower-pace/">Commercial Lines Rates Increase in Q1, but at Slower Pace</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<p class="p1"><span class="s1">Commercial lines rate increases continued, but slowed in Q1 2015, according to Towers Watson’s latest Commercial Lines Insurance Pricing Survey (CLIPS).</span></p>
<p class="p1"><span class="s1">Rates overall were up 2% in the quarter compared to the same period a year ago, the survey notes, with increases in most individual lines in the low single digits. Commercial auto and employment practices liability showed the largest increases, according to the survey, although EPLI increases moderated from last year. Commercial property rates “continue to show small but stable price decreases” in Q1.</span></p>
<p class="p1"><span class="s1">CLIPS notes that carriers reported a 2% improvement in loss ratios as rate increases offset reported claim-cost inflation in many lines. But Alejandra Nolibos, a director with Towers Watson’s Property & Casualty Insurance practice, notes that “price increases are barely offsetting loss cost inflation in some lines; we may start to see pressure on the bottom line as reserve redundancies dry up.”</span></p>The post <a href="https://www.insurance-advocate.com/2015/06/30/commercial-lines-rates-increase-in-q1-but-at-slower-pace/">Commercial Lines Rates Increase in Q1, but at Slower Pace</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded>
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<title>Tokio Marine Acquires Specialty Insurer HCC Insurance Holdings for $7.5B</title>
<link>https://www.insurance-advocate.com/2015/06/30/tokio-marine-acquires-specialty-insurer-hcc-insurance-holdings-for-7-5b/</link>
<dc:creator><![CDATA[Phil Gusman]]></dc:creator>
<pubDate>Tue, 30 Jun 2015 02:48:20 +0000</pubDate>
<category><![CDATA[Commercial Insurance]]></category>
<guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=3809</guid>
<description><![CDATA[<p>Tokio Marine Holdings, Inc. has agreed to acquire Houston-based specialty insurer HCC Insurance Holdings for $7.5 billion, or $78 per share. Tokyo-based Tokio Marine says the acquisition “significantly enhances [its] operations in the United States, the largest insurance market in the world, and internationally.” A Bloomberg report notes the transaction represents the biggest acquisition by […]</p>
The post <a href="https://www.insurance-advocate.com/2015/06/30/tokio-marine-acquires-specialty-insurer-hcc-insurance-holdings-for-7-5b/">Tokio Marine Acquires Specialty Insurer HCC Insurance Holdings for $7.5B</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<p class="p1"><span class="s1">Tokio Marine Holdings, Inc. has agreed to acquire Houston-based specialty insurer HCC Insurance Holdings for $7.5 billion, or $78 per share.</span></p>
<p class="p1"><span class="s1">Tokyo-based Tokio Marine says the acquisition “significantly enhances [its] operations in the United States, the largest insurance market in the world, and internationally.”</span></p>
<p class="p1"><span class="s1">A Bloomberg report <a href="http://www.bloomberg.com/news/articles/2015-06-11/tokio-marine-rises-after-7-5-billion-deal-to-buy-hcc-insurance"><span class="s2">notes</span></a> the transaction represents the biggest acquisition by a Japanese insurer.</span></p>
<p class="p1"><span class="s1">Tokio Marine says HCC represents its “most significant acquisition since it acquired Delphi Financial Group, Inc. in 2012, and Philadelphia Consolidated Holding Corp. and Kiln Ltd. in 2008.”</span></p>
<p class="p1"><span class="s1">HCC underwrites more than 100 classes of specialty insurance products, including D&O, agriculture, primary casualty, aviation, surety, sports and entertainment disability/contingency and public risk.</span></p>
<p class="p1"><span class="s1">Tokio Marine notes the acquisition gives it access to more insurance markets, and Tsuyoshi Nagano, Tokio Marine president, also speaks highly of HCC’s performance. “Tokio Marine has great respect for the consistent profitability that HCC has achieved under the leadership of its highly experienced management team,” he says. “With shared values and the continued support from the management team, we will build a long and successful partnership together.” <span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">HCC CEO Christopher J.B. Williams says, “With Tokio Marine, HCC gains an international footprint to expand our diverse portfolio and expertise globally, a financial foundation on which to compete with larger insurers and the opportunity to offer our clients expanded coverages.”</span></p>
<p class="p1"><span class="s1">The acquisition is subject to the approval of HCC’s shareholders and regulatory authorities, and is expected to close in Q4 2015.</span></p>The post <a href="https://www.insurance-advocate.com/2015/06/30/tokio-marine-acquires-specialty-insurer-hcc-insurance-holdings-for-7-5b/">Tokio Marine Acquires Specialty Insurer HCC Insurance Holdings for $7.5B</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded>
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<title>Higher Losses Hit P&C Insurers in 2014; Results Still Strong</title>
<link>https://www.insurance-advocate.com/2015/06/30/higher-losses-hit-p-results-still-strong/</link>
<dc:creator><![CDATA[Phil Gusman]]></dc:creator>
<pubDate>Tue, 30 Jun 2015 02:40:48 +0000</pubDate>
<category><![CDATA[Commercial Insurance]]></category>
<category><![CDATA[Current News]]></category>
<guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=3614</guid>
<description><![CDATA[<p>U.S. property and casualty insurers posted their second-highest yearly profit since the recession in 2014, but results deteriorated some compared to 2013 due in part to higher losses. Net income after taxes in 2014 was $55.5 billion, down from $63.4 billion in 2013, according to an ISO and Property Casualty Insurers Association of America analysis. […]</p>
The post <a href="https://www.insurance-advocate.com/2015/06/30/higher-losses-hit-p-results-still-strong/">Higher Losses Hit P&C Insurers in 2014; Results Still Strong</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<p class="p1">
<p class="p1">
<p class="p1">
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<p class="p1"><span class="s1">U.S. property and casualty insurers posted their second-highest yearly profit since the recession in 2014, but results deteriorated some compared to 2013 due in part to higher losses.</span></p>
<p class="p1"><span class="s1">Net income after taxes in 2014 was $55.5 billion, down from $63.4 billion in 2013, according to an ISO and Property Casualty Insurers Association of America analysis. The drop was despite a 4.1% increase in net written premiums, to $496.6 billion.</span></p>
<figure style="width: 370px" class="wp-caption aligncenter"><a title="losses" href="http://www.flickr.com/photos/68751915@N05/6869767115/" target="_blank"><img decoding="async" title="losses" src="https://farm8.staticflickr.com/7181/6869767115_c0848ddedc.jpg" alt="losses" width="370" height="370" /></a><figcaption class="wp-caption-text">2012 via Compfight</figcaption></figure>
<p class="p1"><span class="s1">The decline in net income, states the analysis, results from an $8.4 billion drop in pretax operating income over the period, to $55.6 billion. The operating-income decrease, in turn, is due to a $3 billion decrease in net gains on underwriting, a $1.2 billion drop in net investment income, and a $4.3 billion decline in “miscellaneous other income.”</span></p>
<p class="p1"><span class="s1">Net gains on underwriting totaled $12.3 billion in 2014, compared to $15.2 billion in 2013. The analysis says, “Underwriting gains were not as robust in 2014 compared to the year prior as loss and loss-adjustment expenses (LLAE) exceeded premium growth.”</span></p>
<p class="p1"><span class="s1">Losses primarily rose from causes other than catastrophes. While catastrophe losses were up $2.8 billion to $16.8 billion in 2014 compared to 2013 — primarily from cats in the U.S. — other LLAE climbed $16.9 billion to $317.9 billion, according to the analysis.</span></p>
<p class="p1"><span class="s1">As a result of higher LLAE, the industry’s combined ratio grew to 97 in 2014, from 96.2 in 2013.</span></p>
<h2>Lower cats, but for how long?</h2>
<p class="p1"><span class="s1">Commenting on the industry’s overall 2014 results, Beth Fitzgerald, president of ISO Insurance Programs and Analytic Services, says, “Right now, good underwriting results are a must for insurers. But with much of the improvement in underwriting results for the last two years attributable to moderate catastrophe losses and dependent on continued reserve releases, one has to wonder just how sustainable the net gains on underwriting will be.” </span></p>
<p class="p1"><span class="s1">Robert Gordon, PCI’s senior vice president for policy development and research, also notes that insurers continue to benefit from low catastrophe losses.</span></p>
<p class="p1"><span class="s1">Insurance Information Institute President Robert Hartwig, and Senior Vice President and Chief Economist Steven Weisbart, while acknowledging the role of moderate catastrophe losses, say in a statement, “The overall result in underwriting during 2014 was positive, with the industry’s combined ratio rising only slightly to 97.0 compared with 96.2 in 2013.”</span></p>
<p class="p1">Underwriting results in 2014 benefitted from $11.2 billion in favorable reserve development. Hartwig and Weisbart say that although reserve releases are down from $15.6 billion in 2013, much of the decline is from a tiny segment of the industry — mortgage and financial guaranty insurers — rather than an industrywide trend.</p>
<p class="p1"><span class="s1">Policyholders’ surplus climbed $21.3 billion to a record-high $674.7 billion as of Dec. 31, </span><span class="s1">2014, from $653.4 billion at year-end 2013.</span></p>
<p class="p1"><span class="s1">Hartwig and Weisbart conclude, “Fundamentally, the P&C insurance industry remains quite strong financially, with capital adequacy ratios remaining high relative to long-term historical averages.”</span></p>
<p class="p1"><span class="s1">For the 2014 fourth quarter, The P&C industry’s consolidated net income after taxes fell to </span><span class="s1">$17.8 billion from $20.7 billion in 2013’s fourth-quarter.</span></p>The post <a href="https://www.insurance-advocate.com/2015/06/30/higher-losses-hit-p-results-still-strong/">Higher Losses Hit P&C Insurers in 2014; Results Still Strong</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded>
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<title>U.S. Insurance Industry Shows Employment Gains in April</title>
<link>https://www.insurance-advocate.com/2015/06/30/u-s-insurance-industry-shows-employment-gains-in-april/</link>
<dc:creator><![CDATA[Phil Gusman]]></dc:creator>
<pubDate>Tue, 30 Jun 2015 02:37:23 +0000</pubDate>
<category><![CDATA[Commercial Insurance]]></category>
<category><![CDATA[Current News]]></category>
<category><![CDATA[Life & Health Insurance]]></category>
<category><![CDATA[Personal Insurance]]></category>
<guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=3804</guid>
<description><![CDATA[<p>Insurance-industry employment was up across most sub-sectors in April compared to March, according to an analysis of the latest U.S. Labor Department’s Bureau of Labor Statistics (BLS) figures. Health/medical direct insurers, life insurers and agents and brokers showed the strongest monthly gains. For life insurers, employment over the last year has at last reversed a […]</p>
The post <a href="https://www.insurance-advocate.com/2015/06/30/u-s-insurance-industry-shows-employment-gains-in-april/">U.S. Insurance Industry Shows Employment Gains in April</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description>
<content:encoded><![CDATA[<p class="p1"><span class="s1">Insurance-industry employment was up across most sub-sectors in April compared to March, according to an analysis of the latest U.S. Labor Department’s Bureau of Labor Statistics (BLS) figures.</span></p>
<p class="p1"><span class="s1">Health/medical direct insurers, life insurers and agents and brokers showed the strongest monthly gains. </span></p>
<p class="p1"><span class="s1">For life insurers, employment over the last year has at last reversed a long downward trend that began after 2010, according to comments by I.I.I. President Robert Hartwig. Employment reached 370,000 for life insurers during the first half of 2010 before it began falling. Over the past 12 months, employment in this sub-sector has not fallen, and showed gains in 11 of those months. Employment has recovered to 357,000 as of April, up by 14,700 compared to April 2014 and up by 1,100 compared to March. </span></p>
<p class="p1"><span class="s1">The health carrier segment has been increasing for decades, Hartwig says, and rose by 28,900 in April 2015 compared to April 2014, to 512,200. This sub-sector also showed the greatest monthly gains from March, adding 3,200 jobs over the month. Hartwig says, “At least some of this growth is undoubtedly connected with the flood of health-insurance applications, purchases and claims attributable to the Affordable Care Act (ACA), and some to population growth, but it is important to acknowledge that this rate of growth has been characteristic of this sector for decades—long before the ACA was proposed.”</span></p>
<p class="p1"><span class="s1">Agent/broker employment is up by 24,600 jobs in April compared to the same month a year ago, and up 1,400 jobs compared to March. This sub-sector lost jobs after the recession, bottoming out at 638,200 in September 2010. Since then, the sub-sector has recovered, passing its pre-recession peak of 684,500, Hartwig notes. Employment in this sub-sector stands at 732,200 as of April.</span></p>
<p class="p1"><span class="s1">Employment was up for property and casualty insurers in April as well, with the sub-sector gaining 700 jobs in April compared to March, and gaining over 10,000 jobs compared to April 2015.</span></p>
<p class="p1"><span class="s1">Third-party administrators were the only sub-sector to show job losses from March to April, shedding 1,200 jobs. Reinsurer employment was flat over the month, and was up by 200 jobs compared to April 2014.</span></p>The post <a href="https://www.insurance-advocate.com/2015/06/30/u-s-insurance-industry-shows-employment-gains-in-april/">U.S. Insurance Industry Shows Employment Gains in April</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded>
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