August 2014/4

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

Investor confidence in Tower Group crumbled further last week after the firm's share price slid by 6.22 percent.

Legacy and services specialist Compre has completed its acquisition of Hamburger Internationale (HIR) from troubled insurance services provider Tawa, the company confirmed on 20 August.

Tokio Marine has become the latest major Japanese insurer to put a book of run-off business up for sale, The Insurance Insider has learned.

Australian insurance giant QBE is facing a shareholder class action investigation over allegations that it misled the market ahead of a profit warning issued on 9 December 2013, the company confirmed last week (19 August).

The Insurance Insider's Data Room finds that while all the global reinsurers agree on the competitive pricing conditions, they are adopting different approaches to navigating the soft market

Operating returns for Bermudian carriers rose during the second quarter of 2014 after another relatively benign period for catastrophe losses.

The listed Lloyd's carriers again delivered a sub-90 percent combined ratio in the first half of 2014 and broadly resisted exhibiting signs of the underlying deterioration in underwriting performance that some had feared.

The listed Lloyd's (re)insurers again delivered top-line growth in the first half as additional writing more than offset accelerating rate cuts.

Despite a maelstrom of negative commentary on the rating environment, the listed Lloyd’s carriers bested their 2013 performances in the first half of this year as improved investment returns helped to offset widening combined ratios.

Ailing US insurer Tower Group fell to an equity deficit last week after the company was forced to once again strengthen its reserves in Q2.

AmTrust shares vacillated last week after an investigative report suggested that a 16 percent block of its stock held in non-profit foundations could be forcibly sold to comply with US tax rules.

Willis has estimated that a fire and explosion at an Argentinian tank farm this year has cost the downstream energy industry $180mn in physical damage (PD) alone.

Global broker Willis has questioned whether conditions in the rapidly softening downstream energy market are really as bad as some underwriters wished to suggest, noting that the market looked to have made money ever since Hurricane Ike in 2008.

Allied World will more than double its share of business in Asia with the purchase of RSA's Hong Kong and Singapore operations.

UK-headquartered insurance group RSA has earmarked further disposals over the coming 12 to 18 months as part of an ongoing bid to restore its stretched balance sheet and simplify operations.

Lloyd's has said that it is "minded" to approve a business plan for AmTrust's AG Doré Syndicate 2526 to continue operating in 2015, as reported by The Insurance Insider last week.

Randall & Quilter (R&Q)'s share price closed down 5 percent today (26 August) after it posted a loss for the first six months of the year, but founder Ken Randall was upbeat about the company's prospects for the second half of the year and beyond.

As QBE lines up its North American and two of its Australian agencies for sale, questions are being asked about whether the company will be able to secure sufficient considerations for the units to avoid write-downs of goodwill.

Struggling global insurer QBE has purchased a comprehensive reinsurance deal for $390mn to remove the reserving risk from its Italian and Spanish medical malpractice books, the carrier said in its interim results.

Portuguese talks; Price is right; Gallagher Pens; Quindell reports; Mitsui Sumitomo affirmed at A+; Swiss Re appoints; Bender promoted; Ecclesiastical sees the light; eAccounts volume doubles ; Talanx Brazil; Beazley beefs up; HIIG hires; Bring me my Speer; Arizona floods $10mn

Celebrated UK investment manager Neil Woodford has upped his stake in Lancashire Holdings to 5.51 percent.

Catastrophe modelling firm Eqecat has estimated that the Californian earthquake that struck near the iconic Napa Valley wine-producing region on 24 August may cost (re)insurers between $500mn and $1bn.

Sompo's international specialty arm Canopius intends to transfer the business from Syndicate 260 into one of its other syndicates, placing the dedicated motor insurer into run-off, The Insurance Insider has learned.