August 2007/4

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.

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.

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.

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.

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.

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.