June 2011/5

(Re)insurer Alterra and private equity partner Stone Point Capital have signed up six investors to join them in funding their New Point IV sidecar launched earlier this year.

Ratings agency Standard & Poor's (S&P) has downgraded $100mn of cat bond notes as the loss tally from May's Joplin tornado threatened to trigger cover for cedant American Family Mutual.

The size and quantum of investment opportunities in Enstar's medium-term pipeline prompted the run-off giant's search for an external capital injection, investors were told earlier this month.

Randall & Quilter (R&Q) is hopeful of completing its drive for additional capital over the summer months to help target larger-scale acquisitions, investors at the expansive UK run-off acquirer's AGM were told on 22 June.

Swiss Re last week agreed to purchase a circa EUR300mn run-off portfolio from Dutch insurer Ageas, in its second significant legacy transaction in as many weeks.

A US Supreme Court decision on a gender discrimination case brought by former employees of Wal-Mart looks likely to make it more difficult for complainants to secure class action status.

The Port Authority of New York can be sued for negligence for the collapse of one of the World Trade Center buildings, a US court of appeals has ruled.

Further evidence of a push for consolidation among the insurance-specialist London law firms has emerged after Beachcroft and Davies Arnold Cooper (DAC) revealed they are in talks over a potential merger.

Aon has obtained a temporary court order in Illinois to restrain its former construction services CEO Peter Arkley and other senior executives from seeking to poach clients or former colleagues, The Insurance Insider reported last week.

One group not hoping for an ease-up on the Solvency II deadline will be actuarial professionals, who have been able to command ever growing fees as the deadline for implementation gets nearer.

Industry expectation that Solvency II (SII) implementation will be delayed or softened has reached critical mass over the past week, as experts decipher a raft of statements from European regulators and political executives.

The Senate Banking Committee has heard further arguments for overhauling the National Flood Insurance Program (NFIP), with pressure building to reform the indebted programme before its scheduled lapse on 30 September.

The US National Association of Insurance Commissioners (NAIC) has welcomed the efforts of three US states to implement the Non-admitted Insurance Multi-State Agreement (NIMA).

Texan lawmakers may be forced into another special session of Congress if they fail to agree to adequate reforms of the state-backed Texas Windstorm Insurance Association (TWIA), Governor Rick Perry has warned.

UK (re)insurers have just one week left to ensure they have taken adequate steps to comply with the anti-corruption laws due to come into force on 1 July.

Referral fees paid in exchange for the details of potential bodily injury claimants are again under scrutiny just days after the UK government confirmed they would not be banned under its proposals to reign in civil litigation costs.

UK financial firms have been warned to expect a more active and intrusive regulator when the current Financial Services Authority (FSA) is split into the government's proposed "twin peaks" approach, according to FSA guidelines published today (27 June).

Reinsurance brokers Aon Benfield Securities and Guy Carpenter were among the winners at the third annual Trading Risk awards held in London on 23 June.

Swiss-based ILS fund manager Clariden Leu hopes structurers will adopt its groundbreaking work on the private cat bond market, opening up a less formal route to create liquid reinsurance investments.

First-time cat bond issuer Argo Group said turning to the collateralised market was an attractive option in the current uncertain market, as a hedge against rising retrocession pricing.

The aggregate profitability of US P&C insurers fell during the first quarter of 2011 as the combined ratio widened sharply to 102.2 percent, offsetting growing written premiums and increased investment income.

The settlement of Weatherford International with BP last week suggests that parties in the Macondo disaster are starting to view settling as preferable to continuing protracted and acrimonious legal battles.

Bermudian reinsurers released further loss reports for the US spring storms last week, as industry loss estimates suggest a total of $15bn.

Aon Benfield has estimated that insured losses for the powerful tornado outbreaks that struck the US in April and May total $15bn - nearly three times the 1990-2010 annual average for severe weather losses.

Ratings agency Standard & Poor's (S&P) has predicted that New Zealand reinsurance pricing may more than triple at the July renewals after the Christchurch earthquake losses.

Some 5,000 properties in Christchurch, New Zealand will be abandoned under a government plan unveiled last week.

Specialty US insurer Assurant has released details of its $1.3bn reinsurance programme for property catastrophe cover, which it placed with more than 40 reinsurers at the 1 January and 1 June renewals this year.

Global marine conglomerate AP Møller-Maersk (Maersk) is believed to have cancelled its account with Marsh and has also reduced its placements with Aon, taking the bulk of its insurance business to rival broker Willis, it emerged last week.

Randall & Quilter (R&Q) has continued its aggressive expansion by creating a managing general agent (MGA) writing across a range of bespoke liability and personal accident products.

Ascot has increased its 2011 Lloyd's stamp capacity from £600mn to £650mn, according to a statement from the American International Group subsidiary.

Lonmar Global Risks has defended its decision to sell its highly regarded casualty and exceptional risks business to Gallagher International.

Swiss Re has appointed Christian Mumenthaler to the new role of CEO of its subsidiary Swiss Reinsurance Company, effective from October.

Lloyd's managing agents and members of the International Underwriting Association are unlikely to face charges for connecting to the London market electronic exchange, The Insurance Insider has learned.

Caribbean insurance group Sagicor Financial Corp has cancelled plans to sell its Lloyd's business due to lack of interest, The Insurance Insider understands.

Zenkyoren, the industry's largest cat reinsurance programme, is to renew up by around 50 percent when signings are completed this week, The Insurance Insider understands.

Transocean blames BP; Lancashire gets A marks; Hooper confirmed as Cooper Gay CEO; Elite turns back on UK solicitors' PI ; Maiden in $100mn debt re-fi; Claims servicers hook-up; Sciemus enters orbit of launch insurance sector; Cable warns against investor ‘short-termism'; Montpelier in $250mn credit deal; Canopius UK retail refit; Surety thing for Travelers in Brazil; Stakeholders land at Eiopa group; R&Q boosts Booth; Tysers hires PI;  Aspen lures Allied SVP for UK PI; R

The bout of chaotic wrangling, bureaucratic arm-twisting and diplomatic posturing over Solvency II seen over the last seven days has been as unedifying as it has been predictable.

Suncorp will become the latest Australasian insurer to be penalised for claiming large recoveries on its 2010/11 catastrophe reinsurance programme, when its $5.6bn treaty renews later this week.