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Weekly News Roundup, June 28

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In this week's news will talk about how Liberty Mutual launches new insurance solution for midsize companies, AIG sells global personal travel insurance business to Zurich, and much more…

What's happening in the US commercial insurance landscape?

The U.S. commercial insurance sector is seeing increased competition among insurers, leading to the creation of more stable and predictable renewal outcomes for policyholders, according to the latest Lockton Market Update.

Published quarterly by Lockton, the largest independent insurance brokerage, the report analyzes the commercial property and casualty market trends in the US. The June edition offers insights into the economic and geopolitical shifts affecting the insurance sector, the significant transformation in the property insurance landscape after five challenging years, and the state of marine insurance following the significant infrastructure incident at Baltimore’s Francis Scott Key Bridge.

Mark Moitoso, Lockton’s risk practices Leader, commented on the trends: “Three months ago, we predicted a shift towards a more competitive property and casualty insurance marketplace. We are now witnessing these changes, benefiting the buyers of commercial insurance.”

Liberty Mutual launches new insurance solution for midsize companies

Liberty Mutual Insurance has introduced Liberty WorldWise, a new insurance product tailored for mid-size companies grappling with international operations. According to a press release, Liberty WorldWise offers customized solutions through advanced controlled master programs, particularly for businesses with foreign employees or overseas operations.

Marc Orloff, president of Liberty Mutual’s Middle Market division, highlighted the product’s aim to meet the specific needs of American mid-size firms with global footprints. He explained: “Agents and brokers can work with our dedicated underwriters to solve the specific challenges facing an account, from robust business travel coverage to sophisticated controlled master programs with local policies meeting county-specific regulations.”

Markel Group to acquire majority stake in Valor Environmental

Markel Group Inc. has entered into a definitive agreement to acquire a majority interest in Valor Environmental and its related operating companies. The transaction, which is subject to customary closing conditions, is expected to close in the second quarter of 2024. Additional terms of the deal were not disclosed.

Founded in 2003, Valor Environmental specializes in providing erosion control and related services to commercial development sites and homebuilders across the United States. The company started with a single street sweeper purchased on a second mortgage and has since grown to a team of over 700 employees serving more than 2,000 customers.

Markel Group’s venture into new industries began nearly two decades ago, leveraging the strength of its insurance business. With the acquisition of Valor, Markel Ventures now encompasses 20 businesses.

AIG sells global personal travel insurance business to Zurich

American International Group (AIG) is selling its global personal travel insurance business to Zurich Insurance Group for $600 million in cash plus additional earn-out consideration.

On what’s included in the sale, AIG noted: “The agreement includes the Travel Guard business and its servicing capabilities, excluding Japan and our AIG joint venture arrangement in India. Travel coverages offered through AIG’s accident & health business are also excluded from this agreement.”

Expected to close by the end of 2024, the deal will see Zurich combine the acquired operations with its travel insurance provider Cover-More Group.
Commenting on the agreement, AIG chair and chief executive Peter Zaffino said: “Today’s announcement is another important strategic step in positioning AIG for the future.

SiriusPoint, MGU forge partnership

Reinsurer SiriusPoint Ltd and Euclid Security Programs, a boutique managing general underwriter (MGU) specializing in security industry risks, have forged a new strategic partnership.

According to the announcement, SiriusPoint will become the sole carrier partner for Euclid Security’s liability program, which covers security services, alarm services, and fire suppression protection. It is said that through the program, Euclid Security will underwrite commercial general liability and excess liability risks within the US market.

Head of North America insurance for SiriusPoint Patrick Charles, expressed his full confidence in the deal, knowing its partner’s solid track record