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The March 2010 issue of Reactions
23 March 2010
The March 2010 issue of Reactions is now online. Click through to read a selection of articles.
The March 2010 issue of Reactions is now online. Click on the headlines below to view an article.
The cover story is an in-depth look at the increasing influence of Warren Buffett over the reinsurance industry. Buffett appears now to be the most powerful man in reinsurance, with stakes in Munich Re and Swiss Re as well as owning General Re and National Indemnity.
The issue also includes a feature looking at contingent commissions now that Aon, Marsh and Willis are allowed to accept these controversial payments again. We ask whether the big three will resume taking contingent commissions and what that will mean for buyers.
We also bring you an exclusive interview with Endurance's new CEO, round up the Asian renewals, examine the energy market's shifting exposure base, ask whether insurers will resist the urge to take riskier investments to make up for falling underwriting income, bring you the latest from the facultative reinsurance market and round up the action from the Association of Run-Off Companies' conference.
Not done there, we bring you news reports on the consolidation fever that has gripped the industry. We analyse Prudential's purchase of AIG's AIA life unit "the biggest insurance acquisition ever", as well as Max Capital and Harbor Point's merger and Fairfax buying US workers' compensation insurer Zenith.
COVER STORY
FEATURE: The Buffett supremacy
Warren Buffett's investments in Swiss Re and Munich Re mean he increasingly pulls the strings in the reinsurance industry. But is the revered investor's growing influence a blessing or a curse?
FEATURES
Grappling with energy's shifting exposure base
The international oil and gas industry is perhaps the most valuable of all and provides premium-hungry insurers and reinsurers with a seemingly endless supply of demand at a time when profitable premium growth is tough to find. But the risk-reward ratio is increasingly difficult to master.
The future for contingent commissions
With Aon, Marsh and Willis now able to accept contingent commissions again, the market is abuzz with questions about which of them will accept the controversial payments, how much business this could bring and what buyers' reaction will be.
Tough competition awaits new arrivals to Asia
Asian economies are recovering faster than their western counterparts, making Asia top of the list for western reinsurers looking to diversify.
Interview: Cash confident of Endurance growth
Endurance's new CEO will be looking to continue the work done under eight years of Ken LeStrange's leadership but won't be afraid to make big changes if necessary, he tells Reactions in an exclusive interview.
FEATURE: Insurers resisting temptation on the asset management side
With underwriting income falling, the question for insurers' investment departments is whether they are willing to take more risk on the asset side to boost returns.
Economic uncertainty strengthens fac offering
Fac players are bullish about their business offering in the uncertain economic climate. But with fierce competition among brokers and softening rates there the picture is not as rosy as it may seem.
FEATURE: Run-off's next move
The mood among delegates at this year's ARC Congress was optimistic. But many of the windfalls the market was expecting a few years ago never materialised.
NEWS REPORTS
Interview: Pat Ryan on hopes for new firm
Reactions speaks to brokerage veteran Pat Ryan, who built Aon into a global powerhouse, about his plans for new firm Ryan Specialty Group.
ANALYSIS: Benmosche confident AIG will make it following AIA and Alico deals
With the news that AIG is selling Alico to MetLife and AIA to Prudential, Reactions assesses how far AIG still has to go to pay off its debts to the US government.
Max Capital and Harbor Point CEOs on merger
The merger of Bermudian firms Max Capital Group and Harbor Point has been termed a merger of equals. Reactions spoke to the CEO's of the two companies and an analyst to get the perspective from all sides on what the future holds for the combined company Alterra Capital Holdings.
Watsa explains Zenith deal to Reactions
Fairfax's acquisition of Californian workers' compensation insurer Zenith National Insurance in a $1.4bn deal is a long-term play and the firm does not expect great results in the short term, Prem Watsa, chairman and CEO of Fairfax, told Reactions in an exclusive interview.
REGULARS
More premiums to stay in Asia: John Tan
Asia's reinsurance markets have weathered the global economic turmoil and a greater share of premiums is set to stay in the region, says the CEO of Asia Capital Reinsurance Group.
Editor's remarks: Contingent commissions - A level playing field but an ugly game
Marsh and Aon should be more vocal about whether they will accept contingent commissions now that their ban has been lifted.
Legal Analysis: Solvent schemes survive
A ruling in Scotland has put schemes of arrangement under scrutiny.
RISKbitz: PR bot recall down to restraint malfunction
The insurance industry has been thrown into confusion by the dramatic announcement from Bot Inc that it intends to recall all of its male and female PR bots.
RISKbitz: Sir Nob nabbed on the job
Sir Norbert "Nobby" Johnson has told the world's media that he regrets having had so many jobs at the same time as he was heading up Mocha Re.
RISKbitz: Boss Hogg brings back kickbacks shock
The Risk Underwriting Management Union (RUMUN) today expressed its dismay at a decision by the Hazzard County Attorney General, Boss Hogg, to force the county's top insurance brokerage firms to resume bid rigging and demanding bribes from insurers.