i-law

World Insurance Report

Salmon farm claims in Chile

Intensive farming of salmon has been blamed for the presence of the ISA virus, which has decimated many farms’ stocks
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Directors’ and officers’ liability insurance in Australia

Recent trends suggest that the previously soft D&O market may be starting to harden. But there is still scope to negotiate favourable policy terms, argueMark Waller and Paul Miller, respectively partner and special counsel at the Brisbane office of Australian law firm, Clayton Utz
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Pension plans ignore ‘less well understood’ risks

The Metlife report warned that the standard approach of pension plan sponsors to focus on some risks and to ignore others could lead to serious repercussions, “including unnecessary volatility in earnings and/or cash flow with the potential to adversely affect the ability of the plans to provide retirement security to plan participants.”
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Quinn loss put at US$1.3bn

Having assiduously shunned personal publicity for most of his business career, Sean Quinn has been forced by the pace of events to respond to interest in his affairs
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Insurance supervisors are cautiously optimistic

However, the International Association of Insurance Supervisors’ (IAIS) is concerned about insurers’ involvement in securities lending; particularly in situations where insurers are approached by commercial banks. The IAIS also expressed concern about many investors’ clear lack of knowledge about the risks inherent in the instruments they invested in
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Pressure on personal insurance shrinks local market

Life insurance was also down at 10.6% in 2007 in the face of strong competition from shorter-term products
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Life insurance market growth grinds to a halt

As for the non-life market, only the smaller lines recorded any significant premium increases during 2008
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

AIG Europe raises €680m from sister firms to boost capital position

The insurer says transfers from other AIG companies strengthened its solvency ratio to over 450% • Hannover Re
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

New regulations address HIH failures

Many of the rules are in response to the problems created by financial interrelations of insurers within holding companies
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

China Life’s profit forecast sets scene for market slowdown

Insurers are suffering from a steep decline in domestic share prices, a fall in customer demand and early surrenders
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Groupama Seguros looks for further bancassurance sales

Bancassurance accounts for 20% of the Spanish insurer’s business
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Argentina: consolidation, promise and uncertainty

Almost all of the Latin American insurance markets underwent notable regulatory and market change in 2008. But, according to Machua Millett, an attorney at Boston based law firm, Edwards Angell Palmer & Dodge LLP, Argentina stands out as particularly significant given the size of the market and its importance in the region as well as the fundamental nature of the developments seen there in the past year. Here, Mr. Millett comments on the implications for the market of the nationalisation of the Argentine US$30.0bn private pension fund system by the government in 2008
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Bolivian airline suspended for breaching insurance rules

Region faces downturn in motor insurance • Paraguay • Venezuela • Central America • Caribbean
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Parliament approves new beneficiary legislative reform

An amendment to local insurance law will allow policyholders to change their nominated beneficiary
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Korean Re

Ironically, the very same factors which drove the increase in Korean Re’s headline figures such as the increase in the growth of its overseas inward business from China and other emerging markets as well as the increase in its marine hull business, also served to inhibit its underwriting and net profit performance for the 2007/2008 financial year
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Waiting for a new regulator

There is a clear need for more comprehensive, up to date legislation in the Uruguayan insurance market. No major changes are expected, however, until a decision is taken regarding the establishment of a new financial services superintendency. But on the positive side, the non-life market share of the state insurer, Banco de Seguros del Estado (BSE), has fallen from 77.0% in 1998 to 65.6% in 2007. This indicates the extent to which the private companies, most of which are foreign owned, have made steady progress in increasing their market share since they first entered the market when it was reformed in 1994
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Investment exposure fears drive down insurance sector stocks

The period ending 22nd January, represented another horrific two weeks for insurance stocks with Swiss Re, most notably, falling by 36.1% over the two week period. To be fair, UK insurance group, Aviva, (down by 32.7%) and Bermuda based XL Capital..
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

CV Starr and Ironshore form joint venture

Former AIG chairman Maurice Greenberg said his investment firm CV Starr has agreed to form a joint venture with Bermuda insurer Ironshore Inc. Iron-Starr Excess Agency will be based in Bermuda and offer excess financial and commercial lines..
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Hub International acquires Liberty Mutual book

Hub International Limited is to acquire the renewal rights to Liberty Mutual’s middle market commercial property and casualty business in 11 US states: Arizona, Arkansas, California, Colorado, Hawaii, Kansas, Louisiana, Nebraska, Oklahoma,..
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Carroll named underwriting director at Canopius

Tim Carroll has been named underwriting director at Canopius Managing Agents Limited, which manages Syndicate 4444 at Lloyd’s. Mr Carroll, who joins Canopius from Swiss Re GB plc where he was chief executive officer, will start his new role..
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

World loss log 6 - 19 January 2009

Property damage and business interruption 7.1, strike India: container trailer movement to and from India’s Kochi port was affected following a strike by the trailer operators in protest against a new parking fee imposed by the port..
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Slower but positive growth

Although it was generally positive about the growth prospects of the Chinese property and casualty insurance market, rating agency Moody’s described itself as cautious about the capital adequacy of some Chinese non-life insurers...
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Strike club rates up 15.0%

Marine protection and indemnity (P&I) mutual insurer, the Strike Club has raised its subscription rates to its shipowner and other marine enterprise members by 15.0% for the 2009/2010 policy year which begins February 1, 2009. The Strike Club..
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Discriminatory reinsurance tax proposals

Rolf Tolle, Head, Lloyd’s Insurance Market Franchise Performance Directorate (FPD)
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

Growing maturity in the local market

Tony Rastall, partner, Middle East construction projects, Jardine Lloyd Thompson
Online Published Date:  10 February 2009
Appeared in issue:  854 - 02 February 2009

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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