March 2012/3

European participants in the subscription market are set to be quizzed again on competitiveness as part of a review by the European Commission's Directorate-General Competition (DGC).

Travelers is fighting against paying claims related to multiple mortgage frauds that could reach over £50mn, after the actions of a partner at Willmetts Solicitors forced the UK law firm into liquidation.

Aspen has agreed to settle with Murriel Don Coal Inc over non-payment of a liability policy in the US that could have cost the (re)insurer over $42mn.

AmTrust subsidiary Warrantech is looking to settle out of court after being caught up in a legal inquiry by a multi-state attorney general taskforce on its involvement in an extended auto warranty scandal.

The Insurance Council of Australia (ICA) has welcomed the integrated mitigation measures highlighted in the Queensland Floods Commission of Inquiry report on last year's floods.

New Zealand insurers must now be licensed by the Reserve Bank of New Zealand, as the regulator looks to increase the capital levels held by the sector following the devastating earthquakes in 2010-11.

Mexico is planning to transfer nearly all its federal catastrophe risk to the capital markets after pioneering the first sovereign parametric cat bond in 2006.

It is unlikely that there will be a drastic change to the way the Solvency II regime treats sovereign debt as "risk-free" under its standard formula capital model, says Gabriel Bernardino, chairman of the European Insurance and Occupational Pensions Authority (Eiopa).

Solvency II could cause firms to relocate headquarters within Europe, according to Fitch. The agency's comments closely followed Hannover Re's announcement of a change in its legal structure that would allow it to redomicile.

Mitsui Sumitomo and Allianz are seeking a combined $290mn of cat bond capacity for protection against Japanese typhoon and Caribbean wind perils.

The future of Bermudian ILS start-up Dunamis is in question after funds failed to materialise to support deals pledged by the firm during the 1 January renewals.

Trading in unique Japanese industry loss warranties (ILWs) is increasing as reinsurers look to gain retrocession protection in advance of the 1 April renewals, sister title Trading Risk has revealed.

Two competing visions of how Qatar might emerge as a regional reinsurance hub were presented to delegates at the annual Multaqa Qatar conference in Doha last week, underscoring the challenges that the nation faces if it is to fulfil its plans to diversify its economy into financial services.

Court-approved settlements on US securities class action lawsuits fell to $1.36bn in 2011, the lowest level in more than 10 years.

Strong retro buffers were a defining feature of the 2011 results for a handful of canny reinsurers, as Hannover Re and Scor reclaimed more than EUR1bn on losses, according to analysis by The Insurance Insider.

The top four European reinsurers finished 2011 clearly ahead of their Bermudian and London counterparts on posted combined ratios, according to figures from The Insurance Insider's Data Room.

Earlier in the month when reporting on the oversubscribed $1.3bn Mitsui Sumitomo Insurance (MSI) fundraising, The Insurance Insider predicted that it may herald similar transactions as insurers look to shore up their capital bases after painful Thai flood losses.

ANV's pending acquisition of Flagstone at Lloyd's will again reduce the small collection of Lime Street businesses that are realistic takeover targets, further constraining the opportunities for would-be entrants to the market.

Profit at Groupama's up-for-sale UK operations increased by 84 percent in 2011 as its troubled parent posted a recovery in core operating results.

Catastrophe losses pushed Lloyd's underwriter Canopius to its first loss last year - posting a net hit of £64mn.

The average combined ratio for US reinsurers deteriorated from 95.4 percent in 2010 to 107.2 percent in 2011 as last year's cat burden took its toll.

The active start to the US tornado and thunderstorm season is unlikely to have a significant impact on reinsurers, with primary insurers largely retaining the losses because of their high deductibles.

Management at independent Lloyd's broker Besso Insurance Group has taken up an option to buy a 15 percent stake from interests associated with cornerstone shareholder BP Marsh.

Lloyd's chairman John Nelson has criticised the way Solvency II has been implemented and warned that it is one of the few threats to London's status as an international hub for specialist (re)insurance.