Round-up of the weekly news and developments from the global insurance market with stories from Sompo, Argo Global, Tiger Risk and more.
Sompo buys Endurance for $6.3bn
Sompo has finalised a deal with Endurance to by the Bermudian reinsurer for $6.3bn. Sompo, one of the big three Japanese insurers, will buy out Endurance at $93 per share which translates to 1.36x the trailing book value. As part of the deal it is confirmed that John Charman, Endurance CEO, will stay on for a minimum of five years. The deal is expected to be completed in early 2017, at which point Charman will become the Chairman and CEO of Sompo’s international business. In a statement, President and CEO of Sompo, Kengo Sakurada said that the deal was a big step in the company’s strategy to transform overseas and that they were actively looking to build a globally diversified business portfolio to secure continued growth. The deal only has to be agreed by Endurances shareholders following board approval earlier in the week.
Jose A. Hernandez hired by Argo Group as head of international businesses
Argo Group International Holdings Ltd. has announced the appointment of Jose A. Hernandez to head the company’s international businesses, including all insurance and reinsurance operations outside of the US. Argo Chief Executive Officer, Mark E. Watson III said, “Argo Group has arrived at a critical point in its growth as a global specialty insurance business. We’ve established a solid Bermuda platform, a thriving syndicate at Lloyd’s, and gained local presence in key European, South American, Middle Eastern and Asian markets. We now have everything we need to drive international business with confidence, and Jose has the talent to help us do just that.” With 3 decades industry experience, Hernandez began his career serving at a number of insurers in the US. He then spent over 20 years with AIG in several senior leadership positions in the consumer and commercial segments. He brings expertise in management, field operations, claims, strategic planning distribution and underwriting. Over the course of his career, Hernandez has held country, regional and global roles in Mexico, Asia and New York respectively.
TigerRisk UK CEO to step down
John Goldsmith, the chairman and CEO of TigerRisk Partners UK, is to step down from the position on 31 December. Hugo Crawley has been named as Goldsmith’s replacement, subject to FCA approval. TigerRisk CEO, Rod Fox said, “I am truly saddened to announce John Goldsmith’s retirement. Starting from an empty office on Leadenhall St, John was able to build a highly successful and respected UK presence in just five years. Thanks to his leadership, extraordinary ability to recognise talent and stellar reputation, TigerRisk has become an integral part of the Lloyd’s, UK and European markets. He will always be part of the Tiger family.” Goldsmith’s retirement marks the end of a 50-years career which started in 1966 as a reinsurance broker trainee at Alexander Howden & Company. Goldsmith served in a number of leadership roles, including non-executive director on the boards of Cathedral Underwriting Agency, Aegis London and Montpelier Re Underwriting Agency. Fox contacted Goldsmith in 2011 regarding the establishment of a UK presence for TigerRisk. Goldsmith said, "Opening in London was a typically bold TigerRisk move and I just couldn’t pass it up. It is now five years from that first day and I can say wholeheartedly that being chairman and CEO of TigerRisk UK has been the highlight of my 50-year career.”
Hamilton Insurance Group appoints ex-AIG executive Maag
Hamilton Insurance Group Ltd. has announced the appointment of former American International Group executive, Seraina Maag, to oversee its operation in the US. Maag will report to Brian Duperreault, Hamilton chief executive officer. She will replace Bob Deutsch, the chief strategy officer who adopted the additional role of acting US CEO following the departure of Conan Ward last year. Hamilton has grown in the US and abroad as it looks to underwrite more efficiently than its competitors by utilising big data and technology. Duperreault formed a partnership this year with AIG and Two Sigma to develop services to small businesses. Hamilton appointed Maag to develop the rest of property-casualty operations in the US. Duperreault said, “We can turn our attention to the rest of the US P&C market as we work with Seraina to build out Hamilton’s US platform”. Maag joined AIG in 2013 rising to oversee regional operations and was a member of the firm’s management team. She is a director at Credit Suisse Group AG and previously ran North America property & casualty at XL Group Plc.
Kyle Burnett joins XL Catlin after departing Everest
Kyle Burnett has joined XL Catlin after his departure from Everest National. He most recently served as executive director at Everest’s US insurance platform having joined Everest in April from Partner Re where he was a senior underwriter within property. It has been reported that Burnett will oversee XL Catlin’s property team in New York. Everest has seen a number of senior departures this year with many following Tracey Upton’s move to Rockhill in September. The vacancies left by these senior departures have been filled quickly by Everest with personnel brought in from CV Starr, Marsh and CNA. Everest’s E&S property division will be led by Chris Curtin after former colleague Erik Nikodem hired him from Lexington.
Enterprise-wide cyber coverage unveiled by Aon
Aon Risk Solutions has launched Aon Cyber Enterprise Solution, a property, casualty and Internet of Things policy that provides comprehensive and integrated enterprise-wide coverage against cyber risk. Coverage includes cyber for property, products liability, supply chain risk, technology platforms and information and physical assets, in addition to defences against privacy and security liability. Aon Cyber Enterprise Solution is being sold through the Aon network worldwide. Aon Cyber Enterprise Solution addresses emerging areas of cyber risk and related regulation including a comprehensive limit approach of up to $400 million in capacity per policy. The policy covers, property damage due to a network security breach, products liability coverage to address Internet of Things exposures, business interruption and extra expense coverage arising out of a systems failure. Aon has worked with markets in London, the US, Europe and Bermuda, to bolster the Aon Cyber Enterprise Solution policy form and approach.