Florida Insurance Roundup: May 11 — 17, 2009: This week’s topics include:
Lloyd’s 2008 Results — Resilience in a Tough Market: Lloyd’s of London (”Lloyd’s”) competitive position strengthened in 2008, largely because of effective risk management oversight and relatively conservative investment allocation. The capital structure has proved resilient in the face of the worldwide financial catastrophe and financial strength ratings remain strong and stable. As a result, Lloyd’s is well-positioned to benefit from current market dislocation.
Capital Management Strategies Forced to Mature: As with everything that happened last year, the (re)insurance industry’s 2008 full-year financial results are open to interpretation. One could focus on the Guy Carpenter Global Reinsurance Composite’s shareholders funds decline of USD19.7 billion — not to mention a total net loss of USD6.1 billion — or zero in on the fact that most of this came from unrealized investment losses and note that most companies showed underwriting profits.
Chart: Human Swine Flu Cases and Deaths by Country: To date, most cases of H1N1 swine flu have been confirmed in Mexico; 29 deaths have resulted from 822 WHO-confirmed cases. The United States and Canada have reported 403 and 165 cases of H1N1 respectively, with one fatality in the former and none in the latter. Overall, there have been 1,516 confirmed cases of H1N1 and 30 fatalities. Outside Mexico and the United States, there have been no confirmed deaths related to H1N1 swine flu.
Risk Profile, Appetite, and Tolerance: Fundamental Concepts in Risk Management and Reinsurance Effectiveness: Prior to the recent turbulence in the financial markets, insurers and reinsurers were increasing their use of Enterprise Risk Management (ERM) to make risk and capital management decisions. While this was driven in part by rating agencies and regulators, many carriers began to recognize the value of metric-based frameworks and capital models in evaluating their portfolios.
Most Popular Keyword: World ROL Index
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Solution Spotlight: i-aXs Workers Comp: What would instant access to your data mean to you? What if you could quickly modify analyses to better evaluate your changing business concerns? With the rating agencies and your management asking you to identify and quantify the potential costs of your largest workers compensation terrorism, earthquake, and industrial accident accumulations, imagine the ability to drill deeper, reach new insights, and take better control over your information.
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