Risk & Insurance News + Notes: Beazley Announces Best Half-Year Combined Ratio Since 2015, MAPFRE RE to Convert Beijing Office into Subsidiary Branch and More : Risk & Insurance

The latest happenings in the news that could impact the insurance industry.

Beazley Announces Best Half-Year Combined Ratio Since 2015

Specialty business insurer Beazley announced the results of its financial performance for the period ending in Q2. Profits before taxes reached $22.3 million compared to $167.3 million at the close of Q2 2021.

Its combined ratio was 87% for the first half of 2022, seven points lower than the same period in 2021.

Other metrics of note were an increase of 26% in gross premiums over Q2 2021 and an 18% rate increase on renewal portfolio compared to 20% during the first half of 2021. Annualized return on equity was 1%, down 14 points from last year at the same time.

“We have maintained the momentum of the second half of 2021 with gross premiums increasing by 26% alongside better than expected claims experience,” Adrian Cox, Beazley’s CEO, said in a press release. “A challenging investment environment has impacted profit; however, I’m delighted that we have achieved our best combined ratio at a half year since 2015.”

MAPFRE RE to Convert Beijing Office into Subsidiary Branch

Global insurer MAPFRE RE has obtained approval from the China Banking and Insurance Regulatory Commission (CBIRC) to open a subsidiary office in Beijing. Until now, the MAPFRE Group’s reinsurer was present in mainland China through a representative office.

Through this new configuration, MAPFRE RE will be in the position to advance its business operations in China, where it has had operations since the 1980s.

The subsidiary will initially have an operating capital of 500 million yuan (72.5 million euros) and will be led by Ignacio Rodríguez Arteche.

RT Specialty Reveals Environmental and Pollution-Related Claims Trends

RT Specialty’s Environmental and Construction Professional Practice (RT ECP) ​​recently conducted a review of its book of business to analyze the causes of many claims falling under pollution legal liability (PLL) and contractors’ pollution liability (CPL) policies.

Examination of its PLL book revealed 23% of environmental claims were in the health care industry, followed by 18% in property management, and 11% from the oil & gas sector.

As for the causes, COVID led at 36%, followed by indoor air quality/microbial matter/mold/bacteria at 31%, and spills/onsite leaks at 24%.

Analysis of its CPL book showed 34% of claim activity in the housing arena with commercial office, educational, heavy highway, and religious fields all individually posting 8% of claims.

The majority of causes were related to compromised air quality (30%), chemical/product/waste spills/project site leaks (23%) and the disturbance of existing structures (20%).

“We studied our book of insureds to not only better understand the marketplace, but to also provide agents, brokers and their clients with the knowledge and insights which may be helpful to make informed strategic risk management decisions,” said Jeff Slivka, president of RT ECP.

A New Risk Management & Insurance Major at UI

A new risk management and insurance major will be offered at the University of Iowa’s Tippie College of Business starting in the fall of 2023.

The program is aimed at strengthening the state’s largest non-agricultural economic sector. The major will be housed in Tippie’s Department of Finance and award a bachelor of business administration (BBA) degree.

“The insurance industry is a major economic force in Iowa, and the university has a deep history in risk management and insurance education,” said Terri Vaughan, director of the college’s Vaughan Institute of Risk Management and Insurance, named for her father, Emmett. “This is a great opportunity to build on that history while supporting the future of Iowa’s industry and providing students with outstanding educational and career opportunities.”

“Every business decision involves risk, so having a sound understanding of how risk works will help students in any career and provides a strong foundation no matter what direction they want to go,” said Thomas Berry-Stoelzle, associate professor of finance, Nationwide faculty fellow, and faculty director of the Vaughan Institute. &

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