IN THIS ISSUE 6
Message From The Earliest Adopter - Glenn W. Clark
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There are five kinds of people that will keep you from making your goal successful...
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WATCH THE A.M. BEST INTERVIEW OF GLENN CLARK
CHART Exchange Heads To London! The CHART Exchange will be traveling to the U.K. on May 9-11, 2016. Traveling to U.K. embodies the core principles of CHART.
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Interested In Placing Business With Lloyd’s But Don’t Know Where To Start?
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Consider becoming a member of the CHART Exchange! CHART has been established to facilitate new business growth within the U.S./London marketplace
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Interview: Glenn Clark Sits Down With A.M. Best’s John Weber It takes so many people for something like this to happen. The early adopters are the 330 that came to our meeting. We hope to manage that to 500 this year. We’re not trying to be the biggest organization. We’re just trying to be the best at what we do.
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Affinity Group Underwriters” A CHART Exchange Success Story In the early months of 2015, Stephen Wyss, Managing Director at Affinity Group Underwriters (AGU), received a call from the CHART Exchange’s “Earliest Adopter,” Glenn Clark, encouraging him to attend a conference in Philadelphia later that year.
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The basic principals by which CHART Exchange will grow and thrive.
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Lloyd’s To Apply For Reinsurance Branch in Mumbai An onshore branch will provide Indian reinsurance brokers with local access to Lloyd’s unmatched underwriting expertise and innovative reinsurance solutions for complex and specialist risks, including agriculture, infrastructure and disaster management.
The Name To Know In The London Market Is “TOM” “TOM” is an acronym and it stands for something very important to the future of the entire London Market. “TOM” stands for the “Target Operating Model” which represents a shared and collective vision of the desired future state of London Market insurance operations.
CHART’S Early Adopter’s Bill Of Rights
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Lloyd’s Reports £2.1BN ($2.98BN U.S.) Profit For 2015 Lloyd’s, the world’s specialist market for insurance and reinsurance, announced a profit of 2.1bn for 2015.
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CHART Objective #1 “The Chart Exchange has created a forum for new business. One that greatly accelerates the business development cycle thus favorably impacting the competitive positioning of this important insurance market.
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Marketform Concludes Review of Underwriting
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a share of AIG’s new and renewal U.S. Casualty portfolio will be ceded to the reinsurer, consistent with the plans announced by AIG in its January 26, 2016 strategic update to investors.
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President Barrack Obama disapproves of Britain leaving the EU, but will publicly state his opinion when he addresses the subject in Britain mid April.
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LLoyd’s Appoints Country Manager For India Lloyd’s, the world’s specialist insurance and reinsurance market, is pleased to announce the appointment of Shankar Garigiparthy as Country Manager for India.
Take 1 Insurance - Latest Lloyd’s Cover Holder Dallas, TX - Take 1 Insurance, a Dallas-based U.S. Risk Insurance Group Inc., specializing in coverage to the ntertainment industry announced recently it became a Lloyd’s cover holder.
Marketform announced March 29th, 2016 that it has completed the strategic review of the underwriting area of its business. President Obama Disapproves of Britain Leaving The EU
AIG Announces Reinsurance Arrangement With Swiss RE
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Callum Clements Winds 2016 Novae Educational Achiever of the Year Callum was born prematurely with a complex blood disorder and placed into foster care shortly after his birth. Independent Agency Valuations at Record High This combination of low interest rate leveraged private equity capital and high priced publically traded companies has created an expensive and competitive landscape for insurance distribution assets.
APRIL-MAY 2016 VOLUME 1 - ISSUE 2 Publisher:
CHART Exchange Glenn W. Clark, CPCU
Membership Services Matt Basile
Advertising:
Tyler Cichewicz
Managing Editor: Tyler Cichewicz
Contributing Editor: Frank Huver
Subscriptions: Tyler Cichewicz
Layout, Design & Circulation: Ron Manera AdMax Corp., Inc.
CHART Exchange info@chart-exchange.com 3001 Philadelphia Pike Claymont, Delaware 19703 www.chart-exchange.com 302-765-6001 Last Issue:
Cover Image Credit: Lloyd’s of London H.M.S Victory on Display in Lloyd’s lobby
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Message From The Earliest Adopter “First they ignore you, then they laugh at you, then they fight you, then you win” - Mahatma Gandhi
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he quickest way from Point A (where you are right now), to Point B (where you want to go) is a straight line, right? If you have ever tried to start/invent something new there are a number of different classifications of people you’ll meet along the way:
Nay Sayers. Your idea is crazy, not original, done before, will never work, don’t even try. Stay away from them, they’ll sap your energy and kill your drive. Smoke Blowers. You are a genius, you are cutting edge, the world will beat a path to your door. Remember where the smoke is actually being blown… and wear protective garments. Consultants. Complimentary of your idea, they will help you turn it into a reality…for a price. There is a time and place for consultants. At the birth of an idea, beware of those who charge you money. Cheerleaders. Rah rah rah! Go team go! We’re on your side. Looks great, fun to be around, but they don’t play the real game and cannot advance the ball. Fence Sitters. We’re right there with you. Wish we could help but we’re real busy right now. We’ll join you later!
Glenn W. Clark, CPCU Publisher & Earliest Adopter
They will take up your time and energy. Create an early warning system as you will need to avoid these distractions. When you want to start or invent something new, seek Early Adopters. There is a Bible verse (Proverbs 27:17) that expresses the concept beautifully: “As iron sharpens iron, so one person sharpens another.” Risk Takers. Syndicates who wish to diversify their new business acquisition strategies. Coverholders. Wants to meet new markets, interact with peers, and mentor new producers. Potential Coverholders. Qualified specialists that seek to build London relationships.
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CHART Exchange Vendor Partners. Servicing firms with distinct London strategies who seek a partnership basedforum to advance their company. Summary: Navigate the path past those categories that get you off course and sap your energy. Find those Early Adopters and advance your cause.
P.S.
Glenn W. Clark , CPCU
Question. Wonder what to do with the Nay Sayers, Smoke Blowers, Cheerleaders, Consultants, and Fence Sitters AFTER you succeed? Answer. Forgive them. They could be next year’s Early Adopters. Enjoy this second issue of the CHART Exchange magazine as we broaden our search for Early Adopters!
Take some time to read through the “CHART Exchange.” We’d love to get your feedback and have you join us as an Early Adopter.”
CHART EXCHANGE HEADS TO LONDON!
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he CHART Exchange will be traveling to the U.K. on May 9-11, 2016. This is going to be a ground-breaking event as no other domestic insurance group has ever brought such a large contingent to Lloyds for the express purpose of exploring new business opportunities within the U.S./London marketplace. Special thanks to both our Broker partners and Wilson Elser for handling the logistics associated with the event. These firms have invested a great deal of time and effort to reserve the meeting venues, arranging presentations, and scheduling time with Lloyds’ corporate personnel. Participants will gain insight into the London market through moderated discussions, testimonials,
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personal interaction between Risk Takers and domestic insurance agencies. The trip also presents a firsthand educational opportunity for U.S. producers to better understand the position of London Risk Takers. Traveling to U.K. embodies the core principles of CHART. By fostering direct relationships, U.S. Coverholders will experience new business opportunities and expand their access to the London market. The trip will also benefit London Risk Takers as they hunt for new distribution partners. In addition, the CHART Exchange will further establish its presence in London and attract new London syndicates, which in turn will bring more value to CHART members.
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CHART Exchange
INTERESTED IN PLAC BUT DON’T KNOW W BECOMING A MEMB
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Francis J. Huver, SVP, CFO
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ith a history going back nearly 328 years, Lloyd’s of London is widely recognized as one of the oldest insurance brands in the world. Unfortunately, a number of U.S.domiciled agents operate under the misconception that Lloyd’s is only a market for unique, specialty risks (more about that later). In reality, the insurer has been a major
industry and helped shape the risk modeling and assessment practices in use today. Consider some of the following examples:
Over the past 100 plus years, our country has seen its share of catastrophes. Lloyd’s response to these disasters has both solidified its reputation in the insurance
In August 2005, Hurricane Katrina devastated the Gulf Coast. It was the costliest national disaster, as well as one of the five deadliest hurricanes, in the history of the
On April 18, 1906, an earthquake registering 8.25 on the Richter scale devastated San Francisco, CA. The phenomenon triggered uncontrollable fires lasting three days. Over 3,000 people perished; nearly half of the Francis J. Huver is a Senior Vice President city’s population and Chief Financial Officer at Rockwood was homeless. Direct quake Programs. He is also responsible for all losses totaled $24 management reporting and statistical million and fires analysis. Mr. Huver has been with the constituted $500 million, akin to company since 1996. over $10 billion in today’s dollars. force in this country for well over British insurers paid out more than a century. Almost 40% of Lloyd’s one-fifth of these total claims. One global annual premium comes from of the leading Lloyd’s underwriters the U.S., with business consisting of famously instructed his San primarily of surplus lines insurance Francisco agent to “pay all of our and reinsurance. In 2014, that was policyholders in full, irrespective of $14.6 billion! the terms of their policies”.
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CING BUSINESS WITH LLOYD’S WHERE TO START? CONSIDER BER OF THE CHART EXCHANGE! United States. Lloyd’s responded quickly to the catastrophe, sending thousands of loss adjusters to the region, paying billions of dollars in claims, and donating millions of dollars in relief funds.
personnel due to such a fortuitous event.
of the Twilight series had one unfortunate consequence: people began to get concerned about turning into creatures of the night. Fortunately, there is an insurance policy for that.
3. Politically Incorrect HO-2 Policy Form. A Householder’s Comprehensive policy form written in 1914 covered damages from Lloyd’s reputation as an innovative such named perils as aeroplanes, Interested in placing business riots, strikes…and with Lloyd’s but don’t know and forward-thinking insurer airships, where to start? Consider has resulted in its covering many suffragists. becoming a member of unusual risks including: the CHART Exchange! CHART has been 1. Celebrity Body Parts. established to facilitate Most of us have heard the new business growth story about the 1940’s pinwithin the U.S./London up/movie star Betty Grable marketplace. We provide having her legs insured. an environment through Lloyd’s has also provided which Risk Takers, existing coverage for Jimmy Coverholders (firms with Durante’s nose, Bette Davis’ underwriting authorities waistline, Dolly Parton’s delegated by Lloyd’s), and breasts, and Bob Dylan’s U.S.-based agencies can vocal cords. More recently, personally interact and the star of the Ugly Betty Image Credit: Lloyd’s of London freely exchange ideas about TV show (America Ferrera) had her 4. Alien Abduction Insurance. new coverage offerings, underteeth insured for $10 million. Concerned about the possibility served market niches, and other 2. Lottery Winners’ Insurance. of having an uncomfortably “close opportunities. Ask most people what they’d do encounter”with an extra-terrestrial? if they won big in a lottery and Lloyd’s is willing to underwrite the Visit our website at www.chartexchange.com to learn more. they’d respond with “quit my job”. exposure. Also, feel free to e-mail us at Fortunately, employers have the 5. W e r e w o l f / V a m p i r e info@chart-exchange.com with option to purchase insurance from The success any questions you may have. Lloyd’s to mitigate the loss of key Attack Insurance. www.chart-exchange.com
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Interview
CHART’S “EARLIEST ADOPTER,” GLENN CLARK, SAT DOWN WITH A.M. BEST TV TO DISCUSS THE PROGRESS THE CHART EXCHANGE HAS SEEN TO DATE
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he following interview with A.M. Best’s John Weber took place on March 21st of 2016. It’s an excellent way of learning about the CHART Exchange. Watch the 7 minute video of the interview or read it below. Q: Tell us a little bit about the organization.
A: Actually, members, not many. Our first year was an experiment. We had a year where we had an early adopters’ meeting to test our concepts and ask our friends what they thought of the idea. From there we went to London and met with some Lloyd’s personnel to get their permission to do what we’re doing. The way we decided to do the business was to hold a big event in October 2015 to test the concepts that we thought would work, with the face-to-face contact.
A: A cover holder is a specific term for somebody who has a binding authority or is tribunalized with Lloyd’s of London and risk taker is a Q: Why the London market? specific term used in London for a syndicate. So to be a risk taker you A: The London market, because it’s have to be a London syndicate, of which there are 93. Cover holders and risk takers [forms] the acronym Click To Watch Interview to build face-to-face communication between those two groups.
the market of great dependence on the U.S. Forty percent of Lloyd’s of London is business in the United States. A huge part of that business is what they call binding authority, where there’s an agent-program administrator who’s got an expertise in a certain line, has a big block of business and the bent to do business with London. It’s a mystery to some people but to the folks who live in it and spend a lot of time in it, it’s a mystery that’s worth unraveling. Once you do it gives you some competitive advantages in the marketplace.
Q: So what’s the objective for the organization and for the members? A: The basic objective is to do more business in the U.S. with London. We are all experienced as program managers. Some of us access those markets, some of us don’t. This is a teaching organization to build the community so that more business happens between us. Q: How many members do you have at this point? 10
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Q: What constitutes coverholder?
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Lloyd’s
A: You have to be officially tribunalized. It requires a background check, financial checks. Do you have the right systems and methodology to do the reporting? There’s an ethics and character check in that type of deal. You’ve got to possess the expertise and be able to deliver on the promise of what your deal is. There’s a lot more to it than just a casual meeting. You’ve got to qualify. Part of what we do for Lloyd’s is do that qualification process for them, to make sure that folks in our group would know what the barriers are and what you’ve got to do to overcome them and what expertise is required to get there. Q: How many syndicates have you formed business partnerships with? A: There are 93 syndicates. Now tomorrow it might be 94 or it might be 92. That changes. In our first CHART exchange meeting, we had 18 of them represented. These syndicates were more dependent upon U.S. binding authority. Some of the syndicates don’t have that as part of their model but a large part of them do. Our target for syndicates, within that 93, is about 45 of them. Q: Are you seeing tangible results at to this point? A: We had a great first meeting. We had over 150 face-to-face www.chart-exchange.com
meetings that were preset by our London brokers partners and the risk-taking community.
It takes so many people for something like this to happen. The early adopters are the 330 that came to our meeting. We hope to manage that to 500 this year. We’re not trying to be the biggest organization. We’re just trying to be the best at what we do.”
Q: How do you get more agencies, syndicates and coverholders involved in the organization? A: We just hired a couple of staff members. Last year was pretty much “dialing for dollars” and advertising and a lot with my previous contacts and some previous experience I’ve had in this space, where people knew that we were people who put people together. What we’re doing this year is going from an experiment where now we have 330 eyewitnesses to how we conduct business.
No one can define us now because we have 330 witnesses of who we really are. All we are about is new business. We’re not trying to take anybody’s old accounts out of London or cannibalize anything We did a lot of prequalification of that’s already over there. But have the folks, making match-ups with those eyewitnesses, they become the right markets. Just coming back evangelists for you to go and recruit from London two days ago, I was friends. Anyone who went to that there all last week, we have over 25 first meeting became what we call new potential coverholders coming an early adopter. to the market that qualify. We’ll have already done the background It takes so many people for checks, so we’ll have very, very something like this to happen. tangible results. The early adopters are the 330 that came to our meeting. We hope to manage that to 500 this Please send any year. We’re not trying to be the questions you may have to: biggest organization. We’re just trying to be the best at what we tyler.cichewicz@chart-exchange.com do. Our message is very, very (t.) 302-765-6004, or, simple. We’re London-centric. We’re not about markets. We’re matt.basile@chart-exchange.com about doing more business with (t.) 302-765-6016 London and the reasons that you should or might consider doing so. TABLE OF CONTENTS
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Spotlight
AFFINITY GROUP UNDERWRITERS: A CHART EXCHANGE SUCCESS STORY
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association customers.
n the early months of 2015, Stephen Wyss, Managing Director at Affinity Group Underwriters (AGU), received a call from the CHART Exchange’s “Earliest Adopter,” Glenn Clark, encouraging him to attend a conference in Philadelphia later that year.
and
affinity
group
In the life and health business, there are few organizations with a business model like AGU. Fundamentally, AGU is a product developer, managing underwriter and program administrator focused on specialty products in the life and A&H market segments for niche group markets.
Wyss hesitated, unsure of what benefit the CHART Exchange could provide his business.
AGU is based in Richmond Virginia with additional offices in Naples and “I’m a life and health guy, not P&C,” Stephen Wyss, Managing Dir. Jacksonville Florida as well as one Affinity Group Underwriters Wyss told Clark. outside of Toronto Canada. Wyss 1997, Wyss was Vice President for shares management duties in the “No, no,” Clark said, “There will be the Association Group Division company with Emma Parrish, who accident and health underwriters of Life Insurance Company of directs financial and operations there too.” North America (now CIGNA) and activity, and his brother, Tom Wyss, who is in charge of Wyss attended and sales and marketing. found out Clark The company has was right, as he the necessary immediately saw the licenses to operate value CHART could in all jurisdictions bring Affinity Group throughout the Underwriters. United States. “Meetings were For Wyss, working arranged for me with again with London several syndicates will be a sort of that had books of a reunion. His A&H business and subsequently Senior Vice Presidentfirst international posting in the were looking to grow in the U.S.,” Wyss says, crediting CHART for Affinity Markets for a Canadian insurance business was working as making contact with London easy company, North American Life. AGU an A&H underwriter in London back works with over a dozen brokers and in the mid-1970s. and efficient. Third Party Administrators managing See Affinity Group Page 25 Prior to co-founding AGU in programs for approximately 30 12
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Wilson Elser Consulting
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THE NAME TO KNOW IN THE LONDON MARKET IS “TOM”
our year’s ago, I flew from New York to London on a business trip aimed at beginning the work necessary to help one of the Lloyd’s of London syndicates (and their vendor partners) to modernize some shared and cloud-based insurance support technology, leverage international standards, and innovate business processes. My global information,
to the work of countless people and several years of effort and investment. Moving forward to present day, our consultancy now sees these “Apricot-like” themes emerging across the entire London Market (LM) and most notably for this article, the multi-year global Fortunately, project “Apricot” was modernization and innovation eventually an international success project now advancing under the and our goals were achieved thanks agreed name “TOM.” software, and services employer at that time code named the project “Apricot” and the scope included North America, Continental Europe, and Asia Pacific because this London risk taker was also a global insurance carrier.
About the Author - Jesse R. Viani (an American citizen) is a practicing consultant and the Director of Insurance Business Services at Wilson Elser Consulting, a consultancy established in both New York, NY and London UK which offers advisory services and other insurance business solutions to clients all over the world. Prior to assuming this role, Jesse managed client relationships and oversaw complex international software and service implementations, as Global Account Executive, at one of the world’s largest information, software, and service companies. Previously, Jesse was a valued employee and manager at the Am Law 100 law firm Wilson Elser Moskowitz Edelman & Dicker LLP where he led the firm’s e-Business department, overseeing more than 150 successful client billing software implementations. Before joining Wilson Elser, Jesse was a Director of Operations and Systems for American International Group (AIG), working in the Claims Litigation Management department (now known as the AIG Legal Operations Center), where he managed the carrier’s relationships with various software companies, legal bill review vendors and other consultants. Jesse graduated magna cum laude from the Pennsylvania College of Technology with a bachelor of science degree and was a juris doctor candidate at Seton Hall University School of Law 14
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Fortunately, now that we know TOM’s name, understand TOM’s history, and we appreciate some of the TOM objectives, we are now positioned for more discussions at upcoming CHARTsponsored events and in future CHART publications on this topic.“
www.chart-exchange.com
Unlike Apricot, however, “TOM” is an acronym and it stands for something very important to the future of the entire London Market. “TOM” stands for the “Target Operating Model” which represents a shared and collective vision of the desired future state of London Market insurance operations. TOM is guided by the London Market Group (LMG), an organization which represents the insurance and reinsurance market in London.
Boston Consulting Group and, at the time of this writing, is available on their consultancy’s website [HERE]
Among the notable findings, was the communication of a challenge within the London Market of its expense ratio being 9 percentage points higher than industry peers. As a result of this finding, and other details set forth in London Matters, the report presents opportunities for the London Market to pursue in Many of the TOM investments, all of order to address its challenges and which are overseen by the LM TOM retain as well as improve its leading Steering Board, have a direct impact position in the world of insurance. on work being carried out this year by the CHART organization and its Among the key opportunities members (coverholders, potential identified was the need to reduce coverholders, London risk takers, the cost of doing business by and vendor partners). delivering on infrastructure activities, removing LondonAs a result, it is crucial for all of us specific processes, and realizing to be conversant in the language of economies of shared service. LMG TOM, understand the history, and responded to the insights from appreciate the future objectives. “London Matters” and one of the Hopefully this article will help all of outcomes from their response is the adopters of CHART-Exchange our good friend, TOM. to be on the same page with TOM so that we ensure our alignment Throughout much of 2015, the with not only the London Market London Market analyzed and we know from the past and present, determined “what” it should do but also the London Market of the in response to “London Matters” future. and “how” it could get done effectively. With the support of Speaking of the past and to help KPMG management consultants, provide TOM context for everyone the entire London Market (and (as some of us may already know) its vendor partners) thoughtfully back in November 2014, the created and set forth a vision of the London Market Group released future state of London insurance a compelling report on the operations via the Target Operating competitive position of the London Model approach and therefore Insurance Market, called “London See TOM Page 21 Matters.” The report was written by TABLE OF CONTENTS
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THE EARLY ADOPTERS
BILL OF RIGHTS PREAMBLE The CHART Exchange begun and held at the City of Philadelphia, between Monday the twelfth and Wednesday the fourteenth of October, two thousand and fifteen. RESOLVED by the Coverholders, Prospective Coverholders, Risk Takers, and Vendors assembled, that the following Articles be proposed as amendments to the Declaration of Interdependence. ARTICLES in addition to, and Amendment of the Declaration of Interdependence, proposed by the Early Adopters and ratified by the Coverholders, Prospective Coverholders, Risk Takers, and Vendors attending the CHART Exchange event. FIRST AMENDMENT (Freedom of commerce and peaceable assembly). The CHART Exchange will foster growth in the U.S./London market by providing a forum through which Risk Takers and Coverholders can interact with domestic insurance agencies in the pursuit of new business opportunities. The event shall also provide a series of workshops moderated by CHART’s Risk Taker and Vendor partners. All attendees are expected to peaceably assemble at these sessions to expand their skillset and show support for the presenters. Participants shall be respectful of the efforts put forth by the moderators by not setting appointments during the times allotted for workshops. Ample time has been provided before and after scheduled events for holding individual meetings. CHART attendees are expected to follow the precepts of the “Golden Rule”: do unto others as you would have them do unto you. Individuals must be supportive and respectful of other participant’s efforts before presuming the same treatment from them. SECOND AMENDMENT (Right of attendees to bear business cards). Participants will be protected against spam and other forms of solicitation through the judicious and limited distribution of attendee lists. Business can best be conducted across long distances by first establishing the partnership through personal interaction. Participants shall network with others in attendance as a means of identifying new opportunities. THIRD AMENDMENT (Protection from enduring non-business activities). The CHART Exchange shall not schedule golf outings, formal dinners, or other social events, as these serve to distract attendees from the core purpose of getting business done. All participants are given the freedom to make their own plans after meeting hours. FOURTH AMENDMENT (Protection from unreasonable constraints on attendee time). The CHART Exchange shall be respectful of all attendees by making optimal use of the time they have allotted to participate in the event. Meetings shall start promptly at 8:00 AM. The agenda shall provide content designed to facilitate growth within the U.S./London market.
Im
FIFTH AMENDMENT (Due process and freedom from self-aggrandizing participants). The CHART Exchange shall recognize that all attendees are experts within their particular field of endeavor: risk evaluators/underwriters, product distributors, service providers, etc. As such, the meeting will be deemed as an assembly of peers. All participants are expected to check their egos at the door as part of the event registration process. Business casual shall be the dress of the day. SIXTH AMENDMENT (Judgment of new ideas by a trial of peers). All attendees shall have the right to submit their new business/marketing ideas for consideration within the Shark Tank/Dragon’s Den competition. Submissions shall be evaluated based on the innovative nature of the idea, viability of the product, and premium potential. Style points will also be awarded for the originality of the presentation itself. The winner shall be determined jointly by a panel of experts and the other attendees. The grand prize: $10,000 (£6,400). The Shark Tank/Dragon’s Den competition is sponsored by Iris Insurance Brokers. SEVENTH AMENDMENT (Civil treatment for all attendees). All participants shall have the right to expect civil treatment from all other event attendees. Moderators shall be shown respect by not having to compete with individually scheduled appointments during the times allotted for workshops. All attendees shall be granted the freedom of not having to be recipients of spam or other solicitations due to limited distribution of participant lists. Each Early Adopter is considered a full partner. EIGHTH AMENDMENT (Freedom from cruel and unusual keynote speakers). The CHART Exchange shall not retain the services of celebrity speakers to deliver speeches unrelated to the growth of the U.S./London market. Tuesday’s keynote address shall be presented by Jeff Tobe, a nationally sought after for his expertise in improving corporate profits by changing the customer experience and retaining great talent. Wednesday’s opening remarks shall be provided by Mark Cloutier, CEO of BRIT Insurance Holdings. Mr. Cloutier has extensive experience within the various aspects of the insurance transaction: as a risk-taker, product distributor, and as a vendor supporting the industry.
NINTH AMENDMENT (Enumeration of rights shall not be construed as anything critical of the great forces that build our profession). CHART recognizes the valuable role other association groups (AAMGA, NAPSLO, PLUS, TMPAA, IIABA, Trusted Choice, etc.) play within the U.S./London market. CHART shall honor the contributions these fine organizations already make and facilitate dialogue amongst risk takers, established Coverholders, U.S.based insurance agencies, and vendor partners as a means of surfacing new business opportunities. Further, the CHART Exchange shall elevate the role London Brokers play in mage credit: Lloyd’s of London the insurance transaction. Once an agreement on a new concept discussed at the meeting has been reached, risk takers and/or insurance agencies shall be encouraged to select the broker of their choice in order to transform it into a formal agreement. TENTH AMENDMENT (Powers of Risk Takers, Coverholders, Potential Coverholders, and Vendor Partners). Except for the Amendments articulated in the CHART Exchange Bill of Rights, attendees are free to pursue new business opportunities amongst themselves. Carpe Diem – Seize the Day!
News
LLOYD’S TO APPLY FOR REINSURANCE BRANCH IN MUMBAI
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loyd’s has a century-long relationship with India as a provider of offshore reinsurance. An onshore branch will provide Indian reinsurance brokers with local access to Lloyd’s unmatched underwriting expertise and innovative reinsurance solutions for complex and specialist risks, including agriculture, infrastructure and disaster management.
in the market. We look forward to helping to create a world-class insurance and reinsurance market in India as we have done elsewhere in the world.”
Lloyd’s recently announced the appointment of Shankar Garigiparthy as its new Country Manager for India commencing 1 April 2016. Shankar Garigiparthy brings over 23 years’ experience to the John Nelson, Chairman of Lloyd’s said: “As an role, most recently leading regulatory relationships international insurance and reinsurance market, for Lloyd’s in Singapore and across South East Asia. Lloyd’s can bring unique benefits to India. We Arun Agarwal, General Representative for Lloyd’s in believe a Lloyd’s presence will contribute to the India since 2011, continues in his role supporting development of a more diverse reinsurance market, Shankar and providing his expert guidance and which is fundamental to the stability and future counsel to Lloyd’s. growth of the Indian economy. Lloyd’s will also help to position India as a centre for insurance, reinsurance and associated services. “Whilst there are elements in the published regulations which may impact the ability of our market to perform to its full potential in India, we are nonetheless pleased that the regulatory framework has now been published, enabling us to submit an application for a reinsurance branch. “We look forward to continuing our close dialogue with IRDAI throughout this process and into the future to ensure the framework evolves to meet the needs of a modern, international insurance sector, which will be essential in supporting the continued sustainable growth of India’s economy.” Vincent Vandendael, Lloyd’s Director of Global Markets added: “We have a long history of supporting India and we look forward to this new phase in our relationship. Lloyd’s underwriters will work closely with brokers and clients to craft policies that meet specific needs and gaps 18
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Proud supporters of CHART
Serving coverholders’ needs since the 1930s … and into the future Bespoke solutions Packaged lines Enhanced commissions Web-based platforms US domiciled marketing office Access us through 170 Lloyd’s brokers
AtriumUw
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LLOYD’S REPORTS £2.1BN ($2.98BN U.S.) PROFIT FOR 2015
loyd’s, the world’s specialist • Increasing financial strength demonstrates prudential market for insurance resiliency and reinsurance, today announced a profit of £2.1bn for All Results in Billions
2014 Profit
£3.0
$4.24
Gross Premiums
£25.3
$35.73
Speaking about the results, Lloyd’s Chairman, John Nelson, said: "The Lloyd’s market has shown its ingenuity and excellence once again, which is reflected by healthy profits in the 2015 midst of a challenging £2.1 $2.98 macro-economic climate. £26.7 $37.7
“Each year brings a unique set of challenges, requiring determination, Underwriting £2.3 $3.25 £2.0 $2.82 innovative thinking Result and solutions. This year Investment £1.0 $1.41 £0.4 $0.56 has been no different. return In a market undeniably Return on 14.1% 9.1% tougher than seen for capital many years, we have had to demonstrate our ability to adapt and 2015. The results demonstrate Lloyd’s continuing financial Lloyd’s ratings of A (excellent) take action. In these conditions, strength and sound market-wide by A.M. Best, AA- (very strong) these results are creditable performance despite a turbulent by Fitch and A+ (strong) by and a tribute to the continued Standard & Poor’s reflect skill and professionalism of the macro-economic backdrop. its robust position. Lloyd’s Lloyd’s market underwriting • Pre-tax profit of £2.1bn (2014: competitive position on a community.” global scale is driven by solid £3.0bn) • Return on capital of 9.1% underwriting performance and Lloyd’s Chief Executive, Inga diversity of global markets and Beale, said: “Lloyd’s is pursuing its (2014: 14.1%) strategy to deliver risk solutions • Combined ratio of 90.0% product. The approval of Lloyd’s internal to a fast moving world, business (2014: 88.4%) • Gross written premiums model, a crucial step in securing looks to the Lloyd’s market to increase 6% to £26.7bn (2014: the ability to operate within underwrite policies too complex the new Solvency II regulatory for others to handle. Protection £25.3bn) • Profits remain significant regime was also a major from cyber-attacks, terrorism and climate change are needed despite fall in investment achievement for the market. now more than ever.” returns and pressure on prices Combined Ratio
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88.4%
90.0%
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Ser ving In s u ra n ce Ag e nt s Bey o n d t h e S ta n d a r d L i n e o f B u s i n e s s . Florida
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Continued From Page 15
THE NAME TO KNOW IN LONDON IS “TOM”
“TOM,” was brought to life in London and indeed around the world. TOM’s lifespan is expected to be longer than my old friend Apricot, with most literature describing efforts to continue through at least 2020. However, TOM has already achieved deliverables within 2016 (announcements as recently as 12 April 2016) and we expect continuous positive changes to occur throughout TOM’s existence and in accordance with priorities set by the LM TOM Steering Board mentioned earlier.
success from Project Tomorrow). Business processes, insurance support technology, and other delegated authority-related insurance operations will evolve across the entire London Market ecosystem into something more modern, more automated, and more efficient. All of this is being designed in such a way as to take advantage of international insurance data standards as well.
Among the priorities for 2016, and very encouraging for CHART, there is a current emphasis on improving the processes that support Delegated Authorities”
Among the priorities for 2016, and very encouraging for CHART, there is a current emphasis on improving the processes that support Delegated Authorities (DA) (see LM TOM website topic [HERE] ) as well as efforts to enable better data management through the evolution and application of international insurance data standards (see also the ACORD website [HERE].)
Therefore, as we can see, it is important for all of us involved in the CHART-Exchange to appreciate that our understanding of the Delegated Authority processes from yesterday will not stay exactly the same in the future. We are improving them, we are modernizing them, and we are doing all of this under the name of TOM.
Through these and other interdependent 2016 efforts, TOM is working to achieve one of its goals of enabling the straight through processing of data from coverholders (building on prior
Just like project Apricot, I believe TOM will be a success for the London Market and it will continue to deliver valuable change this year and in the years ahead. It will be achieved thanks to hard work from
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countless people and several years of effort and investment in order to reach our desired future state operational vision. Fortunately, now that we know TOM’s name, understand TOM’s history, and we appreciate some of the TOM objectives, we are now positioned for more discussions at upcoming CHART-sponsored events and in future CHART publications on this topic. On behalf of Wilson Elser Consulting, I look forward to sharing more and supporting you, CHART, TOM, and the London Market of the future. About Wilson Elser Consulting Operating as a subsidiary consultancy and global insurance business solutions provider from Wilson Elser, the internationally distinctive U.S. law firm with nearly 800 lawyers and 30 offices throughout the USA and 1 office in London, Wilson Elser Consulting offers unique professional experience, advisory services, management solutions and other non-legal advice and business insights to insurance markets, carriers, and any organization involved in the application of enterprise risk, governance, legal and compliance management; legal operations and legal spend management; claims litigation management; insurance operations and systems; and third-party vendor/expert management by guiding our clients to champion change and generate business value through process, technology, and analytics. For more information, please contact Jesse R. Viani, Director of Insurance Business Services at +1 (212) 915-5298 or jesse. viani@wilsonelser.com APRIL/MAY 2016
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CHART Exchange
T
CHART OBJECTIVE #1: FOSTERING FACE-TO-FACE RELATIONSHIPS BETWEEN COVERHOLDERS (U.S.) AND RISK TAKERS (LONDON)
he CHART Exchange knows In October 2015, the CHART Since the CHART Exchange that when current and Exchange concept was proven as equally values both U.S. prospective Coverholders over two dozen programs resulted Coverholders and London (U.S.) and Risk Takers (London) from the conference. The business Risk Takers, it is the only meet directly, both parties benefit. done at the CHART Exchange organization dedicated to Prospective Coverholders get may never have occurred or taken fostering relationships that are the chance to present their ideas much longer to come to fruition. mutually beneficial and account and programs to Risk Takers with The success of the event is largely for the different needs and goals the appropriate risk appetite. attributed to the Early Adopters of both parties. The CHART Current Coverholders are able to from the U.S. and London that saw Exchange recognizes that the cross sell their programs to other the benefits of such an organization. goals of success for U.S. agents agents and agencies, and agencies overlap with the while strengthening London Risk Takers. Since the CHART Exchange equally their own London values both U.S. Coverholders In essence, the theme relationships. While London Risk Takers and London Risk Takers, it is the only of ‘exchange’ comes actively develop and seek organization dedicated to fostering from the ideas that out new U.S. producers. All Coverholders and Risk relationships that are mutually of these efforts culminate Takers give up something in the primary goal of the beneficial and account for the different of value for something of CHART Exchange, which is needs and goals of both parties.” greater value. Through increasing revenue for its direct communication members. “The Chart Exchange has created a in an environment made for forum for new business. One that innovative ideas, Coverholders Devoted to generating new greatly accelerates the business and Risk Takers are more valuable business, the CHART Exchange development cycle thus favorably together than apart because hosts an event that brings impacting the competitive the success of one leads to the together U.S. Coverholders positioning of this important success of the other. and London Risk Takers. The insurance market. The Chart event fosters a comfortable Exchange is and will continue to be For more information on the environment, free from outside successful because it thoroughly CHART Exchange, contact influences, where insurance understands the needs of the U.S. matt.basile@char t- exchange. professionals can connect and and London markets.” – Thomas com or tyler.cichewicz@chartgenerate ideas that result in new Wilson Jr., Wilson Elser LLP exchange.com . business. 22
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INTERVIEW
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Spotlight, continued Continued From Page 12
Over the past two decades, AGU’s revenue has evolved to focus on more specialized lines. For this reason, Wyss sees Coverholder status for AGU as a way to react more quickly and innovatively to the market with new products that accommodate their specialty health “We position our company as an lines. extension of our carrier partners,” Wyss says. “We are the ‘extra hands’ “We are open to and interested in that can help an underwriter enter start-up programs and small blocks or expand in a niche U.S. market of existing business,” Wyss says. “Our and products without the necessity long history and many contacts still of deploying their own resources. In pay dividends for us today, making short, we are a classic outsource play AGU a recognized ‘go-to’ resource for underwriters who are comfortable for associations, brokers and carriers with that kind of relationship.” looking to evaluate and develop new products.” AGU has been consistently profitable and has never failed to make an annual Here, it is most evident where underwriting profit for its carrier Coverholder status can help AGU. partners. “We align our interests By looking to establish smaller with the carrier through a profitprograms in their market, Lloyd’s sharing arrangement. This approach of London, the ensures that most established we’re on the insurance market underwriting in the world and team and not known for their a broker or ability to take on part of the specialty risks, distribution is more likely to chain,” Wyss be a compatible says. underwriting partner for AGU. One tactic AGU uses as a C u r r e n t l y, differentiator AGU is being is simply Stephen Wyss & AGU Staff guided through picking up the the process of phone. “No automated attendant becoming a Coverholder by a during regular business hours,” Wyss broker partner of CHART. “There says, “Talking to a real person is is quite a rigorous due diligence important to us and is appreciated process involved,” Wyss adds, before by our clients.” saying, “But we have encountered
AFFINITY GROUP
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similarly-detailed reviews before appointment with large, national U.S. carriers.” The CHART Exchange has provided AGU with meaningful connections and resources that have made “tribunalization”, the screening process required before doing business with Lloyds, less daunting.
AGU Headquarters Glenn Allen, VA
After a successful experience at the CHART Exchange’s 2015 October event, AGU looks forward to doing more business through CHART. Wyss describes last year’s event as ‘excellent’ and cites the numerous personal interactions as the highlight along with the wellorganized structure of the meetings. Wyss and AGU will attend the 2016 CHART Exchange event in Baltimore, MD on October 3-5th. “We are excited about the prospects and hope that CHART will be the gateway to building a significant new pillar for our business.”, says Wyss. “We hope to be able to partner not only with Lloyd’s underwriters but also with other Coverholders here in the United States. We could offer A&H products to their clients and, in turn, perhaps add some of their P&C products for our groups.” That’s the “interdependence” that CHART is all about. http://www.agu.net APRIL/MAY 2016
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PROFILE:
MARKETFORM CONCLUDES STRATEGIC REVIEW OF UNDERWRITING AND CONFIRMS COMMITMENT TO CASUALTY CLASSES
F
ollowing the recent transfers of its UK and International Market Medical Malpractice businesses and its decision to cease writing General Liability in February, specialist Lloyd's underwriter Marketform announced March 29th, 2016 that it has completed the strategic review of the underwriting area of its business. As a result, Marketform is pleased to re-confirm its commitment to all of its current underwriting lines. These are: Accident & Health, Travel; Bloodstock & Livestock;
Cargo; Financial Lines; Marine & Energy Liability; Marine Hull & War; Mergers & Acquisitions; Political Risks & Trade Credit; Professional Indemnity; and Terrorism & Political Violence.
to the market our commitment to these classes. We believe they represent areas in which Marketform can bring disciplined underwriting, superior service and a differentiated proposition.
W h i l e M a r k e t f o r m ’s broader strategic review remains ongoing, this marks the end of its review into the classes of business it writes.
“It is an exciting time at Marketform. We are pleased that we can move forwards with both confidence and certainty now that we have concluded our underwriting strategic review and stabilised the in-force portfolio. We are now in a position to build upon these solid foundations as we look to put in place the rest of the platform that will enable Marketform to deliver on its potential as a business.”
Martin Reith, Chief Executive Officer, Marketform Managing Agency Limited, commented: “We are delighted to be able to reaffirm
PRESIDENT OBAMA DISAPPROVES OF BRITAIN LEAVING THE EU
O
n June 23rd, Britain’s referendum, Brexit, will decide whether Britain remains in the European Union (EU) or not. President Barrack Obama disapproves of Britain leaving the EU, but will publicly state his opinion when he addresses the subject in Britain mid April.
Britain’s population wants to remain in the EU, while 39% believes in leaving.
Typically, the Obama administration tries to refrain from weighing in on foreign politics; however Obama will encourage those who support staying in the EU to vote as there is some concern YouGov, a UK based market that younger voters are less likely research firm, reported 40% of to make it to the polls in June. 26
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Ben Rhodes, Obama’s deputy national security advisor says Obama “Will make clear that this is a matter that the British people themselves will decide.” Political analysts concur that Obama must speak carefully as he can expect his comments to be scrutinized by supporters of Brexit. www.chart-exchange.com
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NEWS
LLOYD'S APPOINTS COUNTRY MANAGER FOR INDIA
L
loyd’s, the world’s specialist insurance and reinsurance market, is pleased to announce the appointment of Shankar Garigiparthy as Country Manager for India.
Shankar has been instrumental in helping Lloyd’s to grow in the Asia Pacific region and I am delighted he will become Lloyd’s Country Manager in India. His in-depth knowledge of Lloyd’s and the insurance industry will be an invaluable asset as we seek to grow Lloyd’s business in India.”
www.chart-exchange.com
Commenting on his appointment, Shankar Garigiparthy said: “I am very pleased to have the opportunity to lead Lloyd’s in India and to return to my home country at such an exciting time in the growth story of both India and Lloyd’s.”
In this new role Shankar will be responsible for market Kent Chaplin, development, Lloyd’s Head representing of Asia Pacific, Lloyd’s in said: "Shankar discussions with has been regulators and instrumental in Shankar Garigiparthy building business helping Lloyd’s to relationships as Lloyd’s seeks to grow grow in the Asia Pacific region and I its presence in India. Arun Agarwal, am delighted he will become Lloyd’s Lloyd’s General Representative Country Manager in India. His inin India, will continue in his role depth knowledge of Lloyd’s and providing expert guidance and the insurance industry will be an counsel to Lloyd’s. invaluable asset as we seek to grow Lloyd’s business in India.” Shankar brings over 23 years’ experience in financial services to the Vincent Vandendael, Director of role and was most recently Regional Global Markets, added: Compliance Manager for Lloyd’s based in Singapore. Prior to this, “India is an important part of Lloyd’s Shankar was Director of Insurance international Vision 2025 strategy to Supervision at the Qatar Financial increase our support for the world’s Centre Regulatory Authority, where fastest growing countries. Shankar’s he set up the regulatory framework extensive experience in Asia, the for insurance companies in the QFC. Middle East and Europe make In his early career, he worked for him the ideal person to lead the Lloyd's in London in roles including development of Lloyd’s presence in Senior Regulatory Officer and Capital India and help to guide our support Relationships Manager. of the Indian insurance market.”
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NEWS
A
AIG ANNOUNCES REINSURANCE ARRANGEMENT WITH SWISS RE
merican International Group, Inc. (NYSE:AIG) announced in March that it has entered into a two-year reinsurance arrangement with Swiss Re, under which a share of AIG’s new and renewal U.S. Casualty portfolio will be ceded to the reinsurer, consistent with the plans announced by AIG in its January 26, 2016 strategic update to investors.
mutually attractive economic transaction,” said Rob Schimek, CEO of AIG Commercial. “We have been very clear about our desire to partner with our reinsurers to help achieve our strategic objectives, and this agreement with Swiss Re is an example of what is achievable with longstanding counterparties.”
The reinsurance arrangement is an important step in AIG’s strategy to improve its Commercial Insurance diversification and return on equity (ROE), and it highlights AIG’s focus on capital efficiency. This risk sharing agreement complements AIG’s leadership position as a premier provider of insurance products and services in the U.S. Casualty market.
Christian Mumenthaler, CEO Reinsurance Swiss Re, commented: "We are delighted to continue our long term partnership with AIG, providing solutions across their business. We know this portfolio, the leaders, and the underwriters very well and believe in AIG's plans. As a result, we are happy to accompany them on this journey by taking a significant position in this business. “Swiss Re and AIG have had a strategic relationship It's a transaction that allows both AIG and Swiss Re to for a number of years, and the trust and knowledge- improve their diversification." sharing between the two companies facilitated this
D
TAKE 1 INSURANCE: LATEST LLOYD’S COVER HOLDER
allas, TX - Take 1 Insurance, a Dallas-based U.S. Risk Insurance Group Inc., specializing in coverage to the entertainment industry announced recently it became a cover holder with Lloyd’s of London. With Lloyd’s, Take 1 can provide excess liability insurance at a higher limit than before, broadening the horizon of who and what Take 1 can cover in the entertainment space, providing excess coverage with rates starting at $750 per million of coverage.
Status as a Lloyd’s cover holder allows Take 1 to write new policies that are non-admitted in the U.S. enabling them to expand their business. Moreover, Lloyd’s backing further establishes the credibility of Take 1, as it does with any insurance provider.
“The traditional limits of primary umbrella or excess insurance protection increasingly no longer meet the needs of today’s live event and entertainment industries,” according to Take1 Executive Vice President Take 1 ensures venues, producers, and integrators who & Program Director Scott Carroll. “Touring musicians, install various kinds of production equipment, which all special event producers, equipment rental companies, vary in the level of risk. Insurance in the entertainment venue owners, and large corporate event producers industry can be difficult to assess, yet Take 1 boasts 100 understand the need for higher limits, often $10-million or more.” percent coverage for their clients. www.chart-exchange.com
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NEWS
N
CALLUM CLEMENTS WINS THE 2016 NOVAE EDUCATIONAL ACHIEVER OF THE YEAR AWARD
ovae is delighted to congratulate Callum Clements on winning this year’s Novae Educational Achiever of the Year award at The Prince’s Trust & Samsung Celebrate Success Awards. The awards were held on 07 March at the London Palladium and were attended by HRH the Prince of Wales. The Celebrate Success awards are now in their 12th year and the six categories recognise the achievements of exceptional young people in education, skills development, employment, enterprise and in the community. The Novae Educational Achiever of the Year award recognises young people who have been on Prince’s Trust Fairbridge or xl programmes, and have overcome significant personal barriers to develop new skills which enabled them to re-engage with education. This year’s three finalists were: Connor Burgess, Sarah Klauber and Callum Clements and the award was introduced by Samantha Bond and Professor Brian Cox O.B.E.
a complex blood disorder and placed into foster care shortly after his birth. Treatment involved a lot of travel and ruled out the possibility of medicating his ADHD.
[Callum’s] outlook on life has completely changed and in his final GCSE year, his attendance rose to 95 per cent. Callum was recently diagnosed with autism and has been a great help to his mum as she receives treatment for breast cancer.” As a result, Callum suffered at school: he was disruptive, lacked confidence and was isolated from his peers.
his adoptive mother contacted the school’s xl programme. Callum agreed to attend and it was there that he started to learn how to manage his emotions and work with others. Leading by example and actively taking part in units like Healthy Eating and Money Management, Callum became a valuable member of the xl team and earned his xl Award and first ever academic qualification: his Level 1 Certificate. The xl club was the catalyst Callum had needed. He now has a firm foothold in education and feels all the benefits that go with it. His outlook on life has completely changed and in his final GCSE year, his attendance rose to 95 per cent. Callum was recently diagnosed with autism and has been a great help to his mum as she receives treatment for breast cancer. He’s started sixth form and attended one of our job fairs which confirmed to him his choice of career.
Despite moving primary schools and taking part in a number of intervention programmes, nothing Callum is a credit to his family, Here is Callum’s story: changed. It was crunch time and his school, the xl programme and Callum was born prematurely with with Callum refusing to go school, most importantly, to himself. 32
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Analysis
INDEPENDENT INSURANCE AGENCY VALUATIONS AT RECORD HIGH: PRIVATE EQUITY DRIVEN
T
he valuation and market for U.S. based insurance distribution firms has been at an unprecedented peak over the past two years, and is expected to remain high for the foreseeable future. Industry valuations are driven primarily by private equity capital that has made significant platform investments in the past three years (ABRY, Apax Parnters, Kolberg, Hellman & Friedman), leveraging 3:1 and 4:1 with historically low interest rate debt. Further, stock market prices and trading multiples for publically traded brokerage firms (AJG,
BRO, MMC) are at all-time highs, allowing the publically traded acquirers to compete with the private equity aggregators at the higher valuations. This combination of low interest rate leveraged private equity capital and high priced publically traded companies has created an expensive and competitive landscape for insurance distribution assets, and therefore, increased the multiples of earnings (EBITDA) valuations for small and midsized distribution assets. Currently, the market for
M
insurance distribution firms is priced at approximately a 50% premium to valuations from three years ago. Below is a chart derived from SNL reported US based Insurance Brokerage transactions for 2015. This past year, number of acquisitions accelerated from 344 in 2014 to 448 transactions in 2015, an increase of over 30%. More interesting is that 11 out of the top 15 of the acquirers are private equity owned insurance brokers that account for 183 (41%) of the 448 completed transactions.
r. Hughes serves as Managing Director of Insurance Distribution for Merger & Acquisition Services, specializing on insurance agencies, MGAs, MGUs, E&S agencies, wholesalers, and ancillary insurance businesses. Mr. Hughes comes to Merger & Acquisition Services, Inc. with over 10 years of insurance and legal experience, working on engagements with Property / Casualty and Life / Health insurance distribution businesses. He previously served as an advisor for a boutique firm in CT where his exclusive focus was on insurance distribution companies. In addition, Mr. Hughes spent 7 years as a senior product manager for Hartford Financial Services Group (“HIG”) with full P&L accountability for specialty products, and as director of HIG’s internal retained asset and structured settlement departments. Prior to The Hartford, Mr. Hughes practiced commercial litigation in Boca Raton, Florida. Mr. Hughes was honorably discharged from active duty in the United States Marine Corps (USMC) in 1992, after serving with E Company, 2nd Battalion, 8th Marines, 2nd Marine Division. While in the USMC, he served as an infantryman in the 1991 Northern Iraq operations: Provide Comfort, Encourage Hope, and Force Hope. Mr. Hughes has earned a J.D. degree from Northern Illinois University, a M.B.A. from the University of Connecticut, and a B.A. from the University of West Florida.
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While still active, publically traded brokerage firms have completed fewer transactions in 2015 than in 2014. The deal pipeline for publically traded brokers’ remains very strong, but the pricing that the leveraged private equity participants put on each deal makes the public sector less acquisitive at the higher, leveraged pricing points.
dramatically over the past 2 years. Below is a chart of the current multiples that are widely available in the market today.
For the remainder of 2016, the marketplace for independent insurance agencies remains very strong and at the very Overall, this high priced height of agency valuations. transactions are having a trickledown effect on the M&A Services, Inc. is a proud value of domestic P&C and sponsor and early adopter of the health insurance agencies. For Chart-Exchange. We are happy to independent agents, the multiple be a part of this organization that of EBITDA (Earnings Before brings US distribution together Interest, Taxes, Depreciation and with London underwriting Amortization) that is being paid capabilities. We believe that this for transactions has increased international combination will www.chart-exchange.com
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significantly contribute to the expansion of program business in North America, and that the Chart-Exchange will be the vehicle to launch this expansion. M&A Services, Inc. (“MAS�) is a boutique investment bank exclusively focused on the insurance industry. We provide three primary services: (1) buyside and sell-side advisory services for both underwriting companies and distribution firms, (2) program placement services for both distribution and underwriters, and (3) insurance consulting services to include valuation/fairness opinions, renewal rights, and capital raising services. APRIL/MAY 2016
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Crane | Scaffold | Rental Equipment | Inland Marine
Hard-to-place risks made easy
Ascinsure is a nationwide, all-lines program underwriting manager for the Crane, Scaffold, and Rental Equipment markets. We also have the facilities to place difficult and complex Inland Marine risks. We are not generalists. We are Ascinsure.
Give us a call so we can help you place your risks. Contact Curtis Kochman, Sr. Vice President, at 412-224-5510/curtis@ascinsure.com Learn more at Ascinsure.com
Ascinsure is proud to support the newly established CHART-Exchange.
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