Selective Insurance publishes Q2 2024 results

Selective Insurance publishes Q2 2024 results




Selective Insurance publishes Q2 2024 results | Insurance Business America















The insurer faced a challenging quarter

Selective Insurance publishes Q2 2024 results


Insurance News

By
Abigail Adriatico

Selective Insurance Group has published its report detailing its financial results for the second quarter of 2024, ending on June 30.

The report found that the insurer had a net loss per diluted common share of $1.08 and a non-GAAP operating loss per diluted common share of $1.10.  The insurer also saw a combined ratio of 116.1% for the second quarter of the year.

There was also an increase in the net unfavorable prior year casualty reserve development of $176 million by 16.3 points. Catastrophe losses of $91 million drove an 8.4-point increase in the combined ratio. Meanwhile, NPW increased by 13% year-over-year, showing growth from all three insurance segments.

“This was a challenging quarter. We did not meet our high standard as underwriting performance fell below our target,” said John J. Marchioni, chairman, president and CEO of Selective Insurance. “The unfavorable prior year casualty reserve development was driven by elevated loss emergence in the quarter reflecting higher severity that we attribute to social inflation. 

“Our reserving action is predicated on our in-depth quarterly reserve review and further strengthening to address elevated and uncertain loss trends,” he added, further noting that the insurer had a stable underwriting portfolio.

“Our renewal pure price increase across all insurance segments was 9.1% in the quarter, including 7.9% for Standard Commercial Lines. General liability renewal pure pricing increased to 7.6%, up over a point from the first quarter. We expect Standard Commercial Lines renewal pure price will trend higher in the second half of 2024,” said Marchioni.

Marchioni said the insurer managed to maintain its focus and execution when it came to areas of risk selection, pricing, and claims management despite the challenging environment during the quarter.

“Our capital position remains strong and our underlying combined ratio of 91.4% positions us well moving forward. We are confident that we will quickly re-establish our strong earnings profile, consistently meeting or exceeding our 12% operating ROE target,” said Marchioni.

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Global P&C reinsurers remain strong in Q1 2024 – report

Global P&C reinsurers remain strong in Q1 2024 – report




Global P&C reinsurers remain strong in Q1 2024 – report | Insurance Business America















But challenges are on the way

Global P&C reinsurers remain strong in Q1 2024 – report


Reinsurance

By
Noel Sales Barcelona

The first quarter of 2024 has been positive for global property and casualty (P&C) reinsurers as the industry recorded strong underwriting and investment profitability from January to June 2024, benefiting from the ongoing favourable reinsurance pricing environment, lower natural catastrophe losses, and strong fixed income yields, according to a Morning Star DBRS report. However, as hurricane season approaches, and with the continued global economic uncertainty, there could be some challenges ahead.

According to the report, underwriting income was strong for the year’s first three months, as proven by the overall low combined ratios for the selected reinsurers. The average combined ratio for the selected group of reinsurers was 84.2% for Q1 2024, the report stated – 5.8% lower compared to the same period in 2023.

“Overall, the reinsurance pricing environment remains favourable. Reinsurers were able to charge higher rates while also increasing contract volume during the first quarter of 2024. This can mainly be attributed to the persistent hard market conditions, which give the reinsurers higher pricing power and the ability to underwrite with more favourable terms. The industry experienced significantly lower-than-expected natural catastrophe losses in Q1 2024,” the report said.

Notwithstanding the improvement in earnings, the industry should expect headwinds that may hurt 2024 full-year results, the report warned. Underwriting profitability could be affected by potential future natural catastrophes, including the Atlantic hurricane season, as major forecasting organizations expect stronger hurricanes to come,which could potentially destroy more infrastructure and cause above-average natural catastrophe-related losses.

“Nonetheless, we do not anticipate any credit rating impact from the potentially more active hurricane season,” the report stated.

The Morning Star DBRS report said that, although fixed-income investment returns look promising for reinsurers due to the prevailing high interest rate environment, global P&C may still face additional volatility from spread and equity market risks as the global economic and geopolitical outlook remains uncertain.

While the sustained high interest rates in the past months have started to benefit reinsurers as they started to reinvest their maturing fixed-income investments into assets with higher yields, with the global inflationary pressures easing, interest rates have dropped in some countries and spreads have tightened. This may affect fixed-income yields over the long term, the report stated.

“However, on the positive side, we expect the pace of interest rate reductions to be slower compared with when they were being increased by central banks,” the report said. “This gives reinsurers enough time to adjust their investment portfolios accordingly.”

Aside from the interest rate risk, global reinsurers are also exposed to spread risk and equity market risks that may be affected by global economic outlooks and could cause significant realized or unrealized losses, according to the report. Nonetheless, despite the setbacks, the outlook for the global and Bermuda P&C reinsurance markets remains positive, due to the prevailing favourable pricing environment, high fixed-income reinvestment yields, and support from their strong capital positions, it stated.

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NCOIL CEO steps down from role

NCOIL CEO steps down from role




NCOIL CEO steps down from role | Insurance Business America















Leaders look back at executive’s contributions over the years

NCOIL CEO steps down from role


Insurance News

By
Roxanne Libatique

Tom Considine, CEO of the National Council of Insurance Legislators (NCOIL), has announced his retirement, effective December 31, 2024.

The announcement was made at the Welcome Breakfast of NCOIL’s Summer National Meeting in Costa Mesa, California.

Considine (pictured) has been NCOIL’s first CEO since January 2016, moving the organization from an executive director model.

“I think I can speak for everyone at NCOIL when I say Tom has made immeasurable contributions in terms of advancing the organization both substantively on the issues and expanding our legislative membership,” said Rep Tom Oliverson, MD (TX), NCOIL president. “The growth we have seen over the past decade has been tremendous and I know we are well positioned for that continue.”

Commenting on his retirement, Considine said: “When I came to NCOIL as CEO in 2016, my goals were to stabilize & secure NCOIL financially; to grow the organization in overall attendance and legislator participation through higher quality meetings; and to re-establish first the relevance then the importance of NCOIL in insurance public policy. I’m proud of the work we’ve done together with the great legislative leadership we’ve had here to meet and exceed all of these goals.

“It’s time for NCOIL to do another strategic assessment for the next five [to] seven years, and so I decided it’s time for me to pass the torch, to retire as NCOIL’s CEO, fully confident in the organization’s strength for whatever lies ahead. I cannot thank everyone enough who has contributed to the organization’s success over the years. I will be forever grateful to the officers for the opportunity to meet the challenge NCOIL presented.”

Looking back at Tom Considine’s contributions to NCOIL

Since Considine took the helm, attendance at NCOIL’s national meetings has increased from an average of 226 participants in 2015 to over 350. Legislative participation also grew by 42%.

“Tom’s strategic vision and engaging personality was just what NCOIL needed from a leader when he came on as the first ever CEO in 2016. The organization is now not just in a position of stability but truly a position of strength with a strong and growing membership. We all owe him a great debt of gratitude for his service,” said Rep Matt Lehman (IN), past NCOIL president.

During Considine’s tenure, NCOIL achieved financial stability, transitioning from financial uncertainty in 2015 to a strong balance sheet, ensuring its ability to continue as an educational forum on insurance public policy.

“Tom’s exceptional leadership and extensive experience coupled with his outgoing personality has significantly contributed to NCOIL’s success and growth over the past decade,” said Rep Deborah Ferguson, DDS, (AR) NCOIL immediate past president. “On a personal note, I am immensely grateful for his help in navigating my presidency from our first meeting in New Jersey to my last meeting as president in Ohio. His guidance and camaraderie have been invaluable, and I have truly enjoyed our friendship and the times we’ve shared.”

Idaho insurance director and past NAIC president Dean Cameron added that Considine’s leadership revitalized NCOIL to its influential position.

“Tom’s energy and passion tackled complicated and critical insurance challenges and drove towards responsible solutions. His experience recognized the critical role of state-based regulation, and he advanced legislators and regulators collaborating to protect consumers. I am honored to have worked with Tom, and I am grateful for his leadership and friendship,” he said.

Considine announced that NCOIL general counsel Will Melofchik will succeed him as CEO.

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Starkweather & Shepley announces major executive overhaul

Starkweather & Shepley announces major executive overhaul




Starkweather & Shepley announces major executive overhaul | Insurance Business America















New CEO and trustees named

Starkweather & Shepley announces major executive overhaul


Insurance News

By

In the wake of the retirement of Lawrence E. Keefe, Starkweather & Shepley Insurance Brokerage has unveiled significant leadership transitions and key personnel appointments. After nearly four decades of service, including over seven years at the helm as Chairman and CEO, Keefe has stepped down, marking the end of an era for the company.

Under Keefe’s stewardship, the agency witnessed significant expansion, elevating its annual revenues to close to $80 million. The firm’s workforce grew to include over 300 associates spread across 15 offices nationwide, evidencing its robust development under his leadership.

Starkweather & Shepley has not only grown in size but has also cemented its standing in the insurance sector, earning multiple honors. These include placements on the Insurance Journal’s Top 100 Agencies and Top 50 Property & Casualty Insurance Brokers lists, as well as being recognized among the nation’s best personal lines agencies. The firm is also frequently listed as one of the best places to work within the industry.

The company is proud to announce Elizabeth A. Lowe and Richard W. Anderson as new trustees. Lowe, who joined the company in 2014, has significantly influenced various aspects of the agency, from technical operations to leadership across multiple departments. Anderson, who started in 2016 as chief financial officer, played a crucial role in navigating the company through the challenges of the COVID-19 pandemic.

A unique feature of Starkweather & Shepley is its status as a trust-held agency since 1935, ensuring its private ownership and providing stability and continuity for its clients.

Furthermore, Peter C. Plumb has been named the new chief executive officer, starting June 12, 2024. Since joining the agency in 2009, Plumb has held several key positions, most recently as chief operating Officer. His deep understanding of the industry and forward-looking vision are expected to propel the agency into its next growth phase.

Andrew J. Fotopulos, chairman of Starkweather & Shepley, expressed enthusiasm about the new appointments, highlighting their crucial roles in steering the agency through the evolving insurance landscape. As the agency looks forward, it remains dedicated to maintaining its tradition of excellence while adapting to the dynamic needs of its clients, associates, and communities.

Do you have insights or opinions on these leadership changes at Starkweather & Shepley? Share your thoughts in the comments below.

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