BREAKING NEWS ALERT
Swiss Re reveals $32mn satellite loss as P&C soars
Swiss Re has indicated in a presentation to analysts following its 2012 results that it is expecting a $32mn loss from the launch failure of the Russian Zenit-3SL rocket on 1 February.
The rocket was carrying an Intelsat-27 satellite which is understood to have been insured on an Aon-placed programme, widely placed through the space (re)insurance market, with a significant line also understood to have been taken by Munich Re.
Swiss Re's 2012 results, released yesterday, indicated a significant increase in underwriting profitability for ITS P&C reinsurance business, with a combined ratio of 80.7 percent compared with 104 percent a year ago.
The improvement was driven by lower catastrophe losses, which added only 1.3 percentage points to the combined ratio, compared to an annual budget of 9.3 percentage points. This contrasted with the cat-heavy 2011 when the total cat loss was 24 percentage points above budget.
The reinsurer's previous estimate of a $900mn loss in the fourth quarter of 2012 for Hurricane Sandy remained unchanged.
The reduction in cat losses helped to offset a slight decline in the positive contribution of prior-year reserves, which improved the combined ratio by 8.1 percentage points in 2012 compared to 11 percentage points a year earlier.
The unit contributed $3bn of net income - almost treble the $1.1bn it reported in the catastrophe-heavy 2011. The standalone P&C 2012 return on equity was equivalent to 26.7 percent.
The result was driven by a 21.6 percent increase in net earned premiums to $12.3bn, improved margins, realised gains and prior year reserve releases, the reinsurer said.
Swiss Re's appetite for growing its P&C reinsurance premium base was again demonstrated by growth at the 1 January renewals, with treaty premium up 11 percent to $9.3bn.
This was driven by solvency relief-style transactions in Europe and the Americas, although the company said it had also deployed more catastrophe and casualty capacity.
The group said prices had increased 2 percent across its portfolio after accounting for claims inflation, rate and exposure changes. However, after accounting for the impact of the weaker investment yields available, the portfolio renewed flat on an economic basis.
Swiss Re's net premium income from P&C operations will also be significantly boosted in 2013 by the lapse of its five-year 20 percent quota share with Berkshire Hathaway, which expired in December.
At a group level the P&C combined ratio, which includes reinsurance and corporate solutions, was 83.1 percent compared to 104.7 a year earlier. This was better than the 94 percent that was forecasted.
Stripping out the effect of catastrophes and reserve releases, the underlying group combined ratio was 91.1 percent.
Net investment income was $4.5bn across all of its divisions, which included net realised gains of $1.5bn.
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Aviation and Insurance News
Saturday 23 February 2013
Ascot lead on Brinks diamond theft coverage - Inside Fac Report
Ascot lead on Brinks diamond theft coverage
The London specie market is also expected to be in receipt of a claim following the diamond heist at Brussels Airport on the 18th February - from security firm Brink's.
Ascot is said to be the lead insurer on the Brink's programme which is understood to have been brokered by Willis, according to a report by Bloomberg.
As Inside FAC revealed earlier this week, the theft from a Helvetic Airways aircraft is likely to hit the aviation market via Helvetic parent Lufthansa's aviation cargo policy.
It is understood that the Lufthansa programme is placed by the airline's in-house broker Albatross, is led by Allianz and is reinsured into the London market by Willis and JLT.
Caroline De Wolf, of the Antwerp World Diamond Centre, said the haul was estimated to be worth some $50mn.
A Brink's spokesman told Bloomberg that the company has repaid all of its customers for their losses and confirmed that Brink's has coverage for the loss via the Lloyd's of London market.
The robbery took place in the evening from the hold of a Helvetic Airways plane.
A spokesman for Brussels Airport said the thieves made a hole in the perimeter fence and drove right up to the plane, which was ready to take off.
The robbers left their car, brandishing weapons, and took the loot from the hold of the aeroplane, before driving off through the same hole in the fence.
The diamonds had been loaded from a Brinks security van onto the plane, which was bound for Switzerland.
Allianz was unavailable for comment.
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The London specie market is also expected to be in receipt of a claim following the diamond heist at Brussels Airport on the 18th February - from security firm Brink's.
Ascot is said to be the lead insurer on the Brink's programme which is understood to have been brokered by Willis, according to a report by Bloomberg.
As Inside FAC revealed earlier this week, the theft from a Helvetic Airways aircraft is likely to hit the aviation market via Helvetic parent Lufthansa's aviation cargo policy.
It is understood that the Lufthansa programme is placed by the airline's in-house broker Albatross, is led by Allianz and is reinsured into the London market by Willis and JLT.
Caroline De Wolf, of the Antwerp World Diamond Centre, said the haul was estimated to be worth some $50mn.
A Brink's spokesman told Bloomberg that the company has repaid all of its customers for their losses and confirmed that Brink's has coverage for the loss via the Lloyd's of London market.
The robbery took place in the evening from the hold of a Helvetic Airways plane.
A spokesman for Brussels Airport said the thieves made a hole in the perimeter fence and drove right up to the plane, which was ready to take off.
The robbers left their car, brandishing weapons, and took the loot from the hold of the aeroplane, before driving off through the same hole in the fence.
The diamonds had been loaded from a Brinks security van onto the plane, which was bound for Switzerland.
Allianz was unavailable for comment.
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Bruno Richie to head Argo - Inside Fac Report
London market veteran Peter Matson is to step down as director of underwriting at Argo Group's Lloyd's operation next month, as sister publication The Insurance Insider revealed yesterday.
Argo Group confirmed today that Matson's role at Argo International would be filled with immediate effect by aviation specialist Bruno Ritchie, subject to regulatory approval.
Matson, who joined the firm in October 2011, is remaining with the Bermudian-listed firm in order to focus on developing new business opportunities for Syndicate 1200 and Argo Group.
Ritchie, who will relocate to London, is currently Argo's group head of Aerospace, based in Paris, and will continue to lead the Aerospace division in addition to his new role.
Matson's decision to step down was described as "amicable" by one senior source close to the organisation.
The firm said today that Matson had "achieved the goals set out for him", including Syndicate 1200's launch last year of two new classes of business and a number of new products as well as significant improvements in the profitability of its existing classes.
He joined Argo in 2011 from the listed Lloyd's carrier Novae, where he was part of a new management team tasked with improving both the profitability and size of the underwriting portfolio.
The appointments came after a string of heavy losses on US casualty reinsurance from 1998 to 2002 almost brought the (re)insurer to its knees.
Ritchie joined Argo Group two years ago to build the firm's French underwriting platform and is a former Hiscox underwriter with 18 years of experience in aerospace and large account underwriting.
Argo International - which is led by managing director Jeff Radke - has undertaken a recent restructure, which included a transaction with Enstar-backed Shelbourne to cede Argo Syndicate 1200's 2009 and prior year legacy business.
In addition, the (re)insurer took its catastrophe treaty account out of Lloyd's for 2013, and has subsequently added international casualty business.
Radke said: "I would like to thank Peter for his leadership and contribution as underwriting director at a time of considerable change. I am certain Peter will continue to be an invaluable asset in his new role."
"Bruno's appointment...is a logical step in the growth of our business. He will provide excellent leadership and direction to our underwriting teams both in Lloyd's and across the syndicate's expanding European platforms."
Acknowledgement - Inside Fac 21/2/2013
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Argo Group confirmed today that Matson's role at Argo International would be filled with immediate effect by aviation specialist Bruno Ritchie, subject to regulatory approval.
Matson, who joined the firm in October 2011, is remaining with the Bermudian-listed firm in order to focus on developing new business opportunities for Syndicate 1200 and Argo Group.
Ritchie, who will relocate to London, is currently Argo's group head of Aerospace, based in Paris, and will continue to lead the Aerospace division in addition to his new role.
Matson's decision to step down was described as "amicable" by one senior source close to the organisation.
The firm said today that Matson had "achieved the goals set out for him", including Syndicate 1200's launch last year of two new classes of business and a number of new products as well as significant improvements in the profitability of its existing classes.
He joined Argo in 2011 from the listed Lloyd's carrier Novae, where he was part of a new management team tasked with improving both the profitability and size of the underwriting portfolio.
The appointments came after a string of heavy losses on US casualty reinsurance from 1998 to 2002 almost brought the (re)insurer to its knees.
Ritchie joined Argo Group two years ago to build the firm's French underwriting platform and is a former Hiscox underwriter with 18 years of experience in aerospace and large account underwriting.
Argo International - which is led by managing director Jeff Radke - has undertaken a recent restructure, which included a transaction with Enstar-backed Shelbourne to cede Argo Syndicate 1200's 2009 and prior year legacy business.
In addition, the (re)insurer took its catastrophe treaty account out of Lloyd's for 2013, and has subsequently added international casualty business.
Radke said: "I would like to thank Peter for his leadership and contribution as underwriting director at a time of considerable change. I am certain Peter will continue to be an invaluable asset in his new role."
"Bruno's appointment...is a logical step in the growth of our business. He will provide excellent leadership and direction to our underwriting teams both in Lloyd's and across the syndicate's expanding European platforms."
Acknowledgement - Inside Fac 21/2/2013
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