i-law

World Insurance Report

Swiss Re takes action to maintain AA rating

The group still has surplus regulatory capital but at the end of 2008 it was up to CHF2bn short of AA rating requirements
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

Eureko breaks deadlock with Poland over PZU

A new settlement deal could draw to a close the eight-year long dispute to acquire Poland’s leading insurer
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

Zurich takes US$2.9bn hit from capital losses

The group’s global corporate business added to concerns with operating profits down 94%
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

France and Spain count cost of Windstorm Klaus

Loss estimates for the January storm are as high as €2.5bn in France while Spain’s cat scheme could reduce insurers’ bills
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

Life insurance starts to fulfil market potential

Introduction: Indonesia has long been viewed as a country with enormous potential for life insurance, but the market has traditionally been characterized by too many, often under-capitalised, companies in the market, a situation which has resulted in price-driven products not based on technical considerations. Additionally, many companies suffer from high expense ratios due to expensive branch operations, overstaffing and lack of critical business mass. But, things are changing. After years of inaction, the insurance regulatory authorities are now taking a tough line with companies experiencing difficulty in meeting risk-based capital requirements. In the last two years, the Insurance Supervisory Department of the Capital Markets and Financial Institutions Supervisory Agency (CMFISA) has revoked the licences of 17 insurance companies, nine of which were life insurance companies.
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

European reinsurance stocks resilient as Swiss Re bleeds

Although the values of the insurance and reinsurance stocks tracked by WIR suffered markedly over the two week period ending 5th February, the figures actually represent a kind of respite compared with the relentless bloodletting of the previous..
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

Regulator redrafts investment rules for insurers

New requirements include risk management measures but it is unclear whether the cap on insurers’ investments will be lifted
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

Asia’s 2008 results signal start of insurance sales slowdown

India’s four public insurers recorded the first month of negative growth in years while growth slowed for private insurers
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

Chinese export credit insurance chief sacked on corruption probe

Tang Ruoxin, the head of the state-run China Export and Credit Insurance Corporation (Sinosure), has been sacked following an investigation into a credit guarantee contract. Unconfirmed reports have also been circulating that Mr Tang was arrested..
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

Litigating in a downturn

Many commercial lawyers in the UK, previously reluctant to enter into such arrangements, are now much more likely to enter into conditional fee agreements (CFA) backed up by after the event (ATE) insurance to litigate cases on behalf of clients,..
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

World loss log 20 January - 2 February 2009

Property and business interruption 26.1, fuel spill Russia: a fuel oil spill off Russia’s far eastern island of Sakhalin killed hundreds of birds in a wildlife area of international importance. The spill in Aniva Bay on the south of Sakhalin..
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

Latin America operations boost international groups’ revenues

ACE, Zurich and MAPFRE recorded strong premium rises from local operations but BBVA and MetLife did not fare so well
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

Interamericana pays out for copper mine claim

The US$82.5mn payment is one of the largest in Chile’s history although part of the claim remains with MAPFRE
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

BBVA pension profits slide 74%; insurance sales hold on to growth

The group’s overall performance in the region was affected by Argentina’s decision to nationalise pension assets
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

Investment income saves Colombia from underwriting losses

The Colombian insurance sector was buoyed by Marsh’s acquisition of Delima Marsh
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

Catlin enters into aviation underwriting deal

Catlin Group Limited, the Bermuda-based international property/casualty insurer and reinsurer, has agreed a deal with W Brown & Associates Insurance Services to underwrite general aviation insurance for US clients on behalf of Catlin US...
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

IT spending in the insurance sector: a global perspective

Information technology research firm, Celent estimates that global information technology spending by financial services institutions will reach US$358bn in 2008. According to Celent financial services sector analyst, Jacob Jegher, this represents..
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

The unexpected upside to the downturn

According to Martin Clarke, Director, General Management Programmes, at the Cranfield School of Management in the UK, no industry, including the insurance industry, is immune from the dramatic turn of events affecting the world economy. But while..
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

Crisis poses low threat to reinsurers

Research conducted by the International Association of Insurance Supervisors (IAIS) conducted during mid-2008 on the global reinsurance market found that while there was some concern to the asset side of reinsurers’ balance sheets – due..
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

Aspen Insurance Holdings Ltd

In many ways, Aspen Insurance Holdings’ main achievement in 2007 was to match (in a much more difficult underwriting environment) the previous years’ underwriting profit of $295.1mn. This enabled a very strong performance on the investment front (in the form of a 46.3% increase in net investment income to $299.0mn) and net foreign exchange gains of $20.6mn to significantly enhance the company’s net profit result from $378.1mn in 2006 to $489.0mn in 2007
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

Strong demand for reinsurance reverses premium decline

Hannover Re estimates non-life reinsurance premium increases of 5% during the course of 2009
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

Buffett’s capital response in Swiss Re’s hour of need

Although there was no gloating at Swiss Re’s predicament from the Bermudian companies, there were some that expected to benefit from it. These companies include Axis with its newly minted A+ rating from S&P. However, despite all the drama around several companies (not only Swiss Re), the indications are that it is not that easy for rival reinsurers to get their clients to reshuffle their panels. The likely result is that business will remain stable for Swiss Re and for many of its competitors
Online Published Date:  17 February 2009
Appeared in issue:  855 - 16 February 2009

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