May 2008/2

Despite a slower than expected start to insurance linked securities (ILS) issuance in 2008, the pipeline of cat bond deals is again filling up, with a renewal of a Japanese quake bond expected to close shortly.

The European Commission (EC) has finally given public backing to the industry's response to concerns surrounding co-insurance, or subscription, market practices.

Pressure is mounting on American International Group (AIG) CEO Martin Sullivan as the crisis at the US giant deepened after a second consecutive record quarterly loss.

Munich Re's first quarter profits dipped 19 percent as it took a EUR578mn hit in its reinsurance division from the spate of major losses hitting the market in the period.

The UK Treasury is under renewed pressure to create a more favourable tax regime for businesses or face an exodus of corporations to overseas domiciles.

Shares in Highway Insurance Holdings plc nosedived after the UK motor specialist offered a bleak update on the sector leading to fears its dividend might be cut.

Bermudian sidecar-style reinsurer Castlepoint Holdings Ltd continued to grow both its top and bottom line in the first quarter.

Allianz Group's first quarter results have been hit by a EUR845mn writedown at subsidiary Dresdner Bank following "difficult market conditions".

Trading risk platform Insurance Futures Exchange Services (IFEX) is to facilitate margin trading during the North Atlantic wind season - in a move that may encourage greater activity on the derivative exchange.

Three companies have joined together to launch ACR ReTakaful Holdings Ltd, the largest retakaful company in the reinsurance industry with a capital base of almost $300mn.

The introduction of the Solvency II regulatory system in 2012 will be far more significant to European insurers than sub-prime losses and the credit crunch, according to a report by ratings agency Standard & Poor's (S&P).

Signs of recovery in the hard-pressed airline market are continuing with a 16 percent increase in April's hull and liability premium, according to Aon Aviation's latest report into the sector.