June 2012/4

Tawa's long-term strategy has vexed many legacy market observers, with the company earning a reputation as an enigma wrapped in a mystery.

Bermudian run-off giant Enstar leads the queue of suitors interested in purchasing the up-for-sale run-off portfolios of Tawa, The Insurance Insider understands.

Corporate financier Evercore has bowed to the inevitable and started sounding out interest from legacy buyers over a potential sale of Australian insurer IAG's UK unit, The Insurance Insider understands.

Fairfax Financial Holdings subsidiary RiverStone has trumped legacy acquisition rivals such as Enstar and Catalina to acquire over $1bn of Brit Insurance reserves from its UK run-off business, BIL.

Former Dewey & LeBoeuf partner Henry Bunsow has sued the fallen law firm's leaders, including chairman Steven Davis, alleging that they misrepresented the firm's finances.

US broker Alliant has won a significant victory in its home state of California against larger rival Aon over the mass defections last year of a construction team led by Peter Arkley.  

The London market (re)insurance sector is undervalued by around 30 to 40 percent based on a fundamental analysis of expected cost of capital versus the sector's projected return on equity (RoE) performance, according to Espirito Santo analyst Joy Ferneyhough.

The European Insurance and Occupational Pensions Authority (Eiopa) almost doubled its expenses from 2010 to 2011 as Solvency II preparations gathered pace, according to the EU insurance watchdog's latest annual report.

Insurers and London brokers should consider amending contracts with clients in countries they consider to be at risk of exiting the euro to include "continuity" and "re-denomination" clauses to prevent arguments over premium payments in a new currency, the London Market Association (LMA) advocated in an advisory paper.

UK motor insurers won't be able to crack down on claims farming for whiplash claims without support from government and regulators, a panel of senior claims experts said in a report published by Clear Path Analysis last week.

Heavyweight London-based underwriting bodies the Lloyd's Market Association (LMA) and the International Underwriting Association (IUA) last week welcomed potential amendments to proposed financial services reforms that would bind future regulators to act in a "proportionate, reasonable and fair" manner.

Insurance-linked securities (ILS) premiums rose 8.47 percent on a risk-adjusted basis from the end of the first quarter to the end of May, according to Willis Capital Markets & Advisory data.

Industry loss warranty (ILW) prices for peak US wind covers dropped about 10 percent in June with very little trading in the contracts after a smooth renewal on the traditional market, sister publication Trading Risk reported last week.

Specialty carriers that look to aggressively grow premium in a softening market tend to suffer a deterioration in underwriting performance, an analyst has said.

Underlying growth at Lloyd's and London-listed carriers was muted in Q1 by the impact of ceded premium and third party capacity, according to Espirito Santo analyst Joy Ferneyhough.

A moderate firming in the US P&C market combined with a gradual economic recovery is expected to boost brokerage revenue over the next year, according to rating agency Moody's.

US insurer Assurant Inc has bulked up limits on its property cat reinsurance programme by more than 15 percent to keep in line with its growing catastrophe exposures.

Chartis is set to expand its high limit cover plan for commercial property across the globe after subsidiary firm Lexington pioneered the product in North America.

Demand for cyber risk cover in Europe is set to soar in the next two years, spurred on by EU data privacy regulation expected to be issued in 2014, according to a specialist cyber risk broker.

UK risk managers' trade body Airmic has announced that it will be working with the "big three" brokers to create a compliance database of international regulations for global insurers.

A Dallas hailstorm that struck on 13 June could cost insurers around $2bn, making it one of the most expensive storms to strike the US so far this year.

Bermudian (re)insurer Validus Holdings has announced that it will buy back shares worth some $204.3mn after completing a previously announced modified Dutch auction process.

The £300mn bill the Lloyd's market has incurred in preparing for Solvency II should have been far lower and the process for implementing the regime has been "extraordinarily painful", Lloyd's chairman John Nelson told delegates at the London conference of the Association of Lloyd's Members last week.

Lloyd's chairman John Nelson has issued a challenge to Members' agents to come up with plans to help "invigorate" and streamline the use of Names capital at Lloyd's.

Expansive broking and insurance group BMS says it is on track to meet its revenue growth target of 15 percent and an uplift in profits of more than 25 percent in 2012.

A number of Zurich-based staff left Novae Re last week following the exit of the firm's two most senior staff last month, The Insurance Insider revealed last week.

Lancashire Group is trimming its book by some 10 percent by exiting the property direct and facultative (D&F) and onshore energy markets with immediate effect.

Florida insurer Universal Property & Casualty Insurance Company (UPCIC) moved its circa $300mn quota share account to Odyssey Re from Everest Re in a re-structure of its reinsurance programme in June.

Arch moves Rajeh to Europe; Dual opens in Austria; JaPro buy for Ace; Great American move for ex-QBE exec; R&Q completes Trimac; EQC confirms renewal; Ironshore positive; Mapfre downgraded; Langley eyes abseil in Jimmy Choos; Markel moves to Walkie Talkie; It gets personal for Travelers in the UK; Stanford gets 110 years; Southport docks two workers' comp deal; Ex-Collins broker forms StoneHill in Minneapolis

RMS Version 11 (v11) overstates the impact of windstorm risk on (re)insurers writing business in the UK and does not adequately reflect the nuances of carriers' unique portfolios, big three broker Willis Re has said.

RMS will not follow up its imminent "update" on its European windstorm cat risk model with a modification of its US model this year despite criticism from the market, the catastrophe risk modeller has said.

The past week has been a good one for anyone looking for indications of the enduring appeal of the London market and the Lloyd's platform that lies at its heart.

Bermudian (re)insurer Alterra is still working on a renewal of its retro-focused $200mn+ sidecar New Point Re IV, although it did not deploy New Point capacity in the June renewal, sister publication Trading Risk has reported.