October 2012/4

Weekly share price movements and key data on The Insurance Insider's universe of P&C (re)insurers and brokers

Weekly share price movements and key data on The Insurance Insider's universe of P&C (re)insurers and brokers

PricewaterhouseCoopers has estimated the non-life European run-off market's total size at EUR220bn in 2012, essentially flat on last year's EUR218bn.

Bermuda-based insurer OneBeacon has agreed to sell $2.2bn of gross reserves to Armour Group Holdings.

The Bank of England and the Financial Services Authority (FSA) have said that the UK's new prudential regulator will emphasise judgement, new risks and the different needs of individual businesses when regulating (re)insurers.

The onerous implementation requirements of Solvency II are already slowing down the ability of European regulators to respond to market initiatives, not least in the run-off world.

Solvency II may not now go live until 2016 after a key voting deadline was missed last month that ruled out the slated 1 January 2014 implementation day.

Hannover Re's Eurus III cat bond marked a historical pricing low for the European wind risk insurance-linked securities (ILS) market.

In the past fortnight at least three catastrophe bonds have been brought to market that could take 2012 issuance beyond $5bn if they all close.

Reinsurers pulled back their participation in the insurance-linked securities (ILS) market in the year to 30 June, according to Aon Benfield's annual report on the sector.

Florida's state-backed insurer Citizens is planning to re-enter the cat bond market in 2013 with an additional $250mn placement, after making its debut this year with the $750mn Everglades Re transaction.

The appointment of McKinsey &Co principal Dominic Casserley as CEO elect of Willis Corp has deflated speculation that the business might be sold on the exit of long-time chief Joe Plumeri, analysts said.

Platinum Underwriters ensured Bermuda's Q3 results season also started with a bang, with the reinsurer's shares gaining 4.4 percent in trading on Thursday (18 October) after earnings were more than double the Wall Street consensus forecast.

Strong third quarter results from early reporting Q3 US P&C insurers have fuelled a surge in share prices in the sector.

Goldman Sachs has exercised its over-allotment option to buy 67.5 million additional Direct Line shares, in a fresh sign that the IPO has been well received.

UK-based aerospace insurer Global Aerospace has announced the reorganisation of its pool following the recent downgrade of 10 percent member Mapfre SA by Standard & Poor's (S&P).

Zurich Insurance Group and Travelers reminded investors of potential issues around reserve adequacy by disclosing more than $700mn of reserve strengthening last week.

Reinsurance broker Aon Benfield is planning to launch its own catastrophe model for European wind risk starting with the German market in 2013, The Insurance Insider has learned.

Private equity-backed insurer ProSight Specialty Insurance has hired a senior London market figure to become the active underwriter of its Lloyd's Syndicate 1110.

Private equity giant Apollo is gearing up to take on European life insurance and reinsurance risk after signing up a team of ex-UBS staff as consultants, The Insurance Insider can reveal.

Shares in JLT Group came under pressure last week after the UK-listed broker said its reinsurance arm will report weaker profits in 2012 than last year.

One of the side effects of the rich crop of results that is expected from reinsurers in a cat-free 2012 is that it will add to the downward squeeze on rates at the key 1 January renewals.

The spread between the price of Flagstone Re's shares and the current value of Validus' stock and cash offer for the company has narrowed over the past month, suggesting increased confidence that the deal will complete without a rival bid.

The sale of Lloyd's business Atrium finally looks set to start in earnest after the insurer's private equity (PE) backers appointed investment bank Keefe Bruyette & Woods (KBW) to handle the auction, The Insurance Insider can reveal.

Ace Ltd has made its second significant Mexican acquisition in little over a month by agreeing to purchase Mexican personal lines insurer ABA Seguros from Ally Financial for approximately $865mn in cash, the company announced.

Former Ascot CEO Martin Reith has withdrawn from the corporate process around Antares, leaving Dane Douetil and ANV as the last men standing, The Insurance Insider can reveal.

2016 is now a far more realistic and desirable new start date for the new Solvency II regime, said Carlos Montalvo, the executive director of European insurance supervisor the European Insurance and Occupational Pensions Authority (Eiopa).

Michel Liès, the Luxembourgian who has led a resurgent Swiss Re since becoming group CEO in January 2012, has said reinsurers must accept volatility not only as a reality but as being at the very heart of the reinsurance offering.

The reinsurance industry's over-reliance on third-party vendor models to price catastrophe risk could create similar problems as those suffered by the asset-backed securities market during the financial crisis, warned Validus Re CEO Kean Driscoll.

London and international technology and services provider Xchanging has re-launched its insurance software business under the Xuber brand.

Aegis targets London short-tail marine market; Travelers $167mn boost; Follow the Hofmeister; RLI beats; Willis replaces; Zurich dips; Swiss Re new board members; Platinum sparkles; ING sell-off continues; AGCS hire; RFIB complies; Torus move; Price move; Brown & Brown retreats; Quinn avoids; BB&T flat; Systemically important; Meadowbrook profits warning; EMC crop losses offset by lower cats; Rethinking equities

The dislocations created by a string of large catastrophe losses and the ongoing uncertainty around the euro's sustainability may increase reinsurance demand, according to AM Best.

Hannover Re will launch a new insurance-linked securities (ILS) fund called Leine Investment next year that will be open to third-party investors, sister title Trading Risk has revealed.

The Turkish Catastrophe Insurance Pool (TCIP) is set to pay 5 percent more for its reinsurance programme when it renews at 1 November in an encouraging development for underwriters, The Insurance Insider can reveal.

In a recent roundtable hosted by this publication, a senior executive candidly revealed that in the late 1990s a certain major international specialist insurance market commissioned a study looking at its competitive position in its core US specialty lines arena.

Generali is undergoing a major overhaul of its reinsurance buying strategy that is likely to see a significant reduction in premiums ceded to reinsurers in 2013.