February 2018/4

A fragmented Florida homeowners' market means reinsurance buying strategies are likely to diverge between now and 1 June as some cedants move to secure capacity early and others sit tight in the hope of striking a better deal later on.

Participants at a cyber (re)insurance forum in Paris last week called for increased clarity and cooperation in order to drive the sector forward.

Equities analysts have advised caution on Hiscox's stock despite the carrier's announcement of better-than-expected 2017 profits.

Zenkyoren's Nakama Re 2018-1 cat bond has more than doubled in the course of marketing to reach $700mn, after being marketed with an initial size of $250mn, sister publication Trading Risk has learned.

Floridian carrier Heritage Insurance Holdings expects to claim $104.4mn from several tranches of its Citrus Re cat bond issuances following Hurricane Irma, sister title Trading Risk has learned.

The Bermuda Monetary Authority (BMA) has been criticised for demanding new disclosures from local alternative reinsurance operators without sufficient consultation with involved parties.

Operating returns on equity fell by 4.3 percentage points year on year to 5.4 percent in 2017 for our group of US specialty carriers, as the year's elevated cat losses eroded underwriting margins.

Companies in our US specialty composite mostly posted higher combined ratios in Q4 2017, driven predominantly by increased underlying loss ratios, as well as slowing reserve releases.

Gross written premiums for our group of US specialty insurers increased by 12.6 percent to $6.0bn in the fourth quarter, the strongest quarterly growth rate in the past four years.

One test of a good business is whether it can survive a period of bad management. This maxim was put more colourfully by Berkshire Hathaway chairman and CEO Warren Buffett when he famously said a truly great business could be run by a ham sandwich.

Warren Buffett has it easier than me.