In this week's news will talk about how Climate events and litigation costs drive insurance rate increases, COVU Acquires CIII Insurance Services, and much more…
Cigna reports $1.3 billion quarterly profit and lifts 2025 forecast
Cigna Group on Friday reported a $1.3 billion profit for the first quarter of 2025, a sharp turnaround from a year-earlier loss, as the health insurer benefited from strong performance in its Evernorth division and began to step away from costly Medicare Advantage operations.
The Bloomfield, Conn.-based company said earnings totaled $4.85 per share on a net income basis, compared with a loss of $277 million, or 97 cents per share, in the same period last year. Adjusted earnings reached $6.74 per share, surpassing analysts’ expectations.
Cigna also raised its full-year forecast, projecting consolidated adjusted income from operations of at least $29.60 per share, a 10-cent increase from previous guidance. Revenue rose 14% to $65.5 billion, driven largely by growth in Cigna’s Evernorth Health Services unit, which includes Express Scripts, one of the nation’s largest pharmacy benefit managers.
The Bloomfield, Conn.-based company said earnings totaled $4.85 per share on a net income basis, compared with a loss of $277 million, or 97 cents per share, in the same period last year. Adjusted earnings reached $6.74 per share, surpassing analysts’ expectations.
Cigna also raised its full-year forecast, projecting consolidated adjusted income from operations of at least $29.60 per share, a 10-cent increase from previous guidance. Revenue rose 14% to $65.5 billion, driven largely by growth in Cigna’s Evernorth Health Services unit, which includes Express Scripts, one of the nation’s largest pharmacy benefit managers.
Climate events and litigation costs drive insurance rate increases
The Baldwin Group’s Market Pulse report for Q1 2025 highlights mounting challenges in the US commercial insurance market. Most coverage lines saw premium increases, driven by early-year natural disasters, legal cost escalation, and the resurgence of tariffs on imported goods.
Wildfires reverse rate moderation
After signs of stabilization in 2024, the commercial property market experienced renewed pressure following major wildfire events. In January, the Palisades and Eaton Fires in Los Angeles County destroyed more than 16,000 structures, quickly depleting reinsurers’ catastrophe budgets for the year. Though 2024 reinsurance renewals were broadly favorable, the early surge in catastrophic events triggered a reversal in pricing trends.
Other significant weather events—including blizzards across the Central Plains, spring wildfires, and flooding in the Appalachians—further affected regional underwriting. The report also warns that rising material costs from newly imposed tariffs are likely to increase rebuilding expenses, potentially creating coverage gaps if insureds fail to adjust policy values.
Wildfires reverse rate moderation
After signs of stabilization in 2024, the commercial property market experienced renewed pressure following major wildfire events. In January, the Palisades and Eaton Fires in Los Angeles County destroyed more than 16,000 structures, quickly depleting reinsurers’ catastrophe budgets for the year. Though 2024 reinsurance renewals were broadly favorable, the early surge in catastrophic events triggered a reversal in pricing trends.
Other significant weather events—including blizzards across the Central Plains, spring wildfires, and flooding in the Appalachians—further affected regional underwriting. The report also warns that rising material costs from newly imposed tariffs are likely to increase rebuilding expenses, potentially creating coverage gaps if insureds fail to adjust policy values.
COVU Acquires CIII Insurance Services, Expands AI-Native Platform to Support Agency Evolution
COVU, Inc., the leader in AI-native services for insurance agencies, today announced the successful acquisition of CIII Insurance Services, a boutique California agency known for its premium clientele, white-glove service, and longstanding carrier partnerships. This marks the first in a series of strategic acquisitions as COVU expands its platform to offer more agencies a seamless path to evolve, partner, or exit.
This move underscores COVU’s commitment to enabling independent agencies to thrive in an AI-powered future—not to replace them, but to empower them.
This acquisition represents an expansion of COVU’s AI-native platform. COVU’s core business remains rooted in delivering AI-powered customer servicing, operations, and support that enable agencies to serve their clients more efficiently and effectively.
By integrating select, strategic agencies like CIII, COVU ensures that every agency has a choice: modernize and scale with COVU’s technology and staff, or exit knowing their customers will be supported with excellence.
This move underscores COVU’s commitment to enabling independent agencies to thrive in an AI-powered future—not to replace them, but to empower them.
This acquisition represents an expansion of COVU’s AI-native platform. COVU’s core business remains rooted in delivering AI-powered customer servicing, operations, and support that enable agencies to serve their clients more efficiently and effectively.
By integrating select, strategic agencies like CIII, COVU ensures that every agency has a choice: modernize and scale with COVU’s technology and staff, or exit knowing their customers will be supported with excellence.
Automobile insurance has held the top spot in the US
Automobile insurance continues to dominate the US property and casualty insurance market, after 10 years of holding the highest market share across all lines of business.
In 2024, this market share sat at 41.6%, peaking at 43.4% in 2018. This was followed by property insurance at 35.7% and liability insurance at 19.5%. Crop and agricultural insurance and specialty lines only held 1.8% and 1.7%, respectively.
Most notably, total private passenger auto insurance has the largest amount of direct premiums written reported as of March 3, 2025, at $344 billion, which is about 35% of all written premiums.
Automobile insurance commands the US insurance market due to its legal necessity, scale of vehicle ownership, high claim volume, regular renewals, and strategic bundling potential. It’s often the most visible and well-marketed line of insurance, with a consistent, built-in demand from virtually every adult household.
In 2024, this market share sat at 41.6%, peaking at 43.4% in 2018. This was followed by property insurance at 35.7% and liability insurance at 19.5%. Crop and agricultural insurance and specialty lines only held 1.8% and 1.7%, respectively.
Most notably, total private passenger auto insurance has the largest amount of direct premiums written reported as of March 3, 2025, at $344 billion, which is about 35% of all written premiums.
Automobile insurance commands the US insurance market due to its legal necessity, scale of vehicle ownership, high claim volume, regular renewals, and strategic bundling potential. It’s often the most visible and well-marketed line of insurance, with a consistent, built-in demand from virtually every adult household.
Insured Losses Could Hit $145B in 2025
Global insured losses from natural catastrophes hit US$137 billion in 2024, following the 5%-7% annual growth rate that has been the norm in recent years, according to Swiss Re analysis.
If this trend continues, global insured losses will approach US$145 billion in 2025, mainly driven by secondary perils such as severe convective storms (SCS), floods and wildfires, said the Swiss Re sigma report titled “Natural catastrophes: insured losses on trend to USD 145 billion in 2025.”
While loss severity for nat cats is rising globally, North America accounted for almost 80% of global insured losses in 2024, due to the region’s exposure to severe thunderstorms, hurricanes, floods, wildfires, and earthquakes, the report said.
If this trend continues, global insured losses will approach US$145 billion in 2025, mainly driven by secondary perils such as severe convective storms (SCS), floods and wildfires, said the Swiss Re sigma report titled “Natural catastrophes: insured losses on trend to USD 145 billion in 2025.”
While loss severity for nat cats is rising globally, North America accounted for almost 80% of global insured losses in 2024, due to the region’s exposure to severe thunderstorms, hurricanes, floods, wildfires, and earthquakes, the report said.
