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Best’s Market Segment Report: Japan Non-Life Insurers Focus on Profitability

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HONG KONG–(BUSINESS WIRE)–Japan’s non-life insurers are facing pressure to rebuild catastrophe
reserves amid rising reinsurance costs that follow a catastrophe
loss-heavy year in 2018, according to a new AM Best market segment
report.

Last year marked a record for natural disasters in Japan as a series of
events resulted in significant insured losses, the costliest being
Typhoon Jebi. In the new Best’s Market Segment Report, titled,
“Japan Non-Life Insurers Focus on Profitability,” AM Best states that
because of the disasters, Japan’s non-life carriers released a sizeable
portion of their catastrophe reserves. The amount of catastrophe
reserves released by Japan’s three non-life insurance giants—Tokio
Marine & Nichido Fire Insurance Co. Ltd., MS&AD Insurance Group
Holdings, Inc., and Sompo Japan Nipponkoa Insurance Inc.— in the third
quarter of fiscal-year 2018 (October-December) totaled approximately
JPY340 billion (USD3.07 billion). These reserve releases represented a
13% net reduction of the insurers’ overall catastrophe reserves balance.
The vast majority of these reserve releases came from the fire and
allied line, and as a result, catastrophe reserves for this line
declined by nearly 40%.

Those total catastrophe reserve releases were comparable in scale to the
amounts released in fiscal-years 2011 and 2012, attributable
predominantly to the Tohoku earthquake, the costliest earthquake-related
insured loss in Japan’s history.

The report also states that some insurers’ lower wind/flood catastrophe
excess-of-loss layers were exhausted after typhoons Jebi and Trami in
2018. As a result, insurers needed to pay the reinstatement premium for
restoring the layer limit after the first loss event. Some also needed
to purchase back-up reinsurance cover after Typhoon Trami to reinforce
their lower-layer protection and cover any additional losses from
potential winter snowstorms. These extra reinsurance costs were
instrumental in a slight deterioration in the underwriting results of
Japan’s non-life insurers in 2018, after the release of catastrophe loss
reserves.

“In the wake of the 2018 catastrophe losses, this year’s 1 April renewal
season reflected some relatively steep price hikes, particularly in
catastrophe excess-of-loss covers for Japanese wind exposures,” said
Christie Lee, director of analytics. “Although specific rate increments
varied among insurers, depending on the level of loss, their reinsurance
portfolios, and their relationships with reinsurers, Japan’s domestic
non-life insurance companies generally faced higher reinsurance costs.”

Overall, AM Best views the capitalization of Japan’s major non-life
insurers as robust and resilient to underwriting or economic challenges.
AM Best expects Japan’s domestic insurance companies to remain focused
on operating profitability over the medium term — underpinned by primary
rate hikes in catastrophe loss-impacted lines of business, a stable book
of voluntary automobile insurance and robust investment returns. Due to
these factors, AM Best’s market segment outlook of Japan’s non-life
insurance industry remains stable. Over the last few years, Japan’s
major non-life players have embarked on global expansion at an
accelerated pace, seeking risk diversification. With regard to a change
in companies’ risk profiles, AM Best views adopting a holistic approach
to capital and catastrophe risk management remains crucial for the major
Japan non-life insurersin the event of unforeseen catastrophe losses or
amid challenging post-event market conditions.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=285676.

AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
www.ambest.com
for more information
.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

Contacts

Christie Lee
Director, Analytics
+852 2827
3413

christie.lee@ambest.com

Jason Shum
Associate Director, Analytics
+852
2827 3424

jason.shum@ambest.com

Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644

james.peavy@ambest.com

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Business Wire

RiskFirst and Insight Partner to Provide Improved Investment Fund Modelling and Analytics to the UK DB Pensions Industry

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Insight will provide direct access to data for its LDI pooled funds
and credit buy-and-maintain funds through RiskFirst’s market-leading
risk management platform PFaroe.

LONDON–(BUSINESS WIRE)–Insight
Investment
, one of the world’s largest global asset management
companies, and financial technology company, RiskFirst, are joining
forces to significantly improve ease of fund modelling for the UK
defined benefit (DB) pensions market. Insight will upload data and
characteristics of its LDI pooled funds and its buy-and-maintain funds
into RiskFirst’s PFaroe modelling system, making them available for use
across RiskFirst’s UK client base of consultants and pension plans.

RiskFirst’s clients will be able to easily incorporate Insight
Investment funds – in which they may already invest or are considering
investing – in a broad range of analyses, delivering detailed
information to their fingertips and removing the need for funds to be
set up individually. At the same time, Insight will be able to provide
accurately modelled fund data directly to multiple existing and
prospective clients, reducing duplicate uploading to separate client
systems.

Simon Robinson, Head of Product Management, RiskFirst, says: “We are
pleased that the power and potential of PFaroe as an innovative and
collaborative industry platform continues to grow. By working with
Insight, we are transforming the way in which our clients can view and
analyse funds, creating a central point of access that improves
transparency, convenience and efficiency – thereby delivering
significant added value to their businesses and investment strategies.”

Joanna Howley, Head of Pooled Solutions, Insight Investment, comments:
“Providing detailed risk and cashflow data on a range of investment
funds used by mutual clients for risk hedging and cashflow management
through PFaroe allows clients to more easily check they have the optimal
investments to suit their needs. We see this creating an efficient,
effective framework for fund accessibility, modelling and analysis.”

– END –

About Insight Investment

Insight is a leading asset manager currently managing over £600bn of
assets1 on behalf of leading pension funds, sovereign wealth
funds, corporations and insurers. A key focus for Insight over the past
15 years has been to help deliver outcome-oriented investment products
to clients helping them to manage unrewarded risks such as interest
rate, inflation and increasingly cashflow risks.

Insight’s range of pooled LDI funds can be used to manage both the
inflation and interest rate risks which impact the funding level of
pension schemes. Its innovative maturing buy-and-maintain funds are used
by investors seeking to invest in credit in a manner designed to mature
to meet pre-specified cash requirements. The range of LDI and maturing
buy-and-maintain funds can be structured in a customised fashion to
reflect each client’s individual risk profile and cash requirements.

1 As at 31 March 2019. Assets under management (AUM) are
represented by the value of cash securities and other economic exposure
managed for clients. Reflects the AUM of Insight, the corporate brand
for certain companies operated by Insight Investment Management Limited
(IIML). Insight includes, among others, Insight Investment Management
(Global) Limited (IIMG), Insight Investment International Limited (IIIL)
and Insight North America LLC (INA), each of which provides asset
management services.

About RiskFirst

RiskFirst is a financial technology company providing modern
technology solutions to Asset Owners, Consultants, Insurers and Asset
Managers to help grow and improve their business. Its core product
PFaroe® is web-based, available anytime and anywhere, and allows users
to evaluate risk from multiple perspectives and perform real-time
scenario stress testing. Initially targeted to defined benefit pension
plans, it is now the market leader in the UK and the US. Over 3,000
plans with more than $1.4tn in assets are now modelled on the PFaroe
platform. RiskFirst has also recently launched a global fixed income
attribution solution, which recognises the differing objectives,
timeframes and opportunity set of each user.

For more information please go to www.riskfirst.com

Contacts

Anna Sharrock, London
+44 7811 758964

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Business Wire

Hunting H-2 Perforating System Sets Wireline Pump Down Record

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Packs higher charge performance in a shorter footprint than any
other perforating system

HOUSTON–(BUSINESS WIRE)–Hunting Energy Services, a subsidiary of Hunting PLC, the international
energy services company, today announced its H-2 Perforating SystemTM
has set a record for number of multiple-shot perforating guns pumped
down into a horizontal well on wireline.

In a recent Delaware Basin field trial with a major U.S. land operator,
the H-2 Perforating System was utilized to successfully run
45 perforating guns, each with three shots on a single plane, in
conjunction with a plug in a single run.

On previous wells before H-2 became available, the operator had to make
two separate runs to complete a stage with 45 guns due to length
restrictions. As the shortest perforating gun on the market
(7.5-inches), the H-2 system allows more than double the number of guns
per run compared to conventional perforating systems. The patent pending
H-2 Perforating System is available in 3⅛-in. outer diameter and capable
of shooting three shots on a single-plane in 4½-in. or 5½ -in. casing.

The field trials were successful with over 200 H-2 perforating guns run
on multiple wells. Stimulation performance resulting from conventional
perforating gun runs were compared to that of H-2 perforating gun runs
on the same wells. In all cases, running H-2 with EQUAfrac® consistent
hole shaped charges on the same plane resulted in equal fluid
distribution through more entry holes per stage. This method reduced the
required stimulation treatment pressure compared to stages utilizing
conventional perforating systems. Reduction in treatment pressure ranged
from 600 to 1500 psi lower when stimulating H-2 stages, providing
significant savings to the operator.

Not only is the H-2 system the shortest perforating system on the
market, it is also a completely plug and play system utilizing the H-2
charge puck and ControlFire® cartridge technology,
eliminating arming subs, wire connections, and detonating cord. This
state-of-the-art technology provides the most efficient gun loading,
arming, and assembly processes whether in the facility or in the field.

For more information, visit www.huntingplc.com.

About Hunting

Hunting PLC is an international energy services provider to the world’s
leading upstream oil and gas companies. Established in 1874, it is a
premium-listed public company traded on the London Stock Exchange. The
Company maintains a corporate office in Houston and is headquartered
in London. As well as the United Kingdom, the Company has operations
in Canada, China, Indonesia, Kenya, Mexico, Netherlands, Norway, Saudi
Arabia, Singapore, South Africa, United Arab Emirates and the United
States of America.

Contacts

John Feuerstein, Hunting, 281-442-7382, john.feuerstein@hunting-intl.com

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Business Wire

E-Commerce Explosion Will Generate US$5 Billion in Warehouse Management System Market Revenue and 57,000 New Warehouses Globally By 2025

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LONDON–(BUSINESS WIRE)–#Supplychain–By 2025, The global Warehouse Management System (WMS) market will be
worth US$5 billion, growing at a CAGR of 13.9%, finds global tech market
advisory firm, ABI Research. Over the same forecast period,
57,000 more warehouses will be in operation than in 2018. The continued
growth of the e-commerce market and rising customer expectations are
putting enormous pressure on warehouses to execute more rapid and
flexible deliveries. This is driving investment in warehouse facilities,
automation technologies, and warehouse management systems to coordinate
and optimize operations.

“The warehouse is becoming the engine room of the supply chain and is,
therefore, a focal point for investment from retailers, manufacturers,
and logistics service providers,” says Nick Finill, Principal Analyst at
ABI Research. “As the warehouse technology ecosystem becomes
increasingly complex, supply chain operators require more sophisticated
management systems that can orchestrate the high volume and variety of
intelligent, connected devices and systems within their facilities, as
well as the flow of inventory.”

As the e-commerce boom grows in and extends beyond the established
economies of China, Japan, and Korea, the Asia-Pacific will experience
the highest growth of warehouse facilities and WMS revenue, becoming the
largest market for the software by 2023. The rapid adoption of WMS is
also expected in the emerging economies of the Middle East, Africa, and
Latin America. Europe and North America will experience strong growth as
supply chain operators increase spending on upgraded software systems.

WMS spending will also vary according to industry verticals. The retail,
food and beverage, and manufacturing sectors will be responsible for the
highest growth rate as they catch up with more mature verticals, such as
logistics service providers.

AI-driven Innovation from WMS market leaders such as JDA Software, High
Jump, and Manhattan Associates is enabling substantial flexibility and
functionality in WMS and Warehouse Execution Systems (WES), an
increasingly important orchestration layer linking high-level management
with connected machines. At the device and machine level, greater
automation is creating demand for more sophisticated Warehouse Control
Systems (WCS) from major automated material handling solution providers
such as Bastian Solutions, Dematic, and Honeywell Intelligrated.

“The increasing velocity of goods through the supply chain is driving
demand for real-time decision making and optimization,” says Finill. “As
the margin for error in the warehouse decreases, AI and ML-enabled WMS
solutions are becoming imperative for warehouses that rely on speed,
efficiency, and intelligence to remain competitive.”

These findings are from ABI Research’s Intelligent
Supply Chain
market data report, This report is part of the
company’s Intelligent
Supply Chain
service, which includes research, data, and analyst
insights. Market
Data
 spreadsheets are composed of deep data, market share analysis,
and highly segmented, service-specific forecasts to provide detailed
insight where opportunities lie.

About ABI Research

ABI Research provides strategic guidance to visionaries, delivering
actionable intelligence on the transformative technologies that are
dramatically reshaping industries, economies, and workforces across the
world. ABI Research’s global team of analysts publish groundbreaking
studies often years ahead of other technology advisory firms, empowering
our clients to stay ahead of their markets and their competitors.

For more information about ABI Research’s services, contact us at
+1.516.624.2500 in the Americas, +44.203.326.0140 in Europe,
+65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.

Contacts

Global
Deborah Petrara
Tel: +1.516.624.2558
pr@abiresearch.com

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