October 2005/5

Lloyd’s insurer Hiscox plc painted an upbeat picture of the company’s prospects despite increasing its net loss estimates by $10mn on Hurricane Katrina. In an announcement to the London Stock Exchange this morning (31 October), the company said it...

Catastrophe modelling firm Risk Management Services (RMS) has increased its estimate for insured losses caused by Hurricane Wilma to a range of $8bn to $12bn.

Bermuda headquartered (re)insurer Quanta has joined the growing list of companies increasing their estimates of losses incurred as a result of hurricanes Katrina and Rita. In an announcement this morning (27 October), Quanta said it now believed its...

Post-Katrina start-up activity is gaining momentum with news that US insurer Chubb Corp is set to help launch a new Bermudian reinsurer, Harbor Point Ltd. Chubb will own 16.25 percent of the new company, which will begin writing business from...

Bermudian based insurance giant XL Capital has seen its shares fall sharply after estimating a third quarter post-tax catastrophe loss of $1.47bn.

Ed Noonan, the former chief executive of America Re, is to head the latest reinsurer set to establish itself on Bermuda. Validus Holdings Ltd is currently raising funds via a US private placement and, according to well placed sources, is being...

HCC Insurance Holdings has acquired the Lloyd’s based liability insurer Illium Insurance Group Ltd. HCC, which has provided capital to Illium since it began underwriting in 2004, has acquired the remaining 80 percent of the outstanding shares in the...

After equalling records by becoming the 21st named storm in a season, Hurricane Wilma this week ploughed its way across the Florida peninsula, flattening houses and businesses and leaving flooding in its wake.

AM Best’s decision to downgrade Montpelier Re despite the reinsurer raising $600mn in the aftermath of Katrina is the latest example of the get tough approach of the rating agencies. It is also good news for the proposed start-up reinsurers who are...

The Financial Services Authority (FSA) gave a stark warning against using CAT models with insufficient data as it announced it is to launch a review of the models place in risk management systems. Speaking at the ACORD Forum in London last Thursday...

Atrium Underwriting plc has increased the loss estimates from Hurricane Katrina on its two syndicates from £42.7mn to £52.7mn. The majority of the increase occurred on Syndicate 609 which climbed from £32.8mn to £42.6mn.

America’s second largest personal line insurer Allstate has said it will reduce coverage of homeowners’ risks in the Gulf Coast region after being hit by a $1.55bn loss in the third quarter as a result of Hurricane Katrina. Speaking to analysts in a...

After three days of pounding Mexico’s coastline, Hurricane Wilma has made landfall on Florida’s west coast. According to the latest information, the category three hurricane, which is packing 120mph winds and moving at around 20mph, came ashore just...

Despite the depredations of the 2004 and 2005 hurricane seasons, the US property/casualty sector appears to be in rude health – at least for the time being, if the latest industry report from ratings agency AM Best is to be believed. In its report...

A new report has found that regulatory probes are placing the boards of (re)insurers under increasing pressure over a range of issues. The report by Moody’s Investor Service highlighted finite risks, mutual funds and potential conflicts of interest...

If any of Renaissance Re’s management were forced out of the reinsurer because of the Securities and Exchange Commission’s (SEC) investigations into the firm, it would probably lead to a downgrade warned rating agency Moody’s last week.

Insurance giant American International Group Inc (AIG) appointed the former Securities and Exchange Commission (SEC) chief accountant Michael Sutton to its board of directors last week. Sutton, who served as chief accountant at the SEC from...

Lloyd's insurer Catlin announced on 19 October that it expects to be hit with estimated net losses of $60mn from the damage caused by Hurricane Rita. The group's gross loss estimate for Rita is $90mn with the insurer expecting to receive $30mn from...

Markel Corporation has announced the formation of a new marine and energy insurer, Markel Global Marine & Energy. Steve Cullen, formerly president of the Marine and Offshore Energy Division of XL Insurance, will head the unit and will be responsible...

Property rates have increased by as much as 20 percent in the aftermath of this year’s devastating hurricanes according to a survey conducted by Advisen. The RIMS Benchmark Survey showed that third-quarter renewal prices were dropping before Katrina...

The London Market is missing out on millions of pounds in savings because of its failure to embrace new technology that would speed up business processes. At the ACORD Forum on 20 October, London was described as resistant to change and slow to act...

Willis Corp is being sued by the owner of the Millennium Hilton in Manhattan, New York for alleged negligence in securing business interruption cover for the hotel group. Millennium & Copthorne Hotels plc, the owner of the Millennium Hilton, has...

(Re)insurer Heath Lambert announced the addition of two new directors to its reinsurance business on Friday 21 October. Both Roland Vella and Chris Underwood are joining Heath Lambert from Lloyd’s broker Thompson Heath & Bond.

The black boxes have been recovered from the site of Saturday (22 October) night’s plane crash in Nigeria. The Bellview Airlines Boeing 737 crashed minutes after take-off in Lagos on its way to the Nigerian capital Abuja killing all 117 crew and...