Health insurers could face increased impact from natural disasters
Two new studies point to an additional impact of natural disasters which is likely to affect health insurers alongside P&C carriers.
The reports, commissioned by the Australian Business Roundtable for Disaster Resilience and Safer Communities looked at both financial and social impact of disasters; it’s believed to be the first time social impact has been considered in this way.
The reports calculate that by 2050 costs in Australia could be as high as U$24 billion as population density increases and the severity and frequency of storms, floods, cyclones and bushfires grow.
The social impact of disasters will likely lead to increased costs for insurers due to stress-related illnesses following disasters. These include mental health issues, alcohol abuse and chronic disease.
Marsh & McLennan acquires Celedinas
One of Florida’s largest insurance agencies has been acquired by Marsh & McLennan. Celedinas Insurance Group, which has its headquarters in Palm Beach Gardens, was established in 1959 and has 120 employees who will all join Marsh & McLennan as part of the deal. Eponymous president and CEO Ray Celedinas will also be transferring to Marsh. Terms of the deal have not been disclosed.
Desjardins General announces strong results, highlights challenges
The fourth quarter was a good one for Desjardins Insurance Group with net income increasing to $102.3 million (from $22.1 million in 2014) boosted by the firm’s acquisition of
State Farm’s Canadian operations. Direct premiums increased 87.4 per cent year-over-year and return on equity was 21.1 per cent (up from the 7.1 per cent of Q4 2014.)
For the full year net income was $328.8 million, up 117.3 per cent on the previous year with direct premiums up 83.0 per cent to $4,091.6 million.
"This was a pivotal year for DGIG, thanks to the acquisition of State Farm's Canadian operations," said Monique F. Leroux, Chair of the Board, President and CEO, Desjardins Group, and CEO of DGIG. "Although the integration is only partially completed, DGIG's solid financial results illustrate the positive benefits from its larger scale and enhanced market reach.”
Despite the optimism, Ms. Leroux pointed out that, outside the State farm operations, the auto insurance division’s loss ratio compares “unfavourably” with the rest of the group. She also highlighted lower investment yields as a challenge for the firm.
