June 2010/3

Energy mutual Oil Casualty Insurance Ltd's (OCIL) Avalon Re excess liability cat bond defaulted at its final maturity date last week (7 June), leaving the lowest tranche investors with a $13mn loss.

The next 48 hours is likely to see the formation of the first named storm of the season, according to the US National Hurricane Centre in Miami.

Australian insurer QBE bought CNA's Argentinian subsidiary for $66mn as it continues its strategy of growth through acquisition.

Marsh has formed an international practice for all nuclear clients based outside North America, in an attempt to capitalise on the renewed global appetite for nuclear energy.

Prudential's failed $35bn bid to buy American International Group (AIG)'s Asian business, AIA, was "a bridge too far" for the UK life insurer, according to Maurice "Hank" Greenberg.

Gerova Financial Group has gained approval for its life and annuity reinsurance business, Gerova Reinsurance, to start underwriting in Bermuda.

Hardy Underwriting is set to become the latest Lloyd's (re)insurer to underwrite through the Society's Singapore-based Asia platform.

State Farm, one of the biggest participants in the US National Flood Insurance Program (NFIP), has said it is to stop writing policies under the federal plan, which has become caught in the legislative cogs of Capitol Hill.

Niche UK private equity investor BP Marsh has gone into partnership with Randall Goss-led wholesaler US Risk Insurance through a significant investment in its Lloyd's broking house.

Fears that broker Marsh would indirectly suffer as a result of a legal settlement by fellow Marsh & McLennan Companies (MMC) subsidiary Mercer have receded after the payout was limited to $500mn.

Three separate moves by (re)insurers on both sides of the Atlantic last week have highlighted the sector's continued focus on returning surplus capital to shareholders.

The World Cup is finally underway - and the stress the modern game now places on players is also raising anxiety levels among underwriters in the niche personal accident market.