January 2012/4

Although many (re)insurers' pre-results headlines revolved around Thai exposures and loss creep from earlier 2011 catastrophes, investors are likely to focus more on commentary in earnings releases and calls on the market's rates prospects.

With underwriting performance for the fourth quarter divided depending on exposure to Thailand and loss creep from other international catastrophes, there is also likely to be a mixed picture emerging on investment performance.

As US giants Travelers and Chubb get the Q4 earnings season underway this week, results across the (re)insurance sector are expected to diverge between those with Thai exposures and international loss creep and the domestically focused players that enjoyed a relatively benign quarter for weather events.

Expansive broking and underwriting group Hyperion has unveiled an impressive set of results as it prepares the ground for a future public offering, potentially in 2013.

Aon group CEO Greg Case will lead the Chicago-based company's migration of its global headquarters to London with a relocation package of more than $500,000 per year.

Thailand is looking to establish a 50bn baht ($1.62bn) catastrophe fund that could seek to buy a giant reinsurance programme up to a limit of 500bn baht ($16.2bn) from international carriers.

Loss-struck reinsurer Thai Re's share price climbed 7.2 percent today (23 January) after last week's announcement that Prem Watsa-led combine Fairfax Financial is to invest $70mn in the firm's post-floods equity fund-raising issue.

Reported loss estimates for the severe flooding in Thailand from property and casualty insurers have surpassed the $6bn threshold after a flurry of loss announcements over the past week.

Swiss Re is the hull lead and Parisco the broker for the $175mn+ KS Endeavor drilling rig which has been rendered a probable total loss by fires, our sister title Inside FAC revealed last week.

Offshore energy insurers are facing the prospect of assuming more risk themselves or cutting back their lines after reinsurers responded to another year of losses by raising prices and tightening terms.

Munich Re expects its claims burden from the Costa Concordia cruise ship sinking to be in the mid-double-digit million euro range, the company has announced.

In rejecting Barbican's all-share offer for the company, Omega's management has made explicit its preference for a cash deal or one that would see shareholders offered a full cash alternative.