The Best Policy

In the second instalment of our two-part interview with Managing Director and Head of FIG Americas at Barclays, Tom Vandever, we discuss low interest rates, debt financing, how carriers are looking to free up capital, the IPO market, and insurtech valuations.

We begin by asking Tom what impact lower for longer interest rates will have on the P&C sector, including M&A dynamics.

Following a few notable insurance IPOs such as Palomar and Lemonade that have attracted investor interest, we discuss the IPO market and whether we are seeing the emergence of an insurtech bubble.

We also look at the impact of Covid-19 on interest from carriers and brokers in building and buying insurtech platforms, while Tom shares his view on the segment from a corporate finance and fundraising perspective. 

Finally, Tom talks about capital efficiencies, restructuring and freeing up capital for hard market opportunities, as well as how insurers are adapting their investment strategies to counter the volatility seen in H1 2020.

Part I can be found here and covers capital raising, start-ups and scale-ups, investor appetite, and how the pandemic has impacted M&A dynamics.

In our latest edition on The Best Policy as part of #REinsuranceMonth, we are joined by Tom Vandever, Managing Director and Head of FIG Americas at Barclays.

In the first half of our two-part interview, we discuss capital raising, start-ups and scale-ups, investor appetite, and how the pandemic has impacted M&A dynamics.

We begin by asking Tom about post Covid-19 capital raising, how it compares to previous cyclical shifts and whether we are witnessing a true class of 2020.

Tom talks about overall investor interest in the P&C industry and what is driving PE interest in the carrier sector, as well as how much interest he is seeing from carriers in structuring sidecars and similar vehicles.

We look at the practical impact the shutdown and financial markets turmoil had on M&A across the sector, how the deal-making process has changed in response, and whether we are beginning to see a return to normal.

Finally, we consider how the M&A dynamics have changed post Covid-19 in the distribution space and where Tom expects to see the next wave of M&A within distribution.

The next episode will air this week and will focus on low interest rates, debt financing, how carriers are looking to free up capital, the IPO market, and insurtech valuations.

In the second instalment of our two-part interview with Managing Partner and CEO of TigerRisk Partners Rod Fox, we discuss how market dynamics are shaping up as the run-up to the key 1 January reinsurance and retro renewals begins.

Following the disruption of the Q3/Q4 conference agenda and lack of face-to-face interaction ahead of significant upcoming renewals, Rod shares what strategies the company is deploying in order to assist clients and navigate a more challenging market.

We also talk about future talent development and how training remains an invaluable tool in supporting the next generation of (re)insurance market participants. Rod shares his advice for young people entering the industry and what companies can do to tackle known issues, such as diversity and racial inequality.

Finally, we explore what drives TigerRisk's results culture and the importance of striving to challenge the status quo.

Part I can be found here, as the chief executive talks about the greatest market opportunity in his lifetime, the distribution landscape and the cost of Covid-19.

Today on The Best Policy, we are joined by Rod Fox, Managing Partner and CEO of TigerRisk Partners, a global reinsurance and capital advisory firm.

In the first edition of our two-part interview, we begin by asking Rod about the completion of an investment round from private equity firm Flexpoint Ford and how this marks a new chapter for TigerRisk Partners.

We explore opportunities from the fall-out from broker consolidation, the distribution landscape and how it has shifted in recent years, as well as the new normal for this part of value chain. 

Considering the Capital Markets and Advisory unit of TigerRisk Partners and its involvement in a number of significant raises, Rod shares his thoughts on the impact of Covid-19 on securing capital as (re)insurers look to scale up to capitalise on the rapidly hardening market conditions.

We also ask the chief executive what he thinks of the current loss estimates and trapped collateral, as well as his key priorities in managing the pandemic impact from a company, employee and client point of view.

Finally, we explore how the pandemic has changed the notion of perils in the marketplace. 

Part II will air later this week and will focus on market dynamics ahead of the 1 January reinsurance and retro renewals, diversity and racial inequality, and future talent development.

In the second instalment of our two-part interview with TransRe President and CEO Mike Sapnar, we discuss property cat and what's happening in the ILS market, as well as strategic capital relationships.

We start by asking Mike how dynamics in the ILS market are impacting property cat in the build up to 1.1 renewals. The chief executive also gives his view on the insurability of pandemics, public/private solutions and systemic cyber exposures.

Next, we look at lessons about aggregation and unmodelled exposures that come from Covid-19, as well as the growing movement against racial inequality and the diversity issue the industry is facing. 

Mike shares practical steps that firms could take to address it and foster change, as well as attract young talent into organisations, given the generational talent challenge within the industry.

Listen to the second half of our interview with Mike Sapnar.

Part I can be found here and covers market dynamics, reinsurance pricing, investment environment, reinsurance demand, and lessons from Covid-19.

Throughout the first episode of our two-part interview, we explore the market dynamics in reinsurance and underlying insurance business and how this market compares to the true hard markets of 1986 and 2001.

We being by asking Mike, who has been at TransRe for 25 years, whether he has ever seen a similar market dynamic and what his observations are on the underlying insurance business and reinsurance pricing.

The chief executive also talks about the investment environment and how he expects to see risk appetites and conservatism on the balance sheet.

Finally, we discuss lessons from Covid-19 and the imperative to strip cost from the value chain, as well as the impact of uncertainty on reinsurance demand going forward as people look at volatility in their earnings.

Don’t miss the first half of our interview with Mike Sapnar.

Part II will air later this week and will focus on the ILS market, strategic capital relationships, insurability of pandemics and the industry’s diversity issue.

In our latest podcast edition, we are joined by Julian James - Chief Executive Officer of International Insurance at Sompo International.

Having held several leadership positions in the London market, including President of Allied World's Global Markets, CEO of the Allied World Managing Agency at Lloyd's, CEO of Lockton International, and a member of the Council of Lloyd's, Julian has built a remarkable career in the global insurance industry. 

In today's interview, Julian talks about the time he left Allied World and what tempted him to return to the London market as Sompo International's CEO of International Insurance two years later.

He shares the strategic reasons for why the company made the decision to exit Lloyd's and whether Sompo would consider returning should John Neal successfully transform the Lloyd's market into a natural home for specialty risks.

We also discuss how Lloyd's has adapted to the challenges of Covid-19 in terms of e-placements, the re-opening of its trading floor in September, and how close it was to ceasing trading in the aftermath of 9/11 nineteen years ago.

Next, we look at Sompo International's vision and international strategy, as well as growth ambitions and potential opportunities emerging from the outbreak.

Julian comments on market hardening, how the industry has dealt with the pandemic crisis so far and what lessons are to be learnt. We also discuss the opportunity of creating a public/private reinsurance platform that would cover pandemics and other existential catastrophes.

Finally, Julian shares his career advice to the younger generation looking to join the industry.

In the first half of our interview with QBE Insurance Group CEO Pat Regan, we focus how the global insurer is managing the pandemic impact, current lost estimates and how different jurisdictions and regulators are handling the tensions around BI claims.

In the second half, we begin by looking at the simplification strategy and wider de-risking programme Regan has led at QBE since he took the helm in 2017. He explains why the North American market has been difficult for QBE in the past and what his current plans are in light of continued hardening, including the company's appetite for MGA business.

As QBE continues to maintain the significant upsized core cat XOL, risk XOL and cat aggregate cover it put in place in 2019, we discuss how this strategy is further navigating the company through market uncertainty. 

Regan also shares how disruptive Covid-19 has been to QBE's overall strategy, what his views are on the structural changes happening at Lloyd's and its future, as well as QBE's London Market strategy moving forward.

​Following the major shift in market dynamics and the balance between intermediaries and insurers as the market hardens, Regan comments on the future for facilities, broker value and remuneration. 

Ultimately, the chief executive states his expectations for the market and QBE for the remaining of 2020 and 2021.

In our latest edition on The Best Policy, we are joined by Pat Regan - Group Chief Executive Officer of QBE Insurance Group Limited.

Throughout today's episode, we focus on the Covid-19 impact on the industry and recovery management following the aftermath of the pandemic.

We begin by looking at the key priorities from a company, shareholder and customer point of view, as well as QBE's position from both a preservation standpoint and a hardening market following the A$1.3bn ($825mn) capital raise in the wake of the outbreak.

We also discuss the FCA High Court test case over BI claims and Pat shares his views on how the UK is handling this area of tension in comparison to other jurisdictions.

Following reports that the company stopped writing trade credit insurance for two Australian retailers, Pat explains his outlook for this line of business on a global scale.

Ultimately, we explore what the answer to pandemic cover is moving forward and what markets are best positioned to deliver on innovative products.

Listen to the first half of our interview with QBE Group Chief Executive Officer Pat Regan.

Part II will focus on the de-risking programme and will be published next week.

In this week's exclusive episode on The Best Policy, we are joined by industry veteran and Chairman of Front Street Advisors, Brian O'Hara - the former Chairman and CEO of XL Capital Ltd., now XL Group.

Having joined XL Insurance as its founding president and chief operating officer in 1986, Brian has built a distinguished career in the insurance market.

During our interview, we focus on his recently published book - "It's Not the Score, It's the Trip: One Man's Journey to Building a Global Franchise" - in which Brian shares his journey during some of the most remarkable years in the financial services world.

Brian talks about his affinity with Bermuda as a young man and what ultimately led to the birth of XL and arguably to the modern Bermuda insurance market. He speaks about his most challenging time in running a public company and the lessons he took from it.

We also discuss the current market conditions for start-ups in Bermuda compared to previous hard market scenarios and whether the “Bermuda mouse-trap” is still as attractive for start-ups as it once was.

Looking at the huge surge in business flow for property and casualty insurance in Bermuda as a result of retrenchment in the domestic US market, we explore whether Bermuda has the resources to capitalise on this opportunity considering the Covid-19 restrictions.

Brian also gives his opinion about his former company now being a subsidiary of Europe's largest insurer, Axa, as well as the reasons for joining Envelop Risk's board of directors and what attracted him to the business. 

Finally, Brian tells us about his proudest industry moment and the people who inspired him the most throughout his career.

Listen to our exclusive interview with Brian O'Hara, the industry leader who played a pivotal role in shaping its future.