Welcome to the 51st edition of Inside FAC and my first as editor, now that the infamous and much-loved Marcus Alcock has set his sights on a new venture.
Facultative reinsurance business has contributed towards both underwriting and broking profits in the third quarter, ahead of swingeing cuts to reinsurance spending by major cedants. But it appears that not all cedants are retreating from fac purchasing, according to market sources.
The uncertainty around the renewal of the US federal terrorism backstop has caused an unprecedented uptick in demand for facultative reinsurance as insureds re-examine coverage needs for 2014 and beyond.
Willis has set up a new division within Faber Global in a bid to grow its share of facultative reinsurance business with major cedants.
The fire that damaged a Chinese microchip factory in September this year could result in a loss of up to $1.1bn to the international (re)insurance markets.
The Tennessee Valley Authority (TVA) has wrapped up an arbitration process with Ace Bermuda in relation to a $150mn policy that could be triggered by one of the largest environmental disasters to hit the mainland US in recent years.
Lancashire, which is the lead insurer for the Perro Negro 6 jackup rig that sank off the coast of Angola at the beginning of July, is expected to take a hit of up to $25mn from the incident.
Credit Suisse Asset Management has estimated that industry losses from the windstorm that hit northern Europe on 28 October could range from $1.7bn to $2.9bn.
As reporting for the third quarter of 2013 gets into its stride, losses relating to the hailstorms that hit France and Germany in July are beginning to filter through.
Lancashire's £266mn ($427mn) acquisition of Lloyd's direct and facultative (D&F) specialist Cathedral will help the (re)insurer counter correlation risks and deliver strong returns, according to market analysts.
Aon's insurance broking arm Aon Risk Solutions (ARS) has launched a rail excess liability facility to provide up to $175mn of coverage, in the wake of a series of major rail incidents this year.
The compound effect of continuous rate reductions will be difficult for underwriters to recover from and needs to be urgently addressed, a senior property facultative executive has warned.
The public authority that runs the Washington Metro rail network has reached an undisclosed out of court settlement with Aon over a dispute linked to a train crash in June 2009.
JLT restructures Peruvian operations; Everest Re shows Q3 reinsurance growth; P&C market ‘letting itself down' on new perils; Lexington lays down law on US property; Crawford partners with New Zealand firms; Travelers to cut PI reinsurance; JLT construction team to join AJG; Integro buys Doodson; Ark to open US fac office for 1.1; Pioneer launches energy business; Willis predicts 25% terrorism rate hike in 2014
Massimo Reina, Head of GC Fac International, Guy Carpenter
The rapidly maturing space sector might not be delivering the returns the market would like to see, but some of its dreams for regular commercial spaceflight are getting a lot closer to reality
Singapore-bound airlines appear to have been doing brisk business on the back of fac appointments this month. Most recently, XL Group has been booking flights for its new head of Asia property fac.
There are many ways you can cause harm to yourself or others at this time of year: by bending down in the checkout queue wearing your pointy witch's hat...