Daily Willis Review-October 27, 2017

Natural catastrophes will lead to losses worldwide: MS Amlin
The recent natural catastrophe losses will lead to rate increases globally, not just on the loss-affected accounts, according to Bob Mellor, Head of International Property at MS Amlin.

Mr. Mellor told Intelligent Insurer at the Baden-Baden reinsurance meeting that it is the global nature of the reinsurance industry that will ensure that this rise in rates will be the case.

“It happens that the losses are concentrated in the U.S. but it’s the same capacity that supports our clients wherever they are in the world, so with the losses against that capital we expect those prices to increase,” Mr. Mellor said.

He went on to state that he anticipates that alternative capital will also be delivering on claims, especially the ILS funds based in the retro market, and then reassessing their position based on pricing.

“There is certainly a lot of capacity available but the key point is getting a return against that capacity.

“Whether that capacity will come back into the market for reloading depends on the pricing environment. I don’t think they will be enthusiastic if the returns are single-digit,” he said.

SCOR records loss of $310 million for Q3
SCOR has reported overall losses of €267 million ($310 million) for the third quarter and a net income of €25 million ($29 million) for the first nine months of 2017.

Hurricanes Harvey, Irma and Maria, and the Mexico earthquakes, resulted in a combined loss of €598 million ($695.7 million) pre-tax and net of retrocession.

Denis Kessler, Chairman and Chief Executive Officer, said: “SCOR once again demonstrates its capacity to absorb shocks.

“The natural catastrophe events that occurred in the third quarter of 2017 are a serious wake-up call for the reinsurance industry and the Group is in a very good position to benefit from the new market environment.”​​​​​​​​​

Nexus acquires Credit Risk Solutions
Managing general agent Nexus Group has acquired specialist trade credit broker Credit Risk Solutions (CRS).

The transaction allows CRS to accelerate its growth via the acquisition of strategic targets in the regional broking market, the company said.

CRS will remain an open market broker, independent of the underwriting operations of Nexus and continues to be led by its founding shareholders Mike Clark, Hayden Tennant and Lisa Humphries.

Sue Morley, who recently retired from her role as Client Services Director of Nexus CIFS, will join the CRS board as a Non-Executive Director, post-acquisition.

Colin Thompson, Founder and Executive Chairman of Nexus, said: “We are excited to work with Mike, Hayden, Lisa and the whole CRS team to continue this success story in a market where we have a lot of expertise, and accelerate this growth via a buy and build strategy of regional Trade Credit brokers as well as add a UK regional footprint to our existing UK and international infrastructure.”

Mike Clark, Co-Founder of CRS, said: “This is an exciting opportunity for the CRS team. Nexus has identified credit insurance as a product area with considerable potential.

“We share that vision and, with their support and investment, are absolutely committed to growing this market.”

Brit strengthens cyber and technology team
Brit has appointed Courtney Mocio as Vice-President of the cyber and technology unit at Brit Global Specialty USA.

Based in New York, Ms Mocio will be responsible for developing Brit’s Cyber and Technology portfolio in the U.S. and will report to Michael Carr, Senior VP for Cyber.

She joins from Nationwide Insurance Company, where she spent the last five years writing a book of cyber, technology and professional business.

Nick Davies, President of Brit Americas, said: “We are delighted to welcome Courtney to Brit as we look to build and strengthen our Cyber & Technology offering in the U.S.

“Courtney brings with her both excellent technical knowledge and a number of strong relationships within the broking community, which will be invaluable as we grow our existing distribution network.”