In this week's news will talk about how Hub International expands in Pennsylvania, Insurance carrier transactions in first half hits 15-year low, and much more…
ISU rebrands under Steadfast ownership
What used to be known as ISU Insurance Agency Network will now trade as ISU Steadfast.
The rebranding brings together the deep-rooted local presence of ISU and the international expertise of Steadfast Group, following the acquisition of the US-based network by the Australia-headquartered enterprise in October 2023.
By merging the two entities’ strengths, ISU Steadfast aims to offer a stronger platform for its members. Founded in 1979, it has steadily grown into one of the biggest independent insurance agency networks in the country.
Samantha Hollman, international chief executive at Steadfast, explained that the timing of the rebrand follows key developments within the organization post-deal, including the formation of an advisory board and Dan McCarthy’s transition from chief operating officer to CEO.
The rebranding brings together the deep-rooted local presence of ISU and the international expertise of Steadfast Group, following the acquisition of the US-based network by the Australia-headquartered enterprise in October 2023.
By merging the two entities’ strengths, ISU Steadfast aims to offer a stronger platform for its members. Founded in 1979, it has steadily grown into one of the biggest independent insurance agency networks in the country.
Samantha Hollman, international chief executive at Steadfast, explained that the timing of the rebrand follows key developments within the organization post-deal, including the formation of an advisory board and Dan McCarthy’s transition from chief operating officer to CEO.
Hub International expands in Pennsylvania
Hub International Limited has snapped up the assets of Flexible Benefits Plans (FBP) for an undisclosed sum.
Headquartered in Valley Forge, Pennsylvania, FBP provides brokers with advanced services, resources, and access to insurance carriers. This allows clients to enhance the effectiveness of employee benefit programs.
With over two decades of expertise, FBP focuses on areas such as human resources technology, strategic planning, carrier access and support, benefits administration, and renewal management.
Thomas Olejar, FBP’s president and chief executive, along with the entire FBP team, will integrate with Hub’s Greater Philadelphia operations.
Headquartered in Valley Forge, Pennsylvania, FBP provides brokers with advanced services, resources, and access to insurance carriers. This allows clients to enhance the effectiveness of employee benefit programs.
With over two decades of expertise, FBP focuses on areas such as human resources technology, strategic planning, carrier access and support, benefits administration, and renewal management.
Thomas Olejar, FBP’s president and chief executive, along with the entire FBP team, will integrate with Hub’s Greater Philadelphia operations.
Insurance carrier transactions in first half hits 15-year low
Mergers and acquisitions (M&A) activity among insurance carriers in the first half of 2024 reached its lowest level in 15 years for first-half figures, with just 103 deals completed, marking a 40% drop from the 171 transactions seen in the same period in 2023, according to a Clyde & Co report.
The significant slowdown has continued a trend from 2023, driven by inflation, interest rate hikes, and rising integration costs. The first half of this year set a new low in H1 activity – the previous record being 162 deals in the first half of 2013.
Despite six billion-dollar deals being closed – three in the US, two in Asia, and one in Europe – overall transaction numbers have dipped sharply, with cross-border transactions mostly concentrated in Europe, the Middle East, and Asia
The significant slowdown has continued a trend from 2023, driven by inflation, interest rate hikes, and rising integration costs. The first half of this year set a new low in H1 activity – the previous record being 162 deals in the first half of 2013.
Despite six billion-dollar deals being closed – three in the US, two in Asia, and one in Europe – overall transaction numbers have dipped sharply, with cross-border transactions mostly concentrated in Europe, the Middle East, and Asia
AIG no longer in "rehabilitation phase"
American International Group (AIG) is no longer in the “rehabilitation phase” and is focusing on growth, capitalizing on market opportunities while maintaining underwriting discipline, according to chairman and chief executive Peter Zaffino.
Zaffino delivered the remarks at a fireside chat during the 2024 KBW Insurance Conference on Wednesday (September 4).
In its earnings report for the quarter ended June 30, 2024, the global insurer revealed a loss of $4.7 billion primarily due to its completed deconsolidation of CoreBridge Financial, a process that began in 2020.
Following that phase, Zaffino is optimistic about prospects for AIG, including its generative artificial intelligence (gen AI) strategy and market opportunities in its excess and surplus (E&S) lines.
Zaffino delivered the remarks at a fireside chat during the 2024 KBW Insurance Conference on Wednesday (September 4).
In its earnings report for the quarter ended June 30, 2024, the global insurer revealed a loss of $4.7 billion primarily due to its completed deconsolidation of CoreBridge Financial, a process that began in 2020.
Following that phase, Zaffino is optimistic about prospects for AIG, including its generative artificial intelligence (gen AI) strategy and market opportunities in its excess and surplus (E&S) lines.
Reinsurers to maintain strict terms amid rising secondary peril risks
Fitch Ratings indicated that global reinsurers are likely to maintain stringent terms and conditions to limit their exposure to secondary peril events, as climate change contributes to increasingly significant and volatile weather-related losses.
According to Fitch’s report, the tightening of terms and conditions for natural catastrophe coverage is viewed as a structural improvement that enhances reinsurers' risk profiles and long-term profitability. Fitch does not expect these changes to be reversed quickly, even as market conditions evolve.
As a result, primary insurers are retaining more risk from secondary peril events, although reinsurers continue to provide substantial coverage for the most severe events.
According to Fitch’s report, the tightening of terms and conditions for natural catastrophe coverage is viewed as a structural improvement that enhances reinsurers' risk profiles and long-term profitability. Fitch does not expect these changes to be reversed quickly, even as market conditions evolve.
As a result, primary insurers are retaining more risk from secondary peril events, although reinsurers continue to provide substantial coverage for the most severe events.
