May 2007/3

In an era of increased globalisation, "understanding and preparing for political violence has arguably never been more important for business", according to Lloyd's chairman Lord Levene, at the launch of a new report on terrorism.

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.

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.

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

Talbot is expected to announce within days that it has found a buyer in Bermudian (re)insurer Validus Holdings Ltd (Validus). The Insurance Insider revealed in its May issue that Validus has emerged as the front-runner to buy the Lloyd’s managing agency.

In the week that Talbot is set to announce a profitable sale to Bermudian (re)insurer Validus (see article 7), its predecessor company, Allegheny Underwriting drew-down a further £29.9mn from the Lloyd's Central Fund to cover its legacy losses.

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.

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.

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.

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.

Investors in PXRE's Atlantic & Western Re (AWR) cat bond have recovered the principal after the bond was effectively triggered by the Bermudian reinsurer's default.