March 2014/5

The future of nascent Cayman Islands reinsurer Southport Re appears uncertain because of concerns over its capital base and the quality of assets it has been using to collateralise its underwriting, The Insurance Insider understands.

Ailing insurance services provider and acquisition firm Tawa last week confirmed losses of $78.3mn in 2013, more than three times the result in the previous year.

Former investment banker John Nelson will remain as chairman of Lloyd's until at least 2017 after the Corporation decided to extend his contract last week.

The stock market flotation of Lloyd's carrier Brit Insurance, the first in London by a specialty P&C insurer in more than eight years, has received a cool reception from investors amid a mood of heightened caution towards insurance stocks.

With Bermuda abuzz with talk of hedge fund reinsurance start-ups, Validus-supported PAC Re is exploring the possibility of expanding beyond property cat into other lines including casualty treaty, The Insurance Insider understands.

Although as yet there has been no kneejerk reaction within the industry following sanctions against Ukrainian and Russian individuals, insurers are currently reluctant to write new credit and political risk business exposed to these territories, according to several industry sources.

Major Russian insurer Sogaz has written a comfort letter to brokers this week confirming that Bank Rossiya, which became the subject of US sanctions last week, no longer has a controlling stake in the company.

The war underwriters for Malaysia Airlines flight MH370, led by Lloyd's insurer Atrium, have paid half of the $100mn hull loss owing to the continued uncertainty over the cause of the plane crash, The Insurance Insider understands.

Interest rates are set to rise gradually over the next three years, according to economists speaking at the Deutsche Bank London 100 working group roundtable last week.

Brit lists; Aon stalemate; Asia Pac tie-up; Shares postponed; AJ Gallagher departure; Tawa loss; BMS weather; Willis CFO...

Former Atrium underwriter Christine Dandridge has begun work on a Lloyd's start-up with backing from Brazilian investment bank BTG Pactual, The Insurance Insider can reveal.

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