TOP NEWS IN GLOBAL INSURANCE
* Apollo Global Management Inc. and Athene Holding Ltd. have agreed to merge in an all-stock transaction that implies a total equity value of roughly $11 billion for Athene. Each outstanding Athene class A common share will be exchanged for a fixed ratio of 1.149 common shares of Apollo. Upon closing of the merger, current Apollo shareholders will own approximately 76% of the combined company, while Athene shareholders will own about 24%.
* U.S. District Judge Sharon Johnson Coleman in Chicago ruled that GEICO must face a proposed class action accusing it of overcharging policyholders at a time when there was less driving and fewer accidents because of pandemic-induced lockdowns, Reuters reported. The judge dismissed breach of contract and unjust enrichment claims. A federal judge recently permitted a class-action lawsuit to proceed against State Farm Fire and Casualty Co. and State Farm Mutual Automobile Insurance Co. concerning the denial of business interruption claims stemming from the COVID-19 pandemic, the law firm representing the plaintiffs said.
➤ Uncharacteristically slow year for Berkshire's retroactive reinsurance business
An upsizing of an existing adverse development cover purchased by The Hartford for its acquired Navigators business partially offset modest declines in retroactive reinsurance reserves assumed in previous years from various other cedants.
➤ IAT Insurance cuts commercial auto rates in January; Travelers hikes
Travelers could see the largest aggregate positive premium impact of any insurer as a result of 10 rate increase approvals it received in January, an S&P Global Market Intelligence analysis showed.
➤ Berkshire gains with insurance index; Lemonade falls after earnings report
The S&P 500 ticked up 0.81% to 3,841.94 for the week ending March 5, while the SNL U.S. Insurance Index gained 4.28% to 1,271.02.
PROPERTY AND CASUALTY
* Berkshire Hathaway Inc. subsidiary GEICO Corp. acquired Republic Group No. Two Co. on Jan. 4. As part of the transaction, GEICO acquired 100% of the voting shares of Republic Group and control of Texas-domiciled mutual insurance company Southern County Mutual Insurance Co.
* Accelerant Holdings Ltd. acquired Delaware-domiciled admitted insurance carrier Commonwealth Insurance Co. of America from Brit Ltd., a subsidiary of Fairfax Financial Holdings Ltd. for undisclosed terms.
* S&P Global Ratings said Argo Group International Holdings Ltd.'s delayed filing of its 2020 audited annual financial statements because of Winter Storm Uri could signal "operational challenges." The delayed reporting has no immediate impact on the insurer's ratings, and the rating agency will continue monitoring developments, particularly contingency management.
* DBRS Morningstar said the issue of cladding in the U.K. following the 2017 Grenfell Tower fire could lead to higher insurance premiums for flat owners, and some will have to pay for safety patrols until the safety issues are resolved.
* Direct Line Insurance Group PLC reported 2020 profit attributable to owners of the company of £367.2 million, down from £419.9 million a year ago.
* A judge at the Supreme Court of New South Wales in Australia denied troubled supply chain finance provider Greensill Capital Pty. Ltd.'s attempts to force an insurer to renew trade credit cover that it said supported $4.6 billion of working capital hours before it was due to expire at midnight on March 1.
LIFE AND HEALTH
* Phoenix Group Holdings PLC could accumulate as much as £2 billion to spend on acquisitions by the end of 2021, though it is not "pounding the streets" looking, CEO Andy Briggs told Reuters. The company proposed a final dividend for 2020 of 24.1 pence per share, up from 23.4 pence per share a year earlier.
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