August 2007/4

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.

The brutal uncertainty in the equity markets, together with the menacing presence of Hurricane Dean, is a reminder of the capricious nature of the (re)insurance business.

Cayman Islands reinsurance vehicle, Greenlight Capital Re, said it had second quarter earnings of $21.3mn – a three hundred percent increase on its inaugural second quarter last year.

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.

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.

This year’s first North Atlantic hurricane, Dean, has struck Jamaica causing up to $3bn in insured losses according to early estimates, and is now heading for Mexico.

Slivers of optimism have appeared within the (re)insurance industry despite last week’s brutal stock market conditions which saw the S&P 500 Property/Casualty insurers index fall 10 percent in just two days as sub-prime jitters...

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.

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.

Caribbean-based financial services group, Guardian Holdings Ltd (GHL) is to combine its two European motor insurance companies to create a single Gibraltar-based insurer and brand.

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