Florida’s state-run windstorm insurer of last resort, Citizen’s Property Insurance Corp., says it will face a US$516 million shortfall in its account following last year’s unprecedented hurricane season. The shortfall could result in every insured homeowner in the state paying a one-time assessment. Responding to the news, insurers say lawmakers needs to act quickly to […]
By Canadian Underwriter | April 17, 2005
2 min read
Finite reinsurer Inter-Ocean has gone into voluntary run-off. Inter-Ocean, based in Bermuda and Ireland, is owned by 11 international insurance and reinsurance companies. The company itself retains no net underwriting risk, but received a fee or margin on each contract it assumes, with shareholders assuming the risk. As a result of the run-off, A.M. Best […]
By Canadian Underwriter | April 10, 2005
1 min read
Lloyd’s of London says pre-tax profits for the 2004 year of account will be GBP1.36 billion, despite net claims of GBP1.2 billion from the U.S. hurricanes. 2004 does represent a decline from 2003, when the London market recorded GBP1.89 billion in pre-tax profits.Overall, the market posted a combined ratio of 96.9% in 2004, up from […]
By Canadian Underwriter | April 6, 2005
1 min read
Fairfax’s Odyssey Re Holdings Corp. says last year’s extreme weather, combined with Windstorm Erwin earlier this year, could produce after-tax net losses of US$26-$29 million, which will be factored into first-quarter 2005 results. The total includes a US$14-US$15 million increase in loss estimates for the Florida hurricanes, Typhoon Songa and the December 26 Indonesian tsunami. […]
By Canadian Underwriter | April 5, 2005
1 min read
On the heels of last year’s unprecedented Atlantic hurricane season, well-known forecaster Prof. William Gray is anticipating another stormy season for 2005.Gray and his team of researchers at Colorado State University say 2005 will likely see above-average hurricane activity during the Atlantic season, which generally runs from June to November. They are also predicting above-average […]
By Canadian Underwriter | April 4, 2005
2 min read
The global catastrophe bond market grew 17% in 2004, according to a joint study released by reinsurance broker Guy Carpenter & Co. and MMC Securities Corp.Measuring total outstanding risk capital, yearend 2004 reached US$4.04 billion, compared to US$3.45 billion at the end of 2003. 2004 also represented a dramatic 41% increase over the US$2.86 billion […]
By Canadian Underwriter | April 3, 2005
1 min read
The Financial Services Commission of Ontario (FSCO) has issued a bulletin highlighting changes to excluded driver endorsements, which applies to policies issued or renewed as of June 1. The endorsement has been revised to include “strengthened wording to deter excluded drivers from driving the specified vehicles”. Tornadoes and other severe weather which hit Georgia early […]
By Canadian Underwriter | March 28, 2005
1 min read
Please note: due to the Easter holiday weekend, Canadian Underwriter’s Breaking News will not be published again until Tuesday, March 29. Marsh co-president Peter F. Garvey has resigned “for personal reasons”, the company announced Wednesday. Garvey had been with Marsh & McLennan’s risk and insurance services subsidiary for 25 years. Fellow co-president William A. Malloy […]
By Canadian Underwriter | March 23, 2005
2 min read
2004 saw the lowest level of losses in the history of the global aviation industry, according to a new report by Aon’s U.K. division. While the 1990s saw an average 22 loss incidents per year, there were just 15 in 2004. However, total losses rose moderately in severity to US$1 billion. On average, premiums dropped […]
By Canadian Underwriter | March 22, 2005
2 min read
U.S. reinsurers posted net income slightly higher for 2004 at US$3.14 billion, according to results from members of the Reinsurance Association of America (RAA). The RAA’s 26 members posted net income of US$3.08 billion in 2003.However, the slight uptick did not come from improved underwriting. Overall, the industry’s combined ratio worsened to 106.2% in 2004 […]
By Canadian Underwriter | March 21, 2005
1 min read