Financial Analysis Dept. Report: 10/27/2020
Table of Contents
Executive Summary
- COVID-19–diligently monitoring underwriting impact, insurer investment portfolios, rating agency actions, and regulatory responses.
- Premium registered in 2020 through September was $6.3 billion for LASLI companies and $2.2 billion for Non-LASLI companies (primarily Lloyd’s). Premiums from LASLI and Non-LASLI companies increased by 8.6% and 11.4%, respectively compared to the same period in the prior year. Non-LASLI companies with a large California presence are monitored, but not as extensively as LASLI companies.
- Progressive Corporation was the sixth largest insurer group by premium registered ($295.7 million) during the first nine months of 2020 due to Transportation Network Company (TNC) business written by its subsidiary, Blue Hill Specialty Insurance Company Inc. (Blue Hill).
- Total number of LASLI companies stands at 127, flat from December 31, 2019.
- No new companies added to the List of Approved Surplus Line Insurers (LASLI) in the first nine months of 2020. Several companies applying for LASLI are in the pipeline—one is currently with California Department of Insurance (CDI), and two are being reviewed by the SLA, one additional application was voluntarily put on hold by the company.
Financial Analysis Team Update
- Team Update
Stable team since Susan Bryant’s retirement in July with no new additions or departures. AVP, Donna Uboldi, and Team Lead, Aireen De Leon, have worked together to create clearer procedures, greater accountability, and more in-depth development plans. The SLA will be meeting quarterly with the California Department of Insurance to discuss surplus lines matters. The first topic we will cover is a review of the gap exemption form and procedures for gap placements. Future topics will include updates on LASLI applications, and review of LASLI filing procedures. The first meeting will be January 7, 2021.
- Project Update
Projects are part of a multi-year effort to review, document and update Financial Analysis Department processes and procedures (FA Dept Reengineering in the Master Innovation Plan). Focus is on improving efficiency, simplifying processes, enhancing team effectiveness, updating research tools and portfolio management capability, and shifting focus from compliance to risk management and monitoring (moving from 50/50 compliance/risk management to 25/75).
Projects planned for 2020 or currently in progress include:
- Updating the current Security Summary Review (SSR) template with a goal of simplifying the process and improving consistency while still maintaining flexibility.
- Redesigning document checklist used to log receipt and compliance of required documents filed by the LASLI carriers/applicants with the Financial Analysis Department. The document checklist is in the CAS system and was designed years ago. Over time, filing requirements and business needs have changed. The changes to CAS are in progress with IT.
Projects completed in 2020 include:
- Created a high-level automated compliance review process to determine whether all LASLI companies/applicants meet the minimum capital and surplus and invested asset requirements under the California Insurance Code 1765.2 on a quarterly basis.
- Reconciled admitted companies in RAPID (for SL-2 form) to CDI list. Each quarter we request data from CDI and confirm accuracy of our admitted company database.
Premium Registered — 2020 (January thru September)
| Total Premium Registered ($000's) | Market Share | Insurer Count | ||||
| YTD 2020 | YTD 2019 | YTD 2020 | YTD 2019 | 9/30/2020 | 9/30/2019 | |
| LASLI Insurers | ||||||
| US Insurers | 5,993,554 | 5,508,787 | 70.8% | 71.1% | 108 | 104 |
| Non-US Insurers (all IID listed) | 261,229 | 251,785 | 3.1% | 3.2% | 19 | 21 |
| SUBTOTAL | 6,254,783 | 5,760,572 | 73.9% | 74.3% | 127 | 125 |
| Non-LASLI Insurers | ||||||
| Lloyd's Syndicates | 1,374,749 | 1,565,387 | 16.2% | 20.2% | ||
| US Insurers | 559,795 | 158,765 | 6.6% | 2.0% | ||
| Non-US Insurers | 230,635 | 209,461 | 2.7% | 2.7% | ||
| Others (Suspense, Unknown Insurer, etc.) | 1,454 | 11,957 | 0.0% | 0.2% | ||
| SUBTOTAL | 2,166,634 | 1,945,570 | 25.6% | 25.1% | ||
| TOTAL - LASLI/Non-LASLI Insurers | 8,421,417 | 7,706,142 | 99.5% | 99.4% | ||
| Taxable Fees | 39,425 | 43,906 | 0.5% | 0.6% | ||
| TOTAL - Premium and Fees Registered 1 | 8,460,842 | 7,750,048 | 100.0% | 100.0% | ||
1 Totals may not equal the sum of components due to rounding.
- Total premium registered through September 2020 increased 9.3% year over year. Premium registered in prior year included premium from the backlog reduction project (premium submitted in years prior to 2019).
- Premium registered from LASLI insurers is primarily from US ($6.0 billion) versus Non-US ($0.3 billion) companies. The count of LASLI insurers has been flat at 127 since December 2019.
- Premium registered from Non-LASLI insurers continues to be dominated by Lloyd’s syndicates ($1.4 billion, down 12.2% compared to $1.6 billion prior year to date).
- Outside of Lloyd’s, the SLA registered premium from a new Non-LASLI insurer, Blue Hill, a subsidiary of Progressive Corporation. Premium registered from Blue Hill during 2020 currently stands at $295.7 million and is related to policies for TNC business. The significant premium registered catapulted Progressive Corporation to the sixth largest insurer group for premium registered during the first nine months of 2020.
- The next four largest Non-LASLI insurers by premiums registered are Associated Electric & Gas Insurance Services Ltd. (Non-US; $93.1 million), Kinsale Insurance Company (US; $83.5 million), Trisura Specialty Insurance Company (US; $55.4 million), and Clear Blue Specialty Insurance Company (US; $23.9 million).
- SLA Financial Analysis Department monitors LASLI insurers closely—a benefit to the broker community as well as to the California home state insureds. Non-LASLI insurers with a significant California market presence are monitored, though reviews are more cursory.
LASLI Applicants
| Insurer | Domicile | Application Status |
| Accident Fund General Insurance Company | Michigan | Pending CDI CAB's review |
| AzGUARD Insurance Company | Nebraska | On Hold |
| Bridgeway Insurance Company | Deleware | SLA review in progress |
| Republic-Vanguard Insurance Company | Arizona | SLA review in progress |
Review by CDI Corporate Affairs Bureau (CAB) in progress for Accident Fund General Insurance Company. The SLA is reviewing the applications for Bridgeway Insurance Company and Republic-Vanguard Insurance Company. AzGUARD Insurance Company is currently awaiting to submit additional information when they qualify for a seasoning exemption.
LASLI Withdrawals Since NRRA In 2011
| Insurer Type | Total | Withdrew Due to NRRA | Withdrew from Surplus Line Market | Withdrew for Other Reasons |
| Non-US | 20 | 10 | 7 | 3 |
| US | 19 | 1 | 4 | 14 |
| SUBTOTAL | 39 | 11 | 11 | 17 |
| Lloyd's Syndicates | 78 | 78 | 0 | 0 |
| TOTAL | 117 | 89 | 11 | 17 |
- No withdrawals from LASLI YTD. Most recent withdrawals have been due to company status changes (e.g., merger, run-off or US market withdrawal) as opposed to NRRA.
Premium Registered By AM BEST Financial Strength Rating 2020 (January thru September)
Chart excludes premiums in suspense and other premiums that are not allocated to a company
- Berkshire Hathaway, Chubb, and Tokio Marine are the largest A++ operating groups by premium registered.
- Insurers with B++ ratings wrote $8.8 million (0.1%) of 2020 YTD premium registered and consisted of Knight Specialty Insurance Company (Knight Specialty) and Conifer Insurance Company (Conifer). Both are non-LASLI companies.
- Knight Specialty’s ($6.8 million premium registered) rating was affirmed in January 2020 with a stable outlook. The rating group has experienced persistent unfavorable prior year loss reserve development attributable to nonperforming programs. However, the level has decreased in 2019. The rating group’s significant historical growth has abated, and underwriting results have improved in 2019.
- Conifer’s ($2.0 million premium registered) rating was affirmed in December 2019 and has a negative outlook. AM Best expects the group will continue to make progress in returning to profitability as management refocuses its insurance operations toward the companies’ niche commercial specialty lines of business. Going forward, AM Best projects underwriting results to improve in the near to medium term as the group gains scale in the specialty lines segment and grows into the group’s infrastructure. Underwriting results reflect declining levels of adverse development through 2019, while management has significantly reduced catastrophe loss exposure by rapidly and efficiently exiting its troubled Florida homeowners line and other wind-exposed business.
AM BEST Financial Strength Rating Actions and Outlook/Implication LASLI Insurers –2020 YTD
| AMB Financial Strength Rating Outlook / Implication 1 | AMB Financial Strength Rating Actions 1 | AMB Financial Strength Rating 1 | AMB Ultimate Parent 2 | YTD 2020 Premium Registered ($000's) 3 | YTD 2020 Premium Registered (% of Total) 3 |
| Stable | Affirmed | 5,808,978 | 92.9% | ||
| Downgraded | A | AXIS CAPITAL HOLDINGS LIMITED | 87,233 | 1.4% | |
| PROASSURANCE CORPORATION | 10,218 | 0.2% | |||
| Upgraded | A+ | AXA SA | 572 | 0.0% | |
| Stable Total | 5,907,000 | 94.4% | |||
| Negative | Affirmed | A | HIGHLANDS HOLDINGS, LTD. | 74,250 | 1.2% |
| PROTECTIVE INSURANCE CORPORATION | 0 | 0.0% | |||
| Downgraded | A- | ARGO GROUP INTERNATIONAL HOLDINGS, LTD. | 135,871 | 2.2% | |
| Under Review | A- u | HALLMARK FINANCIAL SERVICES, INC. | 53,898 | 0.9% | |
| WATFORD HOLDINGS LTD. | 4,956 | 0.1% | |||
| Negative Total | 268,975 | 4.3% | |||
| Developing | Downgraded Under Review | A- u | NORCAL MUTUAL INSURANCE COMPANY | 5,784 | 0.1% |
| Under Review | A- u | ENSTAR GROUP LIMITED | 19,955 | 0.3% | |
| CHINA MINSHENG INVESTMENT GROUP CORP., LTD. | 3,735 | 0.1% | |||
| Developing Total | 29,474 | 0.5% | |||
| Positive | Affirmed | A | SELECTIVE INSURANCE GROUP, INC. | 28,568 | 0.5% |
| Positive Total | 28,568 | 0.5% | |||
| Unrated or Withdrawn-Pre 2019 Total | 20,704 | 0.3% | |||
| Grand Total | 6,254,722 | 100.0% | |||
1 AMB financial strength ratings, actions and outlook/implication per AM Best as of 10/15/2020. Ratings “under review” have a “u” indicator after the rating. Rating is for the AMB rating unit that includes the LASLI company.
2 Ultimate parent per AM Best as of 10/15/2020
3 Premiums registered through 9/30/2020
In addition to a financial strength rating, AM Best includes a rating outlook (stable, negative or positive) indicating the potential future direction of the rating over an intermediate term (about 36 months). For ratings that are under review, the potential future direction is called a rating implication (negative, developing and positive) and the forward-looking timeframe is more near-term (typically 6 months).
Stable Outlook (94.4% of 2020 YTD Premium Registered)
- Most groups have AM Best ratings with a stable outlook, with most ratings affirmed stable (93.0% of 2020 YTD premium registered).
- The companies withfinancial strength rating downgrades include:
- ProAssurance Corporation/ProAssurance Casualty Company (A) and Noetic Specialty Insurance Company (A): Downgradedue to deterioration in group’s operating performance towards a level that is similar to, instead of outperforming, its medical professional liability peers. Prospective results also are expected to be challenged in 2020 and again in 2021 with its planned acquisition of NORCAL Group.
- AXIS Capital Holdings Limited/AXIS Surplus Insurance Company (A) and AXIS Specialty Europe SE (A): Downgrade due todeterioration in operating performance, no longer in line with companies with a strong operating performance assessment.
Negative Outlook/Implication (4.3% of 2020 YTD Premium Registered)
- Several groups and their respective LASLI companies have negative outlooks or implications on their financial strength ratings.
- Groups and their respective LASLI companies with affirmed ratings and negative outlooks include:
- Highlands Holdings, Ltd. / Aspen Specialty Insurance Company (A) and Aspen Insurance UK Limited (A): Negative operating results for the last three years have contributed to a decrease in capital. The group has taken actions to improve performance, but these actions have had a limited impact to date.
- Protective Insurance Corporation/Protective Specialty Insurance Company (A): Concerns about the company’s ongoing role, integration and affiliation with Protective Insurance Company (PIC), including its dependence on PIC’s financial condition.
- One group and its respective LASLI companies rating was downgraded with negative outlook:
- Argo Group International Holdings, Ltd./Colony Insurance Company and Peleus Insurance Company (A- ): Concerns about the departure of Argo’s chief executive officer and a Securities and Exchange Commission inquiry relating to non-disclosure of certain compensation-related perquisites involving Argo and the departed CEO. The downgrade also reflects the company’s recently announced fourth-quarter results, which included an operating loss and a combined ratio of almost 127%.
- Groups and their respective LASLI companies with negative implications as ratings being under review include:
- Hallmark Financial Services, Inc./Hallmark Specialty Insurance Company (A- u): Concerns about large adverse loss development primarily related to the binding primary auto business for the 2016 and 2017 underwriting years. Hallmark entered into reinsurance options to help facilitate the orderly exit from this business.
- Watford Holdings Ltd./Watford Specialty Insurance Company (A- u): Significant investment losses during the first quarter of 2020 due to investment market volatility following the global economic shutdown related to the COVID-19 pandemic.
Developing Implication (0.5% of 2020 YTD Premium Registered)
- One group’s rating was downgraded and its rating is under review with developing implications:
- NORCAL Mutual Insurance Company/NORCAL Specialty Insurance Company (A u): Concerns about adverse loss reserve development for accident years 2016 through 2018, reflecting higher claims settlements following operational process changes in 2017. However, they entered into a definitive agreement to be acquired by ProAssurance Corporation.
- Two group’s rating are under review with developing implications:
- Enstar Group Limited./Starstone Specialty Insurance Company (A-u): Announcement of a re-capitalization plan. Going forward, Enstar Group Limited will maintain a significant, but minority ownership position in StarStone National Insurance Company and StarStone Specialty Insurance Company and continue to provide reinsurance support, while new investors will prove a material capital insurance.
- China Minsheng Investment Group Corp., LTD./Sirius International Insurance Corporation (A-u): The rating actions follow the announcement that Sirius International Insurance Corporation entered into a definitive agreement to combine with Third Point Reinsurance Ltd.
Positive Outlook (0.5% of 2020 YTD Premium Registered)
- One group and its respective LASLI insurer has a positive outlook on its financial strength rating which was affirmed.
- Selective Insurance Group/Mesa Underwriters Specialty Insurance Company (A): Reflects improved profitability over the past five years on an absolute basis and relative to its peers. The favorable business profile is based partly on the group’s close working relationship with its selected agencies, and the use of technology to enhance its underwriting and servicing capabilities.
Hot Topics – Merger Activity
| Merger, Acquisition and Other Corporate Transactions - LASLI Insurance Groups - 2020 1 | ||||
| Acquirer | Target | LASLI 2 | Premiums Registered by SLA - YTD 2020 ($000's) | Stage |
| Announced | ||||
| Catlin Specialty Insurance Company | Catlin Specialty Insurance Company (T) | $583 | Per Catlin Specialty's 2020 Plan of Operation, the company is no longer writing business or paying claims (as of June 30, 2020) and is currently being marketed for sale. | |
| Aquiline Capital Partners LLC, SkyKnight Capital, L.P., and Dragoneer Investment Group | StarStone U.S. Holdings, Inc. | StarStone Specialty Insurance Company (T) | $16,747 | Announced: 06/10/2020 Anticipated Completion: Second half of 2020 |
| Arch Capital Group Ltd. (Arch) | Watford Holdings Ltd. (Watford) | Watford Specialty Insurance Company (T) | $4,887 | On 9/8/2020, S&P MI cited a Reuters report that a consortium led by Arch has offered to acquire Watford for approximately $500 million. The report also stated that there is no certainty that the parties will reach an agreement. As of 6/30/2020, Arch had a 12.5% stake in Watford. |
| Arch Specialty Insurance Company (A) | $50,234 |
|||
| Arch Insurance (UK) Limted (A) | $1,340 | |||
| ProAssurance Corporation | Norcal Group | NORCAL Specialty Insurance Company (T) | $4,039 | Announced: 02/20/2020 Anticipated Completion Date: End of 2020 |
| ProAssurance Casualty Company (A) | $6,566 |
|||
| Noetic Specialty Insurance Company (A) | $3,152 | |||
| Third Point Reinsurance Ltd. | Sirius International Insurance Group, Ltd. | Sirius International Insurance Corporation (T) | $3,203 | Merger Announced: 8/6/2020 Anticipated Completion: First Quarter 2021 |
| Completed 2020 | ||||
| Tokio Marine Holdings Inc | Privilege Underwriters, Inc | Houston Casualty Company (A) | $129,460 | (Privilege Underwritiers) Completed: 2/10/2020 |
| Tokio Marine Specialty Insurance Company (A) | $27,388 | |||
| Safety Specialty Insurance Company (A) | $7,875 | |||
1 Information as of 8/31/2020.
2 Names of LASLI Subsidiaries or Applicants are followed by either a (T) for Target or an (A) for Acquirer.
- Several new transactions announced in 2020 including a merger between Third Point Reinsurance Ltd. and Sirius International Insurance Group, Ltd. and a possible acquisition of Watford Holdings Ltd. by Arch Capital Group Ltd.
Premium Registered by Ultimate Parent1 – Top Groups – 2020 (January thru September)
| AMB Ultimate Parent1 | Operating Company | Status2 | AMB Financial Strength Rating3 | YTD 2020 Premium REGISTERED ($000's) | YTD 2020 Premium REGISTERED (% of Total) |
| LLOYD'S | LLOYD'S OF LONDON | Non-LASLI | A | 1,374,749 | 16.25% |
| LLOYD'S Total | 1,374,749 | 16.25% | |||
| BERKSHIRE HATHAWAY INC. | NATIONAL FIRE & MARINE INSURANCE COMPANY | LASLI | A++ | 840,396 | 9.93% |
| GENERAL STAR INDEMNITY COMPANY | LASLI | A++ | 35,037 | 0.41% | |
| MOUNT VERNON FIRE INSURANCE COMPANY | LASLI | A++ | 14,304 | 0.17% | |
| OTHER AFFILIATES WITH PREMIUM REGISTERED <$7.5M | 7,461 | 0.09% | |||
| BERKSHIRE HATHAWAY INC. Total | 897,198 | 10.60% | |||
| AMERICAN INTERNATIONAL GROUP, INC. | LEXINGTON INSURANCE COMPANY | LASLI | A | 285,335 | 3.37% |
| AIG SPECIALTY INSURANCE COMPANY | LASLI | A | 110,351 | 1.30% | |
| WESTERN WORLD INSURANCE COMPANY | LASLI | A | 48,507 | 0.57% | |
| AMERICAN INTERNATIONAL GROUP UK LIMITED | Non-LASLI | A | 12,838 | 0.15% | |
| OTHER AFFILIATES WITH PREMIUM REGISTERED <$7.5M | 1,623 | 0.02% | |||
| AMERICAN INTERNATIONAL GROUP, INC. Total | 458,654 | 5.42% | |||
| MARKEL CORPORATION | UNITED SPECIALTY INSURANCE COMPANY | LASLI | A | 214,708 | 2.54% |
| EVANSTON INSURANCE COMPANY | LASLI | A | 176,035 | 2.08% | |
| OTHER AFFILIATES WITH PREMIUM REGISTERED <$7.5M | 12,442 | 0.15% | |||
| MARKEL CORPORATION Total | 403,185 | 4.77% | |||
| NATIONWIDE MUTUAL INSURANCE COMPANY | SCOTTSDALE INSURANCE COMPANY | LASLI | A+ | 328,740 | 3.89% |
| NATIONWIDE MUTUAL INSURANCE COMPANY Total | 328,740 | 3.89% | |||
| AXA SA | INDIAN HARBOR INSURANCE COMPANY | LASLI | A+ | 288,299 | 3.41% |
| XL CATLIN INSURANCE COMPANY UK LIMITED | Non-LASLI | A+ | 11,204 | 0.13% | |
| OTHER AFFILIATES WITH PREMIUM REGISTERED <$7.5M | 1,160 | 0.01% | |||
| AXA SA Total | 300,662 | 3.55% | |||
| PROGRESSIVE CORPORATION | BLUE HILL SPECIALTY INSURANCE COMPANY INC. | Non-LASLI | A+ | 295,732 | 3.50% |
| PROGRESSIVE CORPORATION Total | 295,732 | 3.50% | |||
| FAIRFAX FINANCIAL HOLDINGS LIMITED | ALLIED WORLD NATIONAL ASSURANCE COMPANY | LASLI | A | 69,344 | 0.82% |
| CRUM & FORSTER SPECIALTY INSURANCE COMPANY | LASLI | A | 66,492 | 0.79% | |
| ALLIED WORLD SURPLUS LINES INSURANCE COMPANY | LASLI | A | 63,706 | 0.75% | |
| HUDSON EXCESS INSURANCE COMPANY | LASLI | A | 41,867 | 0.49% | |
| HUDSON SPECIALTY INSURANCE COMPANY | LASLI | A | 23,368 | 0.28% | |
| FIRST MERCURY INSURANCE COMPANY | LASLI | A | 10,535 | 0.12% | |
| SENECA SPECIALTY INSURANCE COMPANY | LASLI | A | 8,629 | 0.10% | |
| OTHER AFFILIATES WITH PREMIUM REGISTERED <$7.5M | 69 | 0.00% | |||
| FAIRFAX FINANCIAL HOLDINGS LIMITED Total | 284,009 | 3.36% | |||
| W. R. BERKLEY CORPORATION | ADMIRAL INSURANCE COMPANY | LASLI | A+ | 95,177 | 1.12% |
| GEMINI INSURANCE COMPANY | LASLI | A+ | 75,425 | 0.89% | |
| NAUTILUS INSURANCE COMPANY | LASLI | A+ | 54,580 | 0.65% | |
| BERKLEY ASSURANCE COMPANY | LASLI | A+ | 22,734 | 0.27% | |
| OTHER AFFILIATES WITH PREMIUM REGISTERED <$7.5M | 5,555 | 0.07% | |||
| W. R. BERKLEY CORPORATION Total | 253,470 | 3.00% | |||
| CHUBB LIMITED | WESTCHESTER SURPLUS LINES INSURANCE COMPANY | LASLI | A++ | 107,290 | 1.27% |
| ILLINOIS UNION INSURANCE COMPANY | LASLI | A++ | 71,558 | 0.85% | |
| CHUBB CUSTOM INSURANCE COMPANY | LASLI | A++ | 18,519 | 0.22% | |
| CHUBB EUROPEAN GROUP SE | LASLI | A++ | 9,493 | 0.11% | |
| OTHER AFFILIATES WITH PREMIUM REGISTERED <$7.5M | 171 | 0.00% | |||
| CHUBB LIMITED Total | 207,030 | 2.45% | |||
| ZURICH INSURANCE GROUP LTD. | STEADFAST INSURANCE COMPANY | LASLI | A+ | 186,913 | 2.21% |
| EMPIRE INDEMNITY INSURANCE COMPANY | LASLI | A+ | 12,552 | 0.15% | |
| OTHER AFFILIATES WITH PREMIUM REGISTERED <$7.5M | 2,250 | 0.03% | |||
| ZURICH INSURANCE GROUP LTD. Total | 201,715 | 2.38% | |||
| TOKIO MARINE HOLDINGS, INC. | HOUSTON CASUALTY COMPANY | LASLI | A++ | 141,643 | 1.67% |
| TOKIO MARINE SPECIALTY INSURANCE COMPANY | LASLI | A++ | 33,569 | 0.40% | |
| SAFETY SPECIALTY INSURANCE COMPANY | Non-LASLI | A+ | 9,325 | 0.11% | |
| OTHER AFFILIATES WITH PREMIUM REGISTERED <$7.5M | 1,036 | 0.01% | |||
| TOKIO MARINE HOLDINGS, INC. Total | 185,573 | 2.19% | |||
| LIBERTY MUTUAL HOLDING COMPANY INC. | IRONSHORE SPECIALTY INSURANCE COMPANY | LASLI | A | 103,350 | 1.22% |
| LIBERTY SURPLUS INSURANCE CORPORATION | LASLI | A | 56,151 | 0.66% | |
| LIBERTY MUTUAL INSURANCE EUROPE SE | LASLI | NR | 18,018 | 0.21% | |
| OTHER AFFILIATES WITH PREMIUM REGISTERED <$7.5M | 1,134 | 0.01% | |||
| LIBERTY MUTUAL HOLDING COMPANY INC. Total | 178,653 | 2.11% | |||
| SOMPO HOLDINGS, INC. | ENDURANCE AMERICAN SPECIALTY INSURANCE COMPANY | LASLI | A+ | 146,908 | 1.74% |
| ENDURANCE WORLDWIDE INSURANCE LIMITED | Non-LASLI | A+ | 12,765 | 0.15% | |
| OTHER AFFILIATES WITH PREMIUM REGISTERED <$7.5M | 799 | 0.01% | |||
| SOMPO HOLDINGS, INC. Total | 160,471 | 1.90% | |||
| QBE INSURANCE GROUP LIMITED | QBE SPECIALTY INSURANCE COMPANY | LASLI | A | 149,268 | 1.76% |
| OTHER AFFILIATES WITH PREMIUM REGISTERED <$7.5M | 1,562 | 0.02% | |||
| QBE INSURANCE GROUP LIMITED Total | 150,830 | 1.78% | |||
| MUNCHENER RUCKVERSICHERUNG AG | GREAT LAKES INSURANCE SE | LASLI | A+ | 78,067 | 0.92% |
| PRINCETON EXCESS AND SURPLUS LINES INSURANCE COMPANY | LASLI | A+ | 65,539 | 0.77% | |
| OTHER AFFILIATES WITH PREMIUM REGISTERED <$7.5M | 3,983 | 0.05% | |||
| MUNCHENER RUCKVERSICHERUNG AG Total | 147,589 | 1.74% | |||
| THE HARTFORD FINANCIAL SERVICES GROUP, INC. | NAVIGATORS SPECIALTY INSURANCE COMPANY | LASLI | A+ | 123,990 | 1.47% |
| PACIFIC INSURANCE COMPANY, LIMITED | LASLI | A+ | 11,078 | 0.13% | |
| MAXUM INDEMNITY COMPANY | LASLI | A+ | 10,466 | 0.12% | |
| OTHER AFFILIATES WITH PREMIUM REGISTERED <$7.5M | 0 | 0.00% | |||
| THE HARTFORD FINANCIAL SERVICES GROUP, INC. Total | 145,534 | 1.72% | |||
| ALLEGHANY CORPORATION | LANDMARK AMERICAN INSURANCE COMPANY | LASLI | A+ | 106,797 | 1.26% |
| CAPITOL SPECIALTY INSURANCE CORPORATION | LASLI | A | 27,006 | 0.32% | |
| OTHER AFFILIATES WITH PREMIUM REGISTERED <$7.5M | 7,538 | 0.09% | |||
| ALLEGHANY CORPORATION Total | 141,341 | 1.67% | |||
| All Other Groups <$141.0M in Premium Registered | 2,306,282 | 27.26% | |||
| Taxable Fees | 39,425 | 0.47% | |||
| Total Premium Registered and Taxable Fees | 8,460,842 | 100.00% | |||
1 Ultimate parent per AM Best as of 10/15/2020.
2 Status as of 10/1/2020. An insurer merged with and into another LASLI carrier is reported as having a LASLI status if premiums registered are significant.
3 AMB financial strength rating per AM Best as of 9/1/2020. Lloyd’s syndicate rating = AM Best rating of the Lloyd’s market.
Premium Registered by Lloyd’s Syndicates With Managing Agent1 – 2020 (January thru September)
| LLOYD'S | YTD 2020 Premium Registered ($000's) | YTD 2020 Premium Registered (% of Total) |
| Lloyd's Syndicate 2623 (Beazley Furlonge Limited) | 178,303 | 13.0% |
| Lloyd's Syndicate 33 (Hiscox Syndicates Limited) | 93,746 | 6.8% |
| Lloyd's Syndicate 2987 (Brit Syndicates Limited) | 79,128 | 5.8% |
| Lloyd's Syndicate 3624 (Hiscox Syndicates Limited) | 72,888 | 5.3% |
| Lloyd's Syndicate 510 (Tokio Marine Kiln Syndicates Limited) | 63,798 | 4.6% |
| Lloyd's Syndicate 1458 (RenaissanceRe Syndicate Management Limited) | 49,118 | 3.6% |
| Lloyd's Syndicate 1969 (Apollo Syndicate Management Limited) | 39,655 | 2.9% |
| Lloyd's Syndicate 623 (Beazley Furlonge Limited) | 39,308 | 2.9% |
| Lloyd's Syndicate 2001 (MS Amlin Underwriting Limited) | 33,394 | 2.4% |
| Lloyd's Syndicate 1861 (Canopius Managing Agents Limited) | 33,394 | 2.4% |
| Lloyd's Syndicate 1880 (Tokio Marine Kiln Syndicates Limited) | 31,461 | 2.3% |
| Lloyd's Syndicate 2003 (Catlin Underwriting Agencies Limited) | 30,743 | 2.2% |
| Lloyd's Syndicate 2488 (Chubb Underwriting Agencies Limited) | 29,617 | 2.2% |
| Lloyd's Syndicate 1686 (AXIS Managing Agency Ltd.) | 26,640 | 1.9% |
| Lloyd's Syndicate 1084 (Chaucer Syndicates Limited) | 26,476 | 1.9% |
| Lloyd's Syndicate 4444 (Canopius Managing Agents Limited) | 26,147 | 1.9% |
| Lloyd's Syndicate 609 (Atrium Underwriters Limited) | 25,496 | 1.9% |
| Lloyd's Syndicate 4472 (Liberty Managing Agency Limited) | 24,475 | 1.8% |
| Lloyd's Syndicate 1414 (Ascot Underwriting Limited) | 24,349 | 1.8% |
| Lloyd's Syndicate 2121 (Argenta Syndicate Management Limited) | 22,341 | 1.6% |
| Lloyd's Syndicate 1225 (AEGIS Managing Agency Limited) | 21,162 | 1.5% |
| Lloyd's Syndicate 1183 (Talbot Underwriting Ltd) | 20,335 | 1.5% |
| Lloyd's Syndicate 1886 (QBE Underwriting Limited) | 20,257 | 1.5% |
| Lloyd's Syndicate 1200 (Argo Managing Agency Limited) | 19,273 | 1.4% |
| Lloyd's Syndicate 457 (Munich Re Syndicate Limited) | 16,335 | 1.2% |
| Lloyd's Syndicate 435 (Faraday Underwriting Limited) | 15,801 | 1.1% |
| Lloyd's Syndicate 4711 (Aspen Managing Agency Limited) | 13,345 | 1.0% |
| Lloyd's Syndicate 1274 (Antares Managing Agency Limited) | 12,439 | 0.9% |
| Lloyd's Syndicate 4020 (Ark Syndicate Management Limited) | 12,259 | 0.9% |
| Lloyd's Syndicate 1919 (Starr Managing Agents Limited) | 12,200 | 0.9% |
| Lloyd's Syndicate 1991 (Coverys Managing Agency Limited) | 12,103 | 0.9% |
| Lloyd's Syndicate 4242 (Asta Managing Agency Ltd) | 11,993 | 0.9% |
| Lloyd's Syndicate 1967 (W. R. Berkley Syndicate Management Limited) | 10,747 | 0.8% |
| Lloyd's Syndicate 5000 (Travelers Syndicate Management Limited) | 10,227 | 0.7% |
| Lloyd's Syndicate 2015 (The Channel Managing Agency Limited) | 10,060 | 0.7% |
| Lloyd's Syndicate 3000 (Markel Syndicate Management Limited) | 9,279 | 0.7% |
| Lloyd's Syndicate 5151 (Endurance at Lloyd's Limited) | 8,966 | 0.7% |
| Lloyd's Syndicate 4000 (Hamilton Managing Agency Limited) | 8,094 | 0.6% |
| Lloyd's Syndicate 1729 (Asta Managing Agency Ltd) | 7,868 | 0.6% |
| Lloyd's Syndicate 2791 (Managing Agency Partners Limited) | 7,835 | 0.6% |
| All Other Lloyd's Syndicates with Premium Registered <$7.5M & Other 2 | 163,694 | 11.9% |
| Lloyd's Total | 1,374,749 | 100.0% |
1 Source: AM Best as of 10/15/2020 and Lloyd’s List of Active Syndicates & Managing Agents for 2020 Year of Account
2 All Other includes Lloyd‘s premium registered with a missing or invalid syndicate number
Slide 1
2020 Insurance Mergers & Acquisition Activity
Slide 2
Heading in to 2020
Slide 3
COVID-19 Impact – Short Term
Slide 4
US Insurance M&A Deal Volume and Value
Slide 5
Industry Quotes
Slide 6
Intermediate to Long Term
Slide 7
Insurance Outlook
Slide 8
Questions?
