Best’s Review’s Online Archives AM BEST’S MONTHLY INSURANCE MAGAZINE January 2023 • Volume 124 • Issue 1 bestsreview.ambest.com Lincoln Financial’s Policyholder Surprise Page 20 Top Execs Retire in 2022 Page 34 Florida Homeowners Market and Data Page 40 Largest MENA Insurers Page 52 Largest India Insurers Page 54 Their Future Selves Startups, insurtechs and investors pursue new opportunities with ready-to-go insurance shells. Page 26 1BEST’S REVIEW • JANUARY 2023 From the Editor’s Desk A New Year, a New Look Online The January issue of Best’s Review examines the increased interest in shell companies as startups seek to expand into the carrier sector. Coverage also features a look at industry executives who retired or passed away in 2022 as well as rankings of the largest India and largest MENA insurers. A new online format of Best’s Review debuts this month. Shell company transactions are not new for the insurance industry. But they have taken on new life in recent years as insurtech startups and others have been acquiring shell companies as a way of expanding into the carrier sector. These deals often smooth the way for startup companies and managing general agencies transitioning to full-stack insurers. How these deals come about and the process involved in these transactions, however, can often seem opaque. In the January issue of Best’s Review , “A Shell of Their Future Selves: How Insurer Acquisitions Spur Faster Growth” examines the processes, benefits and risks of insurance shell transactions. AM Best Managing Director John Andre said the driving force behind interest in shell transactions often parallels a surge in startups. The insurance industry has seen a wave of insurtech startups in recent years and they have been one of the factors raising the bar on the industry’s use of innovative technology. January is Insurance Innovation Awareness Month. The January issue includes highlights from AM Best’s published perspectives on innovation in “AM Best’s Innovation Criteria.” As the new year gets underway, Best’s Review presents coverage of industry executives who retired or passed away in 2022. Among those who retired were Robert A. DiMuccio, chairman and CEO of Amica Mutual; Daniel S. Glaser, president and CEO of Marsh McLennan; and Teresa L. White, president, Aflac U.S. Coverage on the retirees can be found at “New Year Brings New Look to Industry Leadership.” Obituaries can be found at “In Memoriam: Insurance Industry Leaders of 2022.” The January issue also includes coverage of the Florida insurance market. Go to “Best’s Rankings: Florida Leads Nation in Homeowners Premium” for the article, which includes AM Best data highlighting insurers that write at least $2,000 of Florida homeowners multiperil coverage, and key financial information, including Best’s Ratings. In the life insurance sector, a notable announcement in the third-quarter earnings season was a $2.6 billion loss reported by Lincoln Financial, attributed largely to a reserving change. In “Lincoln Financial Sees Lapse Rates Plummet for Over-75s,” Best’s Review examines why Lincoln Financial reported it was forced to increase reserves, along with the possible impacts of changes in policyholder lapses, should this issue occur within the broader industry. The insurance industry has a full schedule of in-person events planned for 2023. Go to “Insurance Industry Events Swing Back Into Action” for more information about upcoming conferences, dates and where they will be held. This calendar can be used throughout the year as a handy reference to industry events. The January issue also includes Best’s Rankings of the largest insurers in India and in the MENA region. Note: Beginning this month, Best’s Review ’s online magazine will move to a new, interactive format, which can be found at bestsreview.ambest.com . BR Patricia Vowinkel Executive Editor patricia.vowinkel@ambest.com What’s Coming Up In the February issue, Best’s Review will examine recent high-profile ransomware attacks and developments in the cyber insurance market. The issue also will include coverage of U.S. plans to create a national cyber insurance program to counter catastrophic cyberattacks. The March issue will cover developments in the global reinsurance brokerage sector following Arthur J. Gallagher & Co.’s $3.25 billion acquisition of Willis Re in 2021.2BEST’S REVIEW • JANUARY 2023 CONTENTS INSURANCE LEADERS Page 30 In Memoriam: Insurance Industry Leaders of 2022 Best’s Review remembers insurance leaders who died over the last year. Page 34 New Year Brings New Look to Industry Leadership Some of the insurance leaders who announced retirement plans in 2022 included Robert A. DiMuccio, chairman and CEO of Amica Mutual; Daniel S. Glaser, president and CEO of Marsh McLennan; David H. Long, CEO of Liberty Mutual; and Teresa L. White, president, Aflac U.S. ON THE COVER: SHELL COMPANIES Page 26 A Shell of Their Future Selves: How Insurer Acquisitions Spur Faster Growth Insurers and potential insurers purchase shell companies to expedite the process of expanding their businesses and becoming full-stack insurers, rather than starting from the ground up in each state. LIFE INSURANCE Page 20 Lincoln Financial Sees Lapse Rates Plummet for Over-75s After years of venturing into areas that put some of their products in direct competition with investment vehicles, insurers are hard- pressed to predict policyholder lapses and surrenders, thanks to interest rate hikes and a looming recession. INNOVATION Page 24 AM Best’s Innovation Criteria AM Best formally adopted its criteria procedure, “Scoring and Assessing Innovation,” in March 2020. The criteria procedure, along with the update to Best’s Credit Rating Methodology, outlines how AM Best explicitly considers an insurance company’s innovation efforts in its rating process.3BEST’S REVIEW • JANUARY 2023 BEST’S RANKINGS: FLORIDA Page 40 Best’s Rankings: Florida Leads Nation in Homeowners Premium The Sunshine State’s storm-prone location and litigation troubles are compelling carriers to re-evaluate their approach to the market, or retreat from it entirely. INDUSTRY EVENTS Page 50 Insurance Industry Events Swing Back Into Action The insurance industry looks forward to a busy schedule of in-person events in 2023. The schedule includes Riskworld in Atlanta, Georgia, in late April/early May and InsureTech Connect in Las Vegas, Nevada, in late October/early November. COLUMNS 14 At Large 16 Risk Adviser 18 Regulatory/Law DEPARTMENTS 1 From the Editor’s Desk 3 Advertisers Index 4 Best’s Calendar 5 Executive Changes 7 Web Traffic 10 Masthead: Forestay 56 What AM Best Says 58 Underwriting & Loss Control 61 State Rate Filings 64 Book Store 65 App Store 66 Trending: Best’s News 67 Trending: Best’s Research 68 AM Best Webinars 69 AM Best TV & Audio 70 Best’s Credit Rating Actions 74 Corporate Changes 75 Preferred Publisher Program 76 Insurance Professional Resources 78 Industry Updates 79 Masthead: Backstay 80 The Last Word ADVERTISERS IFC & 9 Philadelphia Insurance 11 BestESP 39 Best’s Alert Services 49 The AM Best Business Trilogy 59 Best’s Financial Suite 63 AM Best’s Ratings Services IBC Munich Re BC Applied Underwriters Notice: While AM Best confirms the accuracy of Best’s Ratings of insurers referenced in advertisements published in this magazine, these ratings are subject to change after publication. The current ratings of insurance companies are available free on the web at www.ambest.com/ratings. Further, we can’t warrant the Best’s Ratings claimed by brokers advertising coverages from unrated insurers. In addition, some of the insurance policies, products and services advertised may not be available, licensed or legal in all jurisdictions. Cover design by Andrew Crespo. MENA INSURERS Page 52 AM Best: Opportunities Arise for MENA Reinsurers, Amid Divergent Economic Conditions Longer-term prospects for the reinsurance market may transpire from growing product offerings in primary markets. INDIA INSURERS Page 54 India’s Regulator Unveils ‘Insurance for All’ Reforms The regulator is seeking to “create a progressive, supportive, facilitative and forward looking regulatory environment” that will be more competitive, with more choices and affordability for policyholders. BEST’S RANKINGS Page 42 Florida Homeowners Writers, Selected Financial Indicators — 2023 Edition Based on 2021 data. Reflects companies that write at least $2,000 of Florida homeowners multiperil coverage. Page 53 Largest MENA Insurers — 2023 Edition Ranked by 2021 gross premiums written. Page 55 Largest India Insurers — 2023 Edition Ranked by 2021 gross premiums written. Page 62 California Private Passenger Filings by Rate Impact Greater Than 1% Based on disposition dates from Jan. 1 to Dec. 31 covering years 2020 and 2021. For 2022, disposition date was from Jan. 1 to Dec. 1. Visit news.ambest.com for a full listing of Best’s Rankings.4BEST’S REVIEW • JANUARY 2023 Best’s Calendar AM Best to Speak at APCIA Emerging Leaders Conference Jan. 6-11: American Farm Bureau Convention, American Farm Bureau Federation, San Juan, PR, USA. Jan. 18: St. John’s Insurance Leader of the Year Awards Dinner, St. John’s University, New York, NY, USA. Jan. 18-20: 16th India Rendezvous, Asia Insurance Review & GIC Re, Mumbai, India. Feb. 5-7: APCIA Emerging Leaders, American Property Casualty Insurance Association, Charleston, SC, USA. Feb. 10: Artemis ILS NYC, Artemis, New York, NY, USA. Feb. 14-15: D&O Symposium, Professional Liability Underwriting Society, New York, NY, USA. Feb. 15-17: Florida Insurance Market Summit, Aon & Colodny Fass, Orlando, FL, USA. Feb. 26-March 1: ACLI ReFocus, ACLI, Las Vegas, NV, USA. All events subject to change as organizations monitor developments regarding COVID-19. For a full list of conferences and cancellations, visit bestsreview.ambest.com/calendar. Attending Exhibiting Speaking Hosting Sponsoring Video January Is Insurance Innovation Awareness Month Innovation is becoming increasingly critical for the long-term success of all insurers. Best’s Review examines how startups, insurtechs and others have been pursuing new opportunities with ready-to-go shell companies. Coverage begins on page 24. 22.MK132B1 Get fast, efficient delivery of: • Best’s Credit Ratings • Insurer Financial Data • Insurance Industry News And easily incorporate them into your internal applications. AM BEST’S INSURANCE INFORMATION FEEDS & WEB SERVICES Our Insight, Your Advantage ™ Learn More: sales@ambest.com www.ambest.com • (908) 439-22005BEST’S REVIEW • JANUARY 2023 Executive Changes American International Group Inc. announced that it entered into an agreement with Peter Zaffino, president, chief executive officer and chairman of the board, that secured Zaffino’s employment through Nov. 10, 2027. Calling Zaffino “a visionary, insightful leader,” John G. Rice, speaking on behalf of the AIG board of directors, praised the CEO for his “ability to execute comprehensive transformational programs that turn his strategic vision into tangible, measurable success.” “Under Peter’s leadership, AIG has delivered on ambitious operational and financial objectives and is well- positioned to continue to drive long-term value for the company’s shareholders and other stakeholders,” he said in a statement. “Over the past few years, our global team has executed a complex, multi-faceted turnaround and transformation to elevate AIG’s performance,” Zaffino said in a statement. “We instilled a culture of underwriting and operating excellence, dramatically changed our risk tolerance, and transformed the way we work and collaborate across the organization. I look forward to continuing to build on our significant momentum on our journey to become a top-performing company and market leader in everything we do.” In September 2022, Zaffino said AIG had completely repositioned the business over the past five years to tackle problems in its core property/ casualty business. The group needed to significantly cut volatility in its P/C business and move away from taking large positions on single risks, he said. Through its transformation process, he said, AIG found the life and retirement and general insurance businesses would “drive more value for AIG stakeholders” as separate companies. Zaffino joined AIG in July 2017 as global chief operating officer. In December 2019, he also was appointed president, and in March 2021 he took on the additional role of CEO. He was named chairman of the board as of January 2022, according to his company bio. Zaffino has more than 30 years of experience in the insurance and reinsurance industry. He joined AIG from Marsh McLennan, where he was chairman of the risk and insurance businesses (Marsh and Guy Carpenter) beginning in 2015, in addition to serving as CEO of Marsh since 2011. Prior to his role at Marsh, Zaffino was president and CEO of Guy Carpenter from 2008 to 2011, a company he first joined in 2001. Before joining Guy Carpenter, Zaffino served in executive roles at several market-leading companies, including a portfolio company of GE Capital that specialized in alternative risk insurance and reinsurance, according to his company bio. —Staff Report AIG Extends CEO’s Employment for Five Years SiriusPoint International president-CEO announces plans to retire, retired Chubb executive returns as chief culture officer and RenaissanceRe names chief underwriting and chief portfolio officers. Markel Corp. Co-CEO Moves to Solo Role Markel Corp. said Thomas S. Gayner, co-chief executive officer, will become sole CEO upon the retirement of Richard R. Whitt III, co-CEO, on Jan. 1. Also effective on that date, Jeremy A. Noble, senior vice president and chief financial officer, will become president of Markel’s global insurance engine. As CEO, Gayner will lead the continued growth of Markel’s group of businesses and investments, which are organized as three engines of insurance, investments and Markel Ventures. All of Markel’s businesses share a culture referred to as the Markel Style, and Gayner is responsible for the perpetuation of that culture, as well as ensuring capital flows to the best opportunities to create long-term value, according to a company statement. In his new role, Noble is responsible for the strategy, oversight and operation of Markel’s global insurance engine, which includes the company’s insurance and reinsurance operations, State National and Nephila. Noble has been working closely with Whitt and leaders across the insurance business to ensure a seamless transition, the company said. Thomas Gayner Peter Zaffino6BEST’S REVIEW • JANUARY 2023 Executive Changes SiriusPoint International President-CEO to Retire Monica Cramér Manhem, president, International Reinsurance, CEO, SiriusPoint International, and a member of SiriusPoint’s executive leadership team, has decided to retire, according to the company. In addition, the company said, David Govrin was promoted to the expanded role of global president of SiriusPoint and chief underwriting officer and Dhruv Gahlaut joined the company and the executive leadership team as head of investor relations and chief strategy officer, Cramér Manhem will remain in her role and continue to lead the company’s international business as she works with SiriusPoint CEO Scott Egan to appoint a successor, the company said. Prior to the merger of Sirius Group and Third Point Re, Cramér Manhem was the president of Global Reinsurance at Sirius. She was also the president and CEO of Sirius International Insurance Corp., the largest reinsurance company in Scandinavia, according to her company bio. Cramér Manhem, who joined Sirius in 1985, has been a director of the board since 2014. She has held several key underwriting positions throughout her career, including business unit manager/area underwriter for Scandinavia, southern Europe, Latin and Central America, and the Nordic markets, her company bio said. Between 1989 and 2014, she was head of the Outwards Reinsurance Department, responsible for all group retrocession purchasing, her company bio said. Govrin brings 32 years of industry experience to the SiriusPoint leadership team with a background that includes reinsurance brokerage, investment banking, capital markets, private equity, and underwriting, according to his company bio. He has served in a variety of senior positions at Third Point Reinsurance and was most recently president of Third Point Reinsurance (USA) Ltd., a position he held since May 2019. He also served as head of business development for Third Point Reinsurance, and began at Third Point Re in April 2017 as an executive vice president, underwriting, his company bio said. Gahlaut joins the company from Resolution Life and has over 15 years of experience in the global financial sector, with roles spanning the insurance industry and equity research. He also held roles at Legal & General, HSBC and RSA Insurance, his company bio said. Retired Chubb Exec Returns as Chief Culture Officer Chubb Ltd. appointed Darryl Page to succeed Ivy Kusinga as vice president, Chubb Group and chief culture officer, effective Jan. 9. Kusinga is leaving the company. Page will oversee Chubb’s culture and diversity, equity and inclusion strategy. He is returning to Chubb after retiring in July 2022. Page has more than 35 years of experience in the insurance industry. Most recently, he led Chubb’s International personal lines business from 2012 to 2022. Before joining Chubb, he served as president of personal insurance at Fireman’s Fund in the United States and during his 27-year career at Allstate, he served as chairman of Allstate Canada, according to a company statement. Canopius UK Chief Executive Officer Plans to Step Down Canopius released a statement from Neil Robertson, group chief executive officer, stating Sarah Willmont, United Kingdom CEO, has decided to leave Canopius, effective July 1, after a period of “gardening leave.” Willmont was promoted to her current role in May 2022 during a reorganization of its global underwriting organization, according to BestWire. She has been with Canopius since May 2013 and joined the company as a joint active underwriter, according to her LinkedIn profile. “Throughout her time at Canopius, Sarah has been a driving force in the success of the company and become a widely respected underwriting leader in our industry. I’d also like to recognize Sarah’s passion and dedication in steering our work on inclusion and diversity. On behalf of everyone at Canopius, I would like to extend our thanks and appreciation for all that Sarah has contributed and we wish her well for the future,” Robertson said in a statement. David Govrin Darryl Page Sarah Willmont7BEST’S REVIEW • JANUARY 2023 WoodmenLife Names First Female President-CEO WoodmenLife has named Denise McCauley to succeed Patrick L. Dees as president and chief executive officer. When McCauley assumes the leadership role, she will be the first female president and CEO in the organization’s history. Dees also will step down as chairman of the WoodmenLife national board of directors, according to a company statement. McCauley is the executive vice president and chief operating officer, secretary for WoodmenLife. She began her WoodmenLife career in 2008 as vice president, core operations. In 2011, she was promoted to senior vice president, operations, and in 2015, she was named EVP and COO. Prior to joining WoodmenLife, McCauley held various senior positions in the financial services industry, according to the company. Dees began his career with WoodmenLife in 1988 as a sales representative in Angleton, Texas. He became a regional director in 1996, serving in that position in several states. In 2009, he moved to the WoodmenLife home office in Omaha, Nebraska, where he held various senior management positions before being appointed president and CEO in March 2017, the company said. Helvetia Insurance CEO to Retire; Board Starts Search for Successor Helvetia Insurance Group Chief Executive Officer Philipp Gmür said he will step down later this year from the position he has held since 2016. The company’s board of directors has started the search for a successor, Helvetia said in a statement. “After 30 years at the Helvetia Group, of which I spent 13 years as CEO of the Swiss domestic market and seven years as group CEO, the time has come to start a new chapter,” he said in a statement. Board of Directors Chairman Thomas Schmuckli said Gmür made what will be a lasting impact on the group. Under his leadership Helvetia “developed into a leading all-line insurer in its domestic market” as Gmür also advanced internationalization, line expansion and new business models. Sun Life Names EVP-Chief Risk Officer Sun Life appointed Tom Murphy to succeed Colm Freyne as executive vice president and chief risk officer. Freyne will retire from Sun Life on May 1, after serving 20 years with the company. He transitioned to the role of special adviser to the chief executive officer and will support Murphy in his onboarding to the CRO role and provide strategic advisory support to the executive team until his retirement. Freyne joined Sun Life in 2003 and has held various progressive, executive roles with the company. From 2009 to 2017, he served as Sun Life’s chief financial Denise McCauley Philipp Gmür 02,000,0004,000,0006,000,0008,000,000 ICICI Prudential Life Ins Co Ltd Go Digit Gen Ins Ltd Tata AIG Gen Ins Co Ltd ICICI Lombard General Ins Co Ltd Star Health & Allied Ins Co Ltd HDFC Life Ins Co Ltd Max Life Ins Co Ltd SBI Life Ins co Ltd. HDFC ERGO Gen Ins Co Ltd Life Ins Corp of India Web Traffic: Visits to India Insurers Visits Source: www.semrush.com Reported traffic for November 2022. Visit news.ambest.com for a full listing of Best’s Rankings. Life Insurance Corp. of India leads web analytics provider Semrush’s ranking of the largest India insurers based on 2021 gross premiums written. Tom MurphyNext >