October 2008/1

The legacy sector is eagerly awaiting news on Travelers’ decision over the sale of its UK-based long-tail run-off business, Unionamerica Insurance Company, which attracted a frenzy of potential buying interest over the summer.

The paradox of the legacy industry is the more successful you are; the less you have to do. Indeed, the UK non-life run-off market has now shrunk 30 percent in four years and, at £28.3bn, is the smallest it’s been for at least a decade.

Tawa plc’s share price is now 40 percent lower than its 2007 IPO price as investors responded badly to the firm’s profit slump last month on the back of continuing losses from the bond portfolio of its CX Re subsidiary...

The annual migration of the US legacy business to the fringes of New York occurs this month with the melt-down in the financial markets and the implications for (re)insurers the inevitable main topics of conversation.

The 6 October saw Randall & Quilter (R&Q) affiliate Cavell USA launch its UK offensive against private equity owned Seaton Insurance Co and Stonewall Insurance Co in the English Commercial Court for alleged breach of...

The Lloyd’s sidecar vehicle, Managing Agency Partners (MAP) Syndicate 6103, intends to renew its capacity for 2009.

Lloyd’s insurer Hiscox Ltd has come to an agreement with members’ agents over plans to launch a new syndicate backed 100 percent by its own capital to transfer business currently underwritten on its Names-backed Syndicate 33.

The total volume of capacity traded in Lloyd’s auctions ahead of the 2009 year was the lowest since the process was introduced in 1995, according to members’ agent Argenta Private Capital.

ICAT Syndicate 4242, the US property catastrophe specialist managed on a turnkey basis by Lloyd’s insurer Chaucer Holdings plc, is seeking new capital providers as it looks to maintain its 2008 capacity at 2007 levels.

Engineering specialist TSM Agencies Ltd is approaching potential investors to launch a Lloyd’s syndicate, The Insurance Insider understands.

Heavy claims in the first half of 2008 have pushed the US property casualty insurance industry to an underwriting loss of $5.6bn for the period, and a combined ratio above 100.

After a miserable year-to-date for industrial and weather-related losses, (re)insurers’ worst fears following US Midwest flooding in June at least appear misplaced.