February 2012/4

HBSC has sold several insurance divisions in Asia and South America to insurers QBE and Axa the companies confirmed today (7 March) after speculation emerged on the sale last week.

As loss adjusters assess the damage from last week's deadly burst of tornadoes in the Midwest, early suggestions are that insured losses will not match the magnitude of the multiple billion dollar claims that several outbreaks each spawned in the US last year. 0

Diversified UK-based (re)insurance investor and legacy acquirer Tawa has announced a shock 13.5 percent fall in book value.

Charles Taylor Consulting (CTC) is to pull back from the P&C legacy market to focus on its professional services business, The Insurance Insider revealed last week.

Lloyd's has called on underwriters to ensure they are complying with US state and federal laws when writing force-placed insurance, following a recent court ruling on a class action lawsuit against QBE and Wells Fargo.

The start of the much anticipated BP Deepwater Horizon trial has been delayed by one week to allow the oil giant more time to reach an agreement with plaintiffs impacted by the 2010 disaster.

Exxon Mobil Corporation has sued certain Lloyd's underwriters and over 350 other insurers seeking cover for anticipated asbestos claims against the oil giant.

A New York court has ruled against Aon in its ongoing poaching case with Alliant. Aon accused the rival firm and former senior Aon construction broking executive Michael Cusack of breaching an injunction that bars Alliant from poaching Aon employees and clients.

London-based insurers being sued by Societe Generale (Soc Gen) over a $500mn claim for missing gold bullion have defended their case, saying the French bank failed to disclose crucial information before concluding the insurance contract.

Deutsche Bank has completed the largest longevity swap to date via a huge risk transfer deal with insurer Aegon covering EUR12bn in annuity liabilities.

US insurer Chubb has dropped earthquake risk from its latest cat bond offer and will instead add tornado risk to the US hurricane cover it is seeking from the new East Lane Re V issuance.

In contrast to previous decades, when many of the top reinsurers had AAA financial strength ratings, a survey by The Insurance Insider shows there are now only seven companies with AA status.

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.

Despite cat losses equivalent to 22.5 percent of net tangible assets, Hiscox succeeded in booking £17.3mn of pre-tax profits as its retail diversification strategy and one-off reserve releases came to the rescue.

Private equity (PE) firm Gresham is in talks with Groupama's well-regarded UK broker Bollington about financing a spin-off from the up-for-sale UK parent company, The Insurance Insider can reveal.

Mitsui Sumitomo and former Ascot CEO Martin Reith are no longer in the running to buy thinly capitalised Lloyd's carrier Hardy Underwriting, The Insurance Insider can reveal.

Swiss Re's new group CEO Michel Liès provided some of the most optimistic comments on market conditions from the European reinsurers as the company reported its 2011 results, saying there was "modest but broad" market turn underway.

Berkshire Hathaway paid out $2.6bn in catastrophe claims in 2011 as its downsizing kept cat losses well short of the unadjusted $3.4bn that the group incurred in 2005.

JLT Re Aon hires; Enstar appointment; Transatlantic deadline; Adieu to Pru?; Obama proposes tax cut; Tawa targets; Greenlight investment slump; Goldman Sachs downgrade threat; Lancashire plays Accordion; Allied World launch; Axis hire; Marcoux becomes Piper; Aon $70mn move; Tyser D&F hire

The price improvement on Japanese cooperative Zenkyoren's vast excess of loss (XoL) programme may be more modest than the loss record would suggest, The Insurance Insider understands.

The Q4 results season is a little special as it marks a natural point of reflection as the full year closes.

Florida's Citizens Property Insurance Corporation is looking to buy a minimum of $1bn of private reinsurance cover that will include a $250mn cat bond underwritten by Goldman Sachs, The Insurance Insider can reveal.