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Weekly News Roundup, May 31

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In this week's news will talk about Insurers warned against risks posed by space storms, QBE, DUAL team up in North America, and much more…

Miller announces acquisition of reinsurance broker

Specialist reinsurance broker Miller has announced its acquisition of Bruzon Correduría de Seguros y Reaseguros S.A. and Bruzon Services S.A. (Bruzon), a commercial insurance and reinsurance broker based in Madrid.

The transaction is part of the Miller’s continued expansion of its specialty boutique model. Miller CEO James Hands expressed his enthusiasm for the deal.

“This is an exciting time for Miller as we continue to expand our presence across the UK, Europe and Asia. Bruzon has an outstanding reputation in Spain and shares our vision to create the broker of choice for clients with complex risk-transfer needs and for talented brokers to pursue their passion,” said Hands.

QBE, DUAL team up in North America

QBE North America has partnered with DUAL North America division Catalytic Risk Managers & Insurance Agency to launch the Builders Risk program.

Available on a non-admitted basis, the new program offers construction all-risk coverage for builders' risk projects. Meanwhile, claims will be managed by Catalytic Claims Services, another division of DUAL North America.

Lifting the lid on the partnership, QBE North America commercial programs head James Haggerty said: “We’re excited to partner with the experienced underwriting team at Catalytic to provide customers with a builders risk solution that protects and meets the unique coverage needs of their construction projects.

“We look forward to building our relationship with Catalytic and DUAL North America as we expand our builders' risk portfolio in the marketplace.”

Insurers warned against risks posed by space storms

Insurers are being warned that a significant space storm – which has the capacity to disrupt radio communications, power grids, spacecraft, and satellite navigation – could potentially result in greater losses for the industry than catastrophic events like 2005’s Hurricane Katrina.

A new Bloomberg Intelligence (BI) report pointed out that the space storm from May 10 to 12 may be a precursor to more severe events as the current solar cycle is expected to peak in 2025.

On May 10, the National Oceanic and Atmospheric Administration’s space weather prediction center in Colorado issued a warning about a large sunspot cluster that had generated multiple strong solar flares. Several of the flares, accompanied by coronal mass ejections (CMEs), were headed towards Earth.

CMEs, which are bursts of plasma and magnetic fields from the sun’s corona, can trigger magnetic storms on Earth, possibly disrupting communications, power grids, navigation systems, and satellite operations.

Palomar Holdings boosts reinsurance for earthquake line

Palomar Holdings has announced the successful completion of certain reinsurance programs effective June 1, 2024, and raised its full-year 2024 adjusted net income guidance.

The company secured approximately $400 million in additional coverage to support the growth of its earthquake insurance line. Palomar’s reinsurance coverage now totals $3.06 billion for earthquake events, $735 million for Hawaii hurricane events, and $117.5 million for all continental US hurricane events.

This reinsurance program provides sufficient capacity for growth in these business lines and exceeds Palomar’s 1:250-year peak zone probable maximum loss.

Patriot Growth Insurance Services expands in New York

Rapidly expanding insurance services firm Patriot Growth Insurance Services has enhanced its footprint in New York by partnering with full-service insurance agency SDL+GHS, which operates out of New York City and Hudson.

Formed in 2018, SDL+GHS emerged from the merger of SDL Brokerage and Group Health Solutions. SDL Brokerage began specializing in commercial insurance in the 1960s, while its offshoot employee benefits division Group Health Solutions came to life in 1996. The two combined six years ago to form a comprehensive business.

Rob Bujan, one of the three principals at SDL+GHS, remarked: “As we continue on this journey of growth and partnerships, there is no better pathway than to join efforts with Patriot. Our culture, values, and commitment to continuous growth align perfectly with Patriot and the larger vision of their leadership.”

The merged firms now offer services ranging from property and casualty insurance, employee benefits, wellness programs, commercial and personal lines, self-funding, to benefits administration, all supported by advanced technologies.