Quarterly D&O Claims Trends: Q2 2015 Sponsored by 1
Today’s Moderator Jim Blinn EVP & Global Product Manager, Information & Analytics division Advisen Ltd. 2
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/ 3
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 4
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 5
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. 6
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. 7
Filings and Enforcement Actions 8
Suits by Type 9
Suits by Sector 10
Merger Objection Cases Annualized 11
Non-US Companies 12
Today’s Panelists Ray Hannan, Jr. Christian Hoffman Kevin LaCroix SVP Senior Managing Director EVP, RT ProExec, U.S. Underwriting Manager Aon a division of Aspen Insurance RT Specialty, and author of the D&O Diary 13
Frequency vs. Severity 14
Securities Class Actions Suits 15
Securities Class Actions by Market Cap 16
Average Settlement by Settlement Date 17
Count of IPOs 18
Industry Composition 19
Frequency of Litigation 20
Countries Involved: Alstom Bribery Cases Total Alleged Payments to Foreign Officials: US$ 75M Total Business Advantage Allegedly Obtained: US$ 4B 5 Occurrence of Bribery Event Case Filed 4 3 2 1 0 21
Countries Involved: Alstom Bribery Cases 22
Jurisdictions: Alstom Bribery Cases 23
Significant Penalties: Alstom Bribery Cases US DoJ Ruling Office of the FCPA Violation Attorney General Dec 2014 Violation of Swiss Penalty: $772M Criminal Code Art. 102 Sec. 2 Nov 2011 Penalty: $42M 24
Thank you to our Panelists Ray Hannan, Jr. Christian Hoffman Kevin LaCroix SVP Senior Managing Director EVP, RT ProExec, U.S. Underwriting Manager Aon a division of Aspen Insurance RT Specialty, and author of the D&O Diary 25
D&O Claims Trends: Q2 2015 Download the white paper on our website: www.advisenltd.com 26
2015 Private Eye: A Spotlight on the US Private D&O 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? http://www.advisenltd.com/2015/07/15/2015-private-eye-a-spotlight-on-the- us-private-do-market/ 27
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/ 28
Featured Conference • 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. Visit http://www.advisenltd.com/events/conferences/ for the conference schedule 29
Contact Us Advisen Ltd. 1430 Broadway 8 th Floor New York, NY 10018 www.advisenltd.com Phone: +1.212.897.4800 advisenevents@advisen.com 30
Recommend
More recommend
