September 2012/1

Major 2012 P&C mergers and acquisitions

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

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

Ruxley Ventures, a boutique buyer of asbestos, pollution and health (APH) liabilities, warned today (3 September) that European insurers are more complacent than US counterparts in managing legacy asbestos liabilities at a time of renewed claims activity.

Following its recommended acquisition by Validus, Flagstone Re will have to pay back tax benefits worth just under $12mn to the Swiss government if the sale completes, The Insurance Insider understands.

The key European Parliament vote on Omnibus II has been pushed back again by a month from October to 20 November.

The UK Financial Services Authority (FSA) has proposed a ban on "conditional" risk transfer between insurers and intermediaries in order to prevent policies not being honoured if a broker fails.

Hannover Re's groundbreaking Fac Pool Re securitisation is facing the prospect of major losses as a legal dispute begins over some of the business ceded into the pool.

Insurance-linked securities (ILS) investors kept a close watch on the Pelican Re cat bond as Hurricane Isaac hit Louisiana, while parts of the state continue to struggle with flooding a week after the storm.

Despite reviving bleak memories for the residents of New Orleans, Hurricane Isaac ultimately appears to have turned into a damp squib for (re)insurers, at least according to the cat modelling agencies.

In addition to the $8.43 a share offer to Flagstone Re investors, the Validus proposal includes $135.2mn of balance sheet adjustments to the Swiss-based reinsurer.

A successful combination between Validus and its smaller rival Flagstone Re would create Bermuda's largest property catastrophe reinsurance writer, edging out short-tail specialist RenaissanceRe.