June 2025

The surety market is maturing quickly and growth is likely to continue, according to Aon’s 2025 Global Construction Insurance and Surety Market report. Countries like Australia and Korea have well-established surety markets, and the use of surety as a guarantee solution is expected to grow significantly in other parts of Asia, particularly in China and India, fuelled by economic expansion and accelerating infrastructure development, the report said. The infrastructure investment need in the region is expected to be $1.7tn annually up until 2030. In the near term, India is anticipated to experience robust demand for surety products, driven by recent regulatory developments. The report also said the energy and banking sectors exhibit a strong growth outlook, but growth may be slower in the residential sector. The energy sector is seeing encouraging developments in export-related guarantees, alongside growing interest from banks exploring surety as a viable alternative to traditional forms of guarantees. However, following a challenging period of claims in the residential sector across parts of APAC, the overall risk outlook for 2025 remains cautious, especially concerning construction-related guarantees in markets such as Australia, Hong Kong and Singapore, the report said. While pricing has remained stable across Asia, rates have risen in Australia. Looking ahead to 2025, pricing will continue to be shaped by supply and demand dynamics on a case-by-case basis, with investment-grade entities expected to see the most favourable terms. https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/91990/Type/eDaily/Surety-capacity-expected-to-be-stable-in-Australia-and-increase-in-Asia

HOUSTON, June 17, 2025 (GLOBE NEWSWIRE) — W&T Offshore, Inc. (NYSE: WTI) (“W&T” or the “Company”) today announced that it has come to a settlement agreement with two of its largest surety providers which calls for the dismissal of a previously filed lawsuit. The settlement agreement requires the surety providers to withdraw their current collateral demands, and further provides that the surety providers may not make additional collateral demands or increase premiums through December 31, 2026. Key highlights for the settlement agreement include: Tracy W. Krohn, W&T’s Chairman and Chief Executive Officer stated, “We are pleased with the agreement that we have reached with two of our largest surety providers, and we believe that the objectives achieved in this outcome illustrate the strength of the legal position that W&T has aggressively advanced since the beginning of these unnecessary surety lawsuits. This outcome is very positive for W&T overall, as we will not acquiesce to unjustified collateral demands made by the applicable sureties and we have locked in our historical premium rates through the end of 2026. We believe the entry into these settlement agreements vindicates our resolve to stand up to surety providers’ unjustified demands on independent oil and gas operators, such as W&T. For the past 40 plus years, W&T has reliably plugged and abandoned assets, paid its negotiated premiums and operated responsibly in the Gulf of America. We demand fairness and transparency for all oil and natural gas producers in the Gulf of America and will continue to pursue the pending litigation against our other surety providers that have unlawfully colluded and decided to not deal fairly with W&T and other independent oil and gas producers.” “This agreement, coupled with the promising developments in the regulatory environment driven by the White House’s directives, alleviates some of the uncertainty that has unnecessarily and artificially suppressed our stock price and we expect that this will allow us to deliver more value to our shareholders. Since the start of the year, we have strengthened our balance sheet, and we have a solid cash position with sufficient liquidity to enable us to continue to evaluate growth opportunities, both organically and inorganically. Operationally and financially, our start to 2025 has been strong, and we expect production to continue to increase thus driving more value creation. We are well-positioned to succeed and believe that the future is bright for W&T.” https://finance.yahoo.com/news/w-t-announces-settlement-agreement-104500880.html

Trade risk cover rises amid economic and geopolitical shifts The International Credit Insurance & Surety Association (ICISA) has reported growth in insured exposures and a decrease in claims activity for 2024, marking a year of operational resilience across trade credit insurance and surety markets. The findings coincide with new data from Gallagher and Aon that highlight how companies globally are redefining their risk frameworks following years of disruption. The combined data sets suggest a notable convergence between insurer performance and the changing demands of corporate risk management. Credit and surety lines post positive trends ICISA’s annual review indicated that its members wrote EUR 8 billion in surety premiums – up 7.4% from the previous year – while insured surety exposure grew 9.3% to EUR 1.5 trillion. Claims in this line declined by 12.6% to EUR 1.7 billion, suggesting that project risks were better mitigated across the board. In the trade credit space, exposure increased to EUR 3.5 trillion, reflecting a 7.5% rise. Premiums for the line, however, dipped slightly by 0.6% to EUR 9 billion. Claims paid fell by a modest 0.8% to EUR 3.39 billion. Richard Wulff, ICISA executive director, said member companies have adapted well to shifting market conditions. “These results reflect more than just market performance – they represent the willingness of our members to support the economy, even when there are clouds on the horizon. The strategic agility of our members enable the indispensable role our industry plays in enabling trade, investment, and development globally,” he said. Corporates adjust risk planning post-disruption Parallel to ICISA’s findings, Gallagher’s “Five Years of Business Risk Evolution” report revealed that many firms have restructured their approach to risk. In a global survey of 1,200 executives, nearly two-thirds said they view today’s landscape as more volatile than in previous years. Changes include diversifying revenue streams, increasing domestic sourcing, and expanding supplier networks. A growing number of companies also reported treating workforce-related issues – such as staffing, wellness, and engagement – as core operational risks. Gallagher’s Neil Hodgson said the private sector is shifting away from assuming disruptions are rare. Intersections in climate risk, digital threats, and risk financing Climate-related exposures continue to grow, especially in regions such as North America, where Gallagher identified a rise in losses tied to non-modelled perils like wildfires and hailstorms. Although ICISA’s claim reductions suggest limited impact thus far, its members are likely monitoring these risks closely as part of broader portfolio management. Cybersecurity, artificial intelligence, and automation were also noted as key risk drivers in both corporate surveys. Aon’s “Client Trends 2025” report emphasised the growing interconnection between technology, climate, labour markets, and international trade, calling for more integrated risk analytics and management strategies. Insurance seen as strategic lever in corporate risk portfolios In response to this shifting risk profile, more than half of surveyed businesses increased their insurance coverage since 2020. Many also introduced new policy types and added risk-specific personnel roles – changes that align with ICISA’s observed increase in insured exposure and lower claims across its segments. https://www.insurancebusinessmag.com/asia/news/sme/credit-insurance-group-grows-as-global-demand-strengthens-538801.aspx