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Satya Nadella and Microsoft CTO Kevin Scott were instrumental to reinstating Sam Altman atop OpenAI, which a source says was the ideal outcome for Microsoft

—  Microsoft Chief Executive Satya Nadella made a huge bet on the world’s hottest AI company.  After it nearly blew up on him, he now emerges with closer ties to its leader, Sam Altman.

 

Satya Nadella couldn’t help himself.

Microsoft’s MSFT -0.11%decrease; red down pointing triangle. Its chief executive was supposed to be singularly focused on saving his prized asset during one of the most chaotic weekends in the history of Silicon Valley. Instead his mind kept drifting to cricket.

 

He couldn’t pay close attention to his native India playing Australia in the Cricket World Cup because he found himself in the middle of another game with more action and a whole lot more at stake. Still, in the midst of frantic negotiating and disaster planning, Nadella kept checking the score and reporting updates about his favorite sport to less fanatical colleagues. His team was in trouble, but there was still hope for his company.

The nuttiest weekend in his nearly 10 years on the job started last Friday, when Nadella learned just minutes before the rest of the world that OpenAI’s board had just ousted Sam Altman, its co-founder and CEO. The company behind ChatGPT had been seeking a valuation at $90 billion. Rarely has one board decision threatened to destroy so much value in so little time.

 

Despite the fact that Microsoft had paid billions for a 49% stake in OpenAI, using its technology to power a new generation of software that it promised could revolutionize work, the startup’s biggest investor didn’t have a board seat. Nadella found out at more or less the same time as everyone else that his investment—one that almost single-handedly catapulted Microsoft to the forefront of the artificial-intelligence revolution—had suddenly gone wrong.

But when the board turned on Altman, Altman immediately turned to Nadella. Hours after the boardroom coup last Friday, they were on the phone, discussing how to restore Altman to OpenAI—or join Microsoft. If Altman wasn’t hired back to his place atop OpenAI, the former CEO of the glitziest AI company would become an employee of Microsoft.

By the end of the frenetic weekend, Altman had agreed to start a new AI divisionat the tech giant, so he could keep working with Nadella and take advantage of Microsoft’s access to computing power. Soon it became clear that hundreds of researchers were ready to join Altman at a corporation as sexy as soup. Microsoft prepared to give those engineers everything they needed to continue their work: a floor in LinkedIn’s offices, plentiful cloud-computing resources, Apple  laptops. The trillion-dollar company’s employees assured their potential colleagues that they wouldn’t even have to use Microsoft’s workplace-communications app Teams.

 

 

Read more here:

Satya Nadella and Microsoft CTO Kevin Scott were instrumental to reinstating Sam Altman atop OpenAI, which a source says was the ideal outcome for Microsoft

 

 

 

Techmeme, Wall Street Journal

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AM Best affirms Credit Ratings of Farmers New World Life Insurance Company and Farmers Reinsurance Company

OLDWICK, N.J. — (BUSINESS WIRE) — #insuranceAM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” (Excellent) of Farmers New World Life Insurance Company (FNWL) (Bellevue, WA).

 

At the same time, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Farmers Reinsurance Company (Farmers Re) (Woodland Hills, CA). The outlook of these Credit Ratings (ratings) is stable.

The ratings of FNWL reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings also recognize the continued strategic value that FNWL provides to its ultimate parent, Zurich Insurance Group Ltd.

 

FNWL’s ratings are supported by its risk-adjusted capitalization being maintained at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR), a history of positive operating earnings, and material contributions to the overall group from new business value and operating profits. The company’s previously announced reinsurance agreement with Resolution Life Group Holdings Ltd. will allow a strategy shift going forward, enabling it to focus on a simplified product portfolio that is easier to sell and has shorter cycle times.

 

The ratings of Farmers Re reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM. The ratings also reflect the company’s strategic importance to Zurich Insurance Group Ltd.

 

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

 

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

 

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Thomas Keelan
Financial Analyst
+1 908 882 1925
thomas.keelan@ambest.com

Edin Imsirovic
Director
+1 908 882 1903
edin.imsirovic@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

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New fad for beauty deals on Black Friday: Sitewide sales!

Black Friday is here and the beauty deals are rolling in.

 

Sitewide sales seems to be the new fad this holiday season: Kosas, Paula’s Choice and Glossier are all at least 20% off while bigger retailers such as Sephora and Ulta have deals on everything from Olaplex hair products to Dr. Dennis Gross peel patches.

 

Read more here:

https://variety.com/2023/shopping/news/best-black-friday-cyber-monday-beauty-deals-1235442297/

 

 

Variety

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Business Culture Digital - AI & Apps Healthcare Lifestyle Perks Science Special/Sponsored Content

Paula’s Choice’s entire website is 20 percent off for Black Friday

Paula’s Choice, the home to the top dermatologist-recommended exfoliants, is having a huge sale on their site for Black Friday and Cyber Monday.

 

The cult favorite brand is already ultra-affordable compared to most luxe skincare brands but loyalists claim that their products are just as good (if not better) than bold-faced brands with heftier price tags.

 

Right now, their entire website is currently 20% off. This means if you stock up on all your skincare essentials now, you can get their best-selling Gel Exfoliant for only $27 and Reconditioning Moisturizer for $9.60 — a total steal.

 

The Seattle-based skincare brand is loved by dermatologists for a reason. They pride themselves on being cruelty-free and fragrance-free, avoiding popular non-natural ingredients such as Dioxane, Essential Oils, Formeldahyde, Nanoparticles and Phthalates.

 

In addition to clean ingredients, Paula’s Choice also never tests on animals at any stage in development and use recyclable packaging to reduce their carbon footprint.

 

Plus, their stuff actually works. As a firsthand user of Paula’s Choice myself, I can say my skin complely changed after integrating their products into my skincare routine. Clogged pores, dry skin, white heads — I struggle with it all less since using their Pore Normalizing Cleanser every night.

 

Check out Paula’s Choice entire sale here, and the best products below. If you’re looking for more beauty steals, look through our roundup of the best Black Friday beauty deals here.

 

GEL EXFOLIANT

Courtesy of Paula’ Choice

 

 

This leave-on gel exfoliant removes layers of dull skin, shrinking clogged pores and diminishing wrinkles in the process.

RECONDITIONING MOISTURIZER

Courtesy of Paula’s Choice

 

Add instant moisture to your skin with this overnight sheer moisturizer, powered by superfoods such as flaxseed, wild cherry and arugula.

PORE NORMALIZING CLEANSER

Courtesy of Paula’s Choice

 

 

This gentle, acne-fighting cleanser removes excess oil, clears up clogged pores and removes makeup without drying the skin.

 

 

Variety

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Culture Entertainment News Lifestyle

EbonyLife’s Mo Abudu makes directorial debut with short films about Nigerian women and mental health

Nigerian producer Mo Abudu, CEO of EbonyLife Media, has been helping to share the stories of African people through film and television for years — but never one written by her own hand. Until now, that is.

 

Abudu has made her screenwriting and directorial debut with the release of two short films honing in on mental health issues in Nigeria: “Her Perfect Life” and “Iyawo Mi” “(My Wife).” Her films have recently toured the festival circuit with stops at the Martha’s Vineyard African American Film Festival, the HollyShorts Film Festival, the Rhode Island Film Festival and the Short Film Corner at the Cannes Film Festival.

 

“These two stories are dealing with very, very sensitive issues in Nigerian society when it comes to mental health challenges,” Abudu tells Variety.

 

“And this is a topic that we continue to underplay. And there’s so much stigmatization attached to it within our society — not just Nigeria alone, but even around the world.”

 

While “Her Perfect Life” tells the story of an affluent wife and mother suffering in silence underneath a flawless façade, “My Wife” follows a husband from an impoverished neighborhood desperately seeking help for his wife as she experiences unexpected hallucinations. When they don’t receive the support they need, serious ramifications ensue for both female protagonists of Abudu’s films.

 

By conventional societal measure, “Her Perfect Life” protagonist Onajita has everything: a loving husband and children, a successful career, and a beautiful house meticulously maintained by a dedicated staff. She routinely shares photos reflecting this on her social media; in her private moments, however, she grapples with agonizing emotions and contemplates suicide.

 

Abudu shares what she hopes people take away from the film, emphasizing the importance of empathy and communication.

 

“When someone says, ‘Am I OK?’  — are they really OK? Are we checking on them to make sure they’re really okay?”

 

Abudu also discusses how “Her Perfect Life” and “My Wife” highlight mental health struggles across disparate socioeconomic backgrounds in Nigeria.

 

“What I did set out to do was to tell two different stories about women in my society that are dealing with mental health challenges,” she says.

 

“There’s no discrimination against color, there’s no discrimination against religion, or gender, or how much money is in your pocket at the end of the day. This can affect anyone from any part of our society.”

 

In “My Wife,” Kunle’s wife Eniola is suddenly experiencing a serious and volatile mental health episode, believing that her family is trying to kill her. Kunle first takes her to a hospital, where an ill-equipped doctor exhibits inapprioate conduct. He then turns to the church, which calls for Eniola to be taken to the ocean to be rid of evil spirits. Eniola ultimately never receives adequate professional help.

 

Abudu says she hopes the film speaks to the importance of building out societal infrastructure to provide mental health resources.

 

“We need to make sure that there are support systems,” she says.

 

“We need to stop being in denial…Because I think some people still feel very strongly that [mental illness] isn’t real. But it is real.”

 

Following festival screenings of her shorts, Abudu has high hopes for “Her Perfect Life” and “My Wife” getting some attention from Oscar voters in the narrative short feature film race for the upcoming Academy Awards. Abudu is also eager to return to the director’s chair in the future — and she’s caught the writing bug. No matter the topic she’s exploring or the role she’s in, Abudu plans to continue to champion storytelling from Africa.

 

“As a continent we’ve been so silent,” she says.

 

“It’s really important to start looking at stories in that space. That’s what’s exciting for me. It’s about bringing it home and showing that Africa isn’t left behind. We are part of this global world. And our stories are just as important as any story from anywhere else.”

 

(Pictured top: “Her Perfect Life).”

 

 

Variety

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Business Culture Economics Lifestyle Local News Programs & Events

Hughes asks the people to support local small businesses, and check out Mercer’s new Small Business Investment Program

With its highly skilled workforce, renowned educational institutions, and high quality of life, Mercer County ranks as one of the most attractive locations to call home and to open a business.

From the retail industry to the service sector, Mercer County offers customers a large variety of quality products and services.

“As a backbone to our regional economy, there are approximately 4,500 independently owned and operated businesses in Mercer County and on this Saturday, Small Business Saturday, it is important that we consider buying from these local stores and shops,” said Mercer County Executive Brian M. Hughes.

“Mercer County local businesses invest their dollars back into the economy. They purchase inventory and services from throughout the region and employ local residents. In addition, our Mercer County Office of Economic Development is proud to draw attention to the Mercer County Small Business Investment Program in partnership with SMBX,” Mr. Hughes added.

Through this partnership, eligible small businesses in Mercer County can apply to issue Small Business Bonds™ to their community. A bond is like a loan, but instead of borrowing money from a bank, you borrow money from everyday investors, like customers, friends and family.

SMBX supports small businesses from all industries across the US and have raised millions of dollars for restaurants, breweries, accountants, trucking companies, event planners, and others.

To learn more about the program, click here, and don’t forget to shop small this holiday season!

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Six New Jersey businesses recognized for ‘challenging the status quo’ in the Garden State

Awards Reception Was Hosted by the African American Chamber of N.J. and the N.J. Chamber of Commerce

 

 

TRENTON, N.J. – Six New Jersey businesses that are leading the way in demonstrating tangible and measurable progress in DE&I (diversity, equity and inclusion) were recognized Nov. 20 at the second annual DE&I Trailblazer Awards reception, co-hosted by the African American Chamber Commerce of New Jersey and the New Jersey Chamber of Commerce.

 

“These are the companies and organizations that don’t just support DE&I, they are setting measurable equity and inclusion goals and meeting them,” said John E. Harmon Sr., IOM, founder, president & CEO of the African American Chamber of Commerce of New Jersey.

 

“They are making a difference. We applaud these trailblazers and encourage their counterparts in the business community to work toward similar measurable goals.”

 

“We are honoring the companies that are walking the walk,” added Tom Bracken, president and CEO of the New Jersey Chamber of Commerce. “We are recognizing and celebrating the DE&I champions who are meeting the challenge and challenging the status quo.”

 

The DE&I Trailblazer Awards at the Olde Mill Inn in Basking Ridge revealed honorees that have excelled in these key areas: access to capital; board diversity; corporate citizenship; supplier diversity; and workforce diversity. Also presented was an Emerging DE&I Influencer award that recognizes a business that is in the beginning phases of implementing a promising DE&I program.

 

The Awardees

The DE&I Trailblazer Award in the ‘Corporate Citizenship’ category went to Johnson & Johnson. Between matching employee donations and cash grants, Johnson & Johnson gave more than $12 million in each of the last three years to organizations in New Jersey – with $4.1 million in 2022 going to nonprofit organizations that address DE&I.

 

The DE&I Trailblazer Award in the ‘Access to Capital’ category went to Santander US. Santander offers a free executive leadership training program designed to help small- and medium-sized business owners in under-resourced communities. With a focus on minority-, women-, veteran-, and immigrant-owned businesses, the program helps small business entrepreneurs gain access to executive education, networking opportunities, and debt and equity capital. From 2005 through 2019, the program’s 3,836 alumni companies have averaged 126% growth in revenue, created 22,707 jobs, and raised $2.3 billion in capital.

 

The DE&I Trailblazer Award in the ‘Supplier Diversity’ category went to Hackensack Meridian Health. HMH created an Executive Diversity Council co-chaired by the CEO and the chief diversity officer, who reports directly to the CEO. And it established a supplier diversity-driven goal tied to executive compensation. The result? It increased its annual supplier diversity spend by 32% in 2023 – to $69.3 million. HMH has also created a supplier diversity showcase to ensure small and diverse businesses have equal access to opportunities. As a result of these and many other efforts, HMH was recently ranked first by Diversity, Inc. magazine in its 2023 Top Hospitals and Health Care Systems list.

 

The DE&I Trailblazer Award in the ‘Board Diversity’ category went to Modivcare. The social services company’s board of directors boasts a diverse composition of 10 members, including an African-American member, an Asian-Indian member, two female members, and one director whose gender is non-identified. The awardee’s DE&I success is striking in another way. Their executive leadership team includes an African-American male, who serves as the president of mobility; a white female who serves as chief compliance officer; and a female who is president of its personal care services division.

 

The DE&I Trailblazer Award in the ‘Workforce Diversity’ category went to Phillips 66 – Bayway. In 2022, 36% of Phillips 66 – Bayway’s global hires were women, and 42% of its U.S. hires were from underrepresented groups. Additionally, the company supports academic training grants and education opportunities for young women and minorities working in the fields of STEM – science, technology, engineering and math. Its work has paid off. For two consecutive years, it has earned a perfect score of 100 on the Human Rights Campaign Foundation’s Corporate Equality Index based on nondiscrimination policies, equitable benefits for LGBTQ+ employees and their families, supporting an inclusive culture, and corporate social policy.

 

The DE&I Trailblazer Award in the ‘Emerging DE&I Influencer’ category went to New Jersey Institute of Technology. A year ago, NJIT hired its inaugural chief diversity officer, Dr. David E. Jones. And under Dr. Jones’ leadership, it launched the Office of Inclusive Excellence. In the fall of 2023, Dr. Jones was recognized as a 2023 Champion of Diversity by DiversityGlobal Magazine. This fall, in NJIT’s first-year class, underrepresented minorities made up a record 50% of the class, and the enrollment of women – at 30% – was at an all-time high. The number of first-year students identifying as Black has nearly tripled since 2013 – and Hispanic first-year enrollment has reached over 30% for the second year in a row.

Honoring Companies that are ‘Walking the Walk’

The Nominees

For the past two months, the two chambers have accrued an impressive list of nominees that represent a wide range of business sizes and industries. All of them have inspiring and uplifting stories to demonstrate how they moved diversity, equity and inclusion to the forefront of their business strategies.

 

The nominees considered were:

AmeriHealth

Bank of America

Bridge Builders Newark, LLC

CannPowerment

The Ceceilyn Miller Institute for Leadership & Diversity

Chiesa Shahinian & Giantomasi P.C.

Cole Schotz

Delta Dental of New Jersey

Gibbons P.C.

Hackensack Meridian Health

Johnson & Johnson

Lockerbie & Co.

Modivcare

New Jersey Institute of Technology

Phillips 66-Bayway Refinery

PSEG

Santander US

Somerset County Business Partnership

Tené Nícole Creative Agency

UnitedHealth Group

We Are Jersey

 

About the African American Chamber of Commerce of N.J.

The African American Chamber of Commerce of New Jersey (AACCNJ) performs an essential role in the economic viability of New Jersey. While providing a platform for New Jersey’s African American business leaders, to speak with a collective voice, the AACCNJ advocates and promotes economic diversity fostering a climate of business growth through major initiatives centering on education and public policy. The Chamber serves as a proactive advocacy group with a 501(c) 3 tax exemption, which is shared by the National Black Chamber of Commerce

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James May says ‘Top Gear’ needs a ‘rethink’ after BBC puts show on pause — but don’t expect him to ‘come back and rescue it’

After the BBC revealed that “Top Gear” won’t be returning “for the foreseeable future,” former presenter James May has said that the series needs “a bit of a rethink.”

 

In an interview on the BBC’s “Today” podcast, May — who hosted “Top Gear” alongside Jeremy Clarkson and Richard Hammond for over a decade — said that the show must be revamped whenever it does return.

 

“My honest view is — I can say this now — it does need a bit of a rethink,” May told the BBC. “It’s time for a new format and a new approach to the subject because the subject has not been this interesting, I suspect, since the car has been invented.”

On Tuesday, the BBC announced that “Top Gear” had officially been put on pause following a halt in production after presenter Andrew “Freddie” Flintoff was injured in an on-set accident in December. Flintoff had been a presenter on “Top Gear” since 2019, alongside Paddy McGuinness and Chris Harris.

 

“I’ve only met Freddie once or twice but it’s obviously more serious than we all thought,” May said of Flintoff’s accident.

 

In 2015, May and Hammond left the series after Clarkson was fired for punching a producer, and the trio went on to host a new automotive series, “The Grand Tour,” on Amazon Prime Video. However, May had a few words for fans who have been asking him to “come back and rescue” the show following Tuesday’s news.

 

“It did annoy me a bit because there were a lot of people saying, ‘They’ve done that wrong and now you can come back and rescue it,’” May said, adding of Flintoff: “The bloke’s hurt himself very badly in a life-changing way, obviously. And you could perhaps not use it as an opportunity to be partisan. You could perhaps just say, ‘Rotten bit of luck, hope you get well soon.’”

 

May’s full interview on the BBC’s “Today” podcast will be released on Thursday.

 

 

 

Variety

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Exploring the timeless allure of French Luxury Designer Bags

A woman’s choice of handbag communicates volumes about her. It’s an embodiment of her style, a reflection of her character, and proof of her exquisite taste.

 

In the fashion world, high-end designer bags occupy a distinctive and influential position. Beyond mere functionality, these remarkable creations serve as utilitarian accessories and masterpieces capable of elevating any outfit. Explore the allure of luxury designer bags, focusing on how French Luxury Designer Bags empower you to articulate your unique expression.

 

Unparalleled craftsmanship in every aspect

French luxury designer handbags are, without a doubt, the pinnacle of excellence in terms of quality. Bags of this calibre need the time and effort of master craftspeople, who use only the highest quality materials and their years of experience to create something exceptional. Every cut, sew, and accent displays the designer’s uncompromising dedication to excellence. Your premium handbag will become more than just a fashionable addition thanks to the meticulous attention to detail that went into making it.

 

This focus on quality is something that Longchamp has always stood for. Their team of talented craftsmen flawlessly integrates age-old traditions with modern innovation, resulting in women’s bags that easily mix aesthetic appeal with practical functionality. Their bags are a tribute to the creativity inherent in the skill of handbag production, from the careful selection of high-quality leather to the precise attention to detail in every stitch and adornment.

 

Timeless elegance

French luxury designer bags have a timeless appeal that makes them a popular accessory. Their enduring allure stands the test of time and never goes out of style. An expertly designed designer handbag is the perfect accessory, whether you’re dressed in the season’s hottest looks or a basic staple. The French brand Longchamp is known for its luxurious and classic bags. Their designs are always a perfect compromise between modern and traditional, so you know your new purse will always be on trend.

 

What makes a Longchamp handbag so desirable

When you buy a Longchamp bag, you’re not only acquiring a fashionable accessory; you’re also becoming part of a rich history. The allure of Longchamp bags may be summed up as follows:

 

Elegance that transcends time

While fads come and go, you can always count on the timeless elegance of a Longchamp bag. Whether you select the crossbody bag, the lasting Tote bag, or the modern Basket bag, each design is made to overcome the volatile nature of trends, assuring that your investment will keep its charm for many years.

 

A touch of personalization

In the age of mass manufacturing, Longchamp stands out by adding personalised touches to its products. You can customise each bag to your liking by picking the leather, the hardware, and hot-stamped initials. This transforms every bag into a genuinely unique masterpiece.

 

Conclusion

Are you prepared to create a fashion statement that reflects your refined taste and tastefulness? Step into the world of Longchamp. Longchamp bags embody the perfect balance between timelessness, originality, and practicality. To carry a Longchamp is to have a heritage that was started by a visionary and kept alive by the skilful hands of dedicated craftsmen. With details like the signature monogram and a dedication to sustainable luxury, carrying a Longchamp bag is a ticket to the exceptional.

 

 

The post Exploring the Timeless Allure of French Luxury Designer Bags appeared first on Our Culture.

 

 

Our Culture

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AM Best removes from under review with negative implications and affirms credit ratings of Clear Blue Insurance Group members

OLDWICK, N.J. — (BUSINESS WIRE) — #insuranceAM Best has removed from under review with negative implications and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of the members of Clear Blue Insurance Group (Clear Blue) (Guaynabo, Puerto Rico).

 

The outlook assigned to these Credit Ratings (ratings) is stable. See below for a detailed listing of members and ratings.

The ratings of Clear Blue reflect the group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

 

Clear Blue’s ratings were placed under review with negative implications on July 25, 2023, as a result of the uncertainty surrounding Clear Blue’s ability to rely on certain letters of credit, posted to back reinsurance placed by Clear Blue with certain reinsurers in Vesttoo-related transactions. Of particular concern was the potential balance sheet implications, in addition to the execution and timing risk associated with replacing capacity or letters of credit.

 

Over the past few months, Clear Blue has successfully moved active programs to either new reinsurers or reinsurers on its existing panels took higher percentages. All of these contracts have been signed and are fully collateralized. All “run-off” programs which remain in place are collateralized by funds held in cash from written premium. However, additional collateral on these programs above the funds held has not been replaced.

 

Clear Blue did take a $33 million temporary reduction in surplus in its second quarter 2023 filings due to the commission strain on unearned premiums. However, the impact decreased to $16.36 million in third quarter 2023 filings and is expected to gradually decline over the next few quarters before disappearing by mid-2024. In addition to the temporary implications, the lack of replacement collateral on the “run-off” programs resulted in a $10.7 million write down of recoverables that resulted in an underwriting loss of the same amount in third quarter 2023. The lack of replacement collateral also exposes Clear Blue to adverse development on these run-off programs.

 

To solidify its balance sheet, Clear Blue was recently infused with $25 million, $15 million of which was funded by a line of credit at the holding company and an additional $10 million funded by an equity infusion from Pine Brook. Given these capital initiatives, Clear Blue’s ability to replace capacity on active programs and the relatively modest financial losses, AM Best continues to assess the company’s balance sheet strength level as very strong.

 

From an ERM perspective, AM Best notes it has become evident through documents associated with Vesttoo’s bankruptcy filing that fraud was at the heart of this episode. In response to this fraud, Clear Blue has implemented more rigorous procedures around securing, documenting and confirming letters of credit. AM Best believes these actions to be appropriate.

 

The performance of the retained run-off programs remains uncertain and could potentially impact Clear Blue financially and operationally. The stable outlook that has been assigned reflects AM Best’s view that the actions taken by Clear Blue should continue to mitigate the potential negative impacts. However, if this view were to change, AM Best may need to take negative rating action.

 

The FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) have been removed from under review with negative implications with a stable outlook assigned for the following property/casualty subsidiaries of Clear Blue:

  • Clear Blue Insurance Company
  • Clear Blue Specialty Insurance Company
  • Highlander Specialty Insurance Company
  • Rock Ridge Insurance Company

 

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

 

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

 

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Gordon McLean
Senior Financial Analyst
+1 908 882 2109
gordon.mclean@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310

christopher.sharkey@ambest.com

Gregory Williams
Senior Director
+1 908 882 2434
greg.williams@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com