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...The figures, made public at the UK’s Companies House over the weekend, detail the financial impact of Project Everest, which collapsed in April after infighting at the Big Four accounting firm....
...“The role of reinsurance, particularly offshore reinsurance, is making [it] even harder to regulate an already opaque life insurance sector,” he added....
...a commercial necessity, arguing that EY’s consulting business is held back by conflict-of-interest rules that prevent it from working with the firm’s audit clients, who include the world’s largest tech companies...
...Many UK businesses with large pension schemes have offloaded them to life insurance companies....
...A-Cap owns five insurers: Sentinel Security Life, Haymarket Insurance and Jazz Reinsurance in Utah, as well as Atlantic Coast Life Insurance and Southern Atlantic Re in South Carolina....
...The syndicate will look to write business across multiple insurance and reinsurance lines, including political violence, marine, aviation and property catastrophe....
...Peak XV, pronounced “Peak 15” to represent Mount Everest before it was named, was the most active investor in India last year, striking 39 deals not including follow-on investments, according to PitchBook...
...Everest envisaged loading about $19bn of debt on to the consulting company, which would have had annual revenues of about $25bn. EY had total revenues of $45.4bn in the year to June 2022....
...But reinsurance stocks are usually cheap as their earnings are not easy to predict (see: hurricanes). The real appeal of Everest’s stock for 2024 is threefold....
...She proposed a range of solutions including tightening building rules, creating national and EU-wide schemes to share risks, and drawing more deeply on reinsurance markets....
...and reinsurance recovers....
...Reinsurance prices have surged over the past 18 months, squeezing insurers and their customers....
...So-called Project Everest was abandoned after more than a year of work that cost $600mn....
...Oddly, it is not — yet — for the reinsurance industry. Insured losses of $108bn for 2023 were broadly in line with the five-year average....
...EY took on $700mn in debt for its failed “Project Everest” plan, and tech companies are shedding jobs in a pivot to AI. Plus, Shein is seeking Beijing’s approval ahead of its IPO....
...Third, a repricing of climate risks has led to a sharp rise in the cost of property catastrophe reinsurance — or insurance for insurance companies....
...Baldwin had been a major player in designing the plan, dubbed Project Everest, alongside outgoing global chief and chair Carmine Di Sibio....
...When insurance companies cede risk to reinsurers, they heavily scrutinise them either directly or via careful monitoring of their credit rating reports....
...“We have not really seen a willingness on the part of the reinsurance community to step back down,” said David Priebe, president of reinsurance broker Guy Carpenter....
...On Monday, the company announced it was buying Lloyd’s insurer Probitas for £242mn....
...A significant factor has been a sharp rise in the cost of property catastrophe reinsurance, or insurance for insurance companies....
...The performance was helped by a quiet year for hurricane claims as well as a rapid run-up in reinsurance prices over the past 18 months....
...In the UK, the Bank of England has proposed limits for so-called funded reinsurance deals....
...Go deeper: Project Everest’s survivor has a mountain to climb, writes Stephen Foley....
...My next pick was Everest Group, which is a reinsurer. So they are an insurance company for insurance companies. They do have a primary property casualty insurance unit, but mostly they’re reinsurance....
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