Corsair’s Post

Europe’s recent insurance M&A activity robustness will power a rebound in the market, global law firm Clyde & Co projects in its latest Insurance Growth Report. The Americas region remains the leader despite recent decreases. “Even though interest rates are currently unfavorable, many businesses have amassed cash reserves over the past few years in anticipation of a buying opportunity. I believe that we are on the cusp of such a buying opportunity that will serve to drive M&A activity,” wrote Marc Voses, a partner at Clyde & Co., in a written response to questions. https://bit.ly/3TsTzHX #insurance #mergersandacquisitions

I am thrilled about my new role as CFO & Executive Director at BMS starting in November 2024 - press release (below) went live this morning and I’m excited to join this growing business with an outstanding leadership team! Also a big “thank you” to my colleagues at IG for all their support over the last four years. BMS Group (BMS), the independent specialist insurance and reinsurance broker, today announces the appointment of Charlie Rozes as Group CFO and Executive Director. Based in London, Rozes will report to Nick Cook, BMS Group CEO, and will join in November. Rozes will be taking over from Nick Moss, who will be retiring from the business. Rozes’ appointment is the latest addition to BMS’s C-suite which has seen Emmanuel Clark join as chairman, Chris Brook join as Group Chief Operating Officer and Ali Trauttmansdorff join as Group Chief People Officer in the past year. It also follows an impressive recent period of growth for BMS, which saw the completion of its investment from Eurazeo and 12 acquisitions globally. Nick Cook said: “I am delighted to announce Charlie’s appointment. He has extensive experience leading UK and overseas operations and has successfully driven substantial growth for global and FTSE organisations. His experience will be crucial as BMS looks to continue its momentum, hit its growth ambitions, and further its reputation as the home of an innovative, collaborative and high-performance culture. I would also like to thank Nick Moss for his tremendous contribution to the company over the past five years. Nick has been a driving force behind the incredible growth in BMS and we all wish him well in his retirement.” In the role, Rozes will work closely with Cook and the executive leadership, as he focuses on driving the group’s strategy, organic growth plans and delivering BMS’s ambitious global M&A program. Rozes will also join the BMS Group Holdings board and responsible for BMS’s internal audit, strategic planning, risk management, and will head M&A. Joining from IG Group PLC where he was Group CFO and Executive Director, and served most recently as Acting CEO, Rozes has more than 30 years of industry experience and a track record of driving sustained growth in global FTSE organisations as well as overseeing the integration of organisations through acquisitions. Prior to IG Group, Rozes was Group CFO and Executive Director at Jardine Lloyd Thompson and oversaw its acquisition by Marsh & McLennan. Rozes started his career at PWC, before senior roles at IBM, Bank of America, and Barclays. Rozes added: “It is with great enthusiasm that I join BMS. Nick and his team are exceptional, and this is reflected in the tremendous growth BMS has been able to achieve. Equally, the opportunity to return to the insurance industry means a great deal to me, especially given the opportunity to contribute to BMS at this exciting stage in its growth. I am thrilled to join the team and look forward to working with my new colleagues.”

According to the EIOPA-BoS-23/547 11 March 2024 (UNION-WIDE STRATEGIC SUPERVISORY PRIORITIES 2024-2026), for 2024 EIOPA will focus on 3 points, the second of which is “Risk transfers including the capacity and appropriateness of risk transfers”. In this regard, the document reports: "(Re)insurance undertakings are expected to assess the adequacy of their risk management framework and the compliance with the Solvency II requirements. The latter includes ensuring that the Solvency Capital Requirement (SCR) relief resulting from risk mitigation techniques is commensurate with the risk transfer and properly applying the Prudent Person Principle with respect to the whole portfolio of assets including assets from intragroup reinsurance. National competent authorities will put an additional focus already in 2024 on the supervision of reinsurance arrangements, to mitigate risks impacting the financial robustness of insurance undertakings. EIOPA is also planning on taking supervisory convergence actions in 2024 as regards the treatment of some reinsurance arrangements for solvency purposes". It goes without saying that the quality of any reinsurance structure cannot ignore the quality of the gross data on which the actuarial calculations that define it are based, nor the correctness/repeatability of the reinsurance calculations that determine the result. For many insurance companies and groups this is an excellent opportunity to carefully evaluate whether they can really trust an internally developed semi-automatic system or even manual management of the process. XLayers by C Consulting (Engineering group) is the solution. Visit our website (www.cconsulting.it/en), also available in French, German and Spanish.

Rockford Mutual Insurance Company has announced that it has chosen Sapiens ReinsurancePro to fully automate its reinsurance management process, aiming to maximise efficiency and mitigate costly claims leakage. Sapiens, a leading provider of software solutions for the insurance industry, has an established partnership with Rockford. ReinsurancePro’s advanced automation and transparent platform will allow Rockford to seamlessly conduct auditable processing, manage complex reinsurance transactions, and rapidly respond to new reinsurance offerings. Tiffany Herron, Rockford Mutual’s AVP of Financial Services, commented: “Sapiens’ automation solution gives us full control over our processing, reporting, and auditability, and ensures that we have the tools in place to prevent potential claims leakage. We needed a solution that allowed for ease of use across the company, to make the processing easier for our accounting and claims departments.” Roni Al-Dor, Sapiens President and CEO, added: “We are proud to be Rockford Mutual’s partner of choice for the automation of their reinsurance processes, and to optimise their retention levels by empowering a reinsurance program that’s financially stable and reportable. Our value-added solutions and services are created to empower our customers to grow in a competitive climate.” Read the full story here 👉 https://lnkd.in/eAmxeE2h #InsurtechInsights #InsuranceNews #Partnerships

In a bid to fortify global financial resilience against mounting risks, the Insurance Europe Reinsurance Advisory Board (RAB) has unveiled a comprehensive report championing the significance of an open global reinsurance market. To foster a competitive industry that can continue to protect insurers and expand insurance coverage worldwide, the Insurance Europe (RAB) recommends various trade and regulatory policies. These recommendations include promoting the free flow of affiliated and unaffiliated reinsurance capital and pay-outs to enhance resilience, recognising the specific expertise and global diversification inherent to reinsurance, and endorsing risk-based prudential regulation that acknowledges reinsurance’s benefits. The Insurance Europe RAB, a specialised representative body for the European reinsurance industry, comprises seven major reinsurers — Gen Re, Hannover Re, Lloyd's , Munich Re, PartnerRe, SCOR, and Swiss Re. Insurance Europe provides the secretariat for the board. https://lnkd.in/efZhzfwT #Insurance #Insurtech #Openinsurance #Embeddedinsurance #partnership

Reinsurance is a financial management tool utilized by insurance companies to mitigate risk exposure by transferring parts of their risk portfolio to other entities known as reinsurers. This mechanism allows primary insurers to manage their risk levels more effectively, ensuring they can cover policyholder claims without facing financial instability or insolvency. Reinsurance is a critical element in the global insurance ecosystem, promoting market stability and enhancing the capacity of insurance companies to underwrite new policies. **1. Types of Reinsurance:** - **Proportional Reinsurance (or Treaty Reinsurance):** In this arrangement, the primary insurer and reinsurer agree to share premiums and losses based on a predetermined ratio. It includes quota share and surplus reinsurance, where the reinsurer assumes a portion of every risk written by the insurer within the treaty terms. - **Non-Proportional Reinsurance (or Excess of Loss Reinsurance):** This is designed to protect insurers against unforeseen, catastrophic losses. The reinsurer only pays when the insurer's losses exceed a specified limit. It’s further categorized into per risk, per event (catastrophe), or aggregate excess of loss reinsurance. **2. Functions of Reinsurance:** - **Risk Transfer:** It reduces the liability on individual risks and helps manage the solvency margins required by regulatory authorities. - **Capital Management:** By transferring risk, insurers can efficiently utilize their capital, potentially freeing up resources for investment or underwriting additional policies. - **Stabilization:** It helps in smoothing out the financial performance of insurers by cushioning the impact of large or catastrophic events. - **Capacity Expansion:** Insurers can underwrite policies beyond their direct retention limits, effectively increasing their capacity to take on new risks. **3. Factors Influencing Reinsurance:** - **Market Conditions:** Economic, political, and environmental conditions can significantly impact reinsurance needs and costs. - **Loss Experience:** Historical data on claims and losses is crucial in determining the pricing and structure of reinsurance treaties. - **Regulatory Requirements:** Legal and regulatory frameworks across jurisdictions can dictate the extent and form of reinsurance protection needed. - **Innovation in Insurance Products:** The introduction of new insurance products often requires support from the reinsurance market to share the risk associated with untested policies. **4. Challenges and Considerations:** Managing a reinsurance program involves several challenges, including credit risk (risk that the reinsurer won't fulfill its obligations), pricing complexity, and the intricacies of negotiating reinsurance treaties. Additionally, global events such as natural disasters or economic downturns can dramatically affect the cost and availability of reinsurance. Part # 1

Blue River Financial Group has advised ARMStrong RM, leading provider of cashflow enhancement services to the commercial insurance industry, and former portfolio company of Incline Equity Partners, on the recent acquisition of NEIS, INC. This strategic move further solidifies ARMStrong RM’s commitment to innovation and to diversifying its insurance cash flow enhancement offerings to meet the evolving needs of its valued clients. Read the full press release.  #middlemarket #mergersandacquisitions #investmentbanking #buyside

"PURE explained that despite its positive relationships with reinsurers and niche portfolio of members, it was not immune to the industry-wide rise in reinsurance costs, which increased by over 40% in 2023." Increased claims risks globally are directly impacting the cost of the reinsurance for carriers. Take a look to see what PURE paid out in several large events last year. If you are interested in what PURE can offer you in coverage, please reach out to me to discuss. #Insurance #Claims #pure

Debevoise & Plimpton: “PRA Publishes Consultation Paper CP24/23 on Funded Reinsurance” “In recent years, the Prudential Regulation Authority (“PRA”) has focused extensively on the life reinsurance industry. Consultation paper CP24/23 is the latest in a suite of papers and reviews undertaken by the PRA in this area. CP24/23 outlines the PRA’s proposed expectations in respect of life insurance firms entering into funded reinsurance arrangements as cedants. Funded reinsurance is a type of collateralised quota share reinsurance which transfers all or part of the asset and liability risks of a life insurer’s portfolio of annuities to a third-party reinsurer (commonly an offshore vehicle). The PRA is of the view that there are significant risks arising from the increased use of funded reinsurance arrangements. In particular, it is concerned about excessive concentrated exposure to correlated, credit-focused counterparties. The PRA’s paper is accompanied by a draft supervisory statement (“SS”) outlining the PRA’s expectations in respect of the ongoing risk management of funded reinsurance arrangements, the modelling of the solvency capital requirement (the “SCR”) associated with funded reinsurance arrangements, and how firms should consider the structuring of funded reinsurance arrangements.” https://lnkd.in/e8SNF9Q2 #privateequity #alternativeinvestments #reinsurance

Our Insurance and Reinsurance team contributes to the Lexology In-depth Insurance and Reinsurance Law Edition 12.   Aysel Korkmaz, Görkem Bilgin, Asena Aytuğ Keser and Edanur Atlı are the authors of the Türkiye chapter   Lexology In-Depth: Insurance and Reinsurance Law is an insightful overview of the legal and regulatory frameworks governing the insurance and reinsurance industry in key jurisdictions worldwide. With a focus on recent developments, it analyses the most pressing regulatory challenges for insurers and intermediaries; highlights practical considerations when drafting insurance contracts; examines noteworthy claims processing issues; and much more.   https://lnkd.in/dEB-XqYC