February 2015/4

London-listed Lancashire is widely tipped as the most likely next seller in the Lloyd's market after a two-month period in which the boards of both Catlin and Brit recommended offers to shareholders.

Fairfax Financial agreed to acquire Brit Insurance for $1.88bn, with a commitment letter from Bank of Montreal for the full consideration.

When Brit was acquired by Apollo and CVC in 2011 for £888mn ($1.36bn) at a discount to book value it was a market laggard, held back by its sub-scale UK regional business.

Brit Insurance's sale to Fairfax is the dream outcome for the company's management team in that it offers them a big pay day, the chance to continue running the business and the advantages of being part of a bigger global group.

Fairfax Financial's decision to swoop for Brit Insurance seems to reflect something of a shift in strategy for the Toronto-headquartered business.

Tokio Marine Kiln's Syndicates 510, 557 and 308 have each closed the 2012 underwriting year of account at a profit, the firm announced last week (19 February).

Grahame "Chily" Chilton is set to take the helm at AJ Gallagher's UK-based international brokerage division at the same time as a number of key executives exit the business.

A number of Florida homeowners insurers are looking at the option of replacing sizeable chunks of cover currently bought from the state's cat fund with private reinsurance, creating a source of fresh demand ahead of the 1 June renewal, The Insurance Insider can reveal.

Lloyd's motor insurer ERS, previously Equity Red Star, has reported its first full-year profit in five years, achieving a total of £8.3mn for 2014.

Australian carrier IAG has confirmed that its losses from the 2010/2011 New Zealand earthquakes have deteriorated by NZ$950mn ($714mn).

Ross raids Towergate; Lloyd's goes Korean; Cyclone Marcia; Ironshore's Asia MD; Standard Club renewals; Darag goes Greek; Talanx exits Ukraine; Integro acquires; Elon-Felix losses; Brit on negative watch; IAG's NZ loss creep; Liberty Mutual gains Gaines; RSA sells Indian insurer; Eagle lands at GC; Zaffino joins Everest Re; Novae promotions

Fairfax Financial founder Prem Watsa prevented a potential bidding war for Brit Insurance by offering a $1.88bn binding all-cash offer just 10 days after entering into serious negotiations, and threatened to walk away if the proposal was not accepted in short order.