News
California home insurance costs likely to continue rising for years to come, says expert panel
Leading housing insurance experts gathered in Sacramento last week for a panel discussion around the state's home insurance crisis hosted by the Center for California Real Estate (CCRE). Among key insights shared by panelists, Stanford University Climate & Energy Policy Director Michael Wara predicted California's insurance prices will likely continue to rise for the next 10 to 20 years.
The panel, Strengthening California's Insurance Market: Expanding Access & Stability, featured the latest insights and solutions to address insurance challenges California homeowners are facing; and expanding access to and building a more stable, resilient insurance market. The panel also featured David Russell, director of the CSU Northridge Center for Risk Management and Insurance; John Norwood, chief lobbyist for the Independent Insurance Agents and Brokers of California; Emily Rogan, senior program officer at United Policyholders and Sanjay Wagle, senior vice president of Governmental Affairs at the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Reporter Megan Fan Munce from the San Francisco Chronicle moderated the discussion.
Among the key insights from the cross-sector panel discussion:
Solving for availability of insurance before affordability Russell told the audience that attracting capital back to the market is the priority in order for insurance to become more widely available, and to expect an increase in premium costs. He argued Californians must share the burden of higher rates, even in lower risk areas ― a concept not palatable for many.
"In high-risk areas, to be able to afford to insure, they're going to have to raise the premium on someone else. We have a cost sharing issue," he said. "I've seen huge rate increases in my own policy, even though I'm in a low-risk area, and I [have] filed no claims, ever. So, these risks are being socialized, and there are California citizens that don't want to pay a part of the premium that someone else has imposed on the system," Russell said.
Announcements
The Hartford Donates $2 Million To Main Street America To Remove Barriers For Small Businesses
The Hartford has committed $2 million to a multi-year initiative that supports small businesses and fosters economic and community vibrancy. The funds will expand the company’s Small Business Accelerator Grant Program with Main Street America, a national nonprofit organization dedicated to strengthening communities through the economic development of historic downtowns and commercial districts. The Hartford, which insures more than 1 million small businesses, will award up to 15 grants to communities nationwide to help small businesses gain access to affordable multi-use spaces.
"At the Hartford, we have the privilege of working with small business owners every day, and we are proud to partner with Main Street America to address one of their biggest challenges - access to commercial real estate," said The Hartford’s head of Small Business, Chris Jones. "This initiative will enable business owners to connect with their local community, attract new customers and contribute to the economic growth and vibrancy of main streets."
Over the next two years, the funds will support launching, growing, or operating new and existing small business accelerator sites, including pop-up shops, co-working spaces, and other innovative spaces. In addition to developing physical spaces, this program will also fund the creation of a virtual accelerator program and contribute content to a digital platform that is providing training, networking, and mentorship for Main Street small business owners across the country. Through the combined efforts of the accelerator sites and virtual platform, the program aims to reach approximately 1,500 small businesses nationwide.
PRESENTERS ANNOUNCED FOR CIECA CONNEX 2025 ANNUAL CONFERENCE | September 23-25 | Hilton Nashville Green Hills
“Insights to Innovation: The Future of Collision Industry Technology”
Insightful Speakers, Networking & Nissan Tour
The Collision Industry Electronic Commerce Association (CIECA) announced that its 16th annual conference, CONNEX 2025, will be held at the Hilton Nashville Green Hills in Nashville, Tennessee, September 23-25. This year’s theme is "Insights to Innovation: The Future of Collision Industry Technology" and will be emceed by industry veteran Bill Garoutte.
During the event, thought leaders and industry experts will discuss where technology and businesses are headed and what the collision industry can do to prepare. A highlight of the conference will be a tour of the Nissan Smyrna Vehicle Assembly Plant. The plant is the largest Nissan manufacturing site in the United States and assembles the Nissan Murano, Pathfinder, Rogue and INFINITI QX60.
This year’s Platinum sponsors include IAA and OEC. Gold sponsors are CCC Intelligent Solutions, Caliber Collision, CarPartPro.com and the United Recyclers Group (URG). Silver sponsors include Enterprise Mobility, Revv ADAS and Safelite Solutions.
All industry stakeholders, including CIECA members and non-members, are invited to attend.
Confirmed Speakers include:
- Industry Updates: Keynote speaker Sean Carey, SCG Management Consultants; and Kyle Krumlauf, CCC Intelligent Solutions
- OEM Panel Discussion Moderated by Devin Wilcox, Lucid Motors
- Insights: Chetan Ghai, Agero; Mike Anderson, Collision Advice and Jim Vecchio, J.D. Power
- Autonomous Vehicles: Navigating the Legal Landscape:: Moderator Katelyn Magny-Miller, Partners for Automated Vehicle Education (PAVE); Brett Odom, National Association of Mutual Insurance Companies (NAMIC) - Mike Nelson, QuantivRisk; and Ben Lewis, Simultyic
- Telematics & Data; Cornelius Young, Cambridge Mobile Telematics (CMT) and Jennifer Smith, StopDistractions.org
- Chief Information Officer (CIO) Panel Discussion: Moderator Ashley Denison, Calber Collision; Creighton Warren, Boyd Group; Ryan Alley, Classic Collision; Mark Miller, Crash Champions; and Russ Steinbeck, Joe Hudson's Collision Center
- New Developments in Paint/Refinish Technology: Ryan Taylor, AkzoNobel; Dan Benton, Axalta; Jeff Wildman, BASF; and PPG
- Digital Claims Panel Discussion: Bill Brower, Solera
- CIECA API Standards (CAPIS) Update: Paul Barry, CIECA
- Innovation Showcase
Agenda: - Tuesday, Sept. 23: Afternoon Group 1 Tour of Nissan plant, evening reception for all attendees - Wednesday, Sept. 24: Full day of presentations and evening reception - Thursday, Sept. 25: Half day of presentations, lunch, and Group 2 Tour of Nissan plant
During the same week, the following industry companion events will be held: - Monday, Sept. 22: Changing and Saving Lives Music City Golf Fundraiser hosted by the National Auto Body Council (NABC®). - Friday, Sept. 26 & Saturday, Sept. 27: Music City Collision Conference hosted by the Tennessee Collision Repairers Association (TCRA) at the Southwestern Conference Center.
For information about CIECA CONNEX 2025, visit
For information about sponsorship, visit
Early-bird registration and discounted room rates at the are available until August 24. Register today!
For more information, contact: Stacey Phillips Ronak CIECA Marketing Director Mobile: 858-401-2692 Email: stacey@cieca.com
Financial Results
Zurich Insurance property and casualty revenue rises, affirms targets | Reuters
Zurich Insurance (ZURN.S), opens new tab reported higher first-quarter revenue and gross written premiums at its core property and casualty (P&C) business on Thursday, maintaining its targets despite instability in the crucial U.S. market.
Europe's third-largest insurer by market capitalisation said in a statement that rate increases of 4%, strong profitability in commercial and improved retail margins supported growth.
Oddo and Vontobel analysts said the results were solid but the latter noted that some investors might be concerned about the company's exposure to the United States and the dollar's weakness following President Donald Trump's often confusing rollout of tariffs.
Chief Financial Officer Claudia Cordioli told reporters on a call after the results that "there's no indication whatsoever" the turmoil in U.S. markets will lead the insurer to step back from its targets.
"We have a significant presence in the U.S., but so do we in Europe, in Asia... The fact that we are translating business written in Europe or in Asia into dollars is actually a positive on our earnings because obviously that's translating into a higher income in U.S. dollar," she said.
The United States is Zurich Insurance's single largest market, accounting for more than 40% of the P&C business. Late last year, the insurer said it was aiming for a core return on equity of more than 25% between 2025 and 2027 and for cumulative cash generation of above $19 billion.
It posted P&C insurance revenue of $10.7 billion in the first quarter, above last year's $10.2 billion, while gross written premiums in the branch grew 5% year-on-year.
Liberty Mutual Insurance Reports First Quarter Results
Liberty Mutual Holding Company Inc. and its subsidiaries (collectively "LMHC" or the "Company") reported net income attributable to LMHC of $1.025 billion for the three months ended March 31, 2025, versus income of $1.535 billion for the same periods in 2024.
"For the first quarter, we reported net income attributable to LMHC of $1.0 billion, reflecting improvement in our underlying combined ratio and strong investment results," said Tim Sweeney, Liberty Mutual Chairman & Chief Executive Officer. "Continued discipline in our underwriting resulted in a notable 6.5-point improvement in the underlying combined ratio, achieving an 81.9% for the first quarter. Despite elevated catastrophe losses, driven by the devastating California wildfires, our total combined ratio including these losses and prior year development was 96.6%. Furthermore, our investment results in the quarter were excellent, benefiting from higher reinvestment rates and favorable private equity valuations, contributing $1.3 billion of investment income. Overall, we are very pleased with our performance this quarter as we continue to pursue profitable growth and progress toward our 95% combined ratio goal at the end of 2025."
Root Builds on First Profitable Year With Reversal of Q1 Loss to Start 2025
Root Inc. reported first quarter net income of $18.2 million to build off results of 2024—its first profitable year
The net profit for the first three months of 2025 is compared to a net loss of $6.2 million for Q1 2024 and a loss of nearly $41 million in Q1 2023.
The Columbus, Ohio-based parent company of Root Insurance said it grew Q1 gross premiums written 24% year-over-year to about $411 million while maintaining underwriting discipline. The quarter’s combined ratio was 95.6 compared to 102 a year ago.
“While the macroeconomic environment has become more uncertain over the past several months, it nevertheless provides another opportunity to showcase our technological prowess,” said Alex Timm, co-founder and CEO of the insurtech, in a letter to shareholders. “Our technology and data science capabilities enable us to quickly react to prevailing trends and enhance segmentation to continually offer the best prices to the best drivers.”
Timm said personal auto insurance is “essentially a compulsory product for anyone who drives an automobile,” therefore the business is “defensively positioned to withstand times of macro turbulence.”
Kemper Corporation - Kemper Reports First Quarter 2025 Operating Results
Kemper Corporation (NYSE: KMPR) reported net income of $99.7 million, or $1.54 per diluted share, for the first quarter of 2025, compared to net income of $71.3 million, or $1.10 per diluted share, for the first quarter of 2024.
Adjusted Consolidated Net Operating Income1 was $106.4 million, or $1.65 per diluted share, for the first quarter of 2025, compared to Adjusted Consolidated Net Operating Income1 of $69.7 million, or $1.07 per diluted share, for the first quarter of 2024.
Key themes of the quarter include:
- Delivered another quarter of strong operating and financial results; trailing 12-month operating cash flow increased to $520 million
- Generated a 14% ROE and a 21% Adjusted ROE1 for the quarter
- Specialty P&C achieved 24% premium growth and 14% PIF growth YoY; 92% underlying combined ratio1 for the quarter
- Life business continued to generate strong return on capital and distributable cash flows; operating income of $17 million for the quarter
- Parent liquidity remains strong at approximately $1 billion; debt-to-capital ratio2 improved to 22.9%, provides greater financial flexibility
“Kemper delivered another quarter of very strong financial results, led by continued robust profitable growth in our Specialty Auto business, which saw a very strong 92% underlying combined ratio, 14% year-over-year policy growth, and 24% written premium growth,” said President and CEO Joseph P. Lacher, Jr. “We improved our capital and liquidity position, significantly reducing our debt-to-capital ratio and producing operating cash flows approaching all-time highs. We’ve invested significant effort over the past few years in building a stronger, more resilient company—positioning us well to navigate the current market uncertainty. We remain confident in our continued ability to create long-term shareholder value.”
Porch swings to surprise profit after latest business remodel — stock soars 68% – GeekWire
Porch Group’s stock shot up nearly 68% on Wednesday, a day after the company reported a surprise profit and raised its outlook for the year — a sign that the latest overhaul of its business is starting to show results for the Seattle-based provider of home services software and insurance products.
The key was strong performance in Porch’s insurance-related operations, following a shift away from directly selling policies, earning fees by managing them instead.
“I’ve never been more excited to report on quarterly earnings as I am here for Q1 2025,” said Matt Ehrlichman, the company’s CEO, on the company’s conference call Tuesday.
In January, Porch sold its insurance carrier (Homeowners of America) to a new member-owned reciprocal exchange, which it now manages for fees and commissions rather than owning directly. The change was designed to generate more stable, high-margin revenue without the financial risks from storms and other costly disasters.
Ehrlichman, who founded Porch in 2012 as a home services marketplace, said the quarter “marks a special time for the company,” moving away from covering costly weather-related claims while still benefiting from the steady growth of the homeowners insurance market.
Porch posted a profit of $8 million in the first quarter, compared with a loss of $24.4 million a year earlier. Revenue totaled $84.5 million, with gross profit of $69.1 million and an 82% gross margin.
AI in Insurance
Berkshire Hathaway takes wait and see approach before committing to AI revolution | Insurance Business Asia
Despite insurance chief saying it could be big, softly softly is the approach
As the corporate world races to embed artificial intelligence into everything from underwriting to logistics, Berkshire Hathaway is opting for caution. The venerable conglomerate, known for its measured investment style, has made no sweeping commitment to AI despite acknowledging its potential to transform core industries such as insurance.
Ajit Jain, Berkshire’s long-serving insurance chief, conceded this week that AI could be a “real game changer” in assessing and pricing risk, particularly in how insurers evaluate claims. Yet Jain was equally firm that Berkshire’s instinct is to remain on the sidelines until the opportunity becomes unmistakably clear.
“We are not very good in terms of being the fastest or the first mover,” Jain said, adding that Berkshire prefers to “wait and see until the opportunity crystallises.” His remarks suggest that the conglomerate, which is currently navigating profit pressure and a major leadership transition, is unlikely to make large-scale AI bets any time soon.
InsurTech/M&A/Finance💰/Collaboration
Q1 Has Lowest Insurance Agency M&A in 5 Years; Mega Deals Coming?
The first three months of 2025 were the slowest quarter for insurance agency mergers and acquisitions since the second quarter 2020, according to investment banking and financial consulting firm OPTIS Partners.
The total number of insurance agency mergers and acquisitions during the first quarter 2025 was down 15% compared to the same period in 2024. OPTIS Partners’ M&A database counted 141 announced insurance agency mergers and acquisitions in Q1, down from 166 reported a year ago.
People
Lloyd's announces Patrick Tiernan as new CEO
Lloyd’s of London has announced that Patrick Tiernan (pictured) will take over as chief executive officer (CEO) from June 1, 2025, following a formal appointment by the Council of Lloyd’s.
Tiernan currently serves as Lloyd’s chief of markets, a role he has held since joining the organization in May 2021. In this position, he has overseen underwriting, claims, exposure management, international regulation, market oversight, distribution, and the Lloyd’s Global Network. His remit has also included the Lloyd’s Lab, Lloyd’s Academy, and the organization’s global agents.
With nearly three decades in the insurance sector, Tiernan has previously held senior roles at Aviva, including managing director of commercial lines & global corporate & specialty and chief financial officer of Aviva Insurance Limited.
His earlier career included executive roles at StarStone Insurance as chief operating officer and at Zurich, where he served as CEO of Centrally Managed Businesses. He is a chartered accountant and a fellow of the ICAEW, with a degree in business & law from University College Dublin.
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