AA buys Key Care; RSA launches hub; Gallagher Re’s Melia to retire

Friday Round Up

Friday Round-Up: Insurance Post wraps up the major insurance deals, launches, investments and strategic moves of the week.

From Insurance Post this week

Allianz defends ‘customer-first’ approach to Covid BI claims

Ardonagh/Markerstudy merger faces CMA investigation

Insurers suffer BI blow as court hands down mixed judgment

Jersey duo jailed for £3.3m insurance fraud

Policy Expert to expand into pet insurance in Q2

Top five risks that will affect claims in 2024

From people this week

Big Interview: Clear Group CEO Mike Edgeley

Q&A: Hannah Tindal, Allianz

Lloyd’s and London market DEI role model Rebecca Mason

Diary of an Insurer: Aviva’s Stephen Wilkinson

Pick of the Week 

AA purchases Key Care Limited

Date announced: 1 February

Deal value: N/A

The AA has acquired Key Care Limited, a key insurance business operating across the UK and the Republic of Ireland, following approval from the Financial Conduct Authority.

Key Care offers insurance policies for lost and stolen keys. The AA has acquired Key Care to expand its product base to members and customers. 

Key Care will now form part of The AA Group alongside DriveTech and Prestige Fleet Servicing.

The AA were supported on the transaction by Shoosmiths and Buzzacott Corporate Finance.

Jakob Pfaudler, CEO of The AA, said: “The acquisition is in line with our strategy to offer world-class customer service as well as diversifying our portfolio of products for our customers.”

Steve Wainwright, CEO of Key Care Limited, said: “Key Care has worked closely with the AA for many years, so we are excited to be joining the AA Group and beginning a new chapter in the history of the business. 

“I believe that this is a great opportunity to develop the Key Care business further as part of the larger AA group.”

Deals of the Week

Clear Group buys specialist broker

Date announced: 1 February 

Deal value: N/A 

Clear Group has bought high-net-worth specialist broker Porticus Insurance Consultants Limited. 

Founded in 2003 by managing director Bill Baker, Porticus serves HNW clients with their insurance needs.  This includes providing advice for insuring high-value homes and motor vehicles, fine art and jewellery.   

Baker and his team will now join forces with Clear colleagues to drive forward its high-net-worth proposition.

Mike Edgeley, group CEO of the Clear Group, said: “Porticus has a great reputation in the HNW space and Bill and his team bring a tremendous wealth of experience to our already strong HNW capability.

Baker said: “It was really important that we secured the right home for the Porticus business and its clients. Clear has a strong and growing offering in the HNW space, which makes it the perfect fit and we look forward to taking our business to new heights.”

Howden launches carbon capture and storage facility

Date announced: 29 January  

Deal value: N/A

Howden has launched an insurance facility covering the leakage of carbon dioxide from commercial-scale carbon capture and storage facilities. 

The insurance facility, designed by Howden and led by Scor’s syndicate at Lloyd’s, provides cover for environmental damage and loss of revenue arising from the sudden or gradual leakage of carbon dioxide from CCS projects into the air, land and water. 

Other following markets within Lloyd’s have committed to support the facility, with further capacity anticipated to meet commercial demand globally. 

The global carbon capture and sequestration market is projected to reach a value of $7.49bn (£5.89bn) by 2030 at a compound annual growth rate of 19.9% between 2023 and 2030, accelerating the need for effective insurance solutions to protect the financial viability and stability of CCS projects.  

Rowan Douglas, CEO of Howden Climate Risk and Resilience, said: “This breakthrough shows how insurance helps unlock vital finance to drive the net zero transition at the scope and speed required. 

“By improving the bankability of critical CCS projects, we are establishing insurance as a force for good and building on the work being done by the Sustainable Markets Initiative to realise the potential of engineered carbon removal solutions and move this nascent sector into the mainstream.”

John Neal, CEO of Lloyd’s and chair of the Sustainable Markets Initiative Insurance Task Force, said: “This new insurance facility is an example of what can be achieved when innovative minds join forces to support climate positive solutions in our market. 

“Developed at Lloyd’s, in partnership with the Insurance Task Force of the Sustainable Markets Initiative, we hope together we can spark more cross-sector collaboration that will enhance our resilience against the climate crisis .”

Scor to lead offshore renewable energy consortium

Date announced: 1 February  

Deal value: N/A

Scor has launched an offshore renewable energy consortium, increasing its total deployable capacity to more than $180m (£141m), effective immediately. 

Investment in offshore renewable energy has increased sharply, with a strong pipeline of new projects signalling continued growth in demand into the foreseeable future.

Oliver Paine, offshore global segment leader at Scor, said: “Offshore renewable projects will play a key role in global efforts to provide clean, affordable and reliable energy and it is crucial that our industry steps up to facilitate such progress. 

This consortium represents the dedication of the Lloyd’s market to collaborate and supply much needed lead capacity to a growing market.”

Rebekah Clement, corporate affairs director at Lloyd’s, said: “This consortium is a great example of how Lloyd’s is collaborating to insure the transition – combining the expertise, foresight and innovation our market is known for to protect the investments and progress being made to build a more sustainable future.”

Scor partnered with Acrisure Re to build the consortium.

RSA launches Business Support Hub 

Date announced: 1 February  

Deal value: N/A

RSA has launched a Business Support Hub offering business tools, risk management and legal support to help individuals protect and manage their business. 

The hub is available to all of RSA’s management protection, commercial crime and professional indemnity customers at new business and renewal.    

To support the launch, RSA is engaging with brokers to showcase the hub and support them in offering this enhancement to their customers. 

Brokers will also be given the opportunity to gain an in-depth knowledge of the hub and how the platform can be used to further engage with their customers.

Insurance and financial services salaries increasing

Date announced: 31 January  

Deal value: N/A 

Research from Reed has revealed salaries in the insurance and financial services sector are showing signs of growth, with a 4.7% increase in advertised salaries in the last year, compared with the previous 3.1% increase last year.

From an analysis of six million jobs posted on Reed.co.uk over the last three years, as part of Reed’s suite of annual salary guides, it’s clear from the year-on-year salary increase that the insurance and financial services sector continues to show signs of resilience and growth.

The data also revealed how the insurance and finance sector is doing against other industries. The hospitality sector has seen the biggest pay increase in the past year (7.3%), compared with the IT and cyber security sector, which had the slowest increase, an average of 2.4%.

Leanne Appleton, insurance and financial services expert at Reed, said: “The insurance and financial service sector has faced significant challenges in recent years, from ongoing Brexit uncertainties to the lasting impact of the pandemic.

“As the industry continues to navigate obstacles on the back of these economic issues, we’re seeing a greater number of firms embracing technological changes – in particular the use of AI and automation – which is significantly impacting the works of work for the current and next generation. 

“This is also creating reduced demand for process roles, which can be easily automated, and instead heightening the need for more specialist skillsets, including professionals who can help to drive strategies and business plans.

“Going into 2024, a continued focus on agile working is helping firms to attract talent from further afield, including outside the UK, which is going some way to bridge skills gaps and attract these more specialist skillsets.

And finally…

  • CFC named Jason Hart as head of proactive cyber. 
  • Jensten bought community broker Melville Burbage. The deal, which is subject to regulatory approval, brings a team of 15, along with two additional offices and will contribute £6m GWP to the business.
  • Aviva added a range of wellbeing services and benefits, including a line manager toolkit for mental health, health and wellbeing discounts, offers on products and services that can support those living with cancer and a counselling service, to every Group Personal Accident or Business Travel product. 
  • Justin Sebire was named as the new interim group CEO of global travel insurance and assistance provider Cover-More Group.
  • Freedom Insurance Services Ltd returned to travel insurance in December, with its direct-only products now being underwritten by Millstream Underwriting on behalf of Allianz Worldwide Partners.
  • CyberCube surpassed 100 insurance organisations licensing CyberCube solutions.
  • Halliwell Fire Research expanded its international presence with the launch of a London office. The expansion follows the recent rebrand of Fire Research Group to Halliwell Fire Research.
  • Dirk Spenner was appointed CEO, international, at Gallagher Re, taking over from Tony Melia, who is retiring after a career of over 40 years. Spenner will take on the new role on 1 June. 
  • Liberty Specialty Markets hired James Boyle to the newly created role of head of energy, London. 
  • Davies secured funding from the Department of Education to launch a programme aimed to upskill insurance workers with vital data skills, as the rise in digitalisation causes demand to grow.

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