December 2007/5

Catlin's $225mn Newton Re cat bond has attracted new investors to the sector from outside the traditional investor base - a testament to the growing attractiveness of insurance linked securities (ILS) to the capital markets.

The sub-prime woes of XL Capital Ltd deepened as its shares fell almost 7 percent yesterday to a 52-week low of $49.23 on the New York Stock Exchange after ratings agency Moody's Investor Service placed the Bermudian (re)insurer's ratings on review for po

Insurance linked securities (ILS) pioneer and prolific cat bond issuer Swiss Re is expected to return to the capital markets shortly with $660mn of notes in two new cat bond transactions.

Michael Cherkasky, the president and chief executive of Marsh & McLennan Companies Inc (MMC), has been axed by the firm following continuing criticisms of the group's performance.

Lloyd's is planning to enter the Brazilian reinsurance market as an admitted carrier following the country's approval of plans to scrap its collateral requirements for higher rated reinsurers.

Natural disasters cost $61bn in economic damages in 2007, approximately $25bn of which was insured losses, according to research by reinsurance giant Swiss Re.

The UK's restrictive tax regime as well as proximity to the US market are key reasons for Lloyd's (re)insurer Hardy Underwriting Group's decision to redomicile to Bermuda, the company explained.

The US House of Representatives has voted to extend the Terrorism Risk Insurance Act (TRIA) for seven years, bowing to Senate lawmakers who passed a similar programme in November.

Global law firm Mayer Brown LLP is to merge with the Asian law firm, Johnson Stokes & Master (JSM).