Europe

Unless adequately shielded from extreme weather events, assets designed to help fight climate change may risk access to insurance.

Because of its soil and its status as the world's fastest-warming continent, Europe is particularly exposed. The European Central Bank estimates the region's potential damage from sinking land at more than €2.5 trillion ($2.9 billion) across all euro-area financial institutions.

The companies have held on-and-off discussions in recent months about a potential tie-up, said the people, who asked not to be identified because the information is private.

The primary objective of Solvency II was to create a risk-based regulatory framework.

Starting Jan. 1, every company in Italy must buy insurance to protect its assets from floods, landslides and other natural hazards.

More than 200 people have died and thousands of homes were destroyed in Spain's worst natural disaster since 1962.

Central Europe's insured flood losses will likely be €2 billion ($2.2 billion) to €3 billion, Global reinsurance broker Gallagher Re estimates.

Thunderstorm alerts are in place for a swath of Europe from Poland and Hungary to Italy and Greece.

As climate change worsens, insurance coverage is expected to shrink further as rising premiums choke demand and insurers withdraw from particularly exposed areas, according to statements from the European Central Bank.

Liberty Mutual sells everything from property and casualty to life insurance in Spain and Portugal through agents, banks and affiliates, according to its website.

The US insurer is working with Bank of America Corp. on the possible divestments, which could fetch more than 1 billion euros ($1 billion), according to the people, who asked not to be identified because the discussions are private.

Axa is considering a deal once BPM has taken full ownership of several insurance businesses where it has partners, people said.

Underwriters are charging as much as 10% of the value of a ship’s hull, according to four people involved in the market.

Lessors of planes stuck in Russia since the onset of sanctions have warned insurers of possible claims to come if the jets aren’t returned. Insurers, meanwhile, are canceling some policies, including for war risk, and may challenge claims on coverage still in force, industry participants say.

This was supposed to be the first year Ukraine would send an official delegation of startups to South by Southwest, the annual technology and arts festival in Austin, Texas. The plan was, of course, disrupted by a war at home.

Resolution and Allianz have been working with advisers on a deal that could be announced as early as this week pending regulatory approval, the people said, asking not to be identified because the information is private. The transaction would affect roughly $6 billion in liabilities that would be ceded to Resolution Life, which is run by former GE Insurance executive Clive Cowdery, they said.

Europe’s largest insurer is discussing a potential reinsurance deal for a portfolio with tens of billions of dollars in assets and liabilities, according to the people. It is working with advisers on the possible transaction, the people said, asking not to be identified because the information is private.