Capital

RenRe misses on earnings despite big swing to $200mn UW profit

RenaissanceRe reported underwriting income of $200.2mn for the first quarter compared to a $35.8mn deficit in the prior-year period, but missed with operating earnings per share of $3.50 that were below Wall Street consensus forecasts of $4.76, according to MarketWatch.

Aon: Reinsurance capital up 3.8% in 2021; ILS uncertainty to be “short-lived”

Aon has estimated global reinsurance capital increased 3.8 percent in 2021 to $675bn, as traditional capital hit a new peak of $579bn and alternative capital grew to $96bn, with the broker also expecting the current ILS market uncertainty resulting from geopolitical and currency volatility “to be relatively short-lived”.

Financing provider 1970 Group unveils Insurance Collateral Funding solution

Specialised risk financing provider 1970 Group has pioneered a solution called Insurance Collateral Funding to help release trapped liquidity on corporations’ balance sheets, this publication can reveal.

RenRe launches $475mn casualty and specialty QS vehicle Fontana

RenaissanceRe has launched a new sidecar-type vehicle for longer-tail risks called Fontana Holdings, supported by $325mn of third-party capital from institutional investors and an additional $150mn from the Bermudian reinsurer.

BRP increases credit facility ahead of Westwood deal close

BRP Group subsidiary Baldwin Risk Partners LLC has amended the committed line under its senior revolving credit facility from $465mn to $600mn to “provide a broad margin of safety” ahead of the closing of the acquisition of Westwood Insurance Agency.

Former GC Securities head Potter joins Lloyd’s as special advisor

Former Guy Carpenter ILS specialist Des Potter has been appointed as special advisor to Lloyd’s CFO and COO Burkhard Keese.

Aon board approves new $7.5bn share repurchase program

Aon’s board has given the green light to an additional $7.5bn in share repurchases with the broking giant now authorized to repurchase some $9.2bn of stock when including its existing program.

Topsail Re infuses $50mn of additional equity

Topsail Re has inserted $50mn in capital sourced from existing investors as the closely held reinsurer sees growth opportunities that it expects will take its portfolio of controlled premium past $500mn in 2022, The Insurer can reveal.

RenRe board approves $500mn share repurchase program

RenaissanceRe’s board of directors has signed off on the renewal of the reinsurer’s share repurchase program with the Bermudian business’ total current authorization now at $500mn.

BP Marsh targets fresh wave of 2022 specialty start-ups

Specialist UK insurance investor BP Marsh & Partners has an £18mn ($25mn) cash pile set aside for early-stage investment into niche, entrepreneurial intermediaries and MGAs in 2022.

Transverse in $48mn debt and equity raise to fuel growth

Hybrid fronting carrier platform Transverse Insurance Group has raised $48mn of additional capital from debt and equity sources to support its growth trajectory in 2022 and beyond after building its portfolio to greater than $400mn in annualized premium, The Insurer can reveal.

Lighthouse to recap Southeast homeowners carrier after $65mn fundraise

Lighthouse Management has raised $65mn of senior debt in a private placement, with part of the funds used to recapitalize its Lighthouse Property Insurance Corporation (LPIC) carrier affiliate for 2022 growth opportunities after surplus was hit by cat losses including Hurricane Ida this year.

Keystone Agency Partners ups credit facility by $160mn to drive “aggressive growth”

Bain Capital-backed Keystone Agency Partners (KAP) has amended and upsized its existing senior credit facility by $160mn with an expanded syndicate of lenders led by Madison Capital Funding.

A holistic approach to capital

A study by Aon and the Lloyd’s Market Association has this week highlighted the varying approaches towards capital management taken among CFOs at managing agents.

Definity raises C$2.1bn in IPO and private placements

The share price of Definity closed up on its offering price on its first day of trading, following the Canadian insurer raising a total of C$2.1bn ($1.67bn) through an IPO and private placements with Swiss Re Investments Holding Company and Healthcare of Ontario Pension Plan (HOOPP).

RenRe renews $500mn share buyback program authorisation

The board of directors of RenaissanceRe Holdings has approved a renewal of the Bermudian reinsurer’s authorized share repurchase program that brings the total authorisation up to $500mn, as well as announcing a quarterly dividend of $0.36 per common share.

Maison not alone as several Louisiana homeowners carriers face day of reckoning

News this week that FedNat will exit all of its non-Florida homeowners portfolio and put Louisiana-focused carrier subsidiary Maison into run-off came as a number of other carriers are assessing their options in the Ida-struck state with at least two having their Demotech ratings withdrawn.

Insurity eyes rapid growth with new strategic private equity investment

Insurity is embarking on a renewed expansion drive having received a strategic growth investment from private equity firm TA Associates that the insurance systems software firm said will help drive the delivery of its configurable, cloud-native, analytical platform. Founded in 1985, Hartford, Connecticut-based Insurity’s customers include 15 of the top 25 property and casualty carriers in the US as well as seven of the nation’s top 10 P&C-focused MGAs. TA had previously invested in Insurity back in 2014, but sold its stake to GI Partners in 2019. Now, with the new strategic growth investment, TA Associates and GI Partners will support the acceleration of Insurity’s growth. Insurity said TA’s new investment “is a testament to the company’s significant momentum and future direction”. “We have always seen Insurity as a company with outstanding growth potential,” said TA’s Harry Taylor and Amit Jain, managing director and senior vice president respectively. “They have built a comprehensive portfolio of offerings from underwriting to advanced data and analytics capabilities, along with a deep commitment to customer success. We are excited to partner with GI Partners and Insurity’s world-class team to help accelerate growth and expansion.” Insurity currently has over 250 cloud-based customers, a 97 percent customer retention rate, and over 50 go-lives in the past year, the company said, with its staff count now north of 1,500. “In the past two years, we have built leading cloud-based and data-driven products, expanded our total addressable market, acquired eight leading companies, and onboarded 16 system integrator partners. Insurity is proud to work with over 500 customers,” said Chris Lafond, Insurity’s CEO. “We are pleased to partner with both TA and our existing investor, GI, as they collectively provide us with greater access to resources to best serve the P&C insurance industry,” Lafond added. GI Partners’ Travis Pearson and Sendil Rajendran, managing director and co-head of private equity, and director respectively, said their company’s continued investment reflects its commitment to the software firm’s growth. “We look forward to collaborating with TA,” Pearson and Rajendran, both of whom sit on Insurity’s board, said. “In 2019, we invested in Insurity due to its differentiated cloud platform, relentless focus on customer success, and a leadership team that is committed to driving innovation in P&C insurance software. “We have now seen Insurity launch new cloud-based software products, seamlessly deliver and implement them across the policy lifecycle, and enable P&C insurance carriers to quickly capitalize on new and emerging opportunities. “Insurity’s products, strategy, and team make it well-positioned for further acceleration,” Pearson and Rajendran added. Lazard is serving as Insurity’s exclusive financial advisor, while Kirkland & Ellis LLP is providing legal counsel to the software company. Goodwin Procter LLP is providing legal counsel to TA.

Ontario Teachers’ is backer of new Ledger casualty ILS fund

Canadian pension fund Ontario Teachers’ Pension Plan is the backer of the new ILS fund from Ledger Investing which focuses on investing in casualty insurance risk, The Insurer understands.

The Hartford beats on earnings and reveals $634mn capital return

The Hartford reported a third quarter earnings beat that included a 6.5 points improvement in its commercial lines underlying combined ratio as it also disclosed it repurchased $511mn of its shares and paid out $123mn in common dividends during the period.

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