|Daily Willis Review | 11 May 2018|
|U.S. cyber market reaches $2.0 billion: Fitch Ratings|
|According to Fitch Ratings, the U.S. stand-alone and package cyber premiums combined grew by 54% year-on-year to $2.0 billion in 2017, Insurance Journal has reported.|
During 2017, stand-alone cyber direct written premiums grew by 7% to $986 million, according to aggregate statutory data for the property and casualty (P&C) industry.
The industry statutory direct loss ratio for stand-alone cyber insurance fell from 43% in 2016 to35% in 2017, which is indicative of strong underlying profitability in the cyber market, Fitch said.
Analysts said that the growth in package-related cyber premiums reflects expanding insurer efforts to specifically include cyber coverage and endorsements in policies that lack explicit terms or premiums related to cyber risk.
However, the ratings agency notes that the growth does also demonstrate the changes in how companies report cyber premiums in the statutory supplement.
James Auden, Managing Director, said: “Profitable results in a new market are attracting competition to the cyber space.
“Roughly 75 distinct insurers wrote over $1 million each of annual cyber premiums last year alone.”
|Hannover Re launches joint growth initiative with HDI Global|
|Under the Talanx umbrella, Hannover Re and HDI Global are launching a joint initiative in global growth and high-margin specialty business.|
The new company, HDI Global Specialty, will write agency and specialty business in a broad range of business lines.
As part of the initiative, HDI Global SE will acquire the majority of the shares in International Insurance Company of Hannover SE (Inter Hannover), a subsidiary company of Hannover Re, for €100 million ($119 million).
Following completion of the transaction, HDI Global will retain 50.2% of the new company and Hannover Re 49.8%.
HDI Global Specialty will be launched with a premium volume of more than €1 billion ($1.19 billion).
Torsten Leue, Chairman of the Board of Management of Talanx, said: “This step strengthens our roots as an industrial insurer.
“The joint venture enables us to bring together the cross-business segment expertise we have in the area of specialty in one place within the Group and concentrate our know-how.”
|Third Point Re reports $26 million loss for Q1 2018|
|Third Point Re has reported a net loss of $26 million for the first quarter of 2018, compared to a net income of $104.2 million for the same period in 2017.|
Gross written premiums increased to $378.4 million in Q1 2018, compared to $146.4 million in Q1 2017.
The company’s combined ratio decreased in the first quarter of 2018 to 104.5% from 106.3% in Q1 2017.
Third Point Re posted a net investment income loss of $2.2 million for Q1 2018, compared to a $128.5 million profit for the same period in 2017.
Rob Bredahl, President and Chief Executive Officer, said: “During the first quarter, we generated premiums written of $378 million, an increase of 159% compared to the prior year’s quarter.”
|Boost Insurance secures dedicated reinsurance capacity|
|Boost Insurance has announced it has obtained a dedicated reinsurance facility to power its business-to-business insurtech development platform.|
The facility will be led by Nephila alongside Markel Digital, the insurtech group within Markel Corporation, and RenaissanceRe Holdings.
According to the release, Boost will manage a program supporting multiple insurtech startups entering the property and casualty industry and will support all personal and commercial lines of business.
Alex Maffeo, Chief Executive Officer and Founder of Boost Insurance, said: “This is a landmark day for Boost because it makes us a truly one-stop shop for insurtech startups looking to bring their ideas from concept to reality.”
Barney Schauble, Nephila Managing Partner, said: “Boost offers Nephila and the rest of the reinsurance facility members exposure to the best insurtech startups and new insurance products with the confidence that underwriting and compliance is being closely monitored by an experienced team.”
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