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Iran conflict looms large in specialty insurers’ quarterly reports - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Iran conflict looms large in specialty insurers’ quarterly reports by Richard Sine Catastrophes , Financial Results , P/C Insurers , Political Risk Middle East/Africa AIG , Beazley , Everest Group , Hiscox Aug 10, 2026 The Iran war was widely mentioned in second-quarter earnings reports for insurers with large specialty portfolios, with several reporting increased catastrophe losses for the period, in contrast with results from other commercial insurers who saw cat losses plummet. Losses were most often noted by insurers with relatively large marine, war and political violence books. Other insurers were less affected during a strong quarter marked by low natural catastrophe losses. Ratings agencies say the war could harm the industry more broadly if it continues or intensifies, though some insurers say it is already driving higher prices and more opportunities. American International Group disclosed $75 million in net catastrophe losses related to “the Middle East conflict” in the second quarter, driving up the combined ratio in its international commercial segment. However, overall general insurance underwriting income rose 10% year-over-year. AIG President and CEO Eric Andresen said on an earnings call Friday that political violence coverage pricing increased 9% in the quarter due to higher demand. Specialty insurer Beazley’s combined ratio in its marine, accident and political risks segment rose to 103% on losses in its marine war and political violence lines, though written premium growth in the segment grew 6.1%. Beazley’s first-half profit plunged 53%, with softening in cyber risk rates also playing a role. CEO Adrian Cox cited “rapidly softening conditions in the specialty insurance market” and “a background of increasing global turbulence” leading to “a return to an active large loss environment.” Arch Capital Group, an underwriter of political violence, terrorism and marine war risks in the London market, reported profits down nearly 15% year-over-year. Chief financial officer François Morin said the majority of catastrophe losses “come from Iran,” citing damage claims from large refineries. Everest Group reported lower second-quarter profit last week, with net catastrophe losses driven primarily by the war with Iran and mid-sized weather events, executives said. CEO Jim Williamson said Everest was an “active underwriter” in the Middle East and that higher rates for political violence and marine coverage created “a potential opportunity.” Hiscox reserved an estimated net loss of $60 million “in relation to the conflict in the Middle East,” with $20 million reserved in its reinsurance arm and $40 million from “lines such as war, terror and political violence, marine war and kidnap and ransom.” Chief executive Aki Hussain cited a “market estimate” of $3 billion to $4 billion in losses from the war. International General Insurance, based in Amman, Jordan, reported net war losses of nearly $14 million for the quarter, the main reason for a 39% profit decline. Executive chairman Wasef Jabsheh called it “likely among the largest net loss events in IGI’s history” but also said the insurer grew its political violence book by about 45% in the first half. Hamilton Insurance Group reported $45.7 million in catastrophe losses due to the conflict and cited it as the primary driver of a deterioration in its combined ratio from 86.8% to 95% year-over-year. On July 27, ratings agency A.M. Best maintained its “stable” outlook on the insurance market in the six Gulf Arab states, known as the Gulf Cooperation Council. “Strong performance and healthy risk-adjusted capitalization leave many GCC insurers well positioned to withstand geopolitical headwinds, though the impact of an extended conflict in the region could pose significant challenges,” A.M. Best said. Risks of an extended conflict to the wider insurance industry include higher inflation raising the cost of claims and an economic downturn, which could dampen spending on discretionary insurance, the ratings agency said. 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