January 2009/4

Lloyd's insurer Chaucer Holdings plc confirmed last week that it is looking to raise additional capital after speculation had contributed to a near 40 percent slide in its share price this month.

Swiss Re led the slide in European insurance stocks on Friday (23 January) as its share price fell more than 20 percent amid concerns that it is set for a further round of heavy write-downs and may need to raise capital when it reports its fourth quarter

Investment bank Merrill Lynch has agreed to pay out $475mn and $75mn to settle two class action lawsuits filed against it in relation to its sub-prime related losses.

European insurers' pure solvency ratios are "extremely stretched" and 2009 will be an acutely difficult year for some of Europe's largest market participants, particularly in the life sector...

Max Capital has revealed a negative return of approximately 20 percent on its alternative investment portfolio for 2008, prompting unrealised asset write-downs of around $233mn and a full-year loss and negative net operating return on average shareholders

Bermuda-based (re)insurer Arch Capital Group has received approval in principle from the Lloyd's Franchise Board and UK regulator the Financial Services Authority (FSA) to establish a new managing agent and syndicate at Lloyd’s.

Bermuda-headquartered Lloyd's (re)insurer Catlin is predicted to swing to a full-year loss for 2008, and may need a capital infusion, according to Numis Securities.

Brit Insurance Company appointed JP Morgan Cazenove to become its co-adviser and was rewarded with a downgrade two days later by the firm’s parent company, JP Morgan.

The drag of Transatlantic Holdings' relationship with majority shareholder American International Group (AIG) was evident in the downgrade of its core operating companies' financial strength ratings from AA- to A+ by Standard & Poor's last week.

Bermudian-based PartnerRe recorded a 12 percent cancellation rate during its key 1 January renewals; a figure which it said was the lowest seen over the last five years and reflects "a reversal of the trend of increasing client retentions."

Bermudian (re)insurer Validus Holdings Ltd joined the crowd of underwriters increasing their loss estimates from Hurricane Ike as the harsh impact of the September 2008 storm continues to mount.

Ironshore Inc continued its raid on American International Group (AIG) with the appointment of a trio of executives to man a newly created US property/casualty operation.

Outgoing Hannover Re and E+S Rück CFO Elke König has been tipped for a role at giant reinsurer Swiss Re, according to sources.

Hannover Re has bought buy a book of US life reinsurance business from Scottish Re with estimated premium volume of $1.2bn in what it described as a "transformational step" for its global life unit.

US run-off specialist Citadel Risk Management has acquired "substantially all"of broking group AJ Gallagher's reinsurance run-off portfolio in a move which the Citadel group described as an "opportunity to create a runoff sector for the reinsurance interm

Aioi Insurance, Mitsui Sumitomo (MSI), and Nissay Dowa confirmed plans to merge by April 2010, creating Japan's largest non-life insurer with a combined market value of approximately ¥1.4tn ($11bn).

Bermudian-headquartered (re)insurer Aspen Insurance Holdings Ltd has endured a struggle to renew the reinsurance programme for its financial institutions (FI) book written out of London reflecting concerns over the sector's loss exposures, The Insurance Insider can reveal. 

AJ Gallagher is to acquire the renewal rights from a Liberty Mutual middle-market commercial property/casualty business in a deal potentially worth nine figures.

The Chicago Mercantile Exchange (CME) has traded $30mn notional limit of its CHI hurricane cat futures in the first weeks of 2009, as reinsurance broker Carvill withdraws from the initiative which it founded in 2007.

AIG appoints new chief investment officer; managerial restructuring...

US insurer Navigators Group is pulling its energy, engineering and construction risks together into a new business unit, Navigators Technical Risk (NavTech).

Adding the Madoff scandal to the list of litigation-spawning incidents which have caused a myriad of unprecedented dislocations in the financial system could be "the straw that breaks the camel’s back" for the professional and managerial indemnity markets

Hiscox Ltd, the UK quoted (re)insurance group, has joined a growing number of (re)insurers reporting hardening US catastrophe rates in the key January renewals season.

Creditors of collapsed Icelandic banks have brought legal actions in the UK High Court totalling £360mn to date.

Shipowners face a hike in premiums next month after the International Group of P&I Clubs (IG) unveiled general increases on all classes of vessel in its excess of loss reinsurance renewal...