August 2019/1

The three Sunshine State carriers that reported earnings last week suffered operating losses in the quarter.

A third of the portfolio is targeted for remediation, as a shift towards third-party reinsurance purchasing is signalled.

The results showed a mixed bag for (re)insurer use of third-party capital.

Swiss Re’s medmal exit comes after ProAssurance’s warning last quarter of companies being “swept away by the tide”.

Pro forma analysis shows the combined gross written premium of Syndicates 2012 and 1955 to be £666mn.

With honourable exceptions, big generalist businesses with highly corporate cultures are bad acquirers of smaller, more specialised outfits with entrepreneurial mindsets.

Further details of the cyber placement show the risk is fairly evenly spread across the US, Bermuda and London markets.