January 2010/3

Hyperion appoints CEO and COO of Howden Broking Group; Ironshore extends global property offering; Markel launches trade credit division with senior hire; Brit hires AIG execs to boost global markets unit.

The economic costs of the summer 2007 floods in the UK were approximately £3.2bn and within a possible range of between £2.5-£3.8bn, according to the UK Environment Agency (UKEA).

The London market's process reform agenda will make "big gains" this year as electronic accounting and a more sophisticated electronic claims platform is rolled out, according to the chairman of the International Underwriting Association (IUA).

The Bermuda Monetary Authority (BMA) has unveiled its 2010 plan, which focuses on regulatory transparency to meet the looming demands of Solvency II and the aftermath of the 2008 financial crisis.

Liability and legal expenses and after-the-event insurers will be among those on the alert after Lord Justice Jackson published his final report on UK civil litigation cost reform last week.

The insurance industry was judged the winner following publication of a major report into reforming UK civil litigation costs last week (see story 28).

Expansive insurer Torus made its latest move into new lines last week as it announced entry into the US medical malpractice market.

It emerged last week that Aon has already paid £36mn ($58mn) to Manchester United as part of the four-year sponsorship deal that begins later this year.

Zurich Financial Services Group has overhauled the structure of its European operations by converting most of its national subsidiaries to local branches of its main EU business, Zurich Insurance plc (ZIP).

Ireland's low tax environment, business friendly regulation and European Union status is continuing to attract redomiciling (re)insurance businesses, not least from offshore jurisdictions such as Bermuda and the Cayman Islands.

Despite historically high capitalisation levels and strong 2009 earnings, the reinsurance industry may be storing up problems for the future, according to a gloomy forecast from Moody's last week.

Reinsurers' margins are likely to come under increasing pressure in the next 12 months, rating agency Moody's predicted last week.

Lloyd's of London will come under pressure from the US government in the first half of 2010 to stop insuring Iranian oil imports, according to an expert on the region.

There is no consistency of approach from listed London market firms on determining bonus pools, research from Collins Stewart has revealed.

Nick Cook, CEO of Willis subsidiary Glencairn, has resigned from the London market broker, The Insurance Insider revealed last week.

The historically high level of reserve releases that have been boosting insurers' profit margins since 2003 are set to come to an end, according to research carried out by Deloitte.

Sluggish UK commercial rates are finally hardening, according to quoted Lloyd's (re)insurers Amlin and Brit Insurance.

A tranche of Munich Re's $150mn Carillon Ltd US wind cat bond has become the latest of a quartet of Lehman Brothers-affected insurance-linked securitisations (ILS) to default.

US insurer Hartford Fire Insurance Co has launched $100mn Foundation Re III – its third transaction in the Foundation series and the first insurance-linked security (ILS) of 2010.

The most serious risk facing the world today is of a succession of fiscal crises caused by the fallout from the global financial collapse, according to Global Risks 2010.

The Lloyd's underwriters that insured Stanford Financial Group's D&O and professional indemnity policies were last week asked to forward a further $2.6mn to pay defence costs while they wait for a US judge to rule on their liability.

Private equity-backed Antares Syndicate 1274 has received approval from both Lloyd's and the FSA to establish Antares Managing Agency Limited (AMAL) – a move first revealed by The Insurance Insider.

Aspen reshuffled its senior management roles last week, with London veteran Rupert Villers promoted to CEO of the firm's insurance business.

UK property and casualty (P&C) insurers face escalating claims after an Edinburgh court upheld legislation that allows sufferers of pleural plaques in Scotland to be compensated, Moody's has warned.

Lloyd's Franchise Performance director Tom Bolt last week poured cold water on the immediate competitive threat created by the proposed resurrection of the New York Insurance Exchange.

Shareholders in embattled Omega Insurance Holdings are still awaiting a date for a special general meeting (SGM) to air their demands to revamp the company board, despite rumblings last week that an announcement was imminent.

Admiral, the UK motor insurer that cannily uses reinsurance leverage to generate industry-leading returns on equity (RoE), has entered into new quota share agreements with Munich Re and Hannover Re to finance its entrance into the US markets.

Montpelier Re has entered the satellite market in conjunction with Sciemus and is looking to build a $75mn line on Bermuda paper, our sister title Inside FAC has revealed.

The Haitian government will receive a $7.7mn payout from the Caribbean Catastrophe Risk Insurance Facility (CCRIF) after a magnitude 7.0 earthquake devastated the country.

Swiss Re's SFr1.3bn sale this morning (18 January) of a closed block of US life reinsurance business to Berkshire Hathaway (BH) will free up SFr300mn in capital.

UK regulator the Financial Services Authority (FSA) is yet to approve Russian-backed private equity firm Pamplona adding a further 6.28 percent to the 9.99 percent stake it owns in Lloyd's insurer Chaucer.

Glacier Re, the private equity-owned (re)insurer that parted company with its founding CEO Robbie Klaus last year, is in talks to sell off the renewal rights of various parts of its business.