May 2008/2

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

The chairman of "Class of 2005" firm Flagstone Reinsurance Holdings said its nimble stature was key to its ability to ride through the softer market conditions.

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.

First quarter profits fell at US insurer HCC Insurance Holdings Inc following losses in its investment portfolio.

Monoline bond insurers Security Capital Assurance (SCA) and Assured Guaranty Ltd (AGL) both reported further losses in the first quarter of 2008.

Berkshire Hathaway revealed first quarter net profits dropped by around 64 percent to $940mn from $2.6bn in the prior-year period.

French insurance giant AXA said its property and casualty revenues grew by 2 percent in the first quarter of 2008 to EU8.89bn compared to the prior-year period.

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.

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.

Swiss Re shares fell more than 5 percent last week after the reinsurance giant continued to disappoint analysts with further structured credit losses that halved Q1 profits.

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.

UK listed broker Jardine Lloyd Thompson Group (JLT) has strengthened its reinsurance operations with a slew of appointments from rival firms.