October 2012/3

Valuations for (re)insurers in The Insurance Insider's P&C universe

2012 transaction tracker

2012 broker M&A transaction tracker

Recent disclosures on estimated US crop losses have assuaged fears that it could be a major industry event, with $540mn of loss estimates unveiled so far.

A long-running dispute between a former director of US Risk (UK) and the firm's founder Randall Goss is progressing towards trial in the UK High Court.

UK Financial Services Authority (FSA) chairman Lord Adair Turner last week gave high praise to the Lloyd's market for playing no part in the financial crisis, while lambasting the banking sector for having been a "failed system" that wreaked havoc on the economy.

The European Parliament's key plenary vote on Omnibus II, originally due in November, has been pushed back past March 2013 after weeks of speculation, a European Commission spokesperson confirmed last week.

For reinsurance buyers, one of the advantages of capital markets' enthusiasm for securitised catastrophe risk is that bonds are being priced lower as investors scramble for allocations

The capital markets' continued enthusiasm for non-correlated reinsurance cat risk has expanded assets under management (AuM) at the insurance-linked securities (ILS) sector's two largest fund managers to almost $11bn.

US and Bermudian carriers' third quarter results are shaping up to be strong, primarily because of the industry's modest catastrophe loss record in 2012 and, in particular, a relatively benign hurricane season.

Shares in the Spanish (re)insurer Mapfre are expected to open down sharply on 16 October, after S&P downgraded the firm below the crucial A- territory

There will be much attention on Travelers' third quarter results this week as it is expected to update on the progress made in pushing through rate rises on renewal business.

The US casualty marketplace "feels a lot like the late 1990s" and the immediate period that preceded the last true broad hard market turn, according to Aspen's Rich Aldorisio.

Pockets of the US casualty insurance market remain dislocated, despite significant upward price movements.

Concerns about momentum slowing in the wider US P&C market and the stalling economy mean the much hoped-for lift-off in surplus lines pricing is likely to be delayed.

Allied World's decision to build its alternative investment portfolio around MattlinPatterson could improve the insurer's long-term return on equity (RoE) by a couple of percentage points, group CEO Scott Carmilani told The Insurance Insider

The offshore energy market is experiencing a significant rise in demand as deepwater operators return to the Gulf of Mexico (GoM) and some of the biggest global exploration and production companies develop so-called "mega"' projects that are turning to the commercial market for cover.

Leading insurers in the power market are reconsidering their stance on pricing and terms following a steady rise in large claims, according to Marsh.

The "eye-catching" major hull losses of the past two years such as Costa Concordia have diverted attention away from the more worrying rise in attritional losses, warns Mark Edmondson, marine hull class underwriter for Chubb's Lloyd's syndicate.

The profitability of US and Bermudian (re)insurers fell over the course of the last decade, according to a study by Fitch.

Solid IPOs from UK motor insurer Direct Line and Hannover Re's biggest shareholder Talanx have heartened the host of private equity-owned companies that have had no exit option but a trade sale for years.

Lemma Insurance Company (Ukraine) was downgraded by one notch with a negative outlook by AM Best, following the provisional liquidation of sister company Lemma Europe and a related legal dispute.

The third and final Lloyd's capacity auction took place last week to end a season where volumes were down sharply but pricing nudged up on the most popular syndicates with third party capital.

Most commercial UK insurance buyers expect premiums for property damage and business interruption (PDBI) cover to rise by up to 10 percent over the next two years, according to an Airmic survey.

Antares hires Brock for PI; Milli Re downgraded; Argo redeems; Gallagher rolls up; BIBA goodbye; Green light; Brit hires from Atrium; Crop dusting; Cyber perils; Viva le France; Equinox increases firepower; Nephila promotes; AIG All Black; Howden joins Brazil throng; Gallagher continues JLT hires; Argenta promotes; Associations unite; Go west; Allianz hire; D&O duo; BMS hire; Brit complete

UK motor intermediary Hastings Insurance Group has hired Gary Hoffman, former CEO of state-owned bank Northern Rock, to head the firm, indicating the scale of its ambitions.

The London market and wider insurance industry need to lobby far more effectively to avoid suffering unnecessarily from the post-financial crisis re-regulation drive.

The contingency policy taken out to protect George Michael's Australian tour was cancelled just days before the singer withdrew citing "major anxiety" issues.

News that Dowling Hales has hired Charles Norton-Smith to spearhead an expansion into London has been met with a collective groan by the wider corporate advisory community

Kiln's flagship Syndicate 510 is expected to report "a solid pre-tax profit" in 2012 and a combined ratio of around 90 percent, AM Best has said.

Historically, October is the month that exhibits the highest levels of volatility in global stock markets.

The cautious tone that typified many rate conversations at the CIAB conference in Colorado Springs was also evident at the Napslo annual convention in Atlanta last week.