Best’s Market Segment Report: U.S. Property/Casualty Mutual Insurers Achieve Moderate Surplus Growth Despite Elevated Losses

Kathleen Maloney

RMS Cyber Modelers: Insurers Struggle to Price an Evolving Risk A panel of cyber modeling experts from RMS said insurers have traditionally priced on historical data, but face fresh uncertainty with each new flavor of cyber threat. The panelists spoke with A.M. BestTV at the RMS Exceedance 2018 conference in Miami. September 19, 2018 Full Story

Agent/Broker

• AFL Acquires New Jersey-Based Managing General Agent Zodiac: AFL Insurance Brokers Ltd. said it has acquired a majority stake in Zodiac Insurance Services LLC, a U.S.-based professional, entertainment and event insurance managing general agent, for an undisclosed amount. Full Story

Asia/Pacific

• China Insurance Industry’s Second-Quarter Solvency Margin Ratio Drops 2%: China’s insurance industry solvency margin ratio continued to fall in the second quarter of 2018, according to the China Banking and Insurance Regulatory Commission’s report. Full Story

Captive Market

• Hylant Forms Middle-Market Group Captive Haven Re: Private broker Hylant has formed Haven Re, a group captive intended for middle-market businesses. Full Story

Companies

• Enstar Shelves Plan to Sell Atrium, StarStone Units: Enstar Group Ltd. said it and private equity partner Stone Point Capital LLC have ended their effort to gauge interest from potential buyers for their active underwriting units Atrium Underwriting Group Ltd. and StarStone Insurance Bermuda Ltd. Full Story

Cyber Insurance

• Cyber Panel: Pre- and Post-Event Loss Services Key Elements of Cyber Products: A panel of cyberrisk experts gathered by A.M. BestTV at the Meeting of Reinsurance Officials in Montreal said insurers are using data to create and price cyber products, and that clients care about much more than financial indemnity. Full Story

Health

• North Dakota to Allow Renewals of Short-Term Health Plans for Up to One Year: North Dakota Insurance Commissioner Jon Godfread said health insurers will be able to renew short-term, limited duration health insurance policies for up to one year. Full Story

Life Insurance

• Axa Equitable Life Appoints Chief Risk Officer: Axa Equitable Life has appointed Aaron Sarfatti as chief risk officer. He succeeds Jurgen Schwering, who is leaving the company to pursue opportunities in his native Germany, Axa said in a statement. Full Story

• Prudential Succession Plan Continues With Four More Promotions: Prudential Financial Inc.’s succession plan continues with four more promotions planned when Chief Executive Officer John Strangfeld retires. Employees will assume new posts as chief financial officer, chief investment officer, treasurer and chief operating officer of international businesses. Full Story

Mutuals

• Specialty Media Underwriter Mutual Insurance Names Chief Executive Officer: Joanne Richardson has joined Mutual Insurance Co. Ltd. as chief executive officer. Full Story

NAIC

• NAIC Supports Bill Requiring Federal Representatives to Recognize State System in International Agreements: The National Association of Insurance Commissioners is asking U.S. Senate leadership to pass legislation to ensure the U.S. state-based system of insurance regulation would be recognized as part of any future international insurance agreements. Full Story

Ratings

• A.M. Best Affirms Credit Ratings of SCOR SE and Its Main Operating Subsidiaries: A.M. Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of SCOR SE (SCOR) (France) and its main operating subsidiaries. Concurrently, A.M. Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IR) on SCOR’s outstanding rated instruments. The outlook of these Credit Ratings (ratings) remains stable. Full Story

• A.M. Best Affirms Credit Ratings of Zurich Insurance Group Ltd and its Main Rated Subsidiaries: A.M. Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of the main rated insurance subsidiaries of Zurich Insurance Group Ltd (Switzerland). These companies are collectively referred to as Zurich group. (See below for a detailed list.) At the same time, A.M. Best has affirmed the Long-Term ICR of “a” of the holding company, Zurich Insurance Group Ltd. The outlook of these Credit Ratings (ratings) remains stable. Full Story

• A.M. Best Downgrades Issuer Credit Rating of The Savings Bank Mutual Life Insurance Company of Massachusetts: A.M. Best has downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” from “a+” and affirmed the Financial Strength Rating (FSR) of A (Excellent) of The Savings Bank Mutual Life Insurance Company of Massachusetts (SBLI) (Woburn, MA). The outlook of the Long-Term ICR has been revised to stable from negative, while the outlook of the FSR remains stable. Full Story

• A.M. Best Upgrades Credit Ratings for Raffles Insurance Limited: A.M. Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” from “a-” of Raffles Insurance Limited (Raffles) (Cayman Islands). The outlook of these Credit Ratings (ratings) has been revised to stable from positive. Full Story

United Kingdom

• Randall & Quilter Cites Strategy in First-Half Operating Profit Rise: Citing the effects of its change in strategy in 2017, nonlife runoff investor and capacity provider Randall & Quilter Investment Holdings Ltd. reported a 5.65%% increase in operating profit to £7.8 million (US$10.29 million) in the first half of 2018 from the same period last year. Full Story

• UK Regulator Ends Probe Into Fairness in Life Sector: The U.K. Financial Conduct Authority has concluded its investigation into the fair treatment of long-standing customers of the life insurance sector. Full Story

Workers' Compensation

• NCCI Seeks 2.3% Workers’ Comp Loss Costs Cut for 2019: The National Council on Compensation Insurance is asking Oklahoma insurance regulators to approve an overall decrease of 2.3% in workers’ compensation loss costs for 2019. Full Story

Announcements

• A.M. Best Analysts to Provide Market Insights, Discuss Innovation and Financial Strength at Annual Bermuda Briefing: A.M. Best will host its annual Insurance Market Briefing at the Hamilton Princess & Beach Club in Hamilton, Bermuda, on Tuesday, Oct. 16, 2018, at which its leading analysts will deliver market insights, highlight specific developments in the sectors and will discuss innovation and its impact on financial strength. Full Story

• A.M. Best to Sponsor 17th Annual Insurance Professional of the Year Award Ceremony: A.M. Best is a sponsor of the 17th Annual Insurance Professional of the Year Award Ceremony hosted by the Insurance Library Association of Boston on Oct. 5, 2018. Full Story