August 2007/4

Karen Clark, the founder of modeling firm AIR Worldwide, has launched an independent company to act as a consultancy for (re)insurers that use catastrophe models.

Bermudian (re)insurer RenaissanceRe has promoted Larry Richardson to senior vice president of its strategic investments arm, Renaissance Re Ventures.

Montpelier Re has made progress in its new US operation as it diversifies from its roots as a Bermudian monoline reinsurer.

Lloyd’s investment vehicle Hampden Underwriting plc (HUP) is pushing ahead with its £15mn floatation on the London Stock Exchange’s Alternative Investment Market (AIM) and trading is expected to commence on 4 September.

Lloyd’s (re)insurer Kiln plc released full details of its investment portfolio last week, as market uncertainty continued over insurance company’s exposure to sub-prime debt and collateralised debt obligations (CDOs).

Lloyd’s insurer Chaucer Holdings plc has confirmed it will increase its motor portfolio to offset the reduction in capacity in its other classes.

Bermuda-based life reinsurance specialist Scottish Re Group revealed a second quarter profit of $99.5mn, which was boosted by a one-time tax benefit from last year’s loss of $123.9mn in the same period.

First half earnings at insurance giant Zurich Financial Services (ZFS) rose by a third to $2.7bn despite the firm suffering a 3.9 percent deterioration in its combined ratio in the second quarter due to UK flood losses.

Australian insurer QBE Insurance Group saw its share price jump 11 percent to A$30.52 today (20 August) on the back of record interim results and a surge in equity markets following last week’s sell-off.

As Hurricane Dean bears down on the Yucatan Peninsula of Mexico, there are few signs of trading around industry loss warranties (ILWs) and the other hedging strategies typically employed in anticipation of a major hurricane loss.

According to reports last week, the European Commission (EC) is set to investigate the role of rating agencies over their response to the US sub-prime mortgage crisis.

Despite moderate price reductions, the Lloyd’s listed (re)insurer Heritage Underwriting Agency plc’s said rates are “still at very acceptable levels” in its latest syndicate forecasts.