The March 2012 issue of Reactions features a special report on insurance asset management. The eurozone crisis is dominating insurers’ thoughts at the moment, with the situation extremely unclear. We ask how the industry is likely to be affected by the problems in Europe, as well as looking at how asset management strategies are changing and revealing the biggest third-party insurance asset managers.
In other features, we take a look at the facultative reinsurance market. It seems fac is becoming more fashionable after last year’s catastrophes hammered treaty programmes. We also review the Brazilian reinsurance market, interview the National Association of Insurance Commissioners’ top executives and analyse how the Thai market has been forever changed by last year’s floods.
Not done there, in a new section on capital market deals we reveal the biggest capital raising and M&A in 2011 and so far this year. Our data sections for capital raising and M&A will be updated regularly so be sure to check here and here for updates of the latest deals.
How the eurozone crisis affects insurers
Feature: Crisis in Athens and the eurozone has transfixed investors and the public. Eurozone sovereign risk threatens the contents of insurers’ asset portfolios, and country downgrades have eroded the credit ratings of many firms already.
Insurance asset management strategy - Eurozone crisis eclipses Solvency II investment concerns
Feature: The European sovereign debt crisis has put insurers' longer term asset allocation strategies for projects such as Solvency II on the backburner. How are insurance asset management strategies changing?
DIAM takes top spot for GA insurance assets
First-half 2011 figures show that Deutsche Insurance Asset Management jumped over BlackRock to take the top spot for US-managed insurance general account assets, according to a survey by Insurance Asset Manager.
Facultative reinsurance back in demand
Feature: With last year’s catastrophes hammering capacity in the treaty reinsurance market, fac underwriters are hoping they are about to come into fashion. Includes fac loss data.
NAIC seeks "mutual evaluation" with Solvency II
Interview: The National Association of Insurance Commissioners recognises that the clunky US regulation system could be improved but is not taking Europe as its model, say its CEO Terri Vaughan and president Kevin McCarty.
Brazil reinsurance market cracked open
Feature: Nobody is entirely happy with the final outcome of the Brazilian reinsurance market opening, but the result is a dynamic market that will likely have more local reinsurers soon.
Thai insurance forever changed by floods
Analysis: The flooding in Thailand has forever changed the perception of risk in the country, has left the government facing the challenge of guaranteeing access to insurance, and will likely spark a wave of M&A and other deals, says a new AM Best report.
Data: (Re)insurers' Thai flood loss estimates
Data: Insurance and reinsurance firms loss estimates from the 2011 flooding in Thailand, as of February 28.
Webcast on internal model challenges
A webcast held in February revealed what the world’s leading insurers are doing to build their risk management capabilities to help address the challenges of optimising economic and regulatory capital, better managing risk and improving data integration.
Insurers' eurozone break-up legal implications
Legal Analysis: Many existing insurance policies are denominated in euros but, in light of recent events, what might the policy implications be were a single country to leave the euro and the eurozone continue to exist?
2011’s top insurance M&A deals
Data: Dealogic reveals the biggest insurance M&A deals in 2011, with observers predicting a more active year in 2012.
2011’s top insurance-related capital raising
Data: AIG had the biggest equity deal in 2011, while China Life had the largest debt deal. Goldman Sachs was the top bookrunner for capital raising deals.
February’s biggest insurance M&A deals
Data: Sales of a share of The Hartford, an uncertain offer involving Italy’s second-largest insurer, and the acquisition of insurance broker Crump were the biggest insurance-related M&A deals in February.
Top insurance M&A deals announced 2012 YTD
Data: Top insurance-related deals in 2011 up to the end of February.
February’s biggest insurance-related capital raising
Data: The value of insurance-related debt and equity deals both increase in February compared with January, with a $1.96bn debt raising from Allianz leading the way.
Top insurance capital raising announced 2012 YTD
Data: Top insurance-related equity and debt deals in 2011 up to the end of February
Corporate reputations on the line
Comment: Reputation risk is heightened because too often there is an inadequate flow of information across or up and down an organisation. Risk professionals need to feel more confident to report on risks that may not within their area of responsibility and some firms need to take the CRO role more seriously, says Reactions contributing editor Garry Booth.
CFA gets into a cat fight with insurers
A controversial study released by a consumer group accusing the industry of shifting from risk takers to risk-avoiders has sparked a robust defence by insurance industry groups.
Riskbitz: Olympics to disrupt market
A new study from the Bleedin Obvious faculty of the University of Bridlington says that insurance companies will be vulnerable to a wide range of exposures and will need to plan and implement proper risk management procedures in order to be prepared.
Riskbitz: Sir Cuthbert defends “Whiplash Capital”
Sir Cuthbert “Cutty” Sark, chairman and CEO of Hapless Insurance, said he had not realised that whiplash was so popular in the UK, and was shocked at the growing cost of whiplash.
Riskbitz: London Rolls Out Post-IT Notes Project
White Post-IT Notes will be used to deliver targeted updates to agents and brokers who are actively working on related new and renewal business opportunities.