HIIG

HIIG reveals LPT deal and $100mn rights issue

Stephen Way-led Houston International Insurance Group (HIIG) has entered into a commitment letter for a loss portfolio transfer (LPT) transaction covering reserves primarily related to pre-2018 policy years and is also planning a rights issue.

The rating agency paradox: rewarding those who cut prices…

It is a long-established paradox that the industry’s de facto global regulators – rating agencies AM Best and S&P – use premiums written rather than net exposures relative to capital as a measure of financial strength. The outcome of this approach is that if insurers cut rates in a soft market then the capital models suggest they are over-capitalised while if they increase rates and even cut net exposures this can perversely put pressure on their capital adequacy.

AM Best put HIIG on negative outlook despite “very strong” balance sheet

Despite a balance sheet described by AM Best as “very strong” and a return to GAAP profitability in 2017-18, the rating agency placed its A- (excellent) financial strength rating on HIIG’s operating companies to a negative outlook late last week.

HIIG completes $20mn subordinated debt offering

US specialty insurer Houston International Insurance Group (HIIG) has completed a $20mn subordinated debt offering as it looks to add flexibility to its long-term capital structure ahead of a potential IPO next year.

HIIG in $50mn+ fundraise ahead of slated 2020 IPO

Despite a separate sale process being undertaken by its largest shareholder, US insurer HIIG is poised to undertake an equity and subordinated debt fundraise because of the rapid hardening of segments of the specialty markets.

Westaim Q1 profits leap as it prepares to exit Stephen Way’s HIIG

Canadian holding company Westaim Corp pointed to the “improved pricing” in the US specialty markets enjoyed by HIIG, the insurer that is expected to shortly have a new backer.

$400mn HIIG sale speculation boosts Westaim shares

Speculation that the long-running sale process for US insurance group HIIG is close to completion boosted the shares in its largest shareholder Westaim last week.