Generali reveals acquisition plans

Insurance Business America | May 08, 2019

Smaller Central and Eastern European insurance companies that are facing difficulties are possible acquisition targets for Italian giant Generali. As outlined in the multinational insurer’s previously announced growth acceleration plan, one key focus is Europe where Generali is the third largest among its peers. Now group chief executive Philippe Donnet has pointed to small- and medium-sized firms contending with regulatory woes and business diversification challenges as potential prospects in Generali’s bid to reinforce its regional presence. “We have capital and cash for acquisitions,” Reuters quoted Donnet as saying on May 07, the day Generali held its annual general meeting, “we will look at opportunities in a very selective way to increase earnings per share and create value for shareholders.” The CEO said earnings from the asset management business must grow as well. Meanwhile, in a release following its ordinary and extraordinary shareholders’ meeting (GM), Generali cited the approval of its financial statements for 2018, which closed with a net profit of €1.5 billion. In addition, a dividend of €0.90 per share will be distributed to shareholders.

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INSURANCE TECHNOLOGY

New ATRI Research Evaluates Motor Carrier Strategies for Responding to Rising Insurance Costs

The American Transportation Research Institute | February 18, 2022

The American Transportation Research Institute (ATRI) today released a new report analyzing trucking industry impacts from the rising costs of insurance. This analysis, a top priority of ATRI's Research Advisory Committee, utilized detailed financial and insurance data from dozens of motor carriers and commercial insurers. The report assesses immediate and longer-term impacts that rising insurance costs have on carrier financial conditions, safety technology investments and crash outcomes as well as strategies used by carriers to manage escalating insurance costs. The study found that carrier strategies included decreasing insurance coverage levels, raising deductibles and/or Self-Insurance Retention (SIR) levels, and decreasing investments in other cost centers. In spite of this increased liability exposure, out-of-pocket incident costs and carrier crash involvement remained stable or decreased among a majority of respondents. Despite reductions in insurance coverage, rising deductibles and improved safety, almost all motor carriers experienced substantial increases in insurance costs from 2018 to 2020. Premiums increased across all fleet sizes and sectors, with small fleets paying more than three times as much as very large fleets on a per-mile basis. One-third of respondents reported cutting wages or bonuses due to rising insurance costs, and 22 percent cut investments in equipment and technology – potentially creating future safety and driver shortage concerns. However, in the short-term, crash data confirms that carriers that raised deductibles or reduced insurance coverage were generally incentivized to reduce crashes in the subsequent year. Finally, the research describes a process for calculating the "Total Cost of Risk" in order to evaluate the full scale and impact of rising insurance costs on a carrier's long-term safety and financial viability, including safety investments in drivers, programs and technologies. "ATRI's study corroborates the Triple-I's research on rising insurance costs and social inflation – that increased litigation and other factors dramatically raise insurers' claim payouts, External factors that go well beyond carrier safety force commercial trucking insurance costs to increase, which then requires carriers to redesign their business strategies. The higher premiums ultimately tend to be passed along to consumers in the form of higher prices for goods and services." -Dale Porfilio, Chief Insurance Officer of the Insurance Information Institute.

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INSURANCE TECHNOLOGY

Relation Insurance Services, Inc. Acquires the Assets of Dixon Insurance Services, LLC

Relation Insurance | April 04, 2022

Relation Insurance Services, Inc. (“Relation”), one of the largest and fastest-growing national insurance agencies, announced today it acquired the assets of Arkansas-based Dixon Insurance Services, LLC (“Dixon”). Terms of the transaction were not disclosed. Dixon Insurance Services, LLC (“Dixon”) is a multi-line P&C agency with a heavy focus on commercial lines within the farm and agriculture industry. Dixon is headquartered in Lake City, AR. The Company will fold into Relation’s Central Region and will report up through Mark Kochner. We are proud to welcome the entire Dixon team to Relation and are excited about expanding our presence in Arkansas with them, Dixon brings expertise in the agriculture industry, and we look forward to serving their customers and growing our presence throughout" Tim Hall, Executive Vice President and Head of Mergers and Acquisitions for Relation. About Relation Insurance Services, Inc. Relation Insurance Services is an insurance brokerage that offers superior risk-management and benefits-consulting services through its family of brands across the United States. It is ranked by Insurance Journal within the top 35 largest agencies in the country by revenue and has approximately 1,200 employees across more than 125 locations nationwide. Relation is a privately held corporation backed by Aquiline Capital Partners, a private equity firm based in New York and London investing in businesses globally across financial services and technology.

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COMPLIANCE

Brightway Insurance Announces Majority Investment From GrowthCurve Capital To Accelerate Growth

GrowthCurve Capital | December 18, 2021

Brightway Insurance, a leading personal lines focused insurance franchisor, announced today the completion of a majority investment from GrowthCurve Capital to accelerate the company's growth trajectory. The partnership with GrowthCurve will enable Brightway to continue its national expansion strategy and invest in its technology platform to further enhance its strong value proposition to customers, franchisees and carrier partners. "On behalf of my brother David and I, we are thrilled to take the next step in our journey and partner with GrowthCurve Capital, Our goal has always been to ensure the company – and everyone associated with it – reaches its potential. We strongly believe that GrowthCurve is the right partner for Brightway to create a Win, Win, Win for franchisees, customers and team members, and take the business to the next level given the firm's unique model of combining functional expertise with deep investment and industry experience." -Michael Miller, co-founder of Brightway Insurance. Brothers David and Michael Miller invented the "you sell, we service" model in the insurance agency space and began franchising the concept as Brightway Insurance in 2008. Today, Brightway is the most-recognized insurance franchise system and one of the largest personal lines insurance agencies in the U.S. With more than 331 franchises in 29 states, the company manages nearly $900 million of annualized written premiums. GrowthCurve Capital is a unique, control-oriented, private equity firm focused on building world-class businesses by leveraging data, analytics and machine learning, combined with a comprehensive approach to human capital, to accelerate growth and drive value creation. Under the new partnership, the Millers will continue to hold significant minority ownership of the company. Michael Miller will join David Miller on the board of directors, and together they will work closely with GrowthCurve in setting the strategic vision for Brightway to accelerate the company's growth. Effective immediately, Mark Cantin, GrowthCurve's lead operating executive in insurance distribution, becomes the new president and CEO of Brightway Insurance. Cantin had been working closely with GrowthCurve over the last several months to identify high growth insurance distribution businesses that ultimately resulted in this partnership. An industry veteran, Cantin brings more than 30 years of experience in both insurance distribution and underwriting to the position. Prior to joining GrowthCurve, Cantin was a member of the executive committee and president of field operations at QBE North America, a division of QBE Insurance Group, one of the 20 largest global insurance and reinsurance companies. Prior to joining QBE, Cantin was chief marketing officer at USI Insurance, one of the largest and fastest growing domestic brokers. "We have been very impressed with what David, Michael and the Brightway team have built. The company pioneered the franchisor model in the insurance space and has generated attractive outcomes for its franchisees, customers and carrier partners, We seek to accelerate the company's growth trajectory by leveraging the company's rich data assets and our expertise in AI, data enablement and digital transformation to introduce new solutions and capabilities to our franchisees and customers and to scale the platform nationally." -Sumit Rajpal, founder and CEO, GrowthCurve Capital. About Brightway Insurance Brightway Insurance is a national property/casualty insurance distribution company with nearly $900 million in annualized written premium, making it one of the largest personal lines agencies in the U.S. Brightway's focus is on producing Win, Win, Win outcomes for consumers by offering customized insurance solutions and for people wishing to sell insurance by providing business opportunities that span from single agent to multi-unit enterprises. Regardless of the path taken, Brightway provides the support necessary to consistently outsell other insurance agents. About GrowthCurve Capital GrowthCurve Capital is a private equity firm focused on building world-class businesses by leveraging data, analytics, and machine learning, combined with a comprehensive approach to human capital, to accelerate growth and drive value creation. Founded by Sumit Rajpal, former global co-head of the Goldman Sachs Merchant Banking Division, the firm focuses on control-oriented private equity investments primarily across the financial and information services, healthcare, and technology sectors.

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CORE INSURANCE

Kuvare Insurance Services Launches Third-Party Asset Management Business

Kuvare | February 08, 2022

Kuvare Insurance Services (KIS), a boutique asset manager that oversees approximately $19 billion in assets for various insurance operating companies owned by or affiliated with Kuvare US Holdings (Kuvare), today announced the launch of its third-party asset management business. “Insurance investors continue to be motivated to search for yield against a backdrop that remains challenging. KIS has constructed bespoke private credit solutions in-house to augment Kuvare’s core fixed income assets, originating approximately $5 billion[1] in primarily investment grade private credit at attractive book yields vs. publicly-traded comparables,” -Brian Roelke, President and Chief Investment Officer KIS now plans to extend its experience across private asset-backed and structured credit, private corporates, and commercial mortgage debt to non-affiliated insurance clients. In conjunction with the launch, Roelke has recently added three key members to his executive leadership team. Ana Morales joins KIS as Managing Director, Head of Business Development and Product Strategy. She will be responsible for leading client relationships and advancing the growth of the KIS third-party asset management platform. Morales, who has 17 years of industry experience, joins from Goldman Sachs where she was a Managing Director, Senior Relationship Manager in the firm’s insurance asset management business. Prior to that, Morales built and led BlackRock’s exchange-traded funds insurance distribution team. Joseph Orofino joins as Managing Director, Head of Investment Risk Management. He has over 20 years of industry experience, most recently at Further Global Capital Management where he was part of the executive team for two operating companies. Prior to that, Orofino led Aflac’s investment initiatives in non-core fixed income, alternatives, and public equities. He also held senior investment and risk management roles at Swiss Re. Thomas Pasuit joins as Chief Legal Officer. Prior to joining KIS, Pasuit spent over 16 years at MetLife, most recently as Head of MetLife Investment Management’s Fixed Income and Alternatives legal team. He began his legal career at Connell Foley, LLP, where he specialized in bankruptcy and financial restructuring. “The launch of the third-party asset management platform and these new appointments reflect our commitment to attracting an extraordinary team to support outstanding client service and portfolio performance. Our talent bench positions us to address the unique investment objectives of insurers and capitalize on market opportunities to drive portfolio alpha.” -Dhiren Jhaveri, Kuvare founder and Chief Executive Officer, About Kuvare Insurance Services (KIS) Headquartered in New York City, KIS is a boutique asset management firm that specializes in building tailored solutions for insurance companies with the goal to deliver superior risk-adjusted returns. Led by a seasoned team of insurance industry investment professionals and asset class specialists, KIS oversees all investment activities for Kuvare’s operating companies. This represents approximately $19 billion in total assets as of December 31, 2021, including core fixed income assets, where KIS partners with leading global asset managers. For more information about KIS, please visit https://kuvare.com/insurance-services. About Kuvare Kuvare is a technology-enabled financial services platform that provides insurance, reinsurance, and asset management solutions. Headquartered in Chicago, IL, Kuvare focuses on delivering value-oriented solutions to the middle market. Founded in 2015, Kuvare is committed to a sustainable growth strategy, backed by a consortium of long-term capital partners. The family of Kuvare companies includes Lincoln Benefit Life Company, Guaranty Income Life Insurance Company, United Life Insurance Company, Kuvare Life Re, and KIS.

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