December 2011/1

Swiss Re CEO Stefan Lippe will take early retirement in 2012 as the reinsurer starts the search for his successor, the company announced today (12 December).

Global reinsurance broker Aon Benfield is being sued by a cedant company over a loyalty fee that was alledgedly withheld after the insurer switched its account to Guy Carpenter

The Tokio Marine-led programmes of Mitsubishi and Nikon are expected to incur heavy losses running into hundreds of millions of dollars from the Thai floods, The Insurance Insider understands

International reinsurers are facing losses of up to $2bn on three surplus treaties purchased by Tokio Marine's Thai joint venture

Following the Thai flooding, attention has so far focused on reinsurance losses from the Japanese big three and regional (re)insurers, but global insurers' international cat programmes are also expected to take losses.

Up to 75 percent of losses from the Thai flooding are likely to end up with the reinsurance and retrocession markets.

The withdrawal of CCR - one of Thailand's market-leading reinsurers - will almost inevitably be followed by other carriers as the region faces up to the "unmodelled" scale of its loss exposures and amid predictions that not all carriers will survive unless recapitalised

The developing Thai flood loss has proved "the straw that broke the camel's back" for the retro market, signalling a hardening environment and a 1 January renewal that will match the reinsurance market for its difficulty and lateness

Figures put together by The Insurance Insider from official industry forecasts and market sources suggest that total insured losses from catastrophic events with expected losses of $100mn or more total $94bn

The experience of continental reinsurers Hannover Re and Scor in 2011 highlights the value of retro as a product, but also the challenge of renewing cover in a tighter post-loss market

Only four out of 19 US reinsurers escaped an underwriting loss in the first nine months of 2011, as combined ratios were battered in a period dominated by the frequency and severity of catastrophe losses

Despite the lack of firm orders, the 5-15 percent price increases broadly agreed to have been present at midyear are likely to be matched at 1 January

Aon Benfield's contrarian stance on US cat rates may have been rewarded in the form of a flurry of US account wins

Despite a first-quarter sale being targeted, the auction process for Flagstone syndicates 1861 and 1969 is unlikely to come to life until the New Year, The Insurance Insider understands

Despite the prospect of a late renewal described as the most difficult since 2006, reinsurers so far appear to have learned lessons from the market dislocation that occurred in the aftermath of Katrina

US P&C insurer Tower Group and Bahrain-based carrier Arig have made "preliminary expressions of interest" about acquiring flood-struck Lloyd's (re)insurer Hardy, The Insurance Insider can reveal

Reinsurers are actively quoting aggregate covers for clients looking to protect against a recurrence of the frequency losses that have dominated 2011, but it remains to be seen whether the gap on pricing expectations will be bridged

There is little realistic prospect of a deal being concluded between Omega and Haverford chairman Mark Byrne to buy a 25 percent stake in the Lloyd's (re)insurer.

American Family Mutual stands to pick up a $200mn payout from the cat bond market after its second Mariah Re bond was put on its way to being declared a total loss

Brit Insurance is improving the appeal of its up-for-sale UK business Brit Insurance Ltd (BIL) to potential buyers by looking at adverse development-type cover to protect against under-reserving.

Defunct Swiss reinsurer Glacier Re has further extended the maturity date on its loss-struck Nelson Re Class G notes, as the debate over covered losses from 2008's Hurricane Ike continues

New Lloyd's chairman John Nelson reached out to brokers last month saying they would be at the heart of the market's growth in the future.

Its been a tough few years for the direct and facultative (D&F) market, as heavy cat and industrial losses have combined with soft primary and treaty rates to make the product less compelling for cedants.

An estimated 6-10 cat bonds are expected to be pitched to capital markets investors this month as the ILS sector ramps up for what is predicted to be a busy 2012