November 2012/4

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

UK outsourcing giant Capita plc has been censured by UK regulator the Financial Services Authority (FSA) over the collapse of the Arch Cru funds.

London-listed run-off-to-live services company Randall & Quilter Investment Holdings (R&Q) has continued its piecemeal acquisition strategy with the purchase of the legacy Finnish reinsurer, Alma Insurance Company Ltd.

The delay in introducing the Solvency II regime has been unhelpful to managements trying to contain costs, according to Swiss Re CEO Michel Liès.

Lloyd's is seeking to adjust its aggressive timetable for pushing through Solvency II plans in recognition of the likely delay of the new regulatory regime until 2016.

The proposed piecemeal introduction of the delayed Solvency II regulatory regime continued to gather support this month, with the chairman of the body charged with overseeing its implementation acknowledging the idea in an important speech last week.

The Swiss Re Cat Bond Price Return Index slid 0.7 percent the week RMS released its $20bn-$25bn loss estimate for Hurricane Sandy, taking the total slump since 26 October to 3.2 percent.

Hong Kong-based advisory firm ILS Advisers hopes to raise $50mn-$100mn for a new insurance-linked securities (ILS) fund-of-funds in the first half of next year.

Lloyd's syndicates have predicted slightly improved results for the 2010 year of account, with the average 1.1 percent mid-point loss on capacity moving to a 0.2 percent gain.

The price of airline insurance is likely to hit its lowest point since 9/11 as the industry enters its two largest months for renewals, according to Jardine Lloyd Thompson Group (JLT).

Last week saw a new front open up on the Hurricane Sandy loss tally after a major boating organisation released a $650mn estimate for damage to pleasure craft due to the storm.

Swiss Re, the world's second largest reinsurer, has said it expects around $900mn of claims from Sandy, based on an industry loss estimate of $20bn to $25bn.

The official $11bn PCS claims estimate for insured losses from Hurricane Sandy - which was unveiled last week - bolstered commentators who said the disaster could cost less than feared, but will test the agency's processes for estimating commercial losses.

American International Group (AIG)'s share price has increased 41 percent during 2012 to date to $32.75, as equity investors have rewarded the company's turnaround and aggressive capital management.

American International Group (AIG) announced last week that it plans to launch a new joint venture with the soon-to-be-floated People's Insurance Company of China (PICC) after subscribing for about $500mn of PICC Group shares.

American International Group (AIG) has said it will welcome supervision by the Federal Reserve following its likely designation as a systemically important financial institution (SIFI), according to reports last week.

Bermudian (re)insurer Endurance Specialty Holdings has bought Marty Malinow's Galileo Weather Risk Management to use as the launchpad for new weather trading unit Endurance Global Weather, reports sister title Trading Risk.

Veteran specialty reinsurance underwriter Tony Lovett's Hyperion-backed MGA Tamesis Dual is set to double premium income in 2013, The Insurance Insider has learned.

Lloyd's specialist insurer Marketform has hired two new medical malpractice underwriters from Barbican to replenish the team after three of its members recently left for RenaissanceRe.

Sharp rate declines in the airline sector are ignoring the growing potential for accumulated losses in other business lines due to natural catastrophes, according to Richard Etridge, head of aviation at Torus.

The Association of British Insurers (ABI) was slammed by UK ministers for its "opportunistic" attempt to negotiate on flood insurance cover when parts of the country have been hit by severe flooding.

The International Group (IG) of protection and indemnity (P&I) clubs has announced that it is to increase the individual retention of its member clubs to $9mn at the next renewal on 20 February 2013.

Bermuda is still well-placed to maintain its global prominence in the (re)insurance markets despite the increasing trend for "regionalisation" of risk placement, Axis chairman Michael Butt told the London market last week.

Former Equity Redstar owner Eddie Truell is the preferred bidder for the troubled Lloyd's motor business, as Australian parent IAG prepares to sink a further £30mn into Equity to satisfy the Lloyd's Performance Management Directorate.