April 2015/3

Axis remains "fully committed" to a combination with PartnerRe that will deliver "superior and sustainable value to all shareholders", despite yesterday's (14 April) rival bid from Exor

Share price data on The Insurance Insider's universe of P&C (re)insurers

P&C stock performance improved last week as The Insider 30 traded up by 1.65 percent on average.

Insurance CIOs struggling to find capital-efficient returns for their portfolios are being approached about a tool that could provide hedge fund-like returns at a fraction of the cost.

Ongoing cost cutting in the mining and metals industry is leading to progressively lower insurable values and greater competition among insurers as the sector softens, according to Willis.

International and North American onshore liability rates could fall in 2015 as renewal pricing remains under pressure, Willis has said.

Unprecedented levels of capacity have driven average downstream energy rates to their lowest levels in 22 years, Willis said in its Natural Resources Market Review.

Capacity in the upstream energy market has risen by 75 percent over the last five years, according to a Willis report that warned that such oversupply could leave carriers in a "sink or swim" situation in 2015.

While the outlook for commercial insurance stocks may be gloomy amid forecasts of deteriorating returns on equity, homeowners' business continues to offer potential for carriers to drive margin improvements, according to Bernstein analysts.

Commercial P&C stocks are trading at a premium to book value that is "unwarranted" based on an outlook for deteriorating returns on equity (RoEs), according to JP Morgan's Sarah DeWitt.

With the P&C sector in the grip of M&A fever, the upcoming first quarter earnings season might appear to some to have been relegated to little more than a sideshow.

PartnerRe should consider paying a $7.50 a share special dividend to its existing shareholders at the close of the proposed merger with Axis, said BMO Capital Markets analyst Charles Sebaski.

Lloyd's pre-tax profits remained flat in 2014 as lighter cat losses, continued reserve releases and better investment returns kept its profitability above the £3bn mark.

Lloyd's came under top-line pressure last year as gross premiums written by the market dipped by 1.3 percent to £25.3bn.

Lloyd's delivered a strong set of 2014 results with another sub-90 percent underwriting performance, however growing industry pressures began to take their toll on the market's individual syndicates.

Lane Financial's rate-on-line index for the insurance-linked securities (ILS) market stabilised in the first quarter of 2015, ticking up 1 percent from a value of 86 to 87, Trading Risk reported last week.

The residual insurance pools for the states of Texas and Massachusetts have both returned to the cat bond market with new transactions ahead of the 2015 hurricane season, sister publication Trading Risk reported last week.

Former AJ Gallagher and Oval executive Peter Blanc is set to return to the market through a management buy-in of a small retail broker, bankrolled by a private equity partner.

A change to the US Jobs Act that makes it easier for small companies to raise capital will increase exposure for directors' and officers' (D&O) underwriters.

Tony Ursano, chief executive of Willis Capital Markets & Advisory (WCMA), is leaving the big three broker, The Insurance Insider revealed earlier today (13 April).

Leading London market energy underwriter Kelan Hunt is set to join Lloyd's specialty (re)insurer Chaucer as head of energy, The Insurance Insider revealed earlier today (13 April).

Lloyd's insurer ProSight Specialty Underwriters Limited is seeking a rebate from the UK tax authorities (HMRC) over supplies provided for Syndicate 1110 that were standard rated.

New start-up syndicates are struggling to write sufficient premium to keep pace with their planned stamp capacities, as market conditions continue to worsen.

Sportscover's Syndicate 3334, which was acquired by Hamilton last year, has reported a £10.7mn loss for 2014 in a severe deterioration on the previous year.

Liberty Syndicates 4472 reported underwriting profit of £49mn for 2014 as reduced premium volume and increased costs masked an improved underlying loss ratio.

AmTrust's Syndicate 1206 posted an underwriting loss of £32mn for last year following a further deterioration in the carrier's liability book for 2013 and prior years.

QBE dramatically scaled back the amount of business it wrote at Lloyd's in 2014, with gross written premiums down by £347mn ($507mn) compared to the previous year.

Lloyd's carriers are writing at close to a "zero profit margin" on non-catastrophe business and "hoping for the best", according to two executives at respected Lloyd's independent MAP.

Majority owner White Mountains has been approaching companies about acquiring its stake in listed US specialty insurer OneBeacon, although there is scepticism in banking circles that it will find a bidder that meets its price expectations.

The Insurance Regulatory and Development Authority (Irda) of India has released draft regulation detailing the approval process for foreign reinsurers looking to open a branch office in the country.

Insurers must be prepared to let go of old business models in order to tackle emerging risks and remain relevant, according to Mike McGavick, chairman of the Geneva Association and CEO of XL Group.

Dual opens Netherland's office; Barbican Lloyd's legacy; Hiscox CFO departs; Lloyd's set to write Shariah risk; Faraday merges platforms; Argo drops quota share; Ironshore's energy increase; St Bernard results; Moore Stephens merger; Cunningham Lindsey appoints; Low hurricane activity forecast; AIG appoints CTO; Ace mis-selling inquiry; Brexit risk; US winter losses; United Q1 cat losses; Niklas costliest cat event

XL's Lloyd's business has signed up for the downstream half of Marsh's follow-form energy facility Project Blue, according to a note in its syndicate accounts.

Philip Turner, head of specie at Marsh, has resigned to join Sompo's international specialty arm Canopius, The Insurance Insider can reveal.

The major heist at a Hatton Garden safe deposit facility over the Easter weekend is likely to result in an insurance loss of less than £50mn, despite the £200mn figure bandied about by mainstream media in the wake of the raid, The Insurance Insider understands.

Lloyd's managing agent Marketform has hired a seven-strong M&A insurance team from Ironshore-owned Pembroke, The Insurance Insider can reveal.