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12th March 2023

Newslink Global Insurance Trends-Editor's Weekly Highlights

This week, Swiss Re successfully closed a multi-year stop-loss transaction with funding led by J.P. Morgan-the deal provides Swiss Re with $700m in underwriting protection and builds upon an innovative hybrid transaction concluded with J.P. Morgan in April 2022, which was the first of its kind to combine bank financing and insurance-linked securities(ILS). Lloyd's reported preliminary 2022 financials-Gross Written Premium(GWP) increased by over 19% to more than £46bn FY 2021:£39.2bn) reflecting a combination of growth from the strong USD(8%) direct price increases(8%) and organic growth(3%)-the underwriting performance improved more than expected by 1.6 percentage points to deliver a combined ratio of 91.9. Other financials included those from Admiral, Aviva, Legal&General, and Royal London; Grenlight Capital Re, Hannover Re, and Hiscox. Against the backdrop of wide-reaching global political and economic uncertainty, the credit and political risk insurance market(CPRI) has access to more capacity than ever before, with notional maximum capacity increasing across the board, demonstrating its resilience and depth, according to the "Credit and Political Risk Insurance Capacity Survey and Market Update", released by WTW.
The International Association of Insurance Association(IAIS) is developing the Insurance Capital Standard(ICS) as a consolidated group-wide capital standard for Internationally Active Insurance Groups(IAIGs)-the ICS will provide a common language for supervisory discussions of group solvency of IAIGs and enhance global convergence among group capital standards. Insurance Europe has responded to a discussion paper by the European Insurance and Occupational Pensions Authority(EIOPA) on methodologies for cyber stress testing for insurers, and also replied to a discussion paper by EIOPA on the prudential treatment of sustainability risks. The National Association of Insurers of Ukraine joined Insurance Europe as an associate member.
The Placing Platform Limited(PPL) Next Gen platform went live. Creators of a newly formed US insurer that serves as a fronting company for programme business is using technology platforms provided by VIPR Solutions to ensure that its operations are well-structured and efficient from the outset-founded in 2009, VIPR supports the automation of insurance back-office processes such as bordereaux management and processing and coverholder management, as well as regulatory compliance.
Ariel Re secured $270m of new capital to support 2023 growth, whilst Asta, the leading third-party managing agent at Lloyd’s, announced that it is strengthening its global presence by establishing a service company in Singapore. New London-based specialty MGA Nirvana launched with ambitious growth plans following a management buyout from Castel. Bermuda reinsurance brokerage ReFlex Solutions launched, and SiriusPoint-backed MGA Arcadian Risk Capital set sights on significant growth following extension of their partnership. Gallagher Re deepened delegated authority specialism with the acquisition of London Market binder broker Bay Risk. There were senior appointments at Connect Underwriting and The Microinsurance Network(MiN).


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