October 2012/2

The role of unrated capacity in the UK solicitors' market caused controversy once more at the key 1 October renewals, with some incumbents complaining that rates were being kept artificially low by its participation in the £250mn+ segment

In a widely expected development, the US Financial Stability Oversight Council (FSOC) confirmed that American International Group (AIG) is facing designation as a systemically important financial institution (SIFI).

UK solicitors' professional indemnity rates for smaller practices typically fell at the annual 1 October renewal, as the market passes through a transitional phase before its last-resort pool is abolished

The chairman of the European Insurance and Occupational Pensions Authority (Eiopa) Gabriel Bernardino has warned the European Commission that any further delays to Solvency II will lead supervisors in Europe to develop conflicting national solutions

Lloyd's carrier Sportscover is carrying out significant reserve strengthening on prior year business for the third year in a row, which is set to drag the £25mn-stamp 2010 year of account to a £4.4mn loss

Risk Management Solutions (RMS) has launched a platform to help firms manage longevity and excess mortality risks. The new product generates mortality scenarios and provides access to a range of RMS models.

The Ohio School Employees Retirement System (SERS), a large US pension fund with $9.9bn of assets under management, has shifted $30mn from underperforming hedge funds into Nephila's Triton Fund

Lloyd's specialist insurer Marketform has said it will continue to write international medical malpractice after a team of three underwriters handed in their notice late last month

Swiss Re's renewal of the MultiCat Mexico cat bond has priced well below the initial guidance due to high demand for the diversifying bond and its limited ability to upsize

Volumes dropped but prices increased in the first two Lloyd's capacity auctions

Third Point Re's first managed cat fund will include a "significant" investment from Hiscox and write a quota share of the London-listed (re)insurer's cat exposure

(Re)insurers are continuing to revise their investment expectations down and tweak portfolios in the hunt for incremental yield.