Lemonade/Metromile deal analysis; Independence Holding going private

TOP NEWS IN GLOBAL INSURANCE

* With the pending acquisition of Metromile Inc., Lemonade Inc. stands to gain $100 million of in-force auto premiums, 49 state licenses and a team dedicated to digital car insurance. Lemonade executives view those qualities as fuel to help the company accelerate its expansion in the auto insurance space.

* Independence Holding Co. has agreed to be acquired by Geneve Holdings Inc. in a going-private transaction. Holders of Independence Holding's outstanding common shares, excluding shares held by Geneve, will receive $57.00 per share in cash. Completion of the transaction is subject to certain closing conditions, including the approval by the majority of the shares not owned by Geneve and its affiliates and the consummation of the pending sales of the company's subsidiaries.

➤ More M&A likely for US insurtechs, following Lemonade/Metromile tie-up

Deals like Lemonade's purchase of Metromile seem likely to continue, based on the public market reception of insurtech stocks, as discussed in S&P Global Market Intelligence's latest U.S. Insurtech Market Report.

➤ Proposed roof rules could help Progressive stem rapid Florida homeowners growth

The insurer is seeking to reduce the share of residential property premiums it obtains from catastrophe-prone states like Florida and Texas after the business generated a 125.1% combined ratio through the first three quarters of 2021.

➤ Personal injury lawsuit 'double hump' hit Kemper in Q3, caused $25M charge

An unexpected rise in lawsuits in the third quarter led to the reserve charge.

PROPERTY AND CASUALTY

* Private U.S. property and casualty insurers' net income rose to $37.5 billion in the first half of the year, up from $24.3 billion a year ago, according to a report from Verisk and the American Property Casualty Insurance Association.

* A new Skybox Security study found that 83% of organizations suffered an operational technology cybersecurity breach in the past 36 months. The research also indicated that 73% of chief information officers and chief information security officers are "highly confident" that their organizations will not suffer an operational technology breach in the next year.

* A hardening homeowners market and devastating catastrophes across the southern U.S. were among the reasons FedNat Holding Co. is refocusing its business on Florida and moving out of its other out-of-state markets.

* The Hartford Financial Services Group Inc. expects to shed all tar sands investments by the end of 2021, two years ahead of schedule. Also, The Hartford announced a commitment to invest $2.5 billion over the next five years in technologies, companies and funds advancing the energy transition and addressing climate change.

* Resolving the litigation and investigations related to its Structured Alpha funds is a "high priority" for Allianz SE, and the company is committed to putting the uncertainty about the ultimate cost behind it "as soon as possible," CFO Giulio Terzariol said. The German insurer reported third-quarter net profit of €2.11 billion, compared with €2.06 billion a year earlier.

* Ageas SA/NV does not expect a direct impact from the turmoil in China's real estate market in the short-term, a top executive said. Ageas' third-quarter net result dropped to €161.1 million from €202.7 million.

LIFE AND HEALTH

* Newly public Jackson Financial Inc. is commencing a regular quarterly cash dividend after its board of directors approved a cash dividend of 50 cents per class A and class B common share for the fourth quarter. The board also authorized a $300 million share repurchase program for Jackson's class A common shares.

REINSURANCE

* Munich Re CFO Christoph Jurecka said the German reinsurer expects to continue to face COVID-19 claims in its life and health reinsurance business in 2022.

* Radian Group Inc. subsidiary Radian Guaranty Inc. has secured $484 million of fully collateralized excess of loss reinsurance coverage through the Eagle Re 2021-2 Ltd. insurance-linked notes transaction.

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