Arch Capital
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Kirsten Valder has been with Arch for 10 years and before then was a partner at Kennedys Law.
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Will Arch’s new acquisition be another success story, or more trouble than it’s worth?
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The deal includes an LPT of ~$2bn loss reserves for 2016-2023 years with Arch Re.
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Doppstadt and Paglia have served on the board for 14 and 10 years, respectively.
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Joe Morrello joined the firm in 2022 after serving as E&S property head at Beazley.
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Vanessa Hardy Pickering and Lester Pun have also been promoted.
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CEO Grandisson described Arch as "bullish" in its prospects for 2024.
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Given a number of complexities, the landing zone on a take-out price is small.
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Earlier in the process, sources linked Sentry Insurance with a bid for the E&S insurer.
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With mixed results in the reinsurance space, the specialty pivot remains a "show-me" story.
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Axis’s reserve cleanup removes longstanding overhang and narrows the credibility gap.
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Participating in the funding round were Caffeinated Capital, Altai Ventures, Zigg Capital, 8VC, Buckley Ventures, Habitat Partners and Arch Capital.
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The deal follows this publication’s report that the Bank of America-run sale process of Castel was drawing robust interest.
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Ratings could be lowered by one notch depending on regulatory restrictions on cash flow from Bermuda operating entities to non-operating holding companies, the ratings agency said.
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The consideration is expected to be around $140mn plus a $25mn dividend.
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The five-person underwriting team will be led by Ian Lewis, who has been named head of intangible assets.
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The executive noted “increasing evidence [that] casualty rates widely underpriced and oversold during the last soft market need to increase.”
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The Inside P&C news team runs you through the earnings results for the day.
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The executive will oversee all aspects of managing direct insurance operations at the business.
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Patin will oversee Somers’ overall investment strategy and direct its investment managers.
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In addition, Arch Re global CUO Pierre Jal moved to Zurich to take over as Europe CUO, while president Matthew Dragonetti expanded his scope to lead client-centric initiatives.
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A 15% tax is in the works, but appears manageable, and with (re)insurance being Bermuda’s largest industry, the territory will take steps to keep companies where they are.
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Differences in reinsurer strategies and risk management lead to differentiation in stock multiples and long-term value creation.
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CFO Morin said Arch was able to deploy more capacity, resulting in a significant premium growth for property lines.
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Sources suggest that, based on a multiple of 15x-17x Ebitda, the business could be valued at £300mn-£375mn.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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The executive, based in Morristown, New Jersey, will be responsible for the company’s US reinsurance operations.
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Under terms of the partnership, Arch Capital has acquired a minority stake in the Bermuda-based MGA.
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Inside P&C’s news team runs you through the key highlights of the week.
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Reinsurers have mostly grown since before the Covid crisis, but the type and timing of growth affects value creation,
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Early private deals have provided far more stability in this year’s renewal than last.
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Everest Re’s $1.5bn capital raise could be part of a continued pivot, or an early indicator of a shifting marketplace.
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The pair will be responsible for managing underwriting activity across their respective lines.
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Inside P&C’s news team runs you through the key highlights of the week.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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Arch plans to “take advantage” of these favorable market conditions, and may expand PML to 10%-12% of shareholders’ equity by July 1, from the current 8.1%.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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The company also reported top-line growth of 25.8%, with gross premiums written during the quarter totaling $4.8bn.
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The Bermudian increased its cat load to $100mn-$120mn in Q1 2023, compared to around $80mn a quarter for 2022.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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Pre-tax current accident year net cat losses for the insurance and reinsurance segments totaled $34.6mn for the quarter, nearly half of the $72.3mn figure posted in Q4 2021.
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The executive will report to Brian First, president of Arch Insurance North America, as a member of the executive leadership team in the region.
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Enstar is conducting due diligence around taking on the rest of the Argo back book.
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Brian First was previously CUO of programs, property and specialty at Arch.
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Across the P&C industry, sentiment expressed on Q3 conference calls has improved since pandemic lows.
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In his new position, the executive will report to Arch’s head of cyber and technology E&O, Marcus Breese.
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Axis’ pivot away from property reinsurance comes just as the sector reaches one of the biggest inflection points.
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Discussion on Q3 earnings calls focused heavily on the supply-demand imbalance in cat capacity, as executives discussed how they would navigate a challenging January renewal.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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In a Q3 earnings call today, Arch CEO Marc Grandisson also told investors that events like Hurricane Ian “almost always result in opportunities”.
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The cat and expense developments offset favorable reserve developments during the quarter, as the Bermudian released $178mn.
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Arch’s estimate is commensurate with a range of expected insured losses across the global P&C industry of $50bn to $60bn.
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Ratings agencies suggest that carriers must do better on controlling volatility – but diverging risk appetites give the lie to the idea that the industry is walking away from risk.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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Arch Capital CEO Marc Grandisson told analysts on an investor call today that the industry has started incorporating higher inflation into models.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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The Bermudian also reported margin improvements and top line acceleration despite a decline in mortgage gross written premium.
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The sector was hit by a rough first half of 2022, with more to come in the second half of the year.
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Insurers could face pressure if interest rate and recession fears intersect with worsening loss cost trends.
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CEO Marc Grandisson said most of Arch’s exposure to the war comes via Lloyd's aviation, marine war businesses.
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