May 2007/3

The continuing uncertainties in catastrophe models were highlighted as a stumbling block to high ratings for insurance linked securities (ILS), such as cat bonds, last week.

London is destined to control a shrinking share of the world's insurance markets, both in absolute terms due to emerging market growth, and in relative terms as a result of "localisation", according to Luke Savage, finance director of Lloyd's.

HCC Insurance Holdings bucked the trend set by a number of its peers, as it announced last week record first quarter earnings and revenues up 28 percent.

In its first results filing as a public company, Bermuda's Flagstone Reinsurance Holdings Ltd reported first quarter net income of $35.6mn, as it bore net losses of $25.4mn from European Windstorm Kyrill and $6.9mn from satellite losses.

Greenlight Capital Re Ltd is expected to make its debut on Nasdaq in the next fortnight as it looks to raise $175mn in an initial public offering.

Italian (re)insurance giant Generali announced net profits up 20 percent for the first quarter 2007.

US giant American International Group (AIG) reported strong first quarter results on the back of a 31.5 percent increase in operating profits at its general insurance business.

French insurance giant AXA announced first quarter revenues up 34 percent, driven mainly by the Winterthur acquisition, sealed in January this year.

Converium Holdings AG CEO Inga Beale will receive a lump sum payment of SFr4.2mn when she leaves the company on completion of the takeover by French reinsurer SCOR.

Carvill announced last week a tie-up with AIR Worldwide Corporation that will see the modelling company support Carvill Hurricane Index (CHI) in its standard and near-term US hurricane models.

Russian insurance, investment and leasing group Oslo Marine Group Ltd (OMG) has established a London representative office headed by ex-Novae and CLM Insurance Fund plc executive, Keith Parker.

As SCOR found out recently, there are times when shareholders need an extra incentive before they will support take-out offers – and this is looking increasingly the case with the defunct reinsurer Alea Group Holdings.