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

Loss-free aviation excess of loss reinsurance rates dropped while the loss-heavy space market also lowered prices at 1 January

The two former partners on the ill-fated Macondo oil well site continue to trade punches in US courtrooms

Berkshire Hathaway lived up to its reputation as the consummate opportunist by becoming one of the biggest reinsurers in Thailand overnight on 1 January, The Insurance Insider revealed.

Energy reinsurance renewals have proceeded with rate rises and higher retentions after a year of high losses

Brazil's oil regulator has sanctioned Chevron for the third time over the Frade oil field spill last year

If it is received wisdom that no New Year's resolution has a lasting impact, then Chartis' determination to emerge in 2012 with a slimmed down catastrophe reinsurance programme may be the exception that proves the rule.

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

London-headquartered (re)insurance broker RFIB has initiated steps to overhaul its underperforming business after its 2011 results were weighed down by the discovery of £1.5mn of bad debt

UK insurance distribution group Hyperion is conducting due diligence on independent London market broker Windsor Ltd with a view to a possible takeover

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

Although 2011 will probably not be remembered as a year when the legacy market made hay, it has not passed without significant business being done by market participants

The low valuations of most quoted (re)insurers is tempting run-off acquirers that would then look to sell on the renewal rights before winding-up the business, according to Aon Benfield

Brit Insurance is confident that it will be able to dispose of its up-for-sale UK retail business at a premium to book towards the beginning of the second quarter, The Insurance Insider can reveal.

After a pre-Christmas lull, the auction of Flagstone's Lloyd's business got going in earnest in the New Year, with a sales prospectus released and a deadline issued for indicative expressions of interest, it is understood.

Bermudian (re)insurer White Mountains has completed a transaction to acquire the legacy portfolio of defunct reinsurer Old Lyme Insurance Company

Quoted (re)insurer Hardy Underwriting is issuing a prospectus to interested parties this month and will hold management meetings with the leadership of its would-be acquirers in January, The Insurance Insider understands.

Beleaguered Lloyd's (re)insurer Omega is no longer prioritising a sale after the ignominious collapse of its agreed transaction with Haverford's Mark Byrne, The Insurance Insider has learned.

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

The top Lloyd's players are divergent in their approach to 2012, with some loading additional capacity for the hardening market and others keeping their size in check.

One of the priorities for Lloyd's over the next three years will be to simplify the process of placing and underwriting business in order to address the perceived difficulty and cost of using the market at No. 1 Lime Street, Lloyd's CEO Richard Ward has said.

Reinsurers dodge Oz Christmas hail; FSB vice chairman steps down; Citizens CEO stands down; China up; Russian opportunities; Latin growth; US hardening; ACR affirmed; Olá XL; Twister receiverships; Twister receiverships

Amlin backs $200mn nuclear MGA; Canopius move; Hoare Govett slips; Takaful takeaway; Kane new CEO; Beazley goes Deutsch; RBS ready; Ascot powers up; Prosight takes aim; Lloyd's re-runs

Third Point has managed to attract a significant sum on top of the $500mn backing it had initially secured when The Insurance Insider revealed news of its launch last October, but is slightly shy of the $750mn-$1bn of launch capital targeted

It may be best to be "greedy when others are fearful", but try being greedy when you're scared, your bankers are scared and your shareholders are positively terrified...