February 2012/4

Further evidence is emerging of an uptick in the popularity of proportional or quota share (QS) reinsurance that provides stretched insurers with an alternative form of regulatory capital.

The two Lloyd's specialist motor syndicates have unveiled differing plans on how they will handle their loss-hammered prior years of account.

Abundant capacity for marine hull excess of loss (XoL) treaty cover looks set to delay any market reaction to the $500mn loss of the Costa Concordia, market sources have told this publication.

Predictable, non-marine themes emerged from the 20 February renewal season, as the largely financially stable major protection and indemnity clubs that make up the International Group pushed through modest general increases averaging 4 percent.

Chartis said it continued to see momentum in rate rises as it booked a solid Q4 operating profit of $348mn - despite taking $467mn of catastrophe losses that included $368mn from the Thai floods.

American International Group (AIG)'s shares opened up 6.1 percent Friday (24 February) but fell back to close just 1.5 percent ahead on the day at $28.41 as the markets sought to digest the firm's underlying performance after its net results were once again distorted by one-off accounting movements.

If two companies could perfectly illustrate the emerging theme of winners and losers after the shellacking of (re)insurers during 2011, it would be Flagstone and Lancashire.

Australian insurer Suncorp increased its loss estimate for last year's second New Zealand earthquake by A$300mn to A$2.3bn, returning attention to the third most costly cat event of 2011.

The reinsurance market is expecting a $285mn claim from the International Group (IG) of marine protection and indemnity (P&I) clubs as a result of the Costa Concordia sinking, The Insurance Insider understands.

QBE led the way as a number of Lloyd's insurers closed their 2009 accounts above previous profit forecasts, according to information from members' agent Argenta.

Lloyd's has narrowed down a shortlist of candidates as it proceeds with plans to launch a new volume claims service, The Insurance Insider understands.

Scor has parted company with Alan Grant, who is effectively the co-head of its London-based operations.