May 2007/3

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.

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.

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.

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

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

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.

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.

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.

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.

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.