Inside FAC October 2019
The fact that major cedants who have, in years past, cut their fac spending to the bone are talking warmly about the benefits of facultative coverage, speaks volumes about how the market is changing.
Carriers in the direct and facultative (D&F) (re)insurance markets are optimistic that rate increases for D&F business will continue throughout next year and into 2021.
Frank Guerriero, head of North American property facultative at Guy Carpenter, has stepped in as interim head of international at the broker’s fac reinsurance operation GC Fac.
The facultative reinsurance markets are seeing an uptick in interest in strategically focused facilities, as buying habits shift away from single-risk purchases, Inside FAC has learned.
MS Amlin is reported to be exploring the sale of its circa $100mn aviation book after an earlier announcement that it would stop writing nine classes of business, including aviation.
Direct and facultative (D&F) premiums written by the London company market increased by more than £1bn ($1.2bn) in 2018, according to the International Underwriting Association.
Underwriters at AmTrust at Lloyd’s have been put under consultation for possible redundancy following completion of the business’s takeover by Canopius on 3 October.
Aegis London is to exit property treaty business as of January 2020.
Insurers for MGM Resorts International are facing a likely total loss on the firm’s casualty tower after an agreement was reached to pay survivors of a 2017 mass shooting between $735mn and $800mn.
Catastrophe risk modelling firm RMS has issued an estimate for insured losses from Typhoon Faxai in Japan of 500bn yen to 950bn yen ($5bn-$9bn).
The aviation insurance market is anticipating a loss of about $130mn after an Air China aircraft caught fire at a Beijing airport in August.
Pacific Gas & Electric Company (PG&E) has finalised a definitive agreement to settle insurance subrogation claims arising from the 2017 north California wildfires and the 2018 Camp Fire.
The marine hull market is facing a loss of up to $70mn from the explosion of an oil and chemical tanker in South Korea.
The fire which broke out in the Nakilat Damen Shipyards in Qatar, and which spread to three super yachts, is expected to be a $60mn loss to the marine market, according to sources.
Newman Martin Buchan (NMB) founder Gordon Newman and his former Bishopsgate colleague Neil Pearce have teamed up to launch a start-up broker under the brand Newman Pearce.
The reinsurance segment at Lloyd’s recorded a £9mn ($11mn) underwriting loss for the first half of 2019, compared with a £352mn profit in the same period last year.
Marsh-JLT Specialty has made four new senior hires to its aviation team.
As the cycle reasserts itself in the broader property markets, upstream energy and mining are still struggling with a low-rate, high-capacity environment, but downstream and power are looking up
The results of Aon’s recent reinsurance market survey suggest the challenging market conditions which drove rates to rock bottom are easing – but much more slowly than in the fac market
As the world’s second largest insurance market, China is still a developing territory while its island neighbour Taiwan is a small, mature market by comparison. David Benyon reports
Several Lloyd’s syndicates have withdrawn from sports personal accident cover as other markets cut capacity amid mounting concussion litigation in the US, Helen Yates reports
Nick Kirk, formerly head of financial and professional (finpro) lines at Canopius, has joined Munich Re Syndicate as financial lines underwriting manager.
While the Lloyd’s market has attempted to clean up its act with regard to lunchtime drinking, it’s a fair bet that many in the market will still be enjoying a (responsible) tipple from time to time.