May 2013/4

Weekly share price movements and key data on The Insurance Insider's universe of P&C (re)insurers and brokers

A New York court has refused an application to dismiss American Airlines' claim that the 11 September 2001 attacks were an "act of war" on the US.

German run-off (re)insurer Darag has confirmed the acquisition of legacy carrier Hanseatica Rückversicherungs-AG in the first deal since its EUR60mn capital injection last month.

Four insurers need not pay $96mn to defend the consultancy First Advantage Litigation against a defamation suit it lost in 2011, a second circuit appeals court ruled last week.

An autumn trial is likely in Miami for a $1mn+ legal dispute between Costa Rican insurer the Instituto Nacional de Seguros (INS) and brokers Hemispheric Reinsurance Group (HRG) and Howden Insurance Brokers.

Southwest Risk's founder and former CEO Bryan Wilburn has been accused of conspiring with fellow executives to start a competitor company.

The Chinese Insurance Regulatory Commission (CIRC) has issued a three-pillar second-generation solvency framework that will look familiar to Solvency II watchers.

US Congressman Richard Neal reignited the offshore reinsurance debate last week after he unveiled his more "balanced" plans to limit the tax benefits that occur when US insurers cede business offshore to their foreign affiliates.

A leading member of Solvency II discussions has told The Insurance Insider that there is now a "political will" among the key players in the debate to finalise a deal on implementing the regulatory framework.

USAA is set to close its 20th Residential Re cat bond at $300mn after final pricing settled at the lower end of revised guidance.

Don Kramer's nascent insurance-linked securities (ILS) fund manager, ILS Capital Management, will be targeting marine business in the January 2014 renewals after hiring former Ariel Re underwriter Brian Gulbransen.

Despite the strong performance of its share price this year, Spanish (re)insurer Mapfre could enjoy a further re-rating once investors realise the strength of its growing international book and as the firm continues to successfully sell-off non-core assets.

Beazley Group's stock has been downgraded by equity analysts KBW and Westhouse following the Lloyd's (re)insurer's recent stellar performance on the London Stock Exchange.

The US P&C industry's reserve position at the end of 2012 looks stronger than it did a year earlier despite the continuation of releases that provided significant support to earnings, according to recent research from Conning.

The US National Oceanic and Atmospheric Association (NOAA) has added to the estimates of a potentially tough Atlantic hurricane season after predicting an "active or extremely active" 2013.

Although there was succour for cat underwriters with additional demand from standalone Floridians, USAA - a significant writer in the Sunshine State - took $525mn+ out of the traditional market as it downsized its cat programme.

Triggered by the dramatic softening of the cat bond market that began with the Nationwide issuance less than two months ago, US cat reinsurance pricing looks to be on a steep downward trajectory.

It seems there has never been a better time to be a reinsurance buyer in Florida, as the flood of traditional and non-traditional capacity vying for their custom pushes down prices and offers increasingly broad coverage options.

Last week's deadly tornado in Moore, Oklahoma is not expected to impact the reinsurance programmes of the major US nationals, despite the fact that it could rank among the most expensive single tornado touchdowns on record.

Australian mutual insurer the Royal Automobile Club of Queensland (RACQ) has resisted an offer from Berkshire Hathaway to write a 100 percent share of part of its catastrophe programme on a three-year basis, The Insurance Insider can reveal.

The New Zealand Earthquake Commission (EQC) is set to renew its NZ$3.25bn catastrophe treaty without a rate increase following two years in which it absorbed swingeing price hikes, The Insurance Insider can reveal.

Willis 360 will be a groundbreaking facility that looks to bring additional capacity from a significant number of carriers across a broad range of classes, according to Willis Global CEO Steve Hearn.

One of the pioneering aspects of Willis Global 360 is the broker's decision to include a sizeable book of reinsurance business.

Berkshire Hathaway's share of Willis's Global 360 facility will be substantially less than the 10 percent that is being talked about in some parts of the market, The Insurance Insider has learned.

While its rivals Aon and Willis have ended up on the front page with their high-profile initiatives, Marsh has succeeded in building a series of London market broker facilities quietly.

London market luminary Stephen Catlin has said he cannot think of a single instance where an insurer has given its pen to a broker with no restrictions that has performed well in the long term.

Markel is set to lose one of the key US property cat reinsurance executives who came over with its acquisition of Alterra as Greg Haft leaves for PartnerRe, The Insurance Insider can reveal.

UK private equity group 3i has marked up the valuation of its equity stake in Singapore-headquartered Asia Capital Re Holdings (ACR) by 15.2 percent, indicating a return to valuation levels before the 2011 Thai floods.

US-oriented Lloyd's business Cathedral has released an investor memorandum to interested parties and called for first-round bids by a date in the middle of June

Berkshire Hathaway had the lowest direct incurred loss ratio among the top 20 US excess and surplus (E&S) writers by direct premiums earned in both 2012 and 2011.

Berkshire Hathaway Specialty Insurance (BHSI) has continued to build its ranks with a series of senior and mid-level hires from AIG and its Lexington unit, as well as from the wider US surplus lines sector.

Marketform - the medical malpractice specialist that has eschewed US business since its launch in 1988 - will write US hospital professional liability from 1 June.

State-owned Indian reinsurer General Insurance Corporation of India (GIC Re) has approached potential turnkey providers ahead of a formal application to join Lloyd's, The Insurance Insider understands.

FTSE 100 insurer Aviva has started work on an application to join Lloyd's amid signs that the long-blocked Lime Street pipeline might be starting to open up, The Insurance Insider can reveal.

The US loss information service PCS has kept its fourth loss estimate for Superstorm Sandy stable at $18.75bn, which remains short of the $20bn mark at which significant industry loss warranty (ILW) capacity could be triggered.

Founding Axis CEO John Charman has been appointed chairman and CEO of Endurance Specialty in a surprise move.