October 2009/4

Credit rating agencies Moody's and S&P have until the end of the week (30 October) to respond to fraud charges levelled in a far-reaching class action suit accusing them of masking the risks of the collapsed Cheyne SIV.

As the European reinsurance industry descended upon the sleepy German spa town of Baden Baden yesterday to kick-start the annual reinsurance gathering, several key themes dominated early conversations.

With the Q3 reporting season picking up pace this week, strident third quarter results from early reporting US and Bermudian (re)insurers have brought the issue of capital management back into sharp focus.

Swiss Re said it is "very well positioned" to enter January 2010 renewal discussions, but will focus on quality instead of quantity as it faces up to the pricing problems in key European markets.

The recession will continue to drive down demand for the ample insurance capacity in the US property casualty market and keep pressure on pricing in 2010, according to a report by Advisen.

Mirroring the 2009 bounce-back within the global (re)insurance industry, Lloyd's pro forma capital base increased by 13 percent to £16bn in the first half of 2009 and 30 percent year-on-year.

Canadian combine Fairfax Financial Holdings (FFH) now owns 97 percent of Odyssey Re following the expiration of its cash tender offer for the remaining shares in its affiliated reinsurer.

Texas-based Southwest Insurance Partners Inc (SWIP) has named Arthur Seifert as CEO to drive expansion at its wholly owned underwriting agency, Bunker Hill Insurance Agency.

The well-managed run-off of the Illinois-headquartered Kemper Insurance Cos inspired the US P&C legacy industry to acknowledge Barbara Murray as its Run-Off Person of the Year.

Aon Benfield has moved to strengthen its Benelux division with the appointment of Hans Groot as COO, while adding two new members to its analytics team in the region.

Willis CFO and COO Patrick Regan is leaving the insurance broker to join the world's fifth largest insurance group, Aviva, as CFO.

Rates and premium levels for airlines have continued to increase for risks renewing in October, though brokers are divided as to the extent of the increases achieved.