August 2008/2

Fortis Insurance UK saw half-year pre-tax profits more than double in a performance it attributed to a focus on profitable underwriting and cost control.

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.

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).

The acquisition of Lloyd's insurer Talbot is continuing to drive increased profits at "Class of 2005" Bermudian reinsurer Validus Reinsurance Ltd.

Worldwide industrial and natural catastrophe losses helped dent Bermudian (re)insurer Allied World Assurance Company Holdings, Ltd (AWAC), which saw net income drop in the first half of 2008 to $210.2mn, against $237.2mn in the prior-year period.

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.

Bermudian Argo Group International Holdings posted a first-half profit of $59.9mn for 2008 - a 30 percent increase despite being hit by storm losses.

Beazley's underwriting team is set to suffer its second senior staff loss of the summer with the forthcoming departure of commercial property underwriter Alastair Blades to join US insurer W R Berkley.

Berkshire Hathaway saw net profits fall by around $1.9bn for the first six months of 2008 after reporting a $952mn loss on financial derivatives for the period and lower underwriting profits.

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

A disgruntled investor has threatened to assert his appraisal rights in court following the announcement that New York-headquartered Tower Group is to buy CastlePoint Holdings, the Bermudian reinsurer it established in 2006 for $490mn.

Every analyst is entitled to at least one blooper - so the UBS trio Andrew Kligerman, Julie On and Brian Meredith deserve a degree of sympathy after their upbeat assessment of American International Group's prospects on the eve of the insurer's results.