All Posts in "Day: August 18, 2021"

AJ Gallagher to buy WTW reinsurance business for $3.25bn

By admin

 

AJ Gallagher has announced an agreement to acquire the treaty reinsurance brokerage operations of Willis Towers Watson (WTW) in a deal that is expected to close during the fourth quarter of 2021.

For the year ended 31 December 2020, these operations generated $745m of estimated pro forma revenue and $265m of estimated pro forma EBITDAC

Gallagher will acquire the combined operations for an initial gross consideration of $3.25bn, and potential additional consideration of $750m subject to certain third-year revenue targets.

The acquisition of Willis’s reinsurance business was originally part of the failed bid by Aon to acquire WTW. Aon hoped that by selling off the reinsurance business it would satisfy regulatory concerns but in the end it was not enough.

“Broadening our reinsurance brokerage offerings has been a strategic objective at Gallagher and this acquisition will significantly enhance our global value proposition,” said J Patrick Gallagher, Jr, Chairman, President and CEO.

“We were very impressed with the Willis Towers Watson reinsurance professionals we met during our initial due diligence and strongly believe a combination will significantly enhance our offerings to clients and prospects. I look forward to welcoming the 2,200 new colleagues joining us as part of this transaction to our growing Gallagher family of professionals,” he added.

Gallagher listed the benefits of the acquisition to include:

Expanded global value proposition within reinsurance brokerage
A broad suite of analytics capabilities including actuarial services, catastrophe modelling, dynamic financial analysis, rating agency analysis and capital modelling
Addition of talented management team
Increased product breadth & offerings
Further leveraging of Gallagher’s industry-leading alternative risk and ILS business; and,  Strengthened relationships with major insurance carriers.

Willis Re’s treaty reinsurance business operates in 24 countries, places over $10bn of premium annually and represents over 750 insurance and reinsurance company clients.

The US-based broker said that integration is expected to take approximately three years with total non-recurring integration costs estimated to be approximately $250m.

Patoma Admin by — August 18, 2021 in Insurance 0
AXA Singapore to be acquired by HSBC for $575 m

By admin

 

Global insurer AXA has entered into an agreement with HSBC Insurance (Asia-Pacific) Holdings Ltd over the sale of AXA Insurance Pte Ltd (AXA Singapore) for a total cash consideration of USD 575 million (€487mn).

axa-logoIt was reported back in January that British bank HSBC Holdings was among the shortlisted bidders for AXA’s Singapore operations.

AXA Singapore is a composite insurance carrier, offering L&S, Health, and P&C solutions to ca. 1 million clients. In Singapore, the firm is ranked as 8th in the life insurance sector with a 2% market share, and 5th in the P&C space, with a 4% market share.

The sale of AXA Singapore to HSBC is estimated to result in a negative net income impact of ca. €160 million in AXA Group’s FY 2021 consolidated financial results.

Gordon Watson, Chief Executive Officer (CEO) of AXA in Asia and in Africa, commented: “This transaction is another step in AXA’s simplification journey.

“In line with the Group’s strategy, we are focusing on our core markets where we have the size,

presence in the right business segments and a strong potential to grow. We have in Asia a unique set of assets across established and high potential markets where we are deploying our vision, notably in health and protection, bringing high value products and services to our customers.

“I would like to thank the management team and all the employees of AXA Singapore for their strong contribution and commitment over the years and wish them every success for the future.”

The deal remains subject to closing conditions and is expected to close by the fourth quarter of 2021.

Patoma Admin by — August 18, 2021 in Insurance 0
Allianz Life Bermuda fined $1.7m by Bermuda Monetary Authority

By admin

Allianz Life Bermuda has been fined $1.7m for significant breaches of anti-money laundering and anti-terrorist financing regulations, and is to go into liquidation.

The Bermuda Monetary Authority (BMA) said it has imposed civil penalties totalling $1,700,000 on Allianz Life Bermuda “pursuant to sections 20 and 24A of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008 and section 32A of the Insurance Act 1978 with respect to significant breaches of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008, International Sanctions Regulations 2013 and longstanding and persistent breaches of the Insurance Act.”

The BMA said the company has accepted its findings and has consented to and paid the civil penalties, and has further agreed to continue with its plan to cancel its registration under the Insurance Act and commence liquidation proceedings.

Allianz Life Bermuda was incorporated in Bermuda in 1976 and licensed as an insurer since 1981, and holds a Class 3 licence and Long-Term Class C licence. It was engaged in the insurance and reinsurance of life and long-term risks, which were written outside of Bermuda.

The BMA said: “The civil penalties have been imposed for the company’s failure to adequately comply with the following requirements of the regulations and the sanctions: i) regulation 16 – systems; ii) regulations 5 and 6 – customer due diligence; iii) regulation 8 – timing of verification; iv) regulation 7 – ongoing monitoring; v) regulation 11 – enhanced due diligence; vi) regulation 14a – outsourcing; vii) regulation 17a – independent audit functions; and viii) sanctions – reporting requirements.”

It added that while it found no evidence of money laundering or terrorist financing, the BMA required the company to remediate the findings within a prescribed time period, but this was not completed to the satisfaction of the Authority.

“The Authority views these breaches as serious because of their extent and duration, and because they demonstrated a weakness of the company’s controls to ensure full compliance with the regulations and sanctions,” said the BMA.

“The company has demonstrated a pattern of non-compliance with the Insurance Act, which contributed, in part, to the company’s failure to have a resident director in Bermuda at all times, no regular Bermuda decision-making meetings nor management to ensure that the company’s annual filings under the Insurance Act were accurate, adequate and timely,” said the BMA.

“Further, the Authority determined that the company’s corporate administration was not being carried on with the professional skills appropriate to the nature, scale and complexity of its activities.”

Patoma Admin by — August 18, 2021 in Insurance 0
Emirates Rolls Out Special Airbus A380 Livery to celebrate UAE @ 50

By admin

Emirates has rolled out a special Airbus A380 livery to celebrate 50 years of the United Arab Emirates.

The Airbus is one of a collection of aircraft from both the A380 and 777 families that are due to get the livery to recognize the country’s significant milestone.

Emirates is no stranger to placing special liveries on its aircraft. To celebrate the 2020 world expo in Dubai, many of its jets were adorned with yellow, green, and blue dots. Meanwhile, when a world record for the most nationalities on a flight was smashed, this led to a special livery too.

50 years of the United Arab Emirates
The United Arab Emirates was founded on December 2nd, 1971. The country was initially founded with six of the seven Emirates that it consists of today, with Ras al-Khaimah joining on January 10th, 1972. As one of the country’s flag carriers, Emirates doesn’t want to let the special milestone pass without celebration.

So far, one of the airline’s Airbus A380 aircraft has been adorned with the special 50 years livery. A6-EVG first flew with the livery yesterday, visiting Frankfurt Airport. The German aviation hub seems popular for first A380 flights, with A6-EVN making its first passenger flight to the airport a couple of months ago.

According to data from ch-aviation.com, this Airbus A380 was delivered to Emirates on June 18th, 2019. Having made its first flight on October 18th, 2018, the plane is 2.83 years old, with a current market value listed at $78.39 million. Since delivery, the aircraft has operated 5,063 flight hours across 635 flight cycles as of March 31st.

Emirates isn’t going to stop with one plane when it comes to the 50 years celebration. The airline revealed that the livery would be applied to a number of its aircraft from the Boeing 777 and Airbus A380 families.

The livery is based on the color gold, as 50 years marks a golden jubilee. The words United Arab Emirates 50 are posted on the side of the plane, one side in English and one side in Arabic. The word Emirates is the same design that features on the airline’s other aircraft. Meanwhile, the logo designed to recognize 50 years is contained within the zero of 50.

Patoma Admin by — August 18, 2021 in Aviation 0
Ivory Coast: Insurance market grows by 6% to over US$740m in 2020

By admin

 

The insurance market in Ivory Coast posted a total turnover of FCFA415bn ($743m) in 2020, with the non-life sector accounting for FCFA232bn (56 percent) and the life sector, FCFA183bn (44 percent).

With these figures, the Ivorian insurance market is approaching the standards of the major insurance markets where life insurance dominates the industry ahead of non-life insurance, according to Mr Mamadou GK Kone, chairman of the Association of Insurance Companies of Ivory Coast (ASACI).
In an exclusive interview with Financial Afrik, he said, ”The market has achieved, despite the COVID-19 pandemic, a growth rate of 6 percent including 8.6 percent for the life branch and 4% for the non-life branch. We can therefore see that the life branch grew faster in 2020 than the non-life branch. This is not an isolated trend insofar as, over the last 10 years, the life branch has experienced an average annual growth rate of 9 percent against 8% for the non-life branch.”

The insurance penetration rate in Ivory Coast is 1.3 percent. Mr Kone said, “It is very low compared to the enormous potential for growth in insurance premiums in the country. The penetration rate is around 10 percent in countries like France and 13 percent for South Africa due to pension insurance. We are at 1.3 percent and there is no need to say that the gap is huge.”

Ivory Coast has 32 insurance companies operating in it, comprising 11 life insurers and 21 non-life insurers.

Patoma Admin by — August 18, 2021 in Insurance 0