- Globe Life submitted a preliminary business plan to Bermuda Monetary Authority to establish a reinsurance affiliate in Bermuda.
- The plan aims to reinsure a portion of new and in-force life insurance policies, with an initial reinsurance of a small block of reserves.
- The company expects to cede approximately 25% of total statutory life reserves over time, including in-force and new business.
- The first reinsurance transaction is targeted for the end of the year, with subsequent transactions possibly following.
- The Bermuda entity is expected to enhance the company's economic capital framework, support growth, and improve earnings emergence.
- Regulatory and rating agency discussions are ongoing, with formal licensing expected later in the year.
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- 80% of recent premiums in Florida were at private terms above market rates, indicating strategic positioning and premium quality.
- The company is expanding across classes, leveraging scale to secure better-than-market terms, especially in property catastrophe, casualty, and specialty lines.
- Ryan Re, an underwriting MGU, will be the exclusive reinsurance underwriter for Nationwide's reinsurance renewal rights from Markel, creating a diversified portfolio with new relationships.
- The deal is part of a broader strategic alliance with Nationwide, expanded through a 10-year renewal agreement.
- The transaction is expected to be accretive starting in 2026, with temporary margin impacts in late 2025 due to talent investments.
- Ryan Re's capabilities are primarily underwriting, not broking, and it enhances Ryan Specialty's scale, geographic reach, and product scope.
- Management expressed high confidence in renewing a significant portion of the $1.2 billion reinsurance premium market, emphasizing the strength of their underwriting team.
- Unum completed an external reinsurance transaction in July 2025 to reduce LTC exposure, marking a major strategic step.
- The company is actively seeking additional LTC risk reduction opportunities, emphasizing disciplined management of the LTC block.
- The transaction improves risk profile, frees capital, and shifts focus to higher-return core businesses.
- Management highlighted ongoing efforts to de-risk LTC through market transactions, despite market complexity and slow pace.
- Reinsurance of 75% of in-force individual life block with RGA closed on July 31.
- Significantly reduces future mortality claims exposure and earnings volatility.
- Generated over $2 billion in value through ceding commission and capital release.
- Plan to execute $500 million of share repurchases in second half of 2025.
- Remaining capacity for opportunistic growth investments or additional buybacks.
- Eastern Bankshares plans to build out in the Rhode Island market, including commercial, consumer, and wealth management businesses.
- No current plans to expand banking services into Connecticut or New York, but open to future opportunities.
- The Rhode Island franchise is viewed as a potential springboard for regional growth, with active engagement in the market.
- The company reduced its quota share reinsurance from 55% to 20%, a move driven by improved loss ratios and capital efficiency.
- This change was a strategic decision to shift risk management focus from risk concentration to capital management.
- The transition is expected to unfold over several quarters, with ceding roughly 45% of premium in H2 2025 and reaching 20% by Q3 2026.
- The impact on revenue is expected to outpace gross profit growth, with a shift towards higher revenue growth rates as the reinsurance scope narrows.
- This structural change aims to improve capital utilization and reduce dependency on reinsurance, leveraging the company's improved loss ratios and captive reinsurance structures.
- Hippo's long-term strategic plan is anchored in three pillars: diversification, risk management, and growth acceleration, unveiled at Investor Day in NYC.
- The company is actively diversifying its premium base across personal and commercial lines, leveraging its hybrid fronting carrier to unlock market growth.
- A transformative partnership with Baldwin Group aims to triple market access by expanding distribution through Baldwin's Westwood Insurance Agency, significantly increasing new home closings and geographic reach.
- The company clarified that the current reinsurance program, effective from June 1, 2025, is not significantly different in cost as a percentage of direct earned premium compared to the previous period.
- This stability is notable given the recent landfalling storms last year, which typically would lead to increased reinsurance costs.
- The change in reinsurance programs from last year, including the winding down of the RAP program at no cost, impacts quarterly comparisons and reflects strategic reinsurance structuring.
- The Wisconsin OCI recommended approval of Ambac's sale of its Legacy financial guaranty business, with a hearing scheduled for September 3, 2025.
- Final approval of the sale is the last condition before closing, which is expected to significantly reshape the company's business focus.
- Post-sale, Ambac plans to implement strategic initiatives including rebranding, expense realignment, new executive compensation, and investments in data and AI to accelerate growth and profitability.
- Management emphasized that these initiatives are aimed at completing the business transformation and positioning Ambac for strong growth into 2026.
- Ambac aims to create material shareholder value through these strategic moves and expects to provide updated guidance after the sale concludes.
Dafinchi