July 2013/4

The Insurance Insider tracks all the notable P&C sector share prices of the last week and compares year-to-date performances as of the week ending 22 July 2013

Mediation between London-headquartered law firm Freshfields and London Underground has broken down over one of the largest professional negligence claims on record, according to sources.

A South Korean woman has sued Asiana Airlines for $5mn, claiming that she and her son suffered extreme bodily and mental injuries after one of the firm's planes crash-landed in San Francisco on 6 July.

World Trade Center developer Larry Silverstein will not be able to recover billions of dollars from airlines in relation to the 9/11 attacks because he has already received compensation from insurers, a US federal judge ruled last week.

The European Insurance and Operational Pensions Authority (Eiopa) has warned national regulators to stick to a "consistent interpretation" of rules on internal capital models in advance of the much-delayed implementation of Solvency II.

Non-US (re)insurers were relieved by the recent news that the US Treasury has delayed the implementation of the Foreign Account Tax Compliance Act (Fatca).

American Insurance Association (AIA) CEO Leigh Ann Pusey is "not optimistic" that the Terrorism Risk Insurance Act (TRIA) will be extended before 1 January 2014, adding some uncertainty to the 1 January reinsurance renewal period.

There are some clubs where there is little obvious benefit to being a member, and the insurance industry's recently unveiled "too big to fail" club is possibly one of them.

Blackstone Alternative Asset Management (BAAM) has launched a new alternatives-focused mutual fund and has selected leading insurance-linked securities (ILS) fund manager Nephila to act as one of the investment houses that will manage capital for the strategy.

Axis Capital has become the latest Bermudian reinsurer to debut on the cat bond market with its new $150mn Northshore Re offering, sister publication Trading Risk has reported.

Choppy investment markets, pressure on rates and attritional cat losses are expected to feature as London's reporting season begins this week...

Fierce competition, surplus capacity and the recent profitability of the market mean that aviation insurance rates will remain unchanged despite the $100mn+ loss of the Asiana Airlines passenger plane earlier this month.

AIR Worldwide has officially launched Touchstone, a new catastrophe modelling platform that it says will allow users to gain a deeper understanding of their risk exposures.

The upcoming Version 13 Atlantic hurricane model from RMS will generally lower its view of risk compared to its controversial Version 11 release.

Recent commentary from brokers has raised the first warning signs that positive pricing momentum in the primary US P&C markets may be beginning to wane.

As Maiden looks to shrug off the irritation of a disgruntled former employee, its ‘sister company' AmTrust Financial may face questions over its accounting choices as a renowned short-sell-focused research firm continues to recommend selling the company's stock.

The P&C (re)insurance industry is not an obvious arena for whistleblowing disputes, but that is set to change later this year when a former Maiden executive accuses the Bermudian reinsurer's largest shareholders of using their powerful position to enrich themselves at the expense of other investors.

The potential collapse of Latvian insurer Balva could cost the UK Financial Services Compensation Scheme around £60mn based on its market share in the UK solicitors' PI sector.

Total disclosed losses relating to the widespread European flooding in May and June have climbed by $110mn in the last week to around $1.8bn.

Preliminary estimates for the insured damage to Colorado's Black Forest region suggest a loss of $292.8mn, according to the Rocky Mountain Insurance Information Association (RMIIA).

The niche death and disgrace (D&D) market is unlikely to face a claim following the news that sportswear manufacturer Adidas has suspended its sponsorship of Tyson Gay after the sprinter failed a drugs test.

The (re)insurance market is bracing itself for an $800mn total loss following the April flood and fire at the YPF La Plata refinery in Argentina, according to our sister title Inside FAC.

International marine reinsurers are expressing increased concern over the potential for further deterioration in the vast $900mn removal of wreck element of the $1.14bn P&I bill for the Costa Concordia.

Mitsui Sumitomo and Tokio Marine have emerged as significant insurers of the cargo on board the sunken containership MOL Comfort, The Insurance Insider can reveal.

The marine hull, cargo and P&I markets are braced for yet another loss after the containership Hansa Brandenburg caught fire in the Indian Ocean last week

Zurich and Lancashire have the largest lines on the Aon-placed $182mn property programme for the Perro Negro 6 jack-up rig that sank off the coast of Angola at the beginning of July, sister title Inside FAC reported last week.

The London Market Group (LMG) will select electronic placing, non-bureau accounting reforms via the Ruschlikon programme and project Genesis work on data capture as its top targets for future modernisation work, according to sources.

UK outsourcing firm Xchanging has said that it will launch a London electronic placing platform if it receives a mandate from the market, as progress with Qatarlyst's platform drags on following its acquisition by US firm Ebix.

Lloyd's blue-chip insurers Beazley, Catlin and Hiscox are among a group of 10 managing agents that have signed up to help develop the volume claims platform that will launch in 2014, The Insurance Insider has learned.

WJ Lehrke, a Minnesota-based reinsurance broker focused on the US Midwest, is to merge with New York-based rival Holborn Corporation, the two firms said on 15 July.

Vyvienne Wade, the senior Jardine Lloyd Thompson (JLT) executive who acrimoniously left the London-listed broker less than three months ago, is set to return to the industry as head of international growth at AJ Gallagher International.

CRC Crump, the world's sixth-biggest insurance broker and largest dedicated wholesaler, has helped generate a record quarterly profit for its parent, banking group BB&T.

US directors' and officers' (D&O) insurance rates bottomed out between Q1 2012 and Q1 2013 after roughly a decade of year-on-year rate declines and there is even pressure for gentle increases, according to Aon's quarterly D&O pricing index, published last week.

A quartet of Chinese insurers demonstrated their continued strong appetite for US property business during the mid-year renewals

Berkshire Hathaway's bold new drive into the US specialty markets is already being felt on Lime Street, Tom Bolt warned last week.

Marsh has revealed that Berkshire Hathaway Specialty Insurance (BHSI) wrote casualty business across a dozen of its accounts at the 1 July renewals as Warren Buffett's aggressive start-up continues to make its presence felt.

Total cat bond volumes have surpassed the previous record set in 2007, as investors continue to pour capital into the alternative reinsurance market lured by prospect of the sector's relatively high yields.

Ash Bathia, one of QBE's most senior and high profile London market underwriters, has left the company with "immediate effect", the Sydney-listed insurer confirmed today (22 July).

Lloyd's of London has received welcome news from two different rating agencies in recent weeks.

AIG promotes...; ...As does Fairfax; NZ again; Ace moves; HCC affirmed; Silverstein grounded; Dziadzio departs; Swinton fined; China quake; RLI beats; Equity offloads; American upgrade; Marsh UK names; QBE hires; Platinum Q2 profit down; Axis, Endurance eye $187mn Q2 cat losses; Hardy appoints; Chesterfield hires; Barbican lands duo; G20 flawed

American International Group (AIG), Beazley and Scor are set for a three-way tussle to claim the coveted risk carrier of the year award at this year's Insider Honours, the shortlist reveals today.

Despite having approached 30+ markets during a three-month marketing drive, Willis has yet publicly sign up a carrier for its ambitious new London market facility, Willis 360. Does this imply insurer scepticism or is it a sign of the complicated nature of the initiative?

When trying to determine whether an insurance company poses a systemic risk to the global economy, it is important to remember the differences between life and non-life insurance...

In the latest demonstration of how non-traditional capital is being tempted beyond its cat reinsurance comfort zone, Arch Capital and JP Morgan-owned Highbridge Capital Management are working on a pioneering initiative for casualty reinsurance risk...