February 2012/3

A number of Bermudian reinsurers deployed less aggregate limit at 1 January as they sought to manage down their peak exposures or push for above-market rate increases in the hardening property cat markets.

Analysis of commentary on reinsurance underwriting at the 1 January renewals has divided the sector into two broadly separate camps.

Investors' renewed enthusiasm for P&C (re)insurance stocks has caused the UK quoted mid-cap P&C sector to effectively be re-rated in the past few months to its highest level in four years.

Willis has a challenge to reassure investors of its 2012 prospects after the broker underperformed on almost every measure compared to its peers in the fourth quarter results released last week.

Bermudian (re)insurers were able to shrug off the second-worst catastrophe year on record to still report a full-year profit for their shareholders in 2011, according to figures compiled by The Insurance Insider's data room.

Japanese top three insurer MS&AD more than doubled its net loss projection from the Thai floods last week, but figures from Lloyd's helped to allay fears that the London market would have disproportionate exposure to the disaster.

The disappointing fourth quarter results reported by Willis last week were put down to extraordinary or company-specific factors that hurt the broker in North America, the UK and on the continent.

The overwhelming likelihood is that Willis will choose an external candidate when the time comes to succeed chairman and CEO Joe Plumeri.

Chartis is raising insurance rates and focusing on underwriting for profit as it emerges from the crisis in 2008, according to parent American International Group's chief executive Robert Benmosche.

Investors have over-punished XL for its poor showing in the fourth quarter of 2011, according to the company's CEO Mike McGavick.

Alterra president and CEO Marty Becker has called for reinsurance giants Swiss Re and Munich Re to drive a widespread market turn, describing the European pair as "the only two players big enough to drive reinsurance rates".

International (re)insurer Axis Capital shed a large amount of exposure to international cat business at 1 January as it loaded non-modelled business more than its peers, president and CEO John Charman revealed last week.