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).

US insurer HCC Insurance Holdings Inc saw its first half profits drop to $173.4mn, compared to $197.9mn in the prior-year period, as the credit crunch took its toll.

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

UK independent broker Heath Lambert has reported "steady and consistent progress" in half-year 2008 performance, despite the sale of its wholesale/reinsurance units over the period.

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.

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.

CNA Insurance Co and American Reliable are suing Willis for $275mn and $251mn respectively over allegations relating to their placement of toxic Personal Accident spiral and workers' compensation business in 1996-1998.

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.

As the remainder of the (re)insurance industry's second quarter results trickle through in the coming weeks, a clear distinction is emerging between winners and losers in the sector against the backdrop of a soft market and the deepening credit crunch.

Aon Re Global has announced the appointment of former Guy Carpenter MD and deputy head of its international department Christer Pehrson as executive director.

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.

A strong underwriting performance propelled "Class of 2005" Bermudian reinsurer Flagstone Reinsurance Holdings Limited to net income of $74.8mn for the first half of the year.