News in numbers
Verdict InsurTech gathers the most important industry news in recent times, including some startling figures
French mutual insurer Covéa has signed a memorandum of understanding (MoU) to acquire Exor’s wholly owned reinsurance unit PartnerRe for a cash consideration of $9bn.
This proposed deal is subject to the consultation of Covéa workers councils.
The firms intend to sign a final sale agreement by the end of this year and to close the deal in mid-2022.
The cash consideration will be paid by Covéa on completion of the deal based on a consolidated common shareholders’ equity value of $7bn.
This proposed deal will not include the preferred shares issued by PartnerRe and listed on the NYSE.
French lender La Banque Postale has confirmed plans to purchase banking group BPCE’s stake in insurer CNP and also make an offer to buy the rest of the insurer.
The French bank will buy BPCE’s 16% stake in the insurer for €21.90 per share. It will then make a buyout offer at the same price for the remaining 21% free float, with an aim to delist the stock.
The offer price represents a premium of nearly 36% over CNP’s closing price of €16.08 on 26 October 2021.
The deal will value the insurer at approximately €15bn ($17bn), which is touted to be one of the largest acquisitions of an insurance company in 2021.
India-based digital insurance firm Acko General Insurance has raised $255m through Series D round, which was led by General Atlantic and Multiples Private Equity.
With this funding round, its valuation has touched $1.1bn.
The round had seen participation from Canada Pension Plan Investment Board and Lightspeed, and current investors Intact Ventures and Munich Re Ventures.
With this round, Acko has so far raised $450m.
The firm plans to use the proceeds to invest in the healthcare vertical and bolster its team, especially within the areas of technology, product and data science.
AXA has announced that it is strengthening its existing oil and gas exclusions amid the rising pressure to curb the climate crisis and COP26 climate summit.
French insurance giant’s latest move is focused on ‘unconventional activities and new greenfield explorations.’
AXA has said it will not make new direct investments in listed equities and corporate bonds in developed markets in oil and gas firms operating in upstream, oilfield services, downstream subsectors, and most midstream players.
Considering the Science-Based Targets initiative (SBTi) framework as it becomes available, AXA will stop underwriting new upstream oil greenfield exploration projects.
From 2022, AXA plans to reduce its investment and insurance exposure to unconventional exploration and production.
German digital insurance outfit Getsafe has secured an insurance licence from the country’s financial watchdog BaFin, paving way for an expansion to the rest of Europe.
Getsafe expects the licence to help it speed up expansion across the continent as well as build products faster.
It plans to expand into new markets including France next year.
The licence comes shortly after Getsafe’s series B funding round extension.
Earlier this month, the insurtech received an additional $63m investment, taking the total funds raised by the firm so far to $115m.
Getsafe currently serves 250,000 customers.
Alera Group bolsters P&C and employee benefits solutions with two acquisitions
US-based Alera Group, which offers national insurance and wealth management services, has acquired two agencies: Bagwell & Bagwell Insurance and Blue Communications.
The financial value of both the acquisition, effective from 1 October 2021, was not disclosed.
The acquisition is expected to bolster Alera Group’s services across property and casualty insurance and employee benefits solutions.
Property and casualty insurer Bagwell & Bagwell Insurance offers risk management and personal and commercial insurance.
Founded in 1919, Raleigh-based insurer is one of North Carolina’s oldest independent insurance agencies and leverages loss control resources to build risk management solutions.
Blue Communications is an HR consulting and communications agency, which specialises in internal communications, well-being programme development, diversity, inclusion and belonging strategy among others.
It has approximately 25 years of experience in helping clients with benefit, compensation, organisational, workforce and business changes.
Heffernan buys twentytwenty Insurance Services
Heffernan Insurance, a US-based full-service independent broker, has acquired twentytwenty Insurance Services for an undisclosed sum.
Founded in 2001, the acquired firm focuses exclusively on employee benefits and managed care stop loss.
The acquired firm specialises in the implementation and management of complex medical programs, integration of health and wellness plans, technology, and employee education.
Cypress, California-based twentytwenty’s client portfolio includes manufacturing companies, healthcare providers, restaurants, and non-profit organisations.
Heffernan Insurance president and CEO Michael Heffernan said: “We are excited to bring Sima and her team on board to bring enhanced expertise to our benefits practice, grow our southern California presence, and enable them to continue to provide top-notch service to their clients.”
Under the agreement, twentytwenty Insurance Services founder and CEO Sima Reid and her team have joined Heffernan’s new Cypress office, effective 1 October 2021.
APOLLO Insurance forges partnership to digital event insurance in Canada
APOLLO Insurance has joined forces with Wedding Planners Institute of Canada to offer clients access to digital event insurance in Canada.
The digital insurance offering will be specifically tailored to weddings and events.
APOLLO Insurance, which was established in 2019, currently offers a wide range of online insurance via brokers and embedded partnerships.
Wedding Planners Institute of Canada, which launched in 2003, currently has more than 8,500 alumni from 34 countries, with 75% from Canada.
Tremor launches real-time reinsurance placement solution
Online reinsurance pricing and placement platform Tremor Technologies has launched a new offering, called Tremor Blackboard.
The new offering is aimed at ceded reinsurance teams working across multiple locations.
Tremor Blackboard offers a collaboration solution that plugs directly into Tremor’s existing marketplace.
The technology vendor noted that the new offering enables access to Tremor’s marketplace of $500bn of reinsurance capital and pricing and allocation technology.
It allows ceded reinsurance team to review price, limit and terms scenarios for teams working in different locations, Tremor said adding that as one user makes changes in their account the entire team sees them live.
Anorak partners with Times Money Mentor to educate customers
Times Money Mentor has appointed insurtech Anorak as one of its Accredited Brokers to provide readers with financial education and advice.
Anorak will provide Times Money Mentor readers with information to make a decision about finding and buying the right cover. Customers simply input key information about their life and receive advices in less than five minutes.
In addition, Anorak Advisors are on hand to provide expert unbiased support throughout the process.
David Vanek, CEO and co-founder of Anorak said: “Since we launched in 2017 we have been on a mission to provide clear, simple advice to help people buy and manage protection for their financial future and we’re delighted to continue on this work with our latest partner, Times Money Mentor. We share a joint vision for stress free finances and believe education is at the heart of this. We’re looking forward to working closely to help The Times readers find the right cover for them.”