October 2007/6

Stock in US (re)insurance giant, American International Group Inc (AIG) plummeted by nearly 10 percent in a day on Thursday (25 October), as worries about its exposure to the sub-prime mortgage market mounted.

German insurance giant Allianz SE is expected to launch a new issue of European peril catastrophe bonds through a newly created vehicle, Blue Fin Ltd, Insider Week understands.

Bermudian (re)insurer XL Capital dismissed rumours of significant sub-prime related losses in its financial and professional lines portfolio last week, stating that indeed the crisis provided "an attractive opportunity" for the class.

The threat of "economic populism" is one of the greatest challenges facing the US insurance industry, according to Property Casualty Insurers Association of America's (PCI) president and CEO David Sampson.

Beaufort Underwriting Agency Ltd has become the latest Lloyd's insurer to be acquired this year as interest in Lime Street continues unabated.

Bermuda-based Lloyd's insurer Hiscox Ltd will replace its $360mn sidecar Panther Re with a Lloyd's special purpose syndicate next year.