Quarterly D&O Claims Trends: Q2 2015 Sponsored by 1 Todays - - PowerPoint PPT Presentation

1

Quarterly D&O Claims Trends: Q2 2015

Sponsored by

2

Today’s Moderator

Jim Blinn EVP & Global Product Manager, Information & Analytics division Advisen Ltd.

3

This webinar is sponsored by the Executive Risk Network Sign up now for a free 30-day trial via http://www.executiverisknetwork.com/free-trial/

4

About Advisen

Advisen generates, integrates, analyses and communicates unbiased, real-time insights for the global community of commercial insurance

• professionals. As a single source solution, Advisen

helps the insurance industry to more productively drive mission-critical decisions about pricing, loss experience, underwriting, marketing, transacting or purchasing commercial insurance. www.advisenltd.com

Are you tweeting?! @Advisen

5

D&O Claims Trends: Q2 2015

www.advisenltd.com

• White Paper
• Copy of these slides
• Recording of today’s webinar
• D&O Loss Insight (Advisen’s MSCAd large loss database)
• Front Page News – Executive Risk Network News Byte:

http://www.advisenltd.com/insurance-news/front-page- news/#execbyte D&O Commercial Insurance Group – 8,029 Members http://www.dandodiary.com

6

Key Findings

• Securities and business litigation filings declined 8 percent compared to

the same quarter a year ago but increased slightly (2 percent) from the previous quarter.

• Year to date, total filings are just 2 percent lower than last year.
• The quarter saw a mix of increases and decreases in the various case

types tracked by Advisen.

• Filing total declines were experienced by derivative shareholder actions,

breach of fiduciary duties: securities, merger objections, and securities individual actions.

• Filing total increases were experienced by capital regulatory actions

and securities class actions.

• Falling 77 percent year-over-year, derivative shareholder actions

experienced the largest decline.

7

Key Findings

• Securities class actions
• Total filings up year-over-year (47 in Q2 2014 vs. 51 in Q2 2015)
• Percentage of total up from 12 percent in Q2 2014 to 14 percent in Q2

2015

• Accounting for 64 percent of the quarter’s total filings, capital regulatory

actions by far remained the leading source of new securities suit filings in the first quarter.

• Merger objection filings continued to trend downward with 44 in Q2 down

from 64 in Q2 2014.

• Financial services remained the top sector for new filings.
• Information Technology supplanted Industrials as the second most active

sector for new filings.

• Both the number of settlements and the average settlement value were

higher year-over-year, but down from the previous quarter.

• Capital regulatory actions had the most settlements but derivative

shareholder actions had the highest average settlement value.

8

Filings and Enforcement Actions

9

Suits by Type

10

Suits by Sector

11

Merger Objection Cases Annualized

12

Non-US Companies

13

Today’s Panelists

Ray Hannan, Jr.

SVP U.S. Underwriting Manager Aspen Insurance

Kevin LaCroix

EVP, RT ProExec, a division of RT Specialty, and author of the D&O Diary

Christian Hoffman

Senior Managing Director Aon

14

Frequency vs. Severity

15

Securities Class Actions Suits

16

Securities Class Actions by Market Cap

17

Average Settlement by Settlement Date

18

Count of IPOs

19

Industry Composition

20

Frequency of Litigation

21

Countries Involved: Alstom Bribery Cases

1 2 3 4 5

Occurrence of Bribery Event Case Filed

Total Alleged Payments to Foreign Officials: US$ 75M Total Business Advantage Allegedly Obtained: US$ 4B

22

Countries Involved: Alstom Bribery Cases

23

Jurisdictions: Alstom Bribery Cases

24

Significant Penalties: Alstom Bribery Cases

US DoJ Ruling

FCPA Violation

Dec 2014

Penalty: $772M Office of the Attorney General

Violation of Swiss Criminal Code

• Art. 102 Sec. 2

Nov 2011

Penalty: $42M

25

Thank you to our Panelists

Ray Hannan, Jr.

SVP U.S. Underwriting Manager Aspen Insurance

Kevin LaCroix

EVP, RT ProExec, a division of RT Specialty, and author of the D&O Diary

Christian Hoffman

Senior Managing Director Aon

26

D&O Claims Trends: Q2 2015

Download the white paper on our website: www.advisenltd.com

27

2015 Private Eye: A Spotlight on the US Private D&O Market

http://www.advisenltd.com/2015/07/15/2015-private-eye-a-spotlight-on-the- us-private-do-market/

• What is the size of the private D&O market in

the US?

• Who are the leading private D&O carriers?
• What are the buying patterns?
• What are the emerging issues that keep

private company directors up at night?

• What does an underwriter look for in a good

D&O risk?

28

Loss Insight StrataScope - D&O for Insurers

D&O StrataScope provides multi-dimensional information for underwriters and actuarial leaders to make informed decisions about underwriting and pricing D&O risk for public companies. D&O StrataScope intersects Advisen’s industry-leading D&O case data with time series company data to provide insight into current historical D&O case data.

http://www.advisenltd.com/analytics/loss-insight/stratascope/public- company-d-o/

29

Featured Conference

Visit http://www.advisenltd.com/events/conferences/ for the conference schedule

• One-day, two track agenda
• Over 30 featured speakers
• Topics cover Executive Risk and

Management Liability Issues for Public Companies as well as Privates and Non-Profits

• Risk Managers & Full-time Buyers of

Insurance attend at no charge.

30

Contact Us

Advisen Ltd. 1430 Broadway 8th Floor New York, NY 10018 www.advisenltd.com Phone: +1.212.897.4800 advisenevents@advisen.com