August 2008/2

Catastrophe modelling firm Risk Management Solutions (RMS) has upgraded its UK Inland Flood Model after last year's heavy floods.

Bermudian Endurance Specialty Holdings is building its presence in UK construction insurance with a team headed by former HDI Gerling UK underwriter Simon Challinor.

Hurricane forecaster Tropical Storm Risk (TSR) has increased its prediction for this year's North Atlantic season and is now expecting 18 tropical storms in 2008.

Hannover Re's operating profit was down 14.4 percent in the first half of 2008 to EUR400mn after being hit by a 24.1 percent fall in investment income in the period as the German reinsurance giant missed analyst targets.

Earnings at expansive Bermudian (re)insurer Max Capital Group more than halved in the first six months of 2008, down to $82mn from $174.1mn in the prior-year period, despite a rise in investment income.

Despite the "extremely competitive market conditions", AXIS Capital's founding chief executive John Charman said the firm's strong second quarter was testament to its underwriting strengths and strategy of diversifying its business relationships.

German insurer Allianz Group's net earnings fell 28 percent to EUR1.5bn in the second quarter of 2008, due mainly to a poor result in its banking arm, Dresdner Bank, which reported a EUR566mn operating loss for the period.

Catlin Group Ltd has posted a good set of results "distorted by poor investment returns that should wash through", according to one analyst.

In an active year-to-date for industrial and energy losses, (re)insurers are bracing themselves for another significant claim after a series of explosions at a Canadian propane gas facility yesterday.

Independent Services Group (ISG) is poised to write homeowners insurance business in Louisiana following the formal completion of the purchase of US insurer in run-off Americas Insurance Company (AIC) from insurance services company Whittington Group.

A forty percent increase in facultative reinsurance revenues for the first half of the year could not prevent overall profits falling at broker Benfield.

XL Capital's $3.375bn capital raise and deal with Security Capital Assurance (SCA) has received a cautious welcome from ratings agencies and investors after closing last week (5 August).