February 2010/4

Aegis scoops Odyssey Re hire for treaty expansion; Validus hires former Swiss Re executive for board

Montpelier Re saw its 2009 combined ratio fall to a mere 62.2 percent - against 91.0 percent in 2008 - on the back of a gentle claims season.

Validus Holdings' net income rose to $897.4mn in 2009, against $53.1mn in 2008, after a $287.1mn gain from its acquisition of IPC.

Flagstone Re turned around 2008 losses to post a net profit of $242mn last year, as it enjoyed strong underwriting and investment returns.

Platinum Underwriters Holdings has added its name to a growing roll call of Bermudian (re)insurers with bumper full-year results, after posting a 77 percent increase in its net income last year.

French insurance giant Axa SA saw net profit almost quadruple from EUR923mn in 2008 to EUR3.61bn in 2009 - beating analysts' forecasts of EUR2.97bn - as it shook off the worst effects of the financial crisis.

Bahrain-headquartered reinsurer Arab Insurance Group (Arig) delivered net profits of $21.9mn in 2009, reversing a $28.6mn loss in 2008. However, reduced demand for reinsurance and falling rates stunted its top-line growth.

Arch Capital became the latest Bermudian (re)insurer to reveal a surge in net income in 2009 with more-than-threefold growth to $851.1mn despite a decline in premiums written.

Partner Re has repurchased almost 1.5 million common shares valued at more than $100mn, as the capital management theme continues to dominate the sector.

Expansive broker Gallagher International will open a facultative reinsurance operation in Brazil after purchasing local reinsurance broker Securitas Re.

Run-off (re)insurer Alea Group has appointed Jeffrey Rosenthal as its new president and CEO to replace Mark Cloutier, who steps down on 31 March.

Bob Deutsch, the industry veteran and founding CEO of Ironshore Inc, has joined the (re)insurance-focused private equity firm Greenhill Capital Partners as a managing director.

Jean Azema, CEO of Groupama, revealed the French mutual giant is considering a listing on the Paris stock market so that it will be in a position to make a significant acquisition.

Euler Hermes, the world's biggest credit insurer, saw its net income nosedive by 77 percent in 2009, as business insolvencies drove its combined ratio well in excess of 100 percent.

AM Best has reported that downgrade action in the US P&C market has outpaced upgrades, with US subsidiaries of troubled Canadian auto insurer Kingsway Financial Services (KFSI) accounting for nearly 20 percent of negative actions.

Victims of the global fraud allegedly run by disgraced financier Allen Stanford have filed a class-action lawsuit against the Eastern Caribbean Central Bank (ECCB), five regional financial institutions and the government of Antigua and Barbuda.

Aon has accused over a dozen Lloyd's syndicates and London market insurers of breach of contract after being allegedly denied PI coverage in its reinsurance spat with UNIC.

The current pricing for portfolios of legacy business is still a "free-for-all" and the economic downturn has done little to flatten what many see as a trend of over-paying, according to a survey of senior practitioners.

In another eventful week, American International Group (AIG) has dropped plans to sell all of its controversial derivatives portfolio and walked straight into a...

Ratings agency Fitch is the latest commentator to note that rates are falling in most reinsurance classes because of abundant capacity.

Berkshire Hathaway's capital injection helped Swiss Re boost its shareholders equity by SFr5.7bn in 2009 to SFr26.2bn.

The growing international sanctions emerging in response to the Tehran government's nuclear ambitions have raised the alarm among P&I clubs, with ship-owner members operating to and from Iran.

Germany's heavyweight (re)insurance sector has lined up to suspend or clarify the extent of its business in Iran, amid mounting international concerns over the country's nuclear capability.

Finlay Smith, head of the UK property portfolio at QBE, has said that there is no evidence that the recession will increase UK property claims.