Enstar ups James River stake, enters $75mn legacy deal
James River has entered into a multi-pronged agreement with Enstar, which includes the legacy carrier increasing its position in the insurer and an additional reinsurance cover deal.
The companies signed an adverse development cover (ADC) reinsurance agreement directly above James River’s existing E&S ADC, with a limit of $75mn and no co-participation.
Under the terms of the legacy deal, executed today, James River purchased the $75mn of ADC limit for a net pre-tax premium of $52.8mn from Cavello Bay. There are no sublimits in the coverage provided.
James River swings to $52mn Q3 U/W loss on $57mn E&S reserve charge
James River’s Q3 combined ratio climbed nearly 42 points to 135.5%, as the Bermudian reported a $57mn adverse development within its E&S division for business not subject to retroactive reinsurance accounting for recent legacy deals, up from a $7.8mn charge a year ago.
Meanwhile, the carrier’s specialty admitted segment reported a $0.2mn favorable development in Q3.
The Q3 reserve charge within James River’s surplus line portfolio was expected as this publication revealed last month that the insurer was set to take another significant charge as part of efforts to bookend its year-long strategic review.
Insurance industry sources positive on Trump’s second term
Donald Trump’s reelection has been met with optimism from insurance industry lobbyists and spokespeople who see his second term as likely ushering in favorable tax and fiscal regulatory policy.
While US P&C insurers are largely regulated at the state level, industry sources said Trump is likely to reduce what is seen as the federal government’s creep into the space through issues such as data collection demands related to climate change.
The industry has long resisted those efforts, claiming they are duplicative of state efforts and a waste of time and resources.
Sidecars are the alternative capital vehicle of the month: Paragon CEO
Paragon Insurance CEO Ron Ganiats said sidecars are the capital vehicle en vogue, with an increasing number of wholesale operations with MGA platforms delving into sidecars and supporting this type of strategy.
In an interview with Insurance Insider US, the CEO said he believes it’s “very hard” to support a sidecar structure unless the business has real volume and real scale.
That said, the executive noted that these types of businesses will often accelerate the launch of a business, and risk-bearing capital would like to see more of these strategies.
Ex-Alesco pair launch pro liability agency Doe & Emuss
Former Alesco brokers David Doe and Paul Emuss have launched professional liability Lloyd’s coverholder and broker Doe & Emuss.
The business will place and manage professional liability business, as well as underwriting professional liability on paper provided by eight to 10 Lloyd’s syndicates.
Doe & Emuss will offer a full suite of professional liability underwriting services via wholesale brokers and agents in London, the US and Canada.
Bishop Street acquires Ethos transactional liability unit
MGA platform Bishop Street Underwriters has acquired Ethos Specialty’s transactional liability unit from Ascot for an undisclosed sum.
The announcement confirms this publication’s earlier reporting, detailing late-stage discussions between the two around a deal.
As Insurance Insider reported at the time, while Ascot currently supports Ethos Transactional’s underwriting, it is not expected to provide capacity in the long term.
Firefighters partly tame California’s Mountain Fire, now 36% contained
Firefighters made progress in their fight against California’s Mountain Fire over the weekend, bringing the blaze to 36% containment, even as winds threatened to regain strength this week.
The blaze in Ventura County northeast of Los Angeles had burned 20,630 acres and destroyed 174 structures as of Monday morning.
The National Weather Service, however, is forecasting potentially high winds for the area starting Tuesday and continuing into Wednesday, with gusts up to 40 mph predicted.
Florida NFIP claims from Debby, Helene and Milton top 72,000
A total of $2.1bn in FEMA assistance has been approved for Florida’s hurricane recovery for Debby, Helene and Milton in the month following Milton’s landfall, according to a FEMA statement.
Assistance has included $931.7mn in awards directly to those affected, along with $1.18bn in grants have been approved to support local and state governments in recovery efforts.
More than 72,000 National Flood Insurance Program (NFIP) policyholders in Florida who had flood damage from the three storms have filed claims, with approximately $894mn having been paid out so far.
SiriusPoint promotes Shapella to group CUO
SiriusPoint has promoted Anthony Shapella to group chief underwriting officer, replacing David Govrin, who will now focus exclusively on the role of group president and global reinsurance CEO.
The executive joined SiriusPoint in September 2023 as deputy CUO, having previously worked at AIG as head of portfolio analytics, general insurance.
Govrin had served a dual role as group president and CUO, and global profit and loss (P&L) lead for reinsurance since February 2021.
Brown & Brown appoints Gallagher as controller
Brown & Brown announced it has appointed Paul Gallagher, CPA, as its controller.
In this role, the executive will provide strategic leadership for all financial operations, including SEC and financial reporting, controls and compliance, acquisitions and strategic decision-making.
Gallagher joins Brown & Brown from Deloitte, where he has spent more than 25 years serving premier, global clients in the public accounting space.
Ascot names Roy as US COO
Ascot has appointed Matt Roy as US COO, effective November 18. He will continue to be based in the company’s Iselin, New Jersey office, reporting to Elizabeth Johnson, Ascot group COO.
The executive will be tasked with aligning underwriting, operations, and technology across the US, ensuring the use of common platforms and procedures.
He joined Ascot in 2020 as SVP, head of E&S Casualty. He has since overseen the team’s expansion to 25 risk professionals and the launch of four products within E&S Casualty.