Softer commercial lines prices coming says insurer
There will be some softer rates for some commercial lines according to SNL Financial. The firm’s analysis shows that it will be a slow but steady shift over the next five years and notes that underwriting profits will decline: “The projections anticipate increasing pressure on underwriting results in liability lines, including other liability, product liability and workers compensation, as premium growth rates slow.” The analytics company reports that although margins may be squeezed, volume should increase due to expected growth in the economy. “All told, the average annual commercial lines combined ratio projected for the five-year period from 2015 through 2019 of 96.5% compares favorably to both the historical five- and 10-year averages of 100.1% and 99.3%, respectively” the report states.
Japanese insurance eyes Symetra
American life insurer Symetra Financial is a potential target for Japanese firm Sumitomo Life according to reports. Reuters says that the firms are in talks for a $3.1 billion deal and that Symetra has been considering selling itself in recent months. Any deal is likely to be some way off according to a person familiar with the matter. Other Japan-US deals have been announced already this year with Meiji Yasuda Life Insurance agreeing the purchase of StanCorp for $5 billion and Dai-ichi Life Insurance completing its acquisition of Protective Life for $5.6 billion.
UK auto insurer reports increased PI claims
A major UK insurer reports that personal injury claims for motor accidents are on the increase again. Esure says that its half-year profits have been hit due to the increased cost of road accident claims; underwriting profit fell by more than 80 per cent in the first half of 2015. Claims for injuries such as whiplash had been easing in recent years but are now escalating again.
Half of Nigerian insurers are seeking merger partners
Insurance firms in Nigeria are keen to merge with foreign partners as a lack of liquidity is stifling their growth. AllAfrica.com reports that around 50 per cent of the country’s insurers are exploring merging or being acquired in order to survive. Public confidence in the sector is waning as some firms lack the capital to cover claims. The boss of insurer NICON says that new capital investment and a change in ownership structure would benefit the insurance industry in the country and across the African continent.
