-
March 2010
Natural catastrophes and man-made disasters cost insurers $26bn in 2009, according to Swiss Re’s latest sigma study. The overall cost to society was $62bn.
-
Industry losses of more than $7bn from last month’s earthquake in Chile would increase reinsurance pricing, believes Stefan Lippe, CEO of reinsurance firm Swiss Re.
-
Florida’s government-owned Citizens Property Insurance may raise $2bn through the sale of 10-year tax-exempt bonds.
-
Lloyd’s of London insurer Hiscox said it expects a combined loss of around £100m ($150.8m) from the Chilean earthquake and winter storm Xynthia.
-
Montpelier Re Holdings has announced a preliminary estimate of losses from the recent Chilean earthquake, European windstorm Xynthia and the Australian hailstorms.
-
Suncorp Metway is expecting insurance claims due to massive storms in southern Victoria to reach $183m.
-
Net income for US property/casualty reinsurers was $4.3bn in 2009, which was up from $2.9bn in 2008, according to a survey of reinsurers’ statutory underwriting results conducted by the RAA.
-
Bermuda-based Axis Capital Holdings has provided its catastrophe loss initial estimates for the Chile earthquake and European windstorm Xynthia.
-
If the insured losses from the magnitude 8.8 earthquake that struck Chile last month come in at between $3bn and $5bn, it will be the most expensive insured event to ever hit Latin America, Cooper Gay has said.
-
Endurance Specialty Holdings, the global specialty provider of property and casualty insurance and reinsurance, has announced its initial loss estimate for the earthquake in Chile and windstorm Xynthia in Europe.
-
Max Capital Group’s preliminary estimates of combined claims for the Chilean earthquake and the European winter storm Xynthia range from $10m to $20m, net of reinstatement provisions and retrocessions.
-
Insurers paid out £650m ($980m) in dealing with 335,000 claims from customers who suffered damage to their homes, businesses and vehicles in the coldest winter for thirty years, according to the ABI.
-
Flagstone Reinsurance Holdings, the global reinsurance and insurance company, has announced its preliminary estimate of claims relating to its exposure to the earthquake in Chile is $50m net of reinstatement premiums and retrocession.
-
Don Kramer has stood down as CEO of Ariel Holdings.
-
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.
-
Validus Holdings, the Bermuda based provider of reinsurance and insurance, today provided an initial estimate of losses from the recent Chilean earthquake and European windstorm Xynthia.
-
French reinsurer Scor expects costs related to the recent earthquakes Chile to amount to about Eu95m ($130.7m) net pre-tax.
-
On Thursday, March 11 two large aftershocks of the Mw8.8 Chile earthquake have struck the Libertador O’Higgins region of central Chile, reports the RMS Reactions Catastrophe Centre.
-
Everest Re has estimated its preliminary loss owing to the earthquake in Chile at about $225m.
-
Mexico has little catastrophe insurance coverage, despite a long history of severe earthquakes, The Wall Street Journal reports.
-
Platinum Underwriters Holdings, the Bermudian reinsurance company, has announced an initial loss estimate from first quarter 2010 catastrophe events to date of about $85m.
-
RenaissanceRe has announced the impact of the Chilean earthquake and windstorm Xynthia on its financial results could be material.
-
Windstorm Xynthia, which caused serious damage in Western Europe at the end of February, will present a substantial, though manageable, cost for the French insurance industry according to Moody's Investors Service.
-
The catastrophe reinsurance fund of Nephila Capital has secured $340m from 11 UK institutions.
-
Swiss Re said Wednesday it expects around $500m in claims from the earthquake in Chile, and around $100m in claims from European winter storm Xynthia.
-
The Association of Bermuda Insurers and Reinsurers today filed its opposition to a house bill which would replace private sector risk bearing capital with government reinsurance and government guarantees of state debt.
-
Leigh Ann Pusey, president and CEO of the American Insurance Association, today sent a letter to the House Financial Services Committee voicing concerns over the Homeowners’ Defense Act (HR 2555).
-
Brit Insurance has named Bill Jackson senior vice-president of property direct and facultative of its US operations.
-
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.
-
Swiss Re is preparing a new catastrophe bond, which will be the first cat bond to use Perils AG as a benchmark for losses.
-
Shortly after 02:30 UTC on Monday March 8 an earthquake of magnitude 5.9 Mw (moment magnitude) occurred in the Elazig province of eastern Turkey, reports the RMS/Reactions Catastrophe Centre.
-
Rating agency Moody’s believes reinsurers will shoulder the majority of insured losses from the Chilean earthquake because of the large amount of reinsurance protection purchased in Chile and the size of the catastrophe
-
Bermudian reinsurance company PartnerRe expects between $220m and $320m of pre-tax losses from the magnitude 8.8 earthquake that hit Chile on February 27.
-
US composite rate down 5% for February. But coastal property rates in certain locations are firming, leading to rumours of new entrants to the market to take advantage of higher pricing.
-
Insured losses from winter storms that hit the US east coast between February 23 and February 28 are expected to be between $150m and $350m, according to an estimate by AIR Worldwide.
-
Allianz is expecting its share of claim costs from wind storm, Xynthia, to be between Eu100-300m, Bloomberg reports.
-
Consolidation rumoured on Bermuda.
-
Bermudian firms Max Capital Group and Harbor Point have announced they have agreed to a merger.
-
The US Senate has passed legislation that includes yet another short-term extension of the National Flood Insurance Program (NFIP).
-
Catastrophe risk modelling firm AIR Worldwide estimates that insured losses in France, Belgium, Germany, and Netherlands from winter storm Xynthia will be between Eu1.5bn ($2bn) and Eu3bn ($4bn).
-
The magnitude 8.8 earthquake that occurred off the coast of Chile on February 27, 2010 could cost insurers between $3bn and $8bn, according to risk modeling firm Eqecat.
-
RSA Insurance Group revealed Tuesday that the earthquake to hit Chile on February 27 is likely to cost the insurer £30m ($44.7m), net of reinsurance.
-
Insured losses from the earthquake that struck central Chile early Saturday February 27 will likely exceed $2bn, estimates AIR Worldwide.
-
For the second consecutive time, US Congress has failed to extend the National Flood Insurance Program (NFIP) before its expiration date and has allowed it to lapse.
-
Windstorm Xynthia, which swept across western Europe at the weekend, has resulted in widespread power outages, damage and at least 50 fatalities according to RMS.
-
February 2010
A powerful magnitude 8.8 (moment magnitude) earthquake occurred offshore Maule, Chile at 06:34 UTC (3:34 am local time) on Saturday, 27 February, reports the RMS Reactions Catastrophe Centre.
-
US insurer American International Group (AIG) has reported a fourth-quarter loss of $8.9bn and warned that it may need more support from the US government.
-
The insurance industry will be increasingly important to China’s future economic development, according to a study by German reinsurance firm Munich Re.
-
In a first of its kind agreement, German reinsurer Hannover Re has become the first foreign reinsurer to benefit from lower collateral requirements in the US, with an agreement it has reached with the Florida Office of Insurance Regulation.
-
Spanish insurers will continue to suffer from the consequences of the recession and the restructuring of the domestic banking market in 2010, according to a special comment from rating agency Moody's.
-
Flash flooding and mudslides have killed at least 40 people and caused extensive damage to property and infrastructure after torrential rains hit the Portuguese island of Madeira, RMS/Reactions Catastrophe Centre reports.
-
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.
-
The unsettled economy is having a big effect on claim operations in the US, according to a survey conducted by global professional services company Towers Watson.
-
Bermudian insurance and reinsurance firm Endurance Specialty Holdings today announced that, effective March 1 2010, David Cash will become its chief executive officer.
-
General Insurance Corporation of India (GIC) is setting up a natural catastrophe pool for insurance and reinsurance companies.
-
Swiss Re has raised its dividend for 2009, in a sign that the world’s second-largest reinsurer is now in a position to repay a expensive convertible loan from Warren Buffett’s Berkshire Hathaway.
-
Reactions will be recognising the best companies, teams and individuals in the London market with our Reactions London Awards 2010 programme, and we need your help. Have your say now!
-
Bermuda has long been viewed as the so-called better mousetrap, the best and most efficient place for new insurance capital. That is now changing, but the island’s leaders say observers should not underestimate Bermuda’s importance.
-
The Spitzer-era ban on contingent commissions for the world’s biggest insurance brokers, Aon, Marsh and Willis, has been lifted. An equity analyst believes Aon and Marsh could now receive as much as $200m a year in contingent commissions.
-
The Risk and Insurance Management Society today announced its dismay at a decision by the New York insurance department and attorney general to allow the big three brokers to resume taking contingent commissions.
-
Lloyd’s of London’s decision to broaden its product range as part of its strategic plan will not harm the market’s position in its core lines, Sean McGovern, Lloyd’s general council, has told Reactions.
-
PartnerRe's acquisition of Paris Re, along with involvement in initiatives such as the Global Reinsurance Forum trade group, confirms Patrick Thiele's position as one of the most influential reinsurance executives around.
-
Montpelier Re Holdings, a Bermudian provider of short-tail reinsurance and other specialty lines, today reported strong fourth quarter and record full year financial results.
-
Fresh off the back of the busiest ever fourth quarter for cat bonds, insurance-linked securities activity is predicted to be high in 2010. Reactions' Convergence Quarterly section includes all the cat bond data from 2009.
-
Catastrophe risk modelling firm Eqecat estimates insured losses resulting from the two February winter storms in the eastern US will exceed $2bn.
-
Bermudian reinsurer PartnerRe today announced organisational changes, following the acquisition of Paris Re. These include Paris Re’s chief executive officer leaving the company at the end of June.
-
Reinsurance pricing softened at the January 1 2010 renewals. Reactions asks what this will mean for pricing for the rest of the year.
-
Rating agency Fitch has downgraded the issuer debt rating of Warren Buffett's Berkshire Hathaway to AA- from AA+ and the insurance financial strength ratings of its insurance subsidiaries National Indemnity Company, General Re and Geico to AA- from AAA.
-
Arch Underwriting at Lloyd’s has announced the opening of a Johannesburg office of its Lloyd’s operations, led by a former Chartis manager.
-
Aspen Insurance Holdings today reported net income of $126.3m in the fourth quarter of 2009, compared with net income of $21.8m for the fourth quarter last year.
-
Bermudian insurance and reinsurance group Max Capital Group today reported net income of $62.6m for the quarter, compared with a net loss of $94.1m for the same quarter in 2008.
-
Bermuda reinsurer RenaissanceRe Holdings has reported net income of $211.8m in the fourth quarter of 2009, compared with a net loss of $55.2m in the fourth quarter of 2008.
-
Bermudian insurer and reinsurer XL Capital today reported a net loss for the fourth quarter of 2009 of $40.3m, compared with a net loss of $1.4bn in the fourth quarter of 2008.
-
Chartis, the property/casualty insurance operation of American International Group, is on the hook for millions of dollars of losses after an explosion at an under-construction power plant in Middletown, Connecticut.
-
A coalition of 13 US insurance groups have voiced support for US president Barack Obama’s proposal to cut what it sees as offshore tax avoidance. The coalition has urged legislation to be passed quickly.
-
The Lloyd’s market had a strong year and is presently experiencing a period of unprecedented profitability reports Guy Carpenter in its review of the UK based syndicate.
-
The US property/casualty rates were down 4% on average in January 2010.
-
This year firms face a stark choice over how to deploy their capital, says Kenneth LeStrange, chairman, president and CEO of Bermudian insurer and reinsurer Endurance Specialty Holdings.
-
Rating agency Standard & Poor's (S&P) today lowered its long-term counterparty credit rating on Berkshire Hathaway to AA+ from AAA.
-
Fitch ratings has delivered a downbeat outlook for the US broking industry.
-
A wholly-owned subsidiary of United Insurance Holdings is applying to write property/casualty insurance in seven more states.
-
Global reinsurers face the daunting prospect of eroding profitability margins over the next two to three years, S&P has warned in a new report.
-
US president Barack Obama’s proposed budget unveiled today eliminates nearly $250m in federal subsidies to insurance companies for terrorism insurance, according to the AIA.
-
January 2010
XL plans to redomicile to Ireland and the remaining Lloyd’s players headquartered in the UK are also considering leaving. We ask why firms are looking to move and to where.
-
A catastrophe bond to provide The Hartford with protection against east and Gulf Coast US hurricanes has been completed.
-
The new director of underwriting performance at Lloyd’s has a big challenge to fill the shoes of his predecessor, Rolf Tolle.
-
The Caribbean Catastrophe Risk Insurance Facility (CCRIF) Wednesday paid the $7.75m to the government of Haiti following the earthquake which struck close to Port-au-Prince on January 12, causing damage of catastrophic proportions.
-
Florida’s insurance market is in a state of disarray. Uncertainties about the quality, price and availability of property insurance have left homeowners desperately seeking stability, and insurers are struggling to meet demands.
-
German reinsurer Hannover Re has securitised more natural catastrophe risk through its K6 transaction.
-
Tropical storm Olga made landfall over the northeast coast of Queensland, Australia shortly after 10pm local time on Sunday, January 24, RMS/Reactions Centre reports.
-
AM Best has upgraded the financial strength rating of Paris Re to A from A- and the issuer credit ratings a+ from a-. The ratings have been assigned a positive outlook.
-
Low demand continued to put pressure on US rates as carriers competed for new business, according to The Council of Insurance Agents & Brokers’ quarterly Commercial P/C Market Index Survey.
-
Swiss Re is expecting sales of catastrophe bonds to increase by at least 43% this year, as maturing notes are replaced.
-
US specialty insurer Assurant has entered into a settlement with the US Securities and Exchange Commission that concludes the SEC’s finite reinsurance investigation of the firm.
-
Tropical storm Magda is expected to make landfall on the western Australian coast in around 48 hours’ time in the Kimberly region as a low category 1 storm, RMS/Reactions Catastrophe Centre reports.
-
A series of powerful winter storms have struck southern California between January 17 and January 20, bringing heavy rainfall and high winds that have caused road flooding, evacuations and property damage, RMS/Reactions Catastrophe Centre reports.
-
Issuance volume of property-catastrophe bonds will be at least as strong in 2010 as it was last year, Fitch Ratings said in a recently released report.
-
Guy Carpenter has estimated that the southeast US will experience an above average rate of landfalling tropical cyclones in the coming year.
-
Risk Management Solutions has launched a new parametric index for estimating insured industry losses from US earthquakes.
-
Recent analysis of near-term US hurricane models has found that models for the cumulative seasons from 2006 to 2009 have greatly overestimated losses.
-
Torus, the global specialty insurer, has appointed David Ring to lead its newly created London-based general property team.
-
Munich Re, the world’s largest reinsurer, has said that its losses from the earthquake in Haiti will be in the single-digit to a low double-digit million US dollars, net before tax.
-
Eqecat has updated its estimate of economic damage from this week’s earthquake in Haiti to the low-single-digit billions of dollars, compared with is initial estimate in the hundreds of millions of dollars.
-
Small insurers retain a decent market share of the overall US property-casualty market and have strong positions within certain niches, according to a new study by Conning Research & Consulting.
-
Insurance and reinsurance company Ace Group has announced the appointment of John Lupica to chief operating officer, insurance for North America.
-
The Caribbean Catastrophe Risk Insurance Facility, a regional risk pooling facility, is preparing to make a payout to the Government of Haiti as a result of yesterday’s earthquake.
-
A severe earthquake has struck in Haiti, centered about 10 miles from the capital city; Port-au-Prince. Economic losses are likely in the hundreds of millions of dollars.
-
An upcoming cat bond that will cover US insurer The Hartford against US hurricane risk has been rated by S&P.
-
Read a selection of stories from the December 2009/January 2010 issue of Reactions.
-
Ironshore has announced that its Bermuda property division has increased its available line size to $25m effective immediately.
-
The mixed reinsurance rating environment is a disappointment against last years’ expectations says Bermudian reinsurer Aspen Re.
-
Markel’s approach to investments cost the firm millions in 2008. Reactions asked its vice-chairman Tony Markel whether this has heralded a change at the firm.
-
Bermudian reinsurer RenaissanceRe Holdings today announced a consolidation of its global underwriting organisation.
-
Thompson Heath & Bond, THB’s Lloyd’s broking arm, has enhanced its international treaty platform by hiring three senior brokers specialising in the Latin American, Caribbean, Middle Eastern and Asia/Pacific territories.
-
The fourth quarter saw a big fall in cat bond spreads, according to a report issued today by reinsurance broker Aon Benfield. This trend was especially seen in the US wind and multi-peril sectors, which decreased by 36% and 26% respectively on a non-seasonal adjusted basis.
-
Bermudian reinsurer Harbor Point has announced that its affiliate, New Point Re is continuing to offer collateralised retrocessional reinsurance coverage for contracts taken up from January 1 2010 onwards.
-
The catastrophe bond market recovered in 2009, with issuance returning to the pre-crisis levels, says Munich Re in a briefing.
-
The Bermuda firms tracked by reinsurance broker Guy Carpenter experienced strong recovery in their balance sheets as net income improved to $7.28bn in the first nine months of 2009, from a $440m loss in the first nine months of 2008.
-
After the announcement that US Risk Insurance Group has expanded into the specialty reinsurance brokerage marketplace, Reactions quizzed Randall Goss, chairman and chief executive officer of US Risk Insurance Group about his intentions for 2010.
-
Last year saw the most active fourth quarter ever for catastrophe bond issuance and insurance-linked securities (ILS) activity looks set to remain high in 2010 as a record volume of catastrophe bonds mature, according to risk modelling firm RMS.
-
Members of the Guy Carpenter Global Reinsurance Composite saw their total net income more than double to almost $10bn in the first nine months of 2009, according to a Guy Carpenter briefing.
-
QBE has appointed Chris Tomkins to the position of senior property underwriter at its Birmingham-based operation in the UK.
-
South Korean non-life insurer Samsung Fire & Marine Insurance is planning to start an auto insurance business in China, Yonhap News reports.
-
Swiss Re, the world’s second-largest reinsurer, has completed a $150m catastrophe bond deal to protect it against Californian earthquake risk.
-
Last year finished with a pattern of US rate decreases not dissimmilar to that for most of the year, with the property/casualty composite rate index for December down 4%, according to online exchange MarketScout.
-
Reinsurance rates across most lines of property-catastrophe business declined at the January 1, 2010 renewal, according to a briefing released by Guy Carpenter.