As XL Group’s share price spiked over 12 percent last night in the midst of Softbank’s bold wade into the (re)insurance arena with a mooted minority stake in Swiss Re, the industry’s M&A speculation barometer shot through the roof.
The process has taken the best part of a year but if the £110mn+ sale of the venerable Lloyd’s broker Tysers to Integro completes later in February – as expected – then more than one hundred existing and former Tysers staff will benefit from the sale, analysis by Reinsurance highlights.
The Q4 results season kicked-off in earnest last week with a boost for the brokers after solid performances by Brown & Brown and Arthur J Gallagher (AJG) while the first signs of a hard-loss quarter for carriers emerged.
Lloyd’s combined acquisition and administrative expense ratio hit 40.6 percent in 2016 as the Corporation continued to underperform its company market competitors despite a concerted efficiency drive and attempts to modernize the market.
In the past week, the gap between disclosed and anticipated industry losses has had a ‘two steps forward and one step back’ feel to it as more carriers published revised fourth quarter loss numbers.
Reinsurance stocks have begun to rally in recent days after declining in late December and at the beginning of January amidst reports of reinsurers conceding to lower rate improvements at 1.1.