November 2010/3

Tough trading conditions for (re)insurers amid soft pricing and stagnant investment returns has raised the question of whether the traditional sector target of a 15 percent return on equity (RoE) is sustainable.

A number of Lloyd's insurers are reining in capacity amid falling prices, despite excess capacity in most market lines.

Hardy Underwriting took the highest proportional loss on the New Zealand earthquake of the international reinsurers to report to date, with its £10mn hit representing nearly 7 percent of its mid-year shareholder equity.

Changes to Risk Management Solutions' (RMS) US hurricane model set for release in February 2011 could increase outputted average annual loss (AAL) figures by 25-30 percent for (re)insurers, The Insurance Insider can reveal.

QBE Insurance is attempting to buy a giant $1.3bn, multi-year global reinsurance programme that will test the state of the market as the key 1 January renewal date approaches, The Insurance Insider can reveal.

CatCo, the aspiring catastrophe reinsurance fund, is hoping to raise sufficient capital to list on the London Stock Exchange next month.

Hardy Underwriting has rejected a second 330p per share offer from Beazley that values the company at £170mn, and has refused to consent to takeover talks.