January 2012/1

Start-up reinsurer Third Point Re won its targeted A- financial strength rating from rating agency AM Best and was underwriting risks incepting at 1 January 2012.

The sharp increase of IAG's loss estimate for the 2011 February Christchurch quake from A$1.9bn to A$2.9bn takes the total gross claims incurred by the region's major primary insurers to $11.9bn, analysis from The Insurance Insider has shown.

Three Missouri farm mutuals have been placed into receivership and will be propped up by the Missouri Farm Bureau (MFB) after being devastated by the tornado that struck Joplin in May.

(Re)insurance service provider and legacy investor Randall and Quilter (R&Q) has completed the acquisition of failed UK takaful insurer Principle Insurance Company.

A US judge has approved a $415mn settlement between American International Group (AIG) and a group of seven rival insurers over allegations that the company under-reported its workers compensation premiums in order to pay less into an industry back-stop.

A New York court has granted victory to Aon in a long-running legal battle against rival broker Alliant by placing an injunction against former senior Aon construction broking executive Michael Cusack and his new employer.

Broker Aon has agreed to pay $16.3mn to US regulators and prosecutors to settle a case over bribes allegedly paid in developing countries.

The European insurance watchdog has warned that the continent could be facing a full-scale "meltdown" without decisive and comprehensive action from policymakers to reassure markets.

Insurance groups in the US have broadly welcomed proposals from the Financial Stability Oversight Council (FSOC) on identifying non-bank systemically important financial institutions (SIFIs), but said some points required further clarification.

Investors in the Mariah Re tornado bond faced a nervous wait over the New Year to find out how much of their $100mn capital has been paid to bond sponsor American Family Mutual to settle claims.

Cat bond issuance closed at $4.7bn for 2011 after Argo Re raised $100mn from its second deal of the year just before the Christmas break.

Insurers could play a greater role in the provision of flood insurance in the US, according to an academic study released in late December.

Amlin announced late last month that it had jettisoned its up-for-sale corporate broker RBS Hoare Govett in favour of Morgan Stanley and Numis Securities as it looks to bounce back from a disappointing 2011.

Premium income earned by the UK insurance sector dropped for the third consecutive year in 2010. However, the London market has bucked this trend with increased premium sales, according to a report late last month from financial services advocacy group TheCityUK.

European insurers wrote total gross premiums of EUR1,104bn in 2010, a 2.5 percent increase on the previous year, according to figures from European (re)insurance federation the CEA.

Premiums in emerging markets have expanded by an average of 11 percent per annum over the past decade, according to a Swiss Re Sigma study released late last month.

Florida must substantially reduce pressure on its state-supported insurance and reinsurance operations and strengthen the private market, according to a new report.

US P&C insurers posted significant underwriting losses in the first nine months of 2011 with reinsurers taking the brunt of losses, according to new figures.

Reinsurance and retrocessional losses from the Thailand flooding could reach $9bn-$12bn and match losses from the devastating March 2011 earthquake in Japan on a gross basis, according to Espirito Santo analyst Joy Ferneyhough.

Hurricane Irene cost the US National Flood Insurance Program (NFIP) less than $750mn, according to the Federal Emergency Management Agency (Fema).

US (re)insurers spend too much time focussing on hurricanes and not enough on tornadoes.

Norway's Meteorological Institute has described Windstorm Dagmar, which ripped across Norway, Sweden and central Finland on Christmas Day, as possibly the third worst windstorm to strike the country in the past 50 years.

Japanese mutual Zenkyoren has increased its loss notification from the Tohoku earthquake for a second time to 890bn yen ($11.4bn), taking the world's biggest reinsurance programme within touching distance of a total loss, The Insurance Insider revealed last month.

Transatlantic's shareholders will vote on the previously announced merger with Alleghany Corporation at a special meeting on 6 February.

Beazley will have to find ways to neutralise the difficulties posed by a Lloyd's-on-Lloyd's transaction and the corresponding advantages held by rival bidders Arig and Tower Group if it is to prevail in a future approach for Hardy.

As the European markets slowed in advance of the Christmas shut-down, industry maverick Mark Byrne closed a second turbulent year for Omega when he officially withdrew his interest in buying a 25 percent stake in the Lloyd's (re)insurer after the takeover target rejected his lowered 74p per share indicative offer.

2011 was a year characterised by significant M&A activity, particularly in the London market, where Lloyd's reluctance to welcome new members and the demands of Solvency II combined with the growing sense that small-cap quoted Lloyd's businesses are an anachronism, fuelling increased sales.

The Lloyd's Council elections have become a lot more complicated after Willis president Grahame Millwater decided to withdraw from the contested ballot following his unexpected resignation from the broking group in December.

After a year of heavy cat losses, Australian (re)insurer QBE has had to pay significantly more for the portion of its $1.3bn global cat treaty placed in the open market on an annual basis, The Insurance Insider can reveal.

The North American cat programme of AIG subsidiary Chartis has renewed effectively flat at 1 January as the insurance giant benefited from its decision to drop its top four $500mn layers, The Insurance Insider understands.

Labuan hit by Thai tide; Swiss Re gets AM Best tick; Ace makes $55mn Ecuador bid; Puerto Rican buy for QBE; Hannover lifer retires; Tokio Marine Europe recruits; Australia tots up $4.3bn of cat losses; Mapfre reshuffles board; JLT digs into Irish agri market; Bermuda rating pegged down; Bowring Marsh opens in Dubai; FonSAI rating pruned; Allianz US downgrade; Quaking US history; Sails up at R&Q; Pru chair exits; Klepper joins Chartis; Flagstone affirmed; SAC takes Validus stake; Loucaides leaves Jub

IAG-owned Lloyd's motor insurer Equity Syndicate Management Ltd has been censured by Lloyd's and ordered to pay costs of £95,000 over two charges of detrimental conduct, but avoided a fine.

It was another renewal season that promised much at the outset, with a lot of fighting talk about steely resolve from underwriters.

As reports begin to be published and after the initial conference calls took place a clear consensus has emerged that the market hardened in certain lines during the 1 January 2012 renewal season, but not across the board.