Posts In Category
M&A, Reorganizations and other Corporate News
Chief executives of the multinational pooling networks meet from time to time to discuss general industry trends, and recent discussions focused on the future of multinational pooling and how to grow the market for global solutions offered by the multinational networks. While the structure and focus areas vary between the networks, there was consensus on a number of issues relating to the current state of the market.
Unum Group in October 2018 acquired Pramerica Życie TUiR SA from U.S. insurer Prudential Financial. Unum is a provider of employee benefits products and services, and the largest provider of group and individual disability income protection insurance in the U.S. and UK. Pramerica Zycie offers group and individual life insurance products in Poland. Aneta Podyma-Milczarek, president of Pramerica Życie, will report to Unum UK President and CEO Peter O’Donnell.
Ahead of Brexit, London-based Prudential in August 2018 announced the reorganization of its long-term non-UK European operations. Currently, Prudential’s European operations are split across The Prudential Assurance Company (PAC), based in the UK, and Prudential International Assurance (PIA), based in Ireland. Going forward, all long-term European business, excluding the UK, will be written by PIA. This includes today’s PAC Poland, PAC France, PAC Malta, and PAC’s branches in Germany
Fragomen, Del Rey, Bernsen & Loewy (Fragomen) and PricewaterhouseCoopers (PwC) in September 2018 announced a strategic alliance to offer common immigration, tax and global mobility services to clients and their cross-border employees. Cross-border employee mobility is changing dramatically with frequent business travel replacing traditional, long-term assignments and relocations. In addition, the geopolitical landscape makes immigration increasingly complex. Developments in the field are creating new compliance challenges for organizations as
American International Group (AIG) in September 2018 acquired Glatfelter Insurance Group, a Pennsylvania-based full-service broker and insurance company that provides services for specialty programs and retail operations. Headquartered in York, Pennsylvania, Glatfelter “brings high-quality program underwriting capabilities that will accelerate the strategic positioning of AIG’s general insurance business,” AIG said in a statement. Glatfelter is a large privately owned U.S. insurance broker and has more than 500 employees. Its
Cigna in September 2018 announced the launch of Cigna Ventures, a corporate venture fund focused on transformative and innovative healthcare companies. Cigna has committed $250 million of capital to help it find, assess and sponsor early-stage innovation ideas that call for deeper exploration through pilots and test-and-learn activities. The $250 million will be used to invest in startups and growth-stage companies across three strategic areas: insights and analytics; digital
Next Insurance, a Palo Alto, California-based digital insurance company that focuses on small businesses, in August 2018 became a licensed insurance carrier, shedding its brokerage business model. As a carrier, Next Insurance is able to write policies independently, resulting in better control over underwriting, pricing, and policy wording. The company now works directly with U.S. state insurance regulators to introduce innovations in the small business insurance market, including on-demand
Marsh & McLennan (MMC) in September 2018 announced the acquisition of Jardine Lloyd Thompson (JLT) for $5.6 billion. Based in London, JLT is the eighth-largest insurance broker and employee benefits provider in the world as per 2016 revenues (1.55 billion). JLT was created in 1997 when Jardine Insurance Brokers merged with Lloyd Thompson Group. The firm operates in 40 countries with particular strength in the UK and Australia. MMC
Insurer – Country of Destination – Date Announced – Source MS Amlin – Brussels – 28 June 2017 – Press release Lloyd’s of London – Brussels – QBE – Brussels – CNA Hardy – Luxembourg – RSA – Luxembourg – AIG – Luxembourg – FM Global – Luxembourg – Hiscox – Luxembourg – Liberty Mutual, Special Markets – Luxembourg – Admiral – Dublin – Beazley – Dublin – Chesnara –
U.S. reinsurer TransRe in September 2018 announced plans to redomicile its continental European legal entity TransRe Zurich to Luxembourg and change its name. The continental European offices in Munich, Paris and Zurich, as well as Dubai, will become branch offices of Luxembourg. Commenting on the move, Paul Bonny, President TransRe Europe and Asia Pacific, said: “we are now simplifying our corporate structure [for] our European, Middle Eastern and North
Gallagher in September 2018 acquired Wheatman Insurance Services from Woodland Hills, California, a retail property/casualty broker that also offers employee benefits consulting services. Since January 1, 2018, Gallagher has closed 26 acquisitions for an total amount of approximately $240 million.
Gallagher in September 2018 acquired Australian brokers Super-Advice Corporate Services and Personal Advice Services, based in Perth, Western Australia and Sydney, New South Wales, Australia. Super-Advice is an employee benefit consultants and corporate advisory group, expanding Gallagher’s superannuation (employer-funded occupational pension programs) and employee benefit consulting service capabilities across Australia. Robert O’Shea, Dean Lawson and their associates will continue to work from their current locations in Perth and Sydney
U.S. insurance carrier Travelers in August 2018 acquired a reported 60% stake in Canadian insurtech broker Zensurance. Based in Toronto, Ontario, Zensurance offers online commercial lines broker services and will continue to work independently. Founded in 2016, Zensurance creates segmented insurance packages for each industry. It says it has more than 2,500 clients in Canada and works with over 40 insurers. Zensurance CEO Danish Yusuf and CTO Sultan Mehrabi keep
Global broking network Brokerslink in August 2018 announced it was considering a private share placement for third-party investors. The purpose of the expected capital increase is to support growth. Operating from Portugal and incorporated in Zug, Switzerland, Brokerslink features cross-shareholdings between the network and its partners, to create “a unity of purpose and vision”. Since an October 2016 private stock offering, Brokerslink has 55 independent shareholders in 40 countries;
U.S. insurance carrier Allstate in August 2018 acquired identity theft services company InfoArmor for $525 million. Allstate’s stated intent is to grow its employee benefits business. According to Tom Wilson, Chairman, President and CEO of Allstate, in 2017 “there were over 16 million victims of identity fraud [in the U.S.], which resulted in over $16 billion of losses.” InfoArmor is a private company with headquarters in Scottsdale, Arizona. Its
Allianz Partners in August 2018 announced the establishment of three new innovation centers focusing on travel, health and assistance. The automotive innovation center was launched in 2014. Allianz Partners is Allianz’s B2B2C provider of assistance, international health & life, automotive, and travel insurance products. They combine insurance, service and technology. They are distributed through partners or via direct and digital channels under four commercial brands: Allianz Assistance, Allianz Care,
Global brokerage Gallagher in August 2018 acquired Leystone Insurance & Financial, based in Ottawa, Ontario, Canada. Leystone offers employee benefits and retirement consulting services, focusing on the province of Ontario. David McCulloch, Darryl Phippen and their team will continue to work from their current location. They now report to Leslie Lemenager, head of Gallagher’s international employee benefits consulting and brokerage operations. Terms of the transaction were not disclosed.
German HR consulting firm Lurse in August 2018 announced the acquisition of the business interest of one of the partners of pension software provider Deutsche Pensions Group (DPG) who is retiring, while majority shareholders Ulrich Mix and Dr. Otmar Stüpp stay with the company. DPG will continue to be managed independently and be headed by Mr. Mix. A member of the Worldwide Broker Network (WBN), Lurse is an HR
Marsh & McLennan (MMC)’s health, wealth and career consulting arm Mercer in August 2018 acquired the investment consulting, alternatives consulting and wealth management operations of Pavilion Financial. Pavilion is a global investment services firm with about 300 employees, headquartered in Winnipeg, Canada. It has offices across North America, in London, U.K., and in Singapore. In the U.S., Pavilion focuses on the defined contribution (D.C.), endowment and foundation, healthcare and
Google parent Alphabet in August 2018 invested $375 million in InsurTech Oscar Health, giving Alphabet a 10 percent share in Oscar. Google employee and former CEO Salar Kamangar joins the board of directors. Google had previously invested in Oscar through its Capital G investment fund and Verily health and life sciences research unit. An earlier $165 million round in March 2018 valued the company at around $3 billion; the
Conduent, itself a 2017 Xerox spinoff, in May 2018 announced and in August 2018 completed the spin-off of its consulting business formerly known as Buck Consultants. Private equity investment firm H.I.G. Capital acquired Conduent’s human resources consulting and outsourcing businesses in the U.K. and in Canada as well as its U.S. human resources consulting and actuarial business, forming again what once was actuarial firm Buck Consultants. The new-old firm
Aegon in August 2018 sold the last block of its life reinsurance business to French reinsurer Scor Global Life. Aegon’s U.S. subsidiary Transamerica will reinsure an additional USD 700 million of liabilities through Scor Global Life. In December 2017, Aegon had agreed to divest USD 750 million of life reinsurance liabilities to Scor. It also dissolved a related captive insurance company. Technically, Aegon’s Transamerica life subsidiaries reinsured about half
The liquidation of New Zealand insurer CBL and its Ireland-based European subsidiary, CBL Europe in February 2018, appears to have made ripples if not waves with the further voluntary liquidation of its subsidiary, Luxembourg-based broker/tied agent Securities & Financial Solutions Europe (SFS Europe) in July 2018, just 5 months later. SFS Europe specializes in the construction sector and was providing its services in France under the EU’s freedom of
French social protection group Apicil in August 2018 acquired Luxembourg-based individual life insurance carrier OneLife from its owner, U.S. private equity firm J.C Flowers. Apicil has a €2.4 billion turnover and specializes in health and life insurance, pensions, as well as savings and financial services. As a paritarian institution, Apicil is akin to a mutual that is co-managed by trade unions and employers’ representative bodies. Headquartered in Lyon, France,
Brokerage group Ascoma’s employee benefits unit, Ascoma EB, in August 2018 joined global employee benefits broker network IBN (International Benefits Network) as a member for Morocco, Senegal, Cote d’Ivoire (Ivory Coast), Cameroon, Gabon, Congo Brazzaville, and Congo DRC. Based in Monaco, Ascoma Group has 34 locations in 24 countries, including 22 in Africa, and more than 700 employees (600 in Africa). Ascoma was the first independent broker network in
CNA Hardy, a commercial insurer operating within the Lloyd’s market, in August 2018 was granted its insurance license by the Luxembourg regulator, Commissariat aux Assurances (CAA). It is to write business across continental Europe from Luxembourg through a network of offices in Belgium, Denmark, France, Germany, Italy, the Netherlands, but also through its Lloyd’s of London platform. The company had announced in June of 2017 that it would set
CFO Jörg Schneider to hand over to Christoph Jurecka at the end of 2018 Munich Re CFO Jörg Schneider in December 2018 will retire from Munich Re after more than 18 years on the Board. His successor Christoph Jurecka is 43 years old and comes from ERGO Group AG, Munich Re’s primary insurance subsidiary, where he served as CFO. Christoph Jurecka studied technical physics at the Technical University (TU)