May 2009/3

Newly founded Zurich-based Perils AG estimates the property insurance market loss for windstorm Klaus at EUR1.55bn.

A second Lehman Brothers-backed catastrophe bond is in default after issuer Ajax Re failed to repay principal at the 8 May redemption date, according to AM Best, which downgraded and withdrew its debt rating on the $100mn earthquake cat bond.

With investor calls for peril diversification in insurance-linked securities (ILS), Munich Re's EUR100mn European windstorm and Turkish earthquake cat bond - Ianus - will be seen as a welcome move.

Paris Re has given a cautious welcome to price hardening in some of its core short-tail lines of business, but has again struck a notably less excitable tone than many in its global P&C (re)insurance peer group...

Insurance giant Allianz saw its net income for the first quarter of 2009 drop by EUR1.12bn to EUR29mn compared to Q1 2008, as write-downs almost doubled to EUR708mn and its property and casualty (P&C) business produced sluggish figures.

Lancashire Holdings saw its first quarter revenues fall sharply as it said it was holding back capacity to take advantage of "improving opportunities".

Everest Re Group Ltd has become the latest Bermudian to establish a full European underwriting platform with the launch of a EUR200mn Irish subsidiary.

Florida's state-backed insurer Citizens Property Insurance Corporation has pulled its reinsurance spend from the private market for 2009 because of the increased cost of cover.