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.

Allstate Insurance Co announced that it would not be writing any new homeowners policies in the state of California from 1 July.

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.

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.

The impact of recent changes to the Florida Hurricane Cat Fund (FHCF) will be less than originally anticipated, according to Geoffrey Bromley, non-Americas chairman of reinsurance broker Guy Carpenter.

Despite a hiatus at the beginning of the year partly fuelled by events in Florida, the industry has returned to one of the most notable trends in recent years – securitising its business into the capital markets.

RenaissanceRe is set to launch a second Starbound Florida-dedicated sidecar as evidence emerges that the impact of the state’s hurricane catastrophe fund expansion earlier this year may be less severe than first feared.

Provisional liquidator Grant Thornton has confirmed the initial dividend payment under its proposed UIC Insurance Company Limited scheme of arrangement has been set at 100 percent.

Heath Lambert, the UK broker that has to continually fend off takeover speculation, has restructured its operations following the departure of a number of executives.

Synergy Insurance Services, an innovative UK insurer that has been in the pipeline for a number of years, is finally launched this week amid claims that its structure could allow small and medium-sized businesses to save up to 40 percent of their insuranc

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

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.

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.