Fitch says brokers’ profits should rise in 2017
Insurance brokers should see a moderate rise in both revenue and earnings in 2017, compared to the first nine months of 2016.
Fitch Ratings forecasts flat or declining premium rates for most commercial lines during 2017 while the reinsurance market will be soft. Therefore, organic growth for brokers will be under pressure and increased revenues may be from expansion of the business.
"Fitch expects brokers will continue to supplement organic revenue growth through selective acquisitions, including diversification efforts in employee benefits and data analytics," said Gretchen Roetzer, Director, Fitch Ratings.
Diversification in product lines and locations are expected to offset lower premium revenues. Cyber insurance is one area singled-out for growth. Customer retention and the stronger US economy will also help bolster revenues.
Marsh & McLennan acquires Presidio Benefits
San Francisco-based employee benefits consulting firm Presidio Benefits Group has been acquired by Marsh & McLennan Agency for an undisclosed sum.
The deal expands Marsh’s employee benefits capabilities in the West region while the Presidio team will gain an enlarged client base while retaining their jobs in the firm’s San Francisco base. Presidio’s Alan Ikeya and Matthew Coan who founded the firm 10-years ago, will also join MMA.
“I welcome Alan, Matt, and the rest of the Presidio team to MMA and look forward to working together to deliver innovative solutions that help address the myriad of risk and benefit challenges facing local businesses,” said Paul Hering, MMA’s Western Region CEO.
Medical liability insurer acquires captive firm
MagMutual Insurance Company has acquired Tift Area Captive Insurance Company from a group of Georgia physicians.
“The acquisition of Tift Area Captive and its physicians further demonstrates MagMutual’s commitment to protecting and supporting physicians in Georgia,” said MagMutual Chairman and CEO Joseph Wilson, MD. “It is also commensurate with our strategy of growth while providing greater value to our PolicyOwners.”
MagMutual is one of the nation’s largest medical professional liability mutual insurers with a 30-year history. The deal was approved by the Tennessee Department of Commerce and Insurance.
Irish insurers plan for Brexit benefit
Two insurance lobby groups in Ireland are merging to maximize the potential for the industry there post-Brexit.
The Dublin International Insurance and Management Association, which represents international insurers, will become part of Insurance Ireland which represents health, life and general lines providers in the nation.
The Irish Times reports that insurers in Ireland are expecting business to increase with some UK-based insurance firms considering a move there. Firms would then retain access to the EU but also free movement between Ireland and the UK under an agreement which pre-dates the EU.
