January 2012/2

Analysts have struck an upbeat tone on opportunities for P&C insurers in 2012 following a heavy cat loss year and a turbulent period for equity markets amid Eurozone financial stresses

Outstanding capacity in the cat bond market expanded slightly in 2011 to reach $14bn after closing $4.6bn in new placements during the year, according to Aon Benfield data

With global reinsurers' and brokers' insured loss estimates for 2011 natural catastrophes ranging from $100bn to $106bn, last year looks set to outstrip 2005's record losses

The cat bond market is soaking up new demand for peak European and US reinsurance cover after retrocession capacity was squeezed at the 1 January 2012 renewals

Despite a mixed picture in the overall renewal season, property catastrophe reinsurers will take some cheer that the last two years of non-peak cat losses have effectively placed a new prospective 2 percent floor on the minimum cost of capacity in the class

Florida must substantially reduce pressure on its state-supported (re)insurance operations and strengthen the private market, according to a new Florida State University report

Catastrophe model changes helped drive increasing divergence in the reinsurance market at the 1 January renewals, as suppliers become more inclined to follow their own risk projections

Cat reinsurance renewal pricing for the industry's largest cedants threw up few surprises and varied little from the indicative country-wide pricing that has been made public

Fresh signs of growing unease among international regulators over the "risk free" status of sovereign debt have emerged, as Europe's creaking financial system

As year-end and renewal reports have been contrasted with outlooks for 2012, a consensus has emerged that reinsurer capital levels are approximately stable year-on-year

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

Plaintiffs suing former MF Global CEO Jon Corzine are forming an orderly queue to be lead plaintiff in a class action suit over the once mighty broker's spectacular failure