November 2012/3

Industry loss warranty (ILW) limits of $350mn-$400mn could be on the line to pay out as a result of Superstorm Sandy if industry losses rise as high as $20bn, sources estimated.

Montpelier Re has enlisted the support of Barclays Capital to launch a new London-listed reinsurance third party fund manager and sidecar, according to fundraising presentations obtained by our sister publication Trading Risk.

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

Chubb would make an attractive acquisition for Warren Buffett's Berkshire Hathaway, Barclays Capital analyst Jay Gelb argued last week.

Despite the increasing role of non-traditional capacity in recent years, the use of traditional reinsurance capital will continue to be the main leverage tool for growth at insurers, according to a survey by Guy Carpenter.

With $100mn of the recent $130mn deterioration in the Costa Concordia protection and indemnity loss attributed to increases in the cost removing of the stricken hull from a shallow ledge off the coast of Italy, a successful re-floating of the vessel is key to the resolution of the claim and its final cost.

Zurich Insurance Group's third quarter results fell short of analysts' expectations as it took a pre-announced reserve strengthening of $550mn in some German long-tail liability lines such as medical malpractice.

While the majority of US and Bermudian (re)insurers reported third quarter results that benefited from continued prior-year reserve releases, a number were also impacted by unfavourable development on long-tail business, including asbestos and workers' compensation.

The six London-listed (re)insurers cautiously talked up the potential for Superstorm Sandy to underpin property catastrophe rates as they commented on market conditions in their recent Q3 interim management statements.

Kiln was one of several Lloyd's insurers to lift its forecast syndicate results for the 2010 year in the past week, putting its flagship Syndicate 510 on track to make a profit.

The final Lloyd's auction of 2012 was completed on 14 November and saw £12.71mn of capacity change hands for a total of £742,708.

The latest round of elections to the 18-member Lloyd's Council has seen five members re-elected unopposed for fresh three-year terms.

Acquisitive Lloyd's insurer Canopius has strengthened the reserves of Omega's Syndicate 958 by £27.8mn as it seeks to close the book on losses belonging to the old regime.

Philip Wray, founding active underwriter of Kiln Syndicate 1880, has left the company, sister title Inside FAC revealed last week.

Hiscox has hired directors' and officers' (D&O) underwriter Chris Warrior from its Lloyd's rival Beazley to become head of D&O at Hiscox Syndicate 33.

Argo's Syndicate 1200 has cut back its premium income targets for a number of lines for 2013 and will not enter the bloodstock market as previously planned, according to pre-auction disclosures.

The three Lloyd's members' agents are divided over whether to support a planned pre-emption by Ryan Specialty Group (RSG)-managed Jubilee Syndicate 5820, highlighting divisions within the traditional Names community over the support of syndicates that, like Jubilee, welcome their capital.

The US government-backed National Flood Insurance Program (NFIP) is on course for another bail-out, with the deluge of claims from Superstorm Sandy expected to burn through its $900mn cash reserves and remaining $2.9bn borrowing authority by the end of the month.

With P&C stocks trading down as a result of the uncertainty surrounding the ultimate impact of Superstorm Sandy, strong fundamentals and post-event pricing potential are drawing renewed interest from investors looking to capitalise on a return to upward movement in the sector.

Few companies released a public estimate of their potential Sandy losses during the recent earnings season as the wide range of industry loss estimates from modellers illustrated the complexity of the task.

Guggenheim Life, which has the backing of private equity firm Apollo, is in exclusive talks to acquire Aviva USA, it has been reported.

The sale process of UK-listed run-off acquirer and (re)insurance service provider Tawa has been complicated by bid structures that have large contingent elements, according to well-placed sources.

The largest Hong Kong IPO of 2012 is earmarked for 7 December as fundraising began in earnest this week for the listing of giant Chinese insurance group PICC.

Jeffrey Greenberg-led private equity firm Aquiline is currently the favourite to come out on top in the auction for UK motor insurer Equity Redstar, but all of the bidders are struggling to get to grips with the target's pension predicament, The Insurance Insider can reveal.