August 2007/2

The current crisis in the money markets has led to insurers cancelling planned debt issues, The Insurance Insider can reveal.

Insured losses from Hurricane Dean will be in a range of $0.75-1.5bn, substantially less than first feared due to the storm’s “extraordinarily fortunate track”, according to modelling firm Risk Management Solutions (RMS).

French reinsurer SCOR Group has revealed a 55 percent increase in its gross written premium during the first half of this year, primarily driven by its acquisition of the life reinsurer Revios.

Shares in Hiscox Ltd increased over 5 percent this morning after the company was propelled to a record half-year profit before tax of £105.6mn, up 72.1 percent, by the stellar performance of its Global Markets division.

The European Commission (EC) is set to launch a probe into the role of rating agencies over their response to the US sub-prime mortgage crisis, according to reports.

“Class of 2005” start-up Flagstone Reinsurance Holdings Ltd unveiled a second sidecar as it reported Q2 profits hit by $31mn losses from the UK floods in June and $23.5mn from the Australian storm and flooding.

Lloyd’s investment vehicle Hampden Underwriting plc (HUP) is planning an August float on the London Stock Exchange’s Alternative Investment Market (AIM) in a bid to raise £15mn.

Newly-listed Bermudian (re)insurer Validus Holdings’ reported strong inaugural results as a public company yesterday.

Despite initially falling 10 percent in early trading, shares in Jardine Lloyd Thompson Group plc have recovered from a low of 362.25 to 408p at time of going to press, as markets responded to credible numbers...

Marsh & McLennan Companies Inc (MMC) shares continued to slide as its broking division reported second quarter revenue growth that lagged behind rivals Aon Corp and Willis Group Holdings.

Unlike its peers, CNA Financial Corporation shares were hit by disappointing second quarter results that included net investment losses of $91mn, with $20mn attributable to securities "with exposure to subprime mortgage collateral".

With Lloyd's results season due to kick off in earnest over the next six weeks, the market's listed (re)insurers prepare to report in unforgiving conditions as shares continue to suffer from widespread uncertainty driven by the US sub-prime crisis.