June 2013/4

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

London-listed insurance services firm Randall & Quilter (R&Q) has continued its strategy of piecemeal run-off acquisitions after agreeing two deals in the past week, marking its first captive novation in Bermuda as well as its third Finnish acquisition.

Global broker Aon has revealed that it could be on the line for $150mn and $125mn respectively after being hit by suits from a Tennessee shopping mall and a Lithuanian oil-refining firm.

The International Accounting Standards Board (IASB) outlined proposals to update the accounting standards of insurance contracts in a revised exposure draft issued last week (20 June).

For those who still shudder at the name of Eliot Spitzer and the disruption caused by his campaign against the P&C industry in 2004-05, the recent muscle flexing by New York's new sheriff Ben Lawsky is likely to bring back uncomfortable memories.

Hiscox used its newly launched Bermudian special purpose insurer Kiskadee Re to complete several collateralised reinsurance transactions at the June renewals

Judy Klugman was named the Outstanding Contributor of the Year at the Trading Risk Awards 2013, held at London's Globe Theatre last week.

American International Group (AIG) has included new specialty risks not previously seen on the cat bond market in its $100mn Tradewynd Re cat bond, which will be the firm's first insurance-linked securities transaction with an indemnity trigger.

Assurant's new Ibis Re cat bond became only the second deal of 2013 to price above broker guidance as a quartet of new bonds neared closure last week, sister publication Trading Risk reported.

P&C investment allocations to hedge funds are expected to increase as barriers to accessing the asset class continue to come down

The world's number two reinsurer said today that it would shift $3bn of economic capital into higher-yielding investments and pay down $4bn of debt by 2016

The profitability of European (re)insurers will face headwinds from diminishing reserve releases in 2013 and beyond, according to Moody's.

David Cash disposed of his entire 1.25 percent stake in Endurance for almost $24mn within two weeks of John Charman arriving at the helm of the Bermudian.

Most company insiders at Bermudian (re)insurers continued to buy stock in their organisations in the second quarter

Credit Suisse insurance-linked securities (ILS) manager Niklaus Hilti estimated that the ILS market offers about $32bn of limit in a recent presentation summarised by Credit Suisse analyst Michael Zaremski.

P&C reinsurers are unlikely to make short-term gains by developing third-party fund platforms because the management fees involved will not be sufficient to fully offset the impact of pricing pressures on property catastrophe reinsurance rates

Investors have oversold the blue-chip Lloyd's and London market stocks on exaggerated fears of falling US property cat reinsurance pricing

AIR Worldwide has estimated that insured losses from flooding in Germany could range from EUR3bn to EUR5.8bn ($4bn-$7bn), notably higher than the early loss estimates

Insurers have paid $562mn in claims stemming from the severe storms and tornadoes that wreaked havoc across the state of Oklahoma during May, according to the state's insurance department.

Global marine insurance markets are continuing an anxious wait for new intelligence on the condition of the containership MOL Comfort, which broke in two in the Arabian Sea on 17 June.

Stephen Howard has returned to his former role as head of European investment banking at KBW following the departure of a number of his colleagues

Private equity firm First Reserve has declined requests for exclusivity from Torus bidders Enstar and ANV as it looks to avoid the execution risk associated with long periods of exclusive talks

Almost 1,300 UK solicitor policyholders have been given the chance to swap their professional indemnity (PI) cover from the now unlicensed Latvian insurer Balva to another unrated entity, Berliner Versicherung.

Thailand's National Catastrophe Insurance Fund (NCIF), the state-backed reinsurer set up to backstop insurers in the wake of the devastating 2011 floods, took in 465mn baht ($15mn) in premiums in the 14 months to May, it revealed in a statement today (24 June).

High profile London market producing broker Catherine Murray is set to join the expansive Chesterfield Group as an executive director to help with the expansion of the firm's North American business.

Revenues from commercial non-life insurance broking will rise by a fifth worldwide in the four years to 2016, driven by rising premium volumes as well as a growing tendency for businesses to use intermediaries when buying insurance, research firm Finaccord predicted today (24 June).

Fast-expanding Berkshire Hathaway Specialty Insurance (BHSI) has continued to build out its operations across the US with yet more senior industry hires in the last week.

Private equity firm Aquiline Capital Partners has reduced its holding in Validus and exited its investment in TigerRisk in recent months.

Nichols relocates to Zurich; GS-Ebix deal off; Hargreaves elevated; Ocean warming warning; Boris visits Lloyd's; BHSI hires from CNA

Liberty Mutual Insurance Europe Ltd (LMIE), part of Liberty Mutual Insurance Group's global specialty unit, is to target lead lines in the general aviation market through forming a new consortium.

Joseph Taranto will continue as chairman of Everest Re after he steps down as CEO at the end of the year, the Bermudian reinsurer has confirmed.

Arch will cease writing property insurance business out of Bermuda from the start of next month after losing two key underwriting executives

Tom Wafer, Adam Mullan, Greg Richardson and Andrew Cook have become the latest senior Alterra executives to leave after its takeover by Markel closed early last month, The Insurance Insider can reveal.

When an aircraft is taxiing before take-off and the stewards are warning of the mortal danger of lifejacket inflation inside the cabin and the wearing of stilettos on the inflatable exit ramp, one piece of genuinely useful advice never fails to register a knowing nod of recognition

Leading ILS fund manager Nephila Capital has temporarily shut its doors to new investment after adding another $500mn-$1bn of capital in the first half of 2013, in a sign that ILS funds are struggling to find attractive opportunities amid falling cat prices