February 2011/5

Bermuda-headquartered Aspen Insurance Holding has appointed Mario Vitale to oversee its US operations as the firm continues its ambitious plans for growth in the states.

Swiss Re said this morning (2 March) that the 22 February New Zealand earthquake will cost the firm approximately $800mn.

Malta-based captive run-off specialist Grafton (Europe) has had its A- rating with a stable outlook affirmed by AM Best.

Former Alea CEO Mark Cloutier has predicted a market full of opportunities for the legacy sector as 2011 progresses, claiming the industry was full of "the walking dead".

Extreme weather events and environmental disasters could cause a return of London market excess-of-loss (LMX) spirals, according to John LaBarbera of US law firm Cozen O'Connor.

London-based insurance-linked securities (ILS) investment manager Securis Investment Partners plans to launch a new fund on the main London Stock Exchange (LSE) next month.

Serial insurance-linked securities (ILS) issuer Chubb Corp is launching its fourth East Lane Re cat bond, seeking $200mn of cover against north-eastern US wind and earthquake losses.

UK and international P&C insurer RSA reported a 15 percent year-on-year drop in net profit to £355mn for 2010, led by weather losses that were £175mn worse than a year earlier and a £30mn Chilean earthquake hit.

The insurance arm of UK government-controlled the Royal Bank of Scotland Group (RBS) has slid into an operating loss for 2010 as it heads towards being sold in 2012.

Soon-to-be-acquired Brit Insurance revealed a 30 percent slide in full-year profits while also revealing that its year-end financials will be sufficiently good so as to ensure shareholders receive an additional payment from private equity duo Apollo and CVC.

Specialty insurer HCC saw profits slide a mere 2.5 percent in 2010 as it largely withstood high industry cat losses, torpid investment returns and falling rates.

Insurance giant Allianz lifted its 2010 group net income by 12 percent to EUR5.2bn on improved results from its P&C division.

American International Group (AIG) booked a fourth-quarter operating loss of $2.2bn as its bottom line was hit by P&C arm Chartis' $4.2bn reserve strengthening.

QBE's combined operating ratio inched up by just 0.1 percentage points in 2010 to 89.7 percent, despite a $1.08bn large and catastrophe claims hit over the year.

Hiscox booked a 34 percent slide in pre-tax profits to £211mn in 2010, but limited the widening of its sub-90 percent combined ratio to 3 points despite a heavier loss experience.

Risk Management Solutions (RMS) released a sweeping upgrade to its US hurricane model today (28 February) that is expected to increase significantly loss estimates for property catastrophe (re)insurers.

The direct and facultative (D&F) market can expect to pay the lion's share of losses from last February's Chile earthquake, with a 60 percent share of total reinsured losses of $8.5bn, according to Aon Benfield.

The London market has become increasingly nervous about the prospect of political risk losses from the civil disorder that has taken hold in Cote d'Ivoire since its presidential election last year.

London's losses from the ongoing political unrest in Libya are likely to be relatively modest as the country's oil industry is dominated by the majors that tend to self insure, The Insurance Insider understands.

The earthquake in New Zealand last week could be a sizeable loss for the London contingency market if organisers are unable to get Christchurch ready in time for the Rugby World Cup (RWC).

Arthur J Gallagher International confirmed last week that it had acquired Woodbrook Underwriting Agencies, after The Insurance Insider revealed that the deal was poised to go through.

BMS, Cooper Gay and JLT have all abandoned bids to establish underwriting entities at Lloyd's in 2011 after being discouraged by the Franchise Board, The Insurance Insider can reveal.

The future of Florida's Royal Palm Insurance Company has been secured with its sale to an affiliate of Tower Hill Insurance Group, in a deal first revealed by The Insurance Insider.

Berkshire Hathaway has revealed it has now earned $17bn in pure underwriting profits over the past eight years as full-year earnings beat the Wall Street consensus.