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Validus Q4 Net Income Drops 73% to $37 Million; FY Net $53.1 Million: "Bermuda-based Validus Holdings reported net income for the quarter ended December 31, 2008 of $37.0 million, or $0.47 per diluted common share, compared with net income of $139.0 million, or $1.77 per diluted common share, for the quarter ended December 31, 2007.
Net income for the year ended December 31, 2008 was $53.1 million, or $0.61 per diluted share, compared with $403.0 million, or $5.95 per diluted common share, for the corresponding period in 2007.
Net operating income, which excludes capital gains/losses, for the fourth quarter of 2008 was $50.9 million, or $0.65 per diluted share, compared with net operating income of $131.5 million, or $1.68 per diluted common share, for the quarter ended December 31, 2007.
Net operating income for the year ended December 31, 2008 was $175.1 million, or $2.22 per diluted common share, compared with $388.2 million, or $5.73 per diluted common share, for the year ended December 31, 2007. 'Operating results of Talbot have been included in the consolidated financial statements from the acquisition date of July 2, 2007,' said the announcement.
Commenting on fourth quarter and full year 2008 results and 2009 business conditions, Validus' CEO Ed Noonan stated: '2008 was an extraordinary test of our enterprise risk management and we are very pleased with our success in such troubled times. We absorbed the worst financial markets in recent memory, as well as one of the most costly natural disasters in history, and still generated $98.4 million of underwriting income and $53.1 million in net income for our shareholders.
'Our ability to protect our capital has positioned us to benefit strongly from the improving pricing environment we see in our core short-tail lines of business. We continue to expand our business platform and see strong growth opportunities arising from dislocation among competitors.
'Having grown our gross premium by 26 percent at January 1 in our Validus Re segment, due to rate increases coupled with modest exposure growth, we expect to see rates continue to increase over the balance of 2009.'"
Source: Insurance Journal
15 February 2009
Fitch Revises Outlook on Bermuda Reinsurance Market from ‘Stable’ to ‘Negative’
Fitch Ratings has revised its outlook on the Bermuda reinsurance market from ‘Stable’ to ‘Negative.’: "Fitch Ratings has revised its outlook on the Bermuda reinsurance market from ‘Stable’ to ‘Negative.’
“The revision in the rating outlook primarily reflected expectations of additional unrealized mark-to-market losses and impairment losses related to financial market conditions, reduced access to capital and corresponding reductions in financial flexibility, and the adverse effects on current earnings of soft market conditions,” Fitch says in its special report, Review and Outlook 2008-2009: Bermuda (Re)insurance Market.
The report coincided with release of some of the 2008 Q4 results for the Bermuda market (re)insurers, Fitch notes."
Source: Canadian Underwriter
“The revision in the rating outlook primarily reflected expectations of additional unrealized mark-to-market losses and impairment losses related to financial market conditions, reduced access to capital and corresponding reductions in financial flexibility, and the adverse effects on current earnings of soft market conditions,” Fitch says in its special report, Review and Outlook 2008-2009: Bermuda (Re)insurance Market.
The report coincided with release of some of the 2008 Q4 results for the Bermuda market (re)insurers, Fitch notes."
Source: Canadian Underwriter
ARIG announces $28.6 million loss for FY 08
Arig declares loss of $28.6m for 2008: "Arab Insurance Group (Arig) announced a net loss of $28.6 million (Dh104.9m) for its 2008 financial year against net profit of $23.7m for the previous year.
The loss represents 10.6 per cent of the groups average shareholders equity for the year. Though Arig did not have direct exposure to troubled assets or failed financial institutions, it could not escape write-downs on its reduced equities portfolio.
Invested assets stood at $678.5m at the end of 2008 against $711.7m in 2007, of which 59.4 per cent were held in cash or similar instruments. Write-downs on investments amounting to $35.8m remained unrealised.
The insurance firm registered an underwriting loss of $15.9m that is reflective of the absence of investment income whereas the technical result, ie premium less claims less acquisition cost, advanced to $9.6m against $3m loss in 2007. Over the year, Arigs loss ratio improved to 76.1 per cent against 81.6 per cent in 2007 and combined ratio to 101.8 per cent versus 106.3 per cent in 2007 on net premiums.
The groups reinsurance portfolio expanded by 12 per cent to $280.7m for the year against $250m for 2007. Non-life gross premium grew 11 per cent to $219.7m and life portfolio increased by 19 per cent to reach gross premium income of $61m.
Source: GulfBase
The loss represents 10.6 per cent of the groups average shareholders equity for the year. Though Arig did not have direct exposure to troubled assets or failed financial institutions, it could not escape write-downs on its reduced equities portfolio.
Invested assets stood at $678.5m at the end of 2008 against $711.7m in 2007, of which 59.4 per cent were held in cash or similar instruments. Write-downs on investments amounting to $35.8m remained unrealised.
The insurance firm registered an underwriting loss of $15.9m that is reflective of the absence of investment income whereas the technical result, ie premium less claims less acquisition cost, advanced to $9.6m against $3m loss in 2007. Over the year, Arigs loss ratio improved to 76.1 per cent against 81.6 per cent in 2007 and combined ratio to 101.8 per cent versus 106.3 per cent in 2007 on net premiums.
The groups reinsurance portfolio expanded by 12 per cent to $280.7m for the year against $250m for 2007. Non-life gross premium grew 11 per cent to $219.7m and life portfolio increased by 19 per cent to reach gross premium income of $61m.
Source: GulfBase
Beazley Group Acquires Hartford Unit First State
Beazley Group Acquires Hartford Unit: "Beazley Group has acquired First State, a surplus lines underwriter manager of commercial property risk, from the Hartford Financial Services Group.
Beazley said it was acquiring the unit for a total of $35.4 million in cash. The transaction does not include First State’s specialty and health care programs. Those programs will remain with Hartford. The Hartford, Conn.-based firm said it was shedding a non-core operation with the sale.
Beazley said in a statement that First State, which is led by President and Chief Operating Officer Judy Patterson, is headquartered in Boston and has offices in Atlanta, Chicago, Los Angeles, New York and San Francisco.
While First State has not reported its earnings as a separate unit, Beazley said First State’s 2008 pro forma profit would be approximately $3 million. The company had gross assets of $10.6 million as of Nov. 30, 2008.
The London-based insurer said it will contribute additional capital to its Lloyd’s syndicate of £27 million ($39 million U.S. at the current exchange rate) to support First State’s underwriting.
“The acquisition of First State marks a significant step forward in the development of our U.S. strategy, which focuses on gaining access to profitable business that would not normally come to London,” Beazley Group Chief Executive Andrew Horton said in a statement.
“We have reinsured First State for many years and the expertise of their team and quality of their broker relationships is well known to us,” Mr. Horton added."
Source: National Underwriter
Beazley said it was acquiring the unit for a total of $35.4 million in cash. The transaction does not include First State’s specialty and health care programs. Those programs will remain with Hartford. The Hartford, Conn.-based firm said it was shedding a non-core operation with the sale.
Beazley said in a statement that First State, which is led by President and Chief Operating Officer Judy Patterson, is headquartered in Boston and has offices in Atlanta, Chicago, Los Angeles, New York and San Francisco.
While First State has not reported its earnings as a separate unit, Beazley said First State’s 2008 pro forma profit would be approximately $3 million. The company had gross assets of $10.6 million as of Nov. 30, 2008.
The London-based insurer said it will contribute additional capital to its Lloyd’s syndicate of £27 million ($39 million U.S. at the current exchange rate) to support First State’s underwriting.
“The acquisition of First State marks a significant step forward in the development of our U.S. strategy, which focuses on gaining access to profitable business that would not normally come to London,” Beazley Group Chief Executive Andrew Horton said in a statement.
“We have reinsured First State for many years and the expertise of their team and quality of their broker relationships is well known to us,” Mr. Horton added."
Source: National Underwriter
AIG Seeks Buyer for Tokyo HQ; $1+ Billion Price Tag
AIG Seeks Buyer for Tokyo HQ: "AIG has put its Tokyo headquarters on the market. The beleaguered reinsurer has enlisted the aid of Merrill Lynch to sell the trophy property, an AIG spokesperson tells GlobeSt.com.
Since its $85-billion bailout by the federal government last September, AIG has sought to sell assets to help repay the loan. These have included business lines as well as some of the company’s real estate holdings. In the case of the 15-story building in Tokyo’s Marunouchi district, a source says a $1-billion ballpark figure is 'a good starting point, although the market will determine the price, of course.'
What that price will end up being is difficult to determine, in part because the volume of sales globally has declined since the Wall Street meltdown. Both Cushman & Wakefield and Real Capital Analytics recently reported that commercial property sales transactions declined by 59% in 2008. In particular, Japan’s volume, which was down 23% for the year, plummeted 80% in Q4 2008 compared to the same quarter in 2007, according to RCA.
AIG has maintained headquarters in Tokyo since Gen. Douglas MacArthur asked the company to set up shop there to insure his postwar occupation forces. The AIG building was rebuilt in 1975 and recently updated to incorporate earthquake-safety regulations.
According to published reports, the leases for all 25 tenants in the Tokyo building expire in 2010, which could facilitate converting the property to residential or hotel use. In New York City, AIG controls more than two million square feet of office space, including its headquarters at 70 Pine St."
Source: GlobeSt.com
Since its $85-billion bailout by the federal government last September, AIG has sought to sell assets to help repay the loan. These have included business lines as well as some of the company’s real estate holdings. In the case of the 15-story building in Tokyo’s Marunouchi district, a source says a $1-billion ballpark figure is 'a good starting point, although the market will determine the price, of course.'
What that price will end up being is difficult to determine, in part because the volume of sales globally has declined since the Wall Street meltdown. Both Cushman & Wakefield and Real Capital Analytics recently reported that commercial property sales transactions declined by 59% in 2008. In particular, Japan’s volume, which was down 23% for the year, plummeted 80% in Q4 2008 compared to the same quarter in 2007, according to RCA.
AIG has maintained headquarters in Tokyo since Gen. Douglas MacArthur asked the company to set up shop there to insure his postwar occupation forces. The AIG building was rebuilt in 1975 and recently updated to incorporate earthquake-safety regulations.
According to published reports, the leases for all 25 tenants in the Tokyo building expire in 2010, which could facilitate converting the property to residential or hotel use. In New York City, AIG controls more than two million square feet of office space, including its headquarters at 70 Pine St."
Source: GlobeSt.com
AIG Vice Chairman Wisner retiring
AIG Vice Chairman Frank Wisner retiring: "Insurer American International Group Inc. said Friday its vice chairman of external affairs, Frank Wisner, is retiring.
Wisner, 70, joined AIG in 1997 and served on its board of directors from 1997 until 2003. Before joining AIG, he served as U.S. Ambassador to Zambia, Egypt, the Philippines and India.
No date for his retirement has been set and no successor has been named, a spokesman said.
AIG has been among the financial firms hardest hit by the ongoing credit crisis. In November, the U.S. government gave AIG a $150 billion rescue package to help the company remain in business amid the worsening market. That package came just two months after AIG was extended an $85 billion loan from the Federal Reserve.
Once one of the world's largest insurers, AIG was strapped for cash as it was hit hard by deterioration in the credit markets and concerns that the complex, structured investments it insures would increasingly default."
Source: BusinessWeek
Wisner, 70, joined AIG in 1997 and served on its board of directors from 1997 until 2003. Before joining AIG, he served as U.S. Ambassador to Zambia, Egypt, the Philippines and India.
No date for his retirement has been set and no successor has been named, a spokesman said.
AIG has been among the financial firms hardest hit by the ongoing credit crisis. In November, the U.S. government gave AIG a $150 billion rescue package to help the company remain in business amid the worsening market. That package came just two months after AIG was extended an $85 billion loan from the Federal Reserve.
Once one of the world's largest insurers, AIG was strapped for cash as it was hit hard by deterioration in the credit markets and concerns that the complex, structured investments it insures would increasingly default."
Source: BusinessWeek
Beazley to raise GBP 150 million; Move to Ireland
Beazley to raise GBO 150 millionln stg, moving to Ireland : "Lloyd's of London insurer Beazley Group PLC announced plans to raise 150 million pounds ($213 million) to exploit growth opportunities and fund the $35 million acquisition of U.S. underwriting firm First State.
Beazley, the latest Lloyds' insurer to announce a cash call, also said on Friday it would follow other British companies in creating a new parent that will be tax domiciled in Ireland.
It reported a 37 percent fall in 2008 pretax profit to 87.2 million pounds, including a foreign exchange gain of 46.2 million, in what it described as a 'difficult year'. This compares with analysts' average forecast of 51.3 million pounds, according to Reuters Estimates.
Gross written premiums were 12 percent higher at 876 million pounds. The final dividend was set at 4.4 pence.
Beazley shares, which had lost 39 percent of their value in the past 12 months, rose 5 percent in early trading but eased back to be 0.5 percent higher at 109 pence by 1110 GMT.
The company said the 150 million pounds additional capital, net of expenses, would be raised through a placing and fully underwritten 9-for-19 rights issue at 86 pence, a 21 percent discount to Thursday's close at 108.5 pence.
The rights issue is supported by large shareholders, chief executive Andrew Horton said, adding 100 million pounds would be used for growth, with major opportunities seen in speciality lines such as energy, commercial property and reinsurance.
A general rise in insurance prices is anticipated across in 2009 as underwriters react to multi-billion dollar hurricane losses in 2008 and lower investment returns.
Investor support for the cash call comes despite competition from other insurers calling on shareholders for funds. Lloyd's peer Catlin unveiled a 200 million pound rights issue on Thursday aimed at helping it exploit stronger market conditions in 2009. Chaucer is also raising fresh capital.
Capital remains a key issue in the insurance sector.
'We remain concerned regarding ... the amount of capital backing the business,' said analysts at J.P. Morgan. 'We believe that Beazley investment portfolio of 1.55 billion pounds is still very large,' they said.
Horton said he was targeting a 10 percent reduction in tax bills as well as long-term expansion in the Europe market from the move to Ireland.
An Irish tax base would enable Beazley to stay competitive as many rivals already benefited from tax advantages, Horton said, adding other companies in the sector would likely follow Beazley
to Ireland."
Source: Reuters via London Stock Exchange
Beazley, the latest Lloyds' insurer to announce a cash call, also said on Friday it would follow other British companies in creating a new parent that will be tax domiciled in Ireland.
It reported a 37 percent fall in 2008 pretax profit to 87.2 million pounds, including a foreign exchange gain of 46.2 million, in what it described as a 'difficult year'. This compares with analysts' average forecast of 51.3 million pounds, according to Reuters Estimates.
Gross written premiums were 12 percent higher at 876 million pounds. The final dividend was set at 4.4 pence.
Beazley shares, which had lost 39 percent of their value in the past 12 months, rose 5 percent in early trading but eased back to be 0.5 percent higher at 109 pence by 1110 GMT.
The company said the 150 million pounds additional capital, net of expenses, would be raised through a placing and fully underwritten 9-for-19 rights issue at 86 pence, a 21 percent discount to Thursday's close at 108.5 pence.
The rights issue is supported by large shareholders, chief executive Andrew Horton said, adding 100 million pounds would be used for growth, with major opportunities seen in speciality lines such as energy, commercial property and reinsurance.
A general rise in insurance prices is anticipated across in 2009 as underwriters react to multi-billion dollar hurricane losses in 2008 and lower investment returns.
Investor support for the cash call comes despite competition from other insurers calling on shareholders for funds. Lloyd's peer Catlin unveiled a 200 million pound rights issue on Thursday aimed at helping it exploit stronger market conditions in 2009. Chaucer is also raising fresh capital.
Capital remains a key issue in the insurance sector.
'We remain concerned regarding ... the amount of capital backing the business,' said analysts at J.P. Morgan. 'We believe that Beazley investment portfolio of 1.55 billion pounds is still very large,' they said.
Horton said he was targeting a 10 percent reduction in tax bills as well as long-term expansion in the Europe market from the move to Ireland.
An Irish tax base would enable Beazley to stay competitive as many rivals already benefited from tax advantages, Horton said, adding other companies in the sector would likely follow Beazley
to Ireland."
Source: Reuters via London Stock Exchange
Global Aerospace, USAIG lead insurers on Buffalo plane crash - sources
Global Aerospace, USAIG lead insurers on Buffalo plane crash - sources: "Global Aerospace, USAIG lead insurers on Buffalo plane crash - sources
Global Aerospace and US aviation underwriting pool US Aviation Insurance Group are the leaders for the plane crash in Buffalo, New York, which killed 49 people yesterday, Reinsurance can reveal.
Global and USAIG are the co-leaders on the risk because of the fact that Global Aerospace was formerly the leader on Northwest Airlines flights and USAIG were formerly the lead on Delta flights, giving co-underwriting leadership to a number of risks.
The London leader was Ace, market sources added. It is not known who else was on the slip.
The risk was co-broked by Aon.
The plane was insured for $19m."
Source: Reinsurance Magazine
Global Aerospace and US aviation underwriting pool US Aviation Insurance Group are the leaders for the plane crash in Buffalo, New York, which killed 49 people yesterday, Reinsurance can reveal.
Global and USAIG are the co-leaders on the risk because of the fact that Global Aerospace was formerly the leader on Northwest Airlines flights and USAIG were formerly the lead on Delta flights, giving co-underwriting leadership to a number of risks.
The London leader was Ace, market sources added. It is not known who else was on the slip.
The risk was co-broked by Aon.
The plane was insured for $19m."
Source: Reinsurance Magazine
Glacier hires ex-SCOR's Zdrenyk as new risk management chief
Glacier Group hires new risk management chief: "European insurer and reinsurer Glacier Group has named Andreas Zdrenyk as the new head of Group Risk Management.
In his new post Zdrenyk will be directly responsible to chief executive officer Robbie Klaus, and is to be based in the firm’s Swiss HQ in Pfäffikon.
He brings with him over a quarter of a century of experience in the insurance and reinsurance sector, and will be tasked with bolstering Glacier’s enterprise risk management.
Zdrenyk leaves behind SCOR Holdings (Switzerland) AG where he occupied the post of chief operating officer, and during his long career has also held a number of senior positions with Converium Holdings AG and Zurich Re"
Source: Insurance Daily
In his new post Zdrenyk will be directly responsible to chief executive officer Robbie Klaus, and is to be based in the firm’s Swiss HQ in Pfäffikon.
He brings with him over a quarter of a century of experience in the insurance and reinsurance sector, and will be tasked with bolstering Glacier’s enterprise risk management.
Zdrenyk leaves behind SCOR Holdings (Switzerland) AG where he occupied the post of chief operating officer, and during his long career has also held a number of senior positions with Converium Holdings AG and Zurich Re"
Source: Insurance Daily
AIG Unit Closes $60.5 million Sale Of Energy Royalty Interests
AIG Unit Closes $60.5 Million Sale Of Energy Royalty Interests: "A unit of American International Group Inc. (AIG) sold off its interests in two transactions and related commodity hedges from its energy and infrastructure book of business for $60.5 million, the company said in a news release Friday.
The sale, which follows AIG Financial Product Corp.'s January agreement to sell its commodity index business, is part of the unit's plan to reduce its investment portfolio and risk.
The two transactions are related to limited-term overriding royalty interests for oil and gas reserves in Texas, Louisiana and Mississippi.
Last month, UBS AG (UBS) agreed to purchase AIG's commodity index business, which comprises a product platform of commodity index swaps and funded notes based on the benchmark Dow Jones-AIG Commodity Index. The transaction, expected to close by May, has a purchase price of $15 million upon the transaction's closing, with additional payments of up to $135 million over the following 18 months based upon future earnings of the purchased business."
Source: Dow Jones via Lloyd's.com
The sale, which follows AIG Financial Product Corp.'s January agreement to sell its commodity index business, is part of the unit's plan to reduce its investment portfolio and risk.
The two transactions are related to limited-term overriding royalty interests for oil and gas reserves in Texas, Louisiana and Mississippi.
Last month, UBS AG (UBS) agreed to purchase AIG's commodity index business, which comprises a product platform of commodity index swaps and funded notes based on the benchmark Dow Jones-AIG Commodity Index. The transaction, expected to close by May, has a purchase price of $15 million upon the transaction's closing, with additional payments of up to $135 million over the following 18 months based upon future earnings of the purchased business."
Source: Dow Jones via Lloyd's.com
Zurichs E&O Names ex-ACE's Gow head of its US E&O Division
Zurichs North America unit names head of specialty errors and omissions - : "Zurich North America has appointed Brad Gow to head the specialty errors and omissions group of its specialties business unit.
In this role, Mr Gow will head a nationwide team in delivering professional liability protection to markets including engineering, media, technology, real estate and specified professions. He will also be integral to the development and launch of new products and services to address emerging errors and omissions (E&O) exposures, such as security and privacy risks.
Most recently, Mr Gow was vice president of professional liability product management with ACE Insurance. Before joining ACE, he was co-founder of NetDiligence, a venture capital-backed network security and privacy consulting firm focused on the needs of network risk underwriters. Between 1992 and 2000, he held a variety of positions with Cigna, including international roles in Tokyo and Bangkok."
Source: Insurance Business Review
In this role, Mr Gow will head a nationwide team in delivering professional liability protection to markets including engineering, media, technology, real estate and specified professions. He will also be integral to the development and launch of new products and services to address emerging errors and omissions (E&O) exposures, such as security and privacy risks.
Most recently, Mr Gow was vice president of professional liability product management with ACE Insurance. Before joining ACE, he was co-founder of NetDiligence, a venture capital-backed network security and privacy consulting firm focused on the needs of network risk underwriters. Between 1992 and 2000, he held a variety of positions with Cigna, including international roles in Tokyo and Bangkok."
Source: Insurance Business Review
Bahrain: CBB grants two licenses to British insurer
Bahrain: CBB grants two licenses to British insurer:"The Central Bank of Bahrain (CBB) has granted licences to Legal and General Gulf and Legal and General Gulf Takaful which will offer life insurance and takaful services, respectively, in the Kingdom and the Middle East region.
The two companies will be established with a total paid-up capital of BHD10 million (US$26.5 million) which will be contributed equally by British insurer Legal & General Group (LGG) and Ahli United Bank (AUB). The shareholders plan to offer customers a wide range of products and services, including traditional insurance and family takaful. The two companies will market their products initially through AUB's existing branches in the region."
Source: Asia Insurance Review
The two companies will be established with a total paid-up capital of BHD10 million (US$26.5 million) which will be contributed equally by British insurer Legal & General Group (LGG) and Ahli United Bank (AUB). The shareholders plan to offer customers a wide range of products and services, including traditional insurance and family takaful. The two companies will market their products initially through AUB's existing branches in the region."
Source: Asia Insurance Review
State Farm Florida Withdrawal OK''d, but Insurer Must Let Agents Write for Other Companies
State Farm Florida Withdrawal OK''d, but Insurer Must Let Agents Write for Other Companies: "Florida’s Office of Insurance Regulation has approved State Farm Florida’s plan to withdraw from the property insurance market in the state within two years, but the company is barred from penalizing policyholders for terminating their contracts early and from preventing its agents from working with other companies.
As a condition of the approval, the company must surrender its state certificate to write insurance within 30 days, said Florida Insurance Commissioner Kevin McCarty.
Most State Farm policyholders will be able to find coverage in the private sector, where 30 to 40 companies have begun writing new business over the past two years, and will not have to utilize the state’s insurer of last resort, Citizens Property Insurance Corp.
“I wouldn’t be approving the withdrawal plan if I didn’t believe there was capacity in the private sector,” McCarty said in a press conference.
He said there are “sensitive negotiations going on” with approximately 15 companies about taking over State Farm Florida’s business.
McCarty said State Farm Florida has “warehoused” more than 140,000 policies in Citizens, allowing its agents to place policies in Citizens but not write new State Farm policies."
Source: Insurance News Net
As a condition of the approval, the company must surrender its state certificate to write insurance within 30 days, said Florida Insurance Commissioner Kevin McCarty.
Most State Farm policyholders will be able to find coverage in the private sector, where 30 to 40 companies have begun writing new business over the past two years, and will not have to utilize the state’s insurer of last resort, Citizens Property Insurance Corp.
“I wouldn’t be approving the withdrawal plan if I didn’t believe there was capacity in the private sector,” McCarty said in a press conference.
He said there are “sensitive negotiations going on” with approximately 15 companies about taking over State Farm Florida’s business.
McCarty said State Farm Florida has “warehoused” more than 140,000 policies in Citizens, allowing its agents to place policies in Citizens but not write new State Farm policies."
Source: Insurance News Net
Willis, Lloyd's Committee to Talk Flood Risk in London
Willis, Lloyd's Committee to Talk Flood Risk in London: "The Willis Research Network and the Lloyd's Market Association's Professional Standards Committee co-offer a seminar on London flood risk at the Willis Building in London. The seminar is due to start at 3:15 p.m. GMT. on Monday, February 16th.
Source: AM Best's
Source: AM Best's
Tough Negotiation, Flat Pricing in Spain
Tough Negotiation, Flat Pricing in Spain: "Property-catastrophe, risk, and pro rata treaty pricing was broadly flat in Spain at the January 1, 2009 renewal. Price remained the driving factor, despite a lack of flexibility among the major foreign European reinsurers. Negotiations between cedents and markets were tough. While dominated by the large European reinsurers, Spain does not have a fundamental catastrophe peril that drives the property market. A few new reinsurers attempted to enter the market with success dependent upon their willingness to offer very competitive terms."
Source: Guy Carpenter
Source: Guy Carpenter
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