September 2012/5

2012 M&A transactions

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

Up-for-sale run-off acquirer and (re)insurance services provider Tawa reminded potential suitors that it remains a work-in-progress after reporting a first-half loss of $6.5mn.

Tawa has continued to divest non-core portfolios with an agreement to sell two of its run-off subsidiaries to the acquisitive Bermudian Catalina for $28mn, while still pursuing a full sale of the business.

Former AIG chief executive Maurice "Hank" Greenberg and his company Starr International have been given the go-ahead to pursue a case against the US government involving American International Group (AIG)'s $85bn bailout.

The Louisiana Citizens Property Insurance Corporation board has unanimously voted to settle two long-running, class-action lawsuits linked to claims handling from hurricanes Katrina and Rita for $61mn.

White Mountains is suing Allstate for allegedly lowering the final purchase price for Esurance inappropriately when it bought the firm in mid-2011.

Regulatory initiatives under Solvency II and the US Solvency Modernization Initiative (SMI) have been challenged, after a study found that the losses stemming from natural catastrophes do not justify higher capital reserves for insurers.

The European Parliament and the Council of the European Union have asked the European Commission to review the Solvency II timetable, adding to speculation that the regime's go-live date could be delayed by one year, The Insurance Insider understands.

As pension funds groan under the liabilities of ageing Western populations, Swiss Re has warned that the (re)insurance industry needs the scale of the capital markets to absorb some of the challenges of the longevity market.

Munich Re has been talking to investors and alternative funds managers about becoming partners for a potential insurance-linked securities (ILS) fund management venture, the company confirmed last week.

With Solvency II forcing a rethink on capital structures, the miserly yield environment has opened a new door for European (re)insurers looking to attract funding.

After withdrawing its planned autumn IPO because of differences of opinion with investors over its value, the German (re)insurance group Talanx made a volte face last week and is now expected to list on the Frankfurt Stock Exchange on 2 October.

Stocks in the European (re)insurance industry have outperformed the continent's banking sector and the wider market so far in 2012, although banking has closed the gap in recent weeks.

With almost three quarters of the year gone, the European (re)insurance sector has performed strongly, with only Mapfre in the red for the year to date.

Improving pricing in non-catastrophe lines would prove the value of Amlin's diversification strategy and enable it to take on more cat risk and grow profitably, said senior management at the Lloyd's (re)insurer last week.

Excess capital in the reinsurance market is seeking out opportunities to back managing general underwriters (MGUs) in the buoyant surplus lines sector, according to Ryan Specialty Group (RSG) supremo Pat Ryan.

Profitability in the US private company and non-profit directors' and officers' (D&O) market remains challenged as moderate rate increases and strong growth opportunities are offset by loss activity and heightened competition.

Shipowners should steel themselves for increases in their 2013 protection and indemnity (P&I) club membership but there will be substantial variations in the hikes.

AmWINS' UK subsidiary THB delivered top and bottom-line growth on an underlying basis in the period to 31 October 2011.

As London-headquartered THB's acquisition by US wholesaler AmWINS beds in and the integration of the Colemont International subsidiary into THB approaches completion, the heads of the respective firms have explained that the M&A trail continues to be very much open for the group on both sides of the Atlantic.

Reinsurance buying patterns have shifted towards bundled risk spread across multiple territories - driving down demand and exposing reinsurers to surprise financial shocks, an industry-backed study has found.

Cash-strapped French mutual Groupama finally sold its UK insurance arm last week but has still to find buyers for its various broking businesses.

A Validus Securities and Exchange Commission filing has revealed that Flagstone was engaged in a serious M&A process at the time of the May and August conference calls, despite its management's insistence that it was focused on executing a standalone strategy.

Unrated Latvian insurer Balva is set to increase its share of the UK solicitors' professional indemnity (PI) market by around half in next week's renewals, The Insurance Insider has learned.

Marsh & McLennan Companies (MMC) president and CEO Brian Duperreault has had the shortest tenure among the current leaders of the big three brokers, but he has still managed to institute a major turnaround during his time at the firm.

The first Lloyd's auction of 2012 saw £40.6mn of capacity change hands at an average price of 24.7p per £1 of capacity.

Private equity-backed start-up Southport Re hopes to have written $100mn-$250mn of collateralised reinsurance limit after the 1 January renewals, CEO Glenn Weber has said.

The 2012 half-year results at Lloyd's to be released this week look set to bounce back strongly against a prior-year period marred by Asia Pacific catastrophes to produce an estimated profit before tax of approximately £1.8bn.

Scor is looking to ramp-up its Lloyd's syndicate in 2013 as it prepares to enter its third year as a direct writer in the marketplace.

Novae Re hires Axis credit underwriter; Charman's final Axis exit; Gallagher shops in UK retail; Direct pick-up for Ryan Specialty; Chinese march; Allianz aviation head; AA sale saga; Doré extends warranty

The euro crisis has turned a corner since June and a resolution of the bloc's monetary union woes is now a more realistic possibility, according to State Street Global Advisors senior managing director John Nugée.

Insurance outsourcing services provider Xchanging is working towards launching a new accounting and settlement platform, Netsett, to export London's settlement processes to the global reinsurance market.

Berkshire Hathaway has joined with Torus's existing backers First Reserve and Corsair to inject an estimated $80mn-$100mn into the global specialty insurer, The Insurance Insider can reveal.

One of the unique historic selling points of the London market has been its back office bureaux.

American Agricultural is set to dismantle the complex master-slip arrangement that it has used for many years to cede hundreds of millions of dollars of cat premium from its Farm Bureau reinsureds into the international market, The Insurance Insider understands