January 2012/4

PartnerRe wrote just $256mn of cat premiums at 1 January as it reduced its top line in the sector by 15 percent despite the strong rate increases achieved in the class

Talbot Underwriting CEO Rupert Atkin will replace Barnabas Hurst-Bannister as chairman of the Lloyd's Market Association (LMA) from 1 February

The increased focus on run-off portfolios created by the incoming Solvency II regime (see above story) will lead to greater use of schemes of arrangement by continental (re)insurers, according to PricewaterhouseCoopers' scheme tsar Dan Schwarzmann.

Europe's forthcoming Solvency II regime is widely predicted to be a boon for the legacy management sector, as (re)insurers look to spin off discontinued books to professional management in order to avoid capital charges.

Elaina Apatoff, a sufferer of asthma and pulmonary hypertension, has sued Munich Re in the US after the reinsurance giant dismissed her from her job.

Brokers will no longer be liable to pay the premium in the event that an insured becomes insolvent or refuses to pay, if proposed changes by the UK Law Commission are accepted.

A Dutch court has sanctioned a securities class action suit for investors in the late-2001 carve-out of Zurich Financial Services (ZFS)' reinsurance arm Converium, the first collective settlement to be agreed on a transatlantic basis.

Royal Bank of Scotland (RBS)'s newly restructured insurance operation has been fined £2.2mn by the Financial Services Authority (FSA) for failing to prevent documents submitted to the UK regulator from being improperly altered.

The key European parliament committee responsible for proposing changes to the Omnibus II draft legislation has delayed a vote on the text until 21 March.

Stricter regulatory rules under Solvency II could cause a limited outflow of captive entities from the EU, according to ratings agency Fitch.

Cat bond brokers are expecting 2012 sales to reach at least $5bn as interest in buying alternative reinsurance solutions grows amid a hardening property catastrophe market.

A handful of new cat funds made their mark on the 1 January renewal season, deploying significant capacity into the collateralised reinsurance and retro, industry loss warranty (ILW) and cat bond markets.

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.

Bermudian cat specialist Montpelier Re and Japanese big three member Mitsui Sumitomo are among the 15 companies that have expressed interest in acquiring Hardy Underwriting, The Insurance Insider can reveal.

Lloyd's insurer Marketform has announced that Simon Turner stepped down as CEO and director of its managing agency and as a director of Marketform Limited with effect from 13 January 2012.

The appointment of Markel International's claims director Stuart Willoughby as global head of claims at Scor is likely to be the start of a merry-go-round of people moves at the top end of the claims profession, The Insurance Insider understands.

Canopius Syndicate 4444 has had its Lloyd's assessment level reduced from 3- to 2+ by Standard & Poor's (S&P), primarily as a result of a change in the capital charge imposed by the ratings agency on catastrophe business.

US insurance giant Chartis last week revealed that it has streamlined its operations into three major geographic zones as it looks to target growth economies.

Influential shareholder proxy firm Institutional Shareholder Services (ISS)' recommendation that Transatlantic Re shareholders vote for the agreed tie-up with Alleghany will be seen as a crucial boost before the 6 February investor poll on the transaction.

Rob Bredahl, CEO of Aon Benfield's investment banking group, and colleague Dan Malloy are joining John Berger-headed start-up Third Point Re.

Following a year of brutal cat losses, PartnerRe scaled back the amount of property cat aggregate that it wrote at 1 January by around a fifth, The Insurance Insider has learned.

Byrne departs Xchanging; HSBC $1bn shortlist; Talanx swoops; Aviation flat; Windsor builds binder team; XL appoints Chartis exec; Cincinnati Financial bucks trend; Swiss Re appoints Lies; Liberty promotes; AJ Gallagher acquires; Euro insurers downgrade

Current head of Willis Re Europe Tony Melia will be unveiled later this week as the new CEO of Willis Re International, The Insurance Insider has learned.

The voluminous amount of litigation against Chinese companies stemming from a wave of reverse-takeover US listings is expected to badly burn the directors' and officers' (D&O) insurance market.

Sometimes this industry can be its own worst enemy. A common complaint in the sector is that we are often widely misunderstood.

Insured losses from the Costa Concordia cruise liner are well spread around the market, full details of the EUR395mn/$500mn hull insurance placement obtained by The Insurance Insider demonstrate.