January 2013/4

Europe is preparing for a controversial financial transaction tax (FTT) that could affect (re)insurers' investment strategies, although tax experts predict that political challenges will water down the final levy.

Fitch Ratings does not expect Bermuda to experience another sizeable wave of start-up (re)insurers after a major disaster event, the agency said in a new report on the island's reinsurance market.

The new Wexcess UK weather product is targeted at risks that an insurer would otherwise retain as an alternative to aggregate catastrophe reinsurance, said the product's broker Aon Benfield.

US regional carrier The Cincinnati Insurance Companies completed its first reinsurance deal with capital market providers with the $61.2mn Skyline Re private cat bond, sister publication Trading Risk reported last week.

Travelers has revealed better-than-expected reserve releases of $222mn and $940mn before tax for the fourth quarter and full-year 2012 respectively, compared to $126mn and $715mn in the comparable periods of 2011.

Global specialty (re)insurers have a significant opportunity to make inroads into their cost bases, particularly once they have reached $1bn in net premiums and employ between 400-500 staff, according to research by consultants at Ernst and Young (E&Y).

AM Best has ceased to rate the Asian reinsurer Best Re's parent company Islamic Arab Insurance Company (Salama), after the ratings agency downgraded the firm's financial strength rating from A- to B++.

Lloyd's will take the biggest gross loss from a $125mn property claim lodged by warehouse owner Fedway after damage and disruption caused by Hurricane Sandy, it is understood.

Aon Benfield has estimated private insured losses from Superstorm Sandy at $22bn, three months after the 1,000-mile wide weather system struck the US east coast.

The final senior member of the Benfield Advisory team that was merged into Aon Capital Markets in 2008 has left the reinsurance broker with the departure of Scott Maries to JP Morgan.

The long-running facultative reinsurance dispute between Allianz subsidiary Rosno and specialist (re)insurer Infrassure looks likely to transfer to the Swiss courts as the German insurance giant contemplates enforcing a Russian judgment against Infrassure.

Atrium's private equity sellers are hoping to gain as much as $200mn from the auction of the much-admired Lloyd's underwriter, The Insurance Insider can reveal