July 2011/4

Insurance specialist law firms Beachcroft and Davies Arnold Cooper are to merge under the banner of DAC Beachcroft on 1 November.

Glacier Re, the Swiss-based reinsurer currently in run-off, could reclaim $27mn from a cat bond it sponsored in 2008 to help pay $175mn estimated net losses from 2008's Hurricane Ike.

Three diversifying cat bonds are currently in the market and are likely to be welcomed by the specialist investors who have endured an unusually quiet run-up to the hurricane season and are keen for non-US wind exposures.

Capital market reinsurers could gain an edge on their traditional competitors in the European market as economic instability grows, broker Aon Benfield Securities said in its quarterly report on the insurance-linked securities (ILS) market.

Regulators praised the stability of European insurers as they released stress test findings this month but investor confidence ebbed and flowed ahead of a key political decision on the Greek debt crisis towards the end of July.

Munich Re has identified "growth and maintenance of broker relationships" as being "critical to success" in its overall P&C strategy, while also highlighting the increasing importance of the US to its strategy.

Marsh & McLennan Companies (MMC) held its position at the head of the league table of the top 20 global brokers based on 2010 total revenue figures, despite modest erosion of its market share.

Specialist insurance broker BMS Group plans to buy out its only external shareholder, fellow Lloyd's broker AHJ Holdings, with the help of a £10mn credit facility.

Diversified financial group BB&T has reported strong earnings for the second quarter of 2011, with a 46 percent year-on-year increase in net income.

Falling contingents, increased expenses and continued organic retrenchment pushed expansive US retail broker Brown & Brown's second quarter net income down more than 10 percent.

US insurance giant Travelers reported a $364mn quarterly net loss, as tornado losses contributed to more than $1.67bn in pre-tax cat costs for the firm - equivalent to its exposure to a 1-in-100 year hurricane.

Chubb reported an almost 20 percent year-on-year drop in second quarter net income to $419mn but managed to remain in the black - and beat the Wall Street consensus - despite the recent spate of deadly tornadoes.