August 2012/3

Major 2012 P&C mergers and acquisitions

Valuations for (re)insurers in The Insurance Insider's P&C universe

Weekly share price movements and key data on The Insurance Insider's universe of P&C (re)insurers and brokers

Two CNA subsidiaries have brought a lawsuit against 16 insurers, including several Lloyd's underwriters as well as industrial firm Hennessy Industries, over asbestos claims dating back to 1981.

Former Dewey & LeBoeuf partners have agreed to contribute over $70mn as part of a settlement agreement at the bankrupt law firm, exceeding the minimum $50mn threshold which bankruptcy advisers needed to submit the proposal to bankruptcy court.

BP has requested a reversal on a judgment ruling that Transocean's $950mn liability insurance programme should not cover BP's costs from the Deepwater Horizon oil spill.

Newly instated QBE head John Neal said the group is currently in discussions with Florida insurance regulators to agree on an acceptable rate decrease for force-placed insurance cover, but said the rate is nowhere near the 36 percent reduction required by the regulator.

Newly launched QBE Re is set to turn its Belgian business Secura NV and Dublin-based unit QBE Re (Europe) into branch offices of a single firm headquartered in the UK, The Insurance Insider can reveal.

Willis has escaped enforcement action from US regulators after investigations into anti-bribery controls at the broking giant that had previously led to a £7mn Financial Services Authority (FSA) fine for Willis' UK subsidiary.

US thunderstorm losses have led ratings agency Moody's to downgrade a $50mn tranche of the Combine Re cat bond by a notch from Ba3 down to B1.

London-listed collateralised retrocessionaire Catco Reinsurance Opportunities Fund has reported a 5.3 percent increase in net asset value to $357.9mn for the first half of the year as investment gains on its 2012 portfolio offset loss creep from 2011 catastrophes.

After two consecutive quarters of relatively benign losses helped capital to recover to record levels, Bermudian (re)insurers have spoken favourably about using share buybacks to take advantage of weak sector valuations.

Having won over investors and regained its crown as the highest valued stock in the London market, (re)insurer Amlin duly delivered on its H1 results with peer-leading profitability.

Airline insurance rates have continued to trend down in 2012 as the industry's unusually benign loss record puts downward pressure on rates, despite exposure increases.

The sale of Flagstone's Lloyd's segment to Matt Fairfield's start-up ANV has completed today (20 August), according to an announcement from the Bermudian reinsurer.

Florida state insurer Citizens Property Insurance has come out fighting to defend the cost of its reinsurance spending after local media criticised the organisation's travel expenses.

Profits at independent London market reinsurance broker Alwen Hough Johnson (AHJ) climbed by 45 percent in 2011, as its bottom line benefited from the first of a series of payments from London peer BMS.

Lloyd's syndicates are continuing to make gains on their "open year" forecast results from the 2010-11 underwriting years that were affected by cat losses, but they won't be sufficient to turn last year into a profit.

QBE, the second largest writer of multi-peril crop insurance (MCPI), has said that it expects its net crop losses from the drought conditions in the US to amount to just $30mn.

Third Point Re is looking to raise third party funds to capitalise an off-balance sheet vehicle to write property cat business, The Insurance Insider can reveal.

QBE's share price plunged by as much as 10 percent in intra-day trading after its half-year results were released last week.

After months of M&A speculation Flagstone has said that it is well set to continue as a standalone business.

Canopius has moved closer to the conclusion of its long-meditated takeover of Lloyd's peer Omega after it secured the final regulatory approval needed for the deal to complete.

A handful of the Lloyd's syndicates with Names capacity are seeking to add a total of £65mn to their combined stamp capacity for 2013, The Insurance Insider can reveal.