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.

Shares in Hartford Financial Services Group have slumped more than 35 percent in early trading today after the US insurer booked a $2.6bn Q3 loss, lowered its full-year forecasts, and failed to reassure analysts over its capital position.

Ironshire Insurance Ltd president and chief underwriting officer Les Rock has resigned from the Bermudian insurer for “personal reasons”.

RenaissanceRe slumped to a $231mn net loss for the third quarter as it was hit by the double impact of net realized investment losses and hurricanes Gustav and Ike.

Lloyd’s (re)insurer Advent Capital Holdings plc is on course to end the year in the black after a volatile first three quarters that have seen it just about break even for the year to 30 September 2008.

Newly Swiss-domiciled (re)insurer ACE Ltd has avoided the third quarter net losses posted by a number of its peers, but nevertheless saw its net income decimated by net realised investment losses and catastrophes as it plummeted 92 percent to $54mn.

Zurich Financial Services Group (ZFS) has joined a growing chorus of (re)insurers to reveal preliminary hurricane loss estimates, with expected claims payments from hurricanes Gustav and Ike amounting to $600mn before tax.

Modeling firm Risk Management Solutions (RMS) has almost doubled its initial estimate for industry losses from Hurricane Ike to a range of $13bn to $21bn – making it the third most expensive US hurricane in history.

Willis Group shares were trading down heavily after the broking giant reported third quarter profits below analysts’ expectations and said it was reviewing profit targets for 2009 and 2010 because of the financial turmoil.

Up-for-sale Transatlantic Holdings Inc has become the latest (re)insurer to post a net loss for the third quarter as the combination of financial market turmoil and catastrophe losses weighs heavy on the sector.

Securities law firm Klayman & Toskes has filed a class action against a list of prominent investment banks alleging that they failed to identify “misstatements and omissions” in an American International Group prospectus for a debt issue they were underwr

Lloyd’s insurer Amlin plc has revealed its star head of underwriting Tony Holt will stand down from executive responsibilities at the end of year, taking a non-exec board position.

Bermudian (re)insurer Platinum Underwriters Holdings Ltd reported a Q3 net loss of $45.3mn, compared to $91.3mn for the same point in 2007.