May 2011/1

National Indemnity Company (NICO)'s reinsurance deal last month to assume $3.5bn of American International Group (AIG) liabilities in advance of its planned IPO was also further demonstration of Warren Buffett's enduring appetite for asbestos risk.

A potentially pivotal ruling in a Rhode Island court has approved a commutation plan for a solvent insurer to extinguish its liabilities without going into insolvency, in a ruling that could have significant implications for commercial (re)insurers with a run-off portfolio in the States.

Defunct Bermudian retro player PXRE - now owned by UK-listed run-off acquirer Tawa - has received approval from the Connecticut Insurance Department to withdraw $22,800,000 in the form of a cash dividend to its immediate parent WT Holdings, Inc.

After Randall & Quilter (R&Q)'s shares climbed 19 percent on the London Stock Exchange in the first four months of 2011 its year-end results largely validated investors' enthusiasm.

Goldman Sachs' private equity arm has agreed to invest up to $291.6mn for a 19.9 percent stake in leading Bermudian run-off player Enstar, becoming the group's largest single shareholder in the process.

The Financial Services Authority (FSA)'s Solvency II contingent has quadrupled in size in the last year as the regulator tries to keep pace with the EU's schedule.

UK insurers don't hear too much about "proportionality" from their regulator these days but there was a welcome echo last month when the Financial Services Authority (FSA) said it would impose a two-tier approach to Solvency II.

International insurance groups continue to oppose recent Brazilian government legislation that restricts global reinsurers' ability to write business from the country.

The simmering tensions between some brokers and insurers risked spilling into open hostilities during April as arguments again erupted over broker remuneration.

Warren Buffett's Berkshire Hathaway may sue former executive David Sokol to recover any damages suffered by his acrimonious departure in March.

Liberty Mutual is blocking a proposed settlement between American International Group (AIG) and other insurers related to alleged under-reporting of AIG workers' compensation premiums.

It has been a steady start to the second quarter for cat bond sales, with three repeat offers coming to market.

RMS has called for S&P to take a multi-model view on rating cat bonds after the latter announced plans to review a group of bonds under the modelling agency's new hurricane model.

Prices on the Muteki cat bond for Japanese carrier Zenkyoren have plummeted in the secondary market after ratings agency Moody's warned it was set to be a complete loss to investors.

As Cooper Gay announced its results, fellow privately held IPO candidate, broking and MGA group Hyperion was unveiling its latest acquisition.

Wholesaler Cooper Gay Swett & Crawford suffered pre-tax losses of $8.5mn in 2010 as it reported for the first time as a combined entity.

It has been busy month in the broking word as many switched allegiances and reshuffled their management teams.

The major brokers produced a strong recovery in their Q1 revenues amid returning global economic growth, as firms with the greatest exposure to the fastest-growing economies performed the best.

The prospect of changing market conditions for US and Bermudian P&C (re)insurers appears to have brought a subtle shift in the sector's investor base this year towards institutions focused on "growth" rather than "value" strategies.

First quarter catastrophe losses wiped an average 8.53 percent off investors' capital held in international reinsurers, according to The Insurance Insider's loss table.

Swiss Re confounded market expectations by keeping its Japan losses static as it reported a net $665mn loss for the first quarter.

Catastrophe losses have caused a batch of red ink results among reinsurers this quarter. But a mid-season tally compiled by The Insurance Insider shows that they have kept losses to an average 5.28 percent strike on 2010 year-end shareholder equity.

Global (re)insurers' share buyback programmes will be put on hold in wake of first quarter catastrophe losses, predicts Aon Benfield.

Names with exposure to dedicated Lloyd's motor underwriter Equity Syndicate 218 have begun voicing concerns as the syndicate revealed a £499mn loss for 2010 on an annual accounting basis.

Marketform Syndicate 2468 lost £81mn in 2010 as it was again forced to strengthen its reserves to cover mushrooming losses from its run-off Italian medical malpractice portfolio.

Kiln matched Lloyd's quoted aristocracy Amlin and Hiscox in posting a sub-90 percent combined ratio for 2010 as it withstood a significant uptick in cat activity.

The Hanover's takeover bid for Chaucer could face a struggle to complete at the current recommended price after lead shareholder Pamplona voiced its opposition to the terms.

Delphi Financial's due diligence ahead of formalising its offer for Omega is moving at a glacial pace, as a serious takeover approach for the Lloyd's carrier again struggles to gain traction, The Insurance Insider can reveal.

The tornadoes that raged across the southern US and Midwest last month could cost more than $5bn, with some senior figures privately calculating the figure could be closer to $8bn-$10bn.

Concerns over major contingent business interruption (CBI) claims emerging from the 11 March Japan disaster are growing as a host of well-known names including Ford, Apple and General Motors have put their insurers on notice of possible claims, The Insurance Insider has learned.

Liberty Mutual rescues Quinn Insurance; Green light for CEO; Generali's EUR16mn goodbye; Berkley upbeat...; ...And so is Munich Re; $100mn brand protector; Montpelier raises $150mn; Scor's $900mn life move; Jain's hagiography; Japan giants' earnings fall; QBE leads $160mn floatel Jupiter loss

Towergate looks beyond 2010 losses; JLT Re hire; Lightyear withdraws; RBSI cleans up; BMS launches Lloyd's MGA; Nelson next; JLT's Thistle de-headed; RSA upgraded; Hardy hire.

The triggering of a key 70bn yen layer exposes cat reinsurers to further losses as PartnerRe becomes first to publicly increase its estimates...

Deep-keeled boats in a tidal port all tend to face the same way - their bows pointing against the direction of the tidal flow.

Less than two months after completing the protracted £880mn ($1.4bn) Brit Insurance buy-out, the private equity consortium Apollo and CVC are reducing their exposures to the Lloyd's insurer, The Insurance Insider can reveal.

On the eve of another hurricane season, US cat reinsurers are now widely expected to enjoy typical rate increases of around 10 percent on their mid-year renewal programmes as the scale of recent catastrophe losses, changes to the RMS model and falling reserve releases make their mark on the psychology of capacity providers.