week commencing 05/09/21:

Luther Towers is in full “back to school” mode with pencils and eyes sharp for spotting trends in the insurance market. So, to start the new term, here’s the first round-up of September’s news.

Lloyd’s profits

Lloyd’s of London has posted a strong set of results for H1 2021 with a pre-tax profit of £1.43bn and a combined ratio of 92.2%. CEO John Neal said he was encouraged by the market’s performance. External-link. [Insurance Insider]

Zurich lands lower flight emissions

Zurich has said that it will reduce the number of flights its employees take in the fight against climate change. The insurer is aiming to cut flight-related emissions to 70% below pre-pandemic levels. External-link. [Financial Times]

Latest ‘unicorn’ gets motoring

Marshmallow, the digital motor insurer, has become the first British ‘unicorn’ to be founded by black entrepreneurs. The start-up, founded by twins Oliver and Alexander Kent-Braham, has been valued at $1.25bn. External-link. [Reuters]

No ‘gorging’ at Lloyd’s

Patrick Tiernan, Lloyd’s chief of markets, has stressed the need for managing agents to submit ‘credible’ business plans for 2022. Tiernan said that plans based on ‘gorging’ on rate increases may not be acceptable. External-link. [Insurance Insider]

Bleak winter storms picture

Re/insurers’ catastrophe budgets are under pressure this year due to a series of winter storms in the US, rating agency AM Best has said in a new report. Related losses for the insurance industry for Q1 2021 are at $15bn–$20bn. External-link. [Reinsurance News]

Ida losses to rise

Losses from Hurricane Ida are now predicted to be in the region of $30 billion–$40 billion, says Goldman Sachs. Uncertainties remain where losses will fall because of both wind and water damage. RMS pegged losses at closer to $35bn. External-link. [Artemis]

Climate risk drives property insurance costs higher

The cost of property insurance will rise by $183bn because of climate risks, Swiss Re has said. By 2040, the global property insurance market is now predicted be worth around $1.3 trillion. External-link. [Financial Times]

Tysers’ toppy pricing

Hopes of selling broker Tysers for upwards of £800m have been thwarted. Tysers’ owner, equity house Odyssey, is now understood to be resigned to a valuation closer to £500m. External-link. [Insurance Insider]

Cyber market hardening

While some cyber re/insurers are having second thoughts about their exposures, the hardening market is tempting insightful cyber underwriters to reach for the pen. External-link. [Insurance Day]

Ascot’s Brooks on Lloyd’s and emerging risks

In a new video, Ascot’s CEO Andrew Brooks has praised the Lloyd’s market for doing a ‘great job’ in addressing emerging risks such as climate change. External-link. [The Insurer]

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