December 2010/3

The industry's three largest reinsurance brokers - Aon Benfield, Guy Carpenter and Willis Re - are developing a consortium to provide significantly higher limits of insurance for US deepwater drilling than were previously available.

"Do not talk to me about rules. It was you English who invented them."

Property rates outside Latin America are likely to fall by around 6 percent at 1 January, according to Aon Benfield's quarterly facultative market report.

Although suggestions that the late surge in claims filed with the New Zealand Earthquake Commission (EQC) were driven by a quest for "private reinsurance stimulus" remain unfounded, one thing is clear: the public and private markets for New Zealand quake cover are set for major change.

A raft of reinsurers are set to follow PartnerRe and Aspen Insurance Holdings in significantly increasing loss estimates for September's New Zealand earthquake, after the government pool notified them that its ultimate claim could more than treble.

Bermuda-domiciled catastrophe fund Catco has raised $80mn through an initial public offering (IPO) on the London Stock Exchange (LSE).

Lloyd's analysis of projected profitability in syndicate business plans versus what was actually achieved has thrown up striking evidence of over-optimism in the planning process, an internal report has confirmed.

The following is an update of The Insurance Insider article, published on Tuesday 21 December and incorporates comment from Lonmar.Centrix Insurance Holdings, the management buy-out (MBO) vehicle for London wholesaler SBJ Global Risks, received a £4mn loan from run-off broking subsidiary Old Co (No 103) where the capital was drawn from a fund of unclaimed funds, The Insuranc

The phoney war is ending as the key 1 January renewal date fast approaches - and there is further anecdotal evidence of reinsurers remaining disciplined despite the powerful downward trend on rates.

Despite the pervasive gloom of the soft market, Lloyd's is planning to write more than 30 percent additional energy liability business in 2011 as rates and demand spiral upwards following the catastrophic Deepwater Horizon loss in April.