Opinion

The firm’s strategy to consolidate trading relationships faces fundamental, cyclical and company-specific challenges.

Larger, better performing, more diversified and more E&S-heavy insurers will be better able to prosper in a more volatile environment.

Long-term, structural challenges in the class have now been laid bare following the contraction in the treaty market.

The bank is running a process to seek a minority stake sale of its broking arm, and is in talks with Stone Point and CD&R.

2022 marked a reversal from last year’s unprecedented levels of global investment in InsurTech as the macroeconomic scenario flipped and investors put lossmaking companies under a magnifying glass.

Several structural factors, including the pricing cycle, make insurers more insulated from US activist states. 

Consistent underwriting performance, the completion of the exit from life, acquisitions, organic growth and succession planning will all be focuses.

Private equity is cautious around even the hard market opportunity in cat.

The intention to potentially sell Attune illustrates Coalition’s desire to refocus its story on cyber – where valuations have held best in harsh market conditions for InsurTechs.

Normalized cat returns of 25%-30% do not seem to be persuading reinsurers to dial up risk.

Tighter debt markets and a weakening growth outlook is now putting pressure on private broker multiples.

Universal P&C, the FHCF, Axis, Berkshire and Nephila are among the firms that will be in focus as the loss develops.