下面是小编为大家整理的北美财险行业：与前E&S保险公司首席执行官通话中收获,供大家参考。
G l o b al R e sear c h
27
Mar ch
2020
P r ope r t y
C as ual ty
I ns ur anc e Tak e aways
f r om
o u r
call
wi th
f or me r
E &S i ns u r an c e
com pan y
chi e f
e x e cu ti ve
of f ice r s
L im ite d
COV I D - 19
co v e r a g e ,
bu t
co u l d
b e n e f i t
i ndu st r y
t o
w o r k w i t h
i nsu r e ds K e vi n Kel l ey , frml y
CEO
o f
I ron s ho re
an d A I G " s
L ex i ng to n, an d Stan
Gal an s ki , Pre s . & CEO
o f
G 58
Cap ital ,
frml y
C EO
o f
Nav i g at o rs ,
g en era ll y
agreed
th at
P&C
c o v erag e rel ated
to
th e
COV I D -19
v i r us
s houl d
be
m ini m a l .
M os t
B O P
a nd
P r ope r t y
poli c i e s ( bu s i n es s
i n terru p ti on )
c arry
ex p li c i t
v i ru s
exc l u s i on s , al th ough po li ti c al
i n terven ti on a nd li ti g ati on c ou l d d rag
ou t
c o v erag e
un c ertai n ty . As
an
ex ampl e,
i t
w as
no ted
th at
s o me gov " t - c omp el l e d fl ood c o v erag e
fo ll o w i ng H u rri c an e
K atri n a
w as
o v ertu rn ed
( i n i n s u rer s fav o r)
after
ap p eal s .
B o th
ag r eed
th at,
w h il e
c on trac tu al
c o v erag e
ap p ears
limited ,
i t c oul d be
i n t he
i nd us t r y " s
i nt e r e s t
t o ex pl or e
oppor t un i t i e s
t o he l p w i t h di s t r i but i on o f po ten ti a l
s ti mu l u s
ai d,
as
ou tri gh t
c o v erag e
d en i al s
c ou l d
fo s ter
mo re
l eg i s lati ve att emp ts
to
c omp el
c o v erag e
an d c ou l d al s o l ead
to
h i gh er
c o s ts
f or th e
i ndu s try
( e. g., soc ia l
in f la t io n ) . So m e
n i che
li n e s
c o u l d
se e
su r p r i se
C O V I D - 19
i mp ac t
Th ere
are
s o me
li n es
w ere
th e
s p eakers
do ex p ec t
s o me
v i ru s -d ri v en
l o ss es . The
s h arp market
d ec li n e
c ou l d l ead
to
a
ri s e
i n D&O
c l aims . Sp ec i fi c
i ndu s try
c l as s es
o f
pro f
li n e s ( e. g. I As )
c ou l d al s o b e
i mp ac te d. Trad e
c red i t
i s
li kel y
to
ex p er i en ce
l o ss e s . I n t eres ti ng l y , cy b er
( du e
to
i n creas ed
ri s k fro m remote
w o rki ng )
an d s u rety
( du e
to
s hu t do w n s )
w er e i d en ti f i ed
as
li n es
to
w atc h.
Wo rkers
c omp en s ati on
i n
h ea l th c are
c ou l d
b e
i mp ac ted , bu t
o v eral l
th e
li n e
c ou l d b en e fi t
fro m a
red u c ti on i n w ork hou rs / trav el . Si mil arl y , au t o s hou l d b e n efi t
f rom few er
mil es
d ri v en . E& S
r at e
f i r m i n g
li kel y
t o
c o n t i nu e
as
" l o w e r
f o r
e v e n
l o n g e r "
p r e ssu r e s
N II
B o th
s p eakers
w ere
mo re
c on c erned
w i th
th e
i mp ac t
th at
F ed
ac ti on s
w ou l d h ave
on NI I
an d ex p ec t
book y i el d d ec li n es
w ill
dr i ve
furth er
rate
fi rmi ng. As ked
i f
a
rec es s i on w ou l d fo rc e
i n s u rers
to
" eas e
up "
on p ri ce
i n crease s , n ei t h er
ex p ec ted
th at
to
b e
th e c as e
as
pro fi t
l ev el s
an d
th e
NI I
ou tl ook
n ec es s itate
rat e,
al th ough
a
pro l ong ed r ece ss i on
w o ul d
r e duc e
i ndu s t r y
pr e m i um s
t hrough
l ow e r
uni t s
of
ex pos ur e .
B ot h h i gh li gh ted
ex p en s e
effi c i en cy
th e
mo s t
li kel y
n ear
term
d ri v er
o f
margi n ex p an s i on. C al l
r ep l ay
i s
a vai l ab l e
un t il
W ed n es d ay,
A p r il
1st ,
2020
D i a l
i n i s
( 8 88)
286.8010 a nd c ode
i s
23406553. T r ansc r i pt
of
t he
ca ll
i s
be l o w .
B r i an
Mer ed i t h
A na l ys t bri a n.m e r e di t h@ u bs .com
+1 -212-713
2492
Set h Ros enber g Assoc i a t e
An a l y st s e t h.r ose nbe r g@ ubs .com
+1 -212-713
2527
Shei l a
Seet har a m an,
C F A Assoc i a t e
An a l y st s he il a .s ee t ha r a m a n@ ubs .com
+1 -212-713
4413
M i chae l
War d Assoc i a t e
A na l ys t mi cha e l .a .w a r d@ ubs .com
+1 -212-713
3518
www .u b s.co m / i nvestm ent r esea r ch
Th i s
rep o rt
h as
b een
p repared
b y
UB S
Se c u ri ti es
LLC .
ANALYS T
C E R T I F IC AT I O N
AND
R E Q UI R E D
DIS C L O S UR E S
B E G I N
O N PA G E
14 .
UB S
do es
an d s eeks
to
do
bu s i n es s
w i th
c omp an i es
c o v ered
i n i ts
res earc h r ep o rts .
As
a
re s u l t , i n v es t o rs
s hou l d b e aw are
th at
th e
fi rm may
h ave
a
c on fl i c t
o f
i n teres t
th at
c ou l d affec t
th e
ob j ec ti v ity
o f
t h i s
rep o rt.
I n ve s to rs
s hou l d c on s i d er
th i s rep o rt
as
on l y
a
s i ng l e
fac to r i n maki ng th ei r i n v es tmen t
d ec i s i on. I ns ur ance , Ful l - Li ne
N o rth
A me ri ca
Equit ies
W e
pre s ent
be l ow
hi ghl i ght s
f r om
our
r e c ent
c all
w i t h
K e v i n
K e ll e y
a nd
S t a n Ga la n s k i.
We
m a y
h a ve
m a d e
e d its
t o
t h e
t ra n s cr i p t
b elo w
fo r
cla ri t y.
Min o r gr a mm a t i c al
c ha nge s
t ha t
do
not
i m pa c t
t he
m e a ni ng
of
cont ent
h a v e
be e n a ppl i e d.
T he
o pini ons
e x pre ss e d
by
K e v i n
K e ll e y
a nd
S t a n
G ala ns k i
he r e i n
do
not nec e ss aril y
r e f l e c t
t he
v i e w s
a nd
opi ni on s
of
U BS .
U BS
a cc ept s
no
r e s pon s i bi li ty
f or t he
a cc ur a c y ,
r e lia bi li ty
or
c o m ple t e ne ss
of
t he
i nf or m a t i o n
a nd
w ill
n o t
b e
lia b le e i t he r
di r e c t l y
or
i ndi r e c t l y
f or
a ny
l os s
or
da m a ge
ari s i ng
out
of
t he
use
of
t hi s i n fo rma ti o n
o r
a n y
p a rt
the re of.
EVENT
TRANSCRIPT
[00:00:27.730] - B r ia n M e re d i th
T ha nk s , S a ll y . And good morn i ng, eve r y bo dy . T h a nk y ou f or joini ng u s
f or our e xp e rt
ca ll
h e r e
on th e
s p ecia lty i n su r an ce
m ar ket s ,
as
w el l
a s
t h e
i mp ac t
o f
C O V I D -19
on
t h e
P& C
i n su r an ce
i ndu st r y .
O ur
s p ea k er s
t od ay a rgu a bly
a re
tw o
o f
th e
mo s t
kno wl e dg ea ble
a nd re s p e ct e d lea d e rs
in
th e
in s ur a n ce
in d us t ry,
p a rticul a rl y
t he exce ss
an d
su rp l u s
li n e s
m ar ket
f or
t h e
l ast
s ev er a l
d eca d es .
The
f i r st
spea k er
w e
h av e,
St an
G al an s ki ,
h e "s curre n tly
pr e s id e nt
& C E O
o f
G 58 Ca pit a l.
Ho we ve r, h e " s
b e tte r kno wn
a s
th e
p re s ide n t
& C E O
o f
Na vig a tor s
fo r 15 yea r s
b e f or e
t h ey
s o l d t o T h e
Ha r tf ord i n 2019. O ur o t h er
spe aker
i s
Kev i n Kel l ey . Kev i n h a s
ac t u al l y
b e en involv e d in
th e
s p ecia lty
m a rk e ts
for
ov e r 45 yea rs . He " s
fo rm e rly
c ha irm a n, vice
ch a irm a n of
Libe rt y
Mutu a l
a nd pr e s i d e n t
C E O
o f
i ron or e . He
w a s
a l s o c ha i rm a n a nd C E O
o f
L ex i ng t on I n s ur a n ce
f rom 1997 u nt il
2008. And f or t ho s e
of
y ou w ho don " t
kn ow
L ex i n gt on, i s
t h e
E & S
s ub s idi a r y
o f
A I G . I t
i s
t h e
l a rg e s t
exce ss
a nd s ur pl us
ca rr i e r i n t h e
c oun t r y . W i t h t h a t
l e t
m e
h a nd i t
o ve r h e r e
t o S t a n i n a
mom e n t . W e " r e
g oi ng t o go t hrough h i s
t hough t s. Bu t
f irs t , I
ju s t
w a nt
to
s a y,
th e r e
will b e
a
Q &A s e ss ion , p os t
th e
com m e n t a r y
yo u h ave
h e re . Additio na ll y,
if y ou " d li k e
t o a s k a
q ue s t i on b ut
don " t
w a n t
t o a s k i t
li ve
on ca ll , f ee l
f r ee
t o e m a il
m e , B r i a n do t
M e r e d i t h a t
U BS do t
com . S o with
th a t
s t a rting po in t,
I
t hink
we s ho uld
s t a rt
h e r e
with
giv e n a ll
t h e
s tuf f
go i ng on in
th e
ind u s try, is
wh a t " s
g oing
on with
COVID - 19 ?W hat ar e
t h e
i mp ac t s
on i n s ur er s ?
What "s
y our t a k e
h er e?
St a n. L et m e
l et m e
h a nd e d o ve r t o y ou t o gi ve
u s
y our t houg ht s
on t h a t .
[00:02:19.000] - St a n G al an ski
W el l , t h an k y ou, B r i an . F i r st , j u st
w a n t
m e
t o s ay
t hat Kev i n an d I
h ave
sp en t
o v er
40 ye ar s
i n t h i s
i ndu s t r y
an d it" s
a n indu s try we ha ve
gr ea t
p a ss io n for,
a
wo n de r fu l
in d us try to
wo rk i n a nd pa r ticul a rly
t h e
s p ecia lt y
li ne s bu si n es s,
b eca u s e
i t
r eal l y
i s
a
p eo p l e
bu si n es s
w h er e
y ou c ompet e
on t h e
st r e ng t h o f
i n t el l ec t u al
c ap i t al . And tha t
in t e ll e ctu a l
ca p ital
is
wo rk in g
h a rd
to d ay .
It " s
a
ve ry
r e s il ie n t
in d us tr y.
T h e
i ndu s try
is
ou t
th e re
s e ttling cla im s ,
und e r writin g
i n s ur a nc e ,
i ss ui ng
po li c i e s
a nd
do i ng
a ll
t h e
t h i ng s
w e
do
d e s p i t e
t h i s
d i s t r ac t i on
a nd h ope fu ll y
will
p e rfo rm
in
a
m a n ne r
t ha t
wi ll
m a k e
a ll
o f
u s
proud
in
term s
of
h ow
we " r e
th in k in g
a bo ut
t h e e nv i ronm e n t
t od ay . I
g ue ss
I
w ou l d phr a s e
i t
i n t e rm s
o f
a
c o uple
of
th ing s , the in te rna l
in s ur e r, fin a n cia l
i ss ue s t h a t
a r e
th e re
r i gh t
no w
fo r t h e
qu a rt e r a nd ho w
t h a t
re la t e s
t o s om e
o f
t h e
c l a im s
ac t iv i t y
ou t
t h e re , p a rt i c u la r l y re l a ted
t o
the
Co ron a
viru s . S o
I
gu e ss
I" m thi nk in g
a bou t
th e
fin a nci a l
is s u e s .
My
f i r s t
o bse r va t i on
w o ul d
b e f rom
a
b a l a n ce
s h ee t
s t a ndpo i n t ,
I
t h i nk
w e
w o ul d
ex p ec t
doub l e
d igi t
r e du c t i on
i n
f i r s t
q ua r t e r
book
va l u e , re fl e ctin g r e d uc e d m a rk e t
va lu e
of
e qu ity
a nd bond po rtfol io s . It " s
pr e tty
diffi cu lt
to
a ss e ss
th e ...