February 2014/4

The average movement for US-listed (re)insurance stocks was flat overall last week after carriers noted mixed fortunes, mimicking the S&P 500 Insurance index.

It was a generally flat picture for the European composite last week, as share prices climbed by just 0.47 percent on average, underperforming the Stoxx 600 index, which rose by 0.83 percent.

Lloyd's stocks were a mixed bag last week, with half the carriers making gains while the other half experienced declines.

After getting a headstart to 2014, shares for London-listed broker JLT fell 2.27 percent last week, pegging back its year-to-date performance to +1.67 percent.

The state of Vermont has passed a law that will make it easier for US carriers to commute their legacy books to be run off in the state.

The Consumer Federation of America (CFA) has urged US legislators to reject a bill that would delay an overhaul of the US flood insurance subsidy scheme, arguing that the programme is too costly and fails to deter building on flood plains.

Oil extraction equipment maker Cameron International has failed to convince a US court that a jury should decide the outcome of its case against a unit of insurer Liberty Mutual, which relates to a disputed $50mn claim dating back to the 2010 Deepwater Horizon disaster.

American International Group (AIG) has been thwarted in an 11th-hour attempt to block the approval of Bank of America (BoA)'s $8.5bn settlement for more than 500 claims from investors over toxic mortgage-backed securities.

Around 40 London market cargo insurers are considering suing the Japanese ship manufacturer Mitsubishi Heavy Industries (MHI) after one of its vessels split in half and caught fire, destroying its $440mn cargo.

Selective Insurance said that almost 30 percent of its 2014 reinsurance programme was written on a collateralised basis as it added $100mn to the top of its cover.

Munich Re is set to raise circa $100mn from a new Queen Street cat bond as the insurance premium on the deal has fallen due to strong investor demand, sister publication Trading Risk has reported.

American Strategic Insurance Group has become the first Floridian insurer to tap the cat bond market in 2014 with its debut offering, the $125mn Gator Re.