May 2007/3

Benfield Group's 2005 move into primary lines continues to provoke concerns among some analysts about the reinsurance broker's prospects.

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.

Maintaining underwriting discipline and good cycle management will be key as falling aviation rates send the market towards the "burning cost" for airline business, according to Lloyd’s Annual Report 2006.

Stephen Way, the founder of HCC Insurance Holdings, has teamed up with the $8bn private equity group GTCR Golder Rauner LLC to back a new investment firm specialising in the insurance sector.

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.