Chancellor Rachel Reeves delivered Labour’s first Budget in 14 years, announcing £40bn of tax rises, Central London Alliance comments
Direct Line chief rushes to calm investors after shares collapse January 15, 2023 Direct Line’s share price “doesn’t reflect the intrinsic value of the company,” the insurer’s chief executive Penny James has said, after shares in the firm plummeted last week. In an interview with The Times, James instead said Direct Line still has “huge earnings potential” as she said she feels “very positive about the future prospects”. [...]
FCA to expand guidance for insurers on protecting cash-strapped customers January 11, 2023 The City watchdog has vowed to update guidance for insurers on protecting customers amid the UK’s cost-of-living crisis. The UK’s Financial Conduct Authority (FCA) today set out plans to expand guidance, which was first introduced during the pandemic, to ensure all struggling customers are protected. Under the FCA’s proposed new guidance, insurers will be [...]
Direct Line shares plummet after insurer scraps 2022 dividend January 11, 2023 Shares in Direct Line plummeted today after the insurer said it expects to scrap its 2022 dividend due to facing a “challenging and volatile operating environment in the fourth quarter”. The insurance company said its board “no longer expects to declare a final dividend for 2022” due to it facing a series of challenges related [...]
UK insurance: shares in Aviva and Admiral shrug off Bank of England’s warnings of a ‘prolonged’ recession in the sector January 10, 2023 The UK’s insurance companies were told to brace themselves for a “prolonged” recession by boosting their risk management processes, the Bank of England (BoE) has said in a letter to sector CEOs. In a letter to insurance chief executives, the BoE’s insurance watchdog warned that various risks might stem from the downturn as it called [...]
Lloyd’s of London syndicate Beazley launches world’s first ‘cyber catastrophe bond’ January 9, 2023 Lloyd’s syndicate Beazley has launched the world’s first ‘cyber catastrophe bond’. The insurer’s catastrophe bond protects Beazley’s balance sheet in the event it is forced to pay out more than $300m (£246m) in insurance on any cyber risk policy. Catastrophe bonds have traditionally been used to protect insurers from natural disaster risks, through deals that [...]
Scottish Widows: Unmarried couples missing out on life insurance payouts December 30, 2022 Many unmarried couples with life insurance could be at risk of not receiving a payout if one of the partners dies, a survey suggests. Just over half (52 per cent) of unmarried people know if their partner has a life insurance policy, while 43 per cent said their other half has no plans to ensure [...]
Insurance trade body seizes control of subsidiary by flooding City association’s board December 22, 2022 The world’s largest insurance trade body has made a push to take control of one of its subsidiaries, following an ongoing spat between the two groups. The takeover bid saw the head of the Personal Finance Society (PFS) hit out at its parent organisation, the Chartered Insurance Institute (CII) over claims it had acted “unilaterally” [...]
Car premiums increase 17.4 per cent after FCA price walking ban December 20, 2022 The average car premium has soared 17.4 per cent in the past year, according to recent research. Data published today by market researcher Consumer Intelligence shows that average premiums now cost £877, surpassing by 6.7 per cent current inflation rates. According to senior insight analyst Georgia Day, the unsurprising surge has been driven by the [...]
Severe flooding could cost insurers more than £1bn this winter December 12, 2022 Severe flooding this winter could cost UK insurers more than £1bn, according to analysis from PwC. Storm Eunice in February led to insurers losing £200-300m, mainly as a result of disruption to travel and damage to properties and vehicles due to falling trees. However, floods on the same scale as those seen in 2015 [...]
Phoenix Group on track to meet financial goals after weathering economic storm December 6, 2022 London insurer Phoenix Group today said it is on track to generate £1.3bn- £1.4bn worth of cash this year due in part to it avoiding the UK’s LDI crisis. The insurer said its “comprehensive” hedging strategy had insulated it from the current downturn as Phoenix noted it does not participate in the Liability Driven Investment [...]