October 2008/1

Credit derivatives – famously described as “financial weapons of mass destruction” by Warren Buffett – came back to bite his Berkshire Hathaway investment conglomerate as its profits slumped 77 percent in the third quarter.

Fallen insurance giant American International Group has unveiled a staggering $24.47bn third quarter net loss on the day it announced a $150bn revamped bail-out package with the US government it says is a “dramatic step forward for AIG and all of its stak

American International Group (AIG) and the US government are close to an agreement that would see the current $123bn bail-out of the troubled insurer replaced with a new $150bn programme that includes the buying up of toxic assets, according to reports.

Lloyd's (re)insurer Hiscox echoed a number of its peers in signaling a hardening (re)insurance market in its interim management statement; predicting a "greatly improved outlook" for 2009.

Shares in Munich Re traded up this morning after the reinsurer booked a EUR260mn consolidated profit for the third quarter – albeit 77 percent down on the prior-year period – as catastrophe losses and a 66 percent fall in investment income took their toll

Michael Bannon, assistant vice president of AIG's London aviation insurance division, has become the latest in a growing number of senior figures to leave their posts at the troubled insurance giant, The Insurance Insider understands.

Reinsurance broker Guy Carpenter has seen Q3 underlying revenue fall 10 percent year on year as reinsurance premiums continued to fall, while sister company, global broker Marsh, managed to grow underlying earnings 1 percent during the period.

Hannover Re has become the latest (re)insurer to slip to a third quarter net loss under the weight of heavy catastrophe claims and investment write-downs.

Global directors' and officers' liability (D&O) and errors and omissions (E&O) losses resulting from the credit crisis could hit $12.1bn, according to a report released today (5 November).

Swiss Re has become the latest reinsurer to slump to a third quarter deficit, as it booked a SFr304mn net loss for the period, driven by a SFr614mn operating loss in its life and health business.

Flagstone Reinsurance Holdings Limited has revealed a Q3 2008 net loss of $186.5mn, compared to net income of $66.2mn for the same quarter a year earlier as investment and catastrophe losses weighed heavily.

Independent reinsurance broker RK Carvill is separating its underwriting and broking businesses in a corporate restructure that will result in “material” redundancies, The Insurance Insider can reveal.