|Daily Willis Review | 3 May 2018|
|Swiss Re expands Africa operations|
|Swiss Re’s reinsurance business unit has received an approved license to upscale its property and casualty (P&C) business in South Africa.|
The company’s subsidiary, Swiss Re Life and Health Africa, will be expanded to become a composite entity that can service both life and health as well as P&C business.
The new entity, which will be renamed Swiss Re Africa, will be led by Thys Nieuwoudt and will be based in Cape Town.
According to the release, the new business completes Swiss Re’s ambition to re-domicile its Southern African P&C business onto the continent.
Jean-Jacques Henchoz, Chief Executive Officer Swiss Re Reinsurance EMEA, said: “Our expansion in South Africa lays the basis for Swiss Re to upscale its market strategy in Africa.
“By shifting the center of gravity of our African business back to Africa, we are sending a clear signal that we believe insurance in Africa has a strong future.”
|Cyber markets present both opportunities and risks: PwC|
|A PwC report has found that while the cyber insurance and reinsurance market is rapidly growing, there remains significant risks and downsides such as limitations in historical data and uncertainties in accumulation risk, Reinsurance News has reported.|
The current U.S. cyber insurance and reinsurance market is estimated at $2.5-3.5 billion and is expected to increase by $2 billion per year over the next three years.
PwC also found that over 75% of companies are currently transferring risk to reinsurers to manage the growth of their cyber exposures.
However, the survey has also reported that the average respondent had access to just 7 years of data for incidents like ransomware, malware, data breach and phishing.
Companies are also most concerned about cyber-related business interruption (CBI) because of its potentially systemic impact.
PwC believes there will be an inevitable market-turning event that will separate carriers that have sufficient risk management, underwriting processes and capital in place from those that do not.
|Validus reports net loss of $4.1 million for Q1 2018|
|Validus Holdings has reported a net loss of $4.1 million for the first quarter of 2018 compared to a net income of $94.6 million in the same period of 2017.|
Gross written premiums were $1,832.5 million for Q1 2018, compared to $1,190.9 million for Q1 2017, an increase of 53.9%.
The company’s combined ratio increased from 83.2% for the first quarter of 2017 to 90.9% for the same period in 2018.
The total managed investment return from the company’s investment portfolio was a loss of $2.8 million for Q1 2018, compared to $52.8 million profit for Q1 2017.
The company also incurred transaction expenses of $7.8 million in relation to its merger with American International Group, which is expected to close in mid-2018.
|LSM launches intellectual property cover|
|Liberty Specialty Markets has developed intellectual property contractual liability insurance to prevent contract negotiations between businesses stalling because of concerns relating to intellectual property (IP).|
The new product is based on the company’s existing IP insurance but has been streamlined to speed up the application and underwriting process.
It will cover in-licensing and out-licensing for both the sale and purchase of the right to use a product or service.
The coverage will be underwritten by the IP team based in London and will be available to clients globally.
Underwriter Camilla Walker said: “This product is relevant to any contract in which intellectual property is addressed, across a wide variety of sectors including engineering, technology, packaging and software development.”
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