Archive for October, 2009



October 30th, 2009

Explosions and Fire at Oil Storage Depot, Jaipur, India

Posted at 8:46 AM ET

indianoilfiremapA massive fire broke out on October 29, 2009 at an oil storage depot in the western Indian state of Rajasthan, killing at least six people and injuring 150 others. Two huge explosions were heard before the fire ignited and rapidly spread. Reports said the blaze ignited most of the depot, including every oil storage unit. The fire broke out around 19:30 local time (14:00 UTC) at the Jaipur storage depot run by Indian Oil Corporation (IOC) and was visible from over 25 kilometers (16 miles) away, according to reports. Company officials said the depot covers an area of several square kilometers and the oil tanks store gasoline, diesel and kerosene fuel for several state-owned oil companies. Reports said the depot has a 100,000 kiloliter capacity.

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October 30th, 2009

Week’s Top Stories: Oct 24 - 30, 2009

Posted at 1:00 AM ET

Update: Risk Profile, Appetite and Tolerance: Fundamental Concepts in Risk Management and Reinsurance Effectiveness: In April 2009, Guy Carpenter’s Financial Intelligence Team published a briefing entitled Risk Profile, Appetite and Tolerance: Fundamental Concepts in Risk Management and Reinsurance Effectiveness. That briefing included definitions of Risk Profile, Appetite and Tolerance and how these concepts fit into an Enterprise Risk Management (ERM) framework. It also presented the results of our initial Risk Tolerance Benchmarking study, which summarized the information publicly disclosed in this area.

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MGA M&A Appetite Remains: Program administrators and managing general agents (PAs/MGAs) appear to be interested in making acquisitions. This year, 72 percent of participants in Guy Carpenter’s Fifth Annual Specialty Insurance Program Issuing Carrier Survey indicated an interest in growing through acquisition, up slightly (though not materially) from 70 percent in 2008. A mature segment of the insurance industry, this remains one of the few ways to accelerate top-line growth and capture market share.

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Mergers & Acquisitions Update: Third Quarter 2009*: A mergers and acquisitions (M&A) trend is beginning to form in the (re)insurance industry. With capital being restored to carriers’ balance sheets, M&A is expected to accelerate next year and particularly in 2011. Both strategic and tactical opportunities are being pursued, and as some (re)insurers capitalize on them, others will follow. A podcast at the end of this article provides deeper commentary and insights into the (re)insurance M&A market.

Read the article >>

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October 29th, 2009

Typhoon Mirinae

Posted at 8:55 AM ET

small-mirinae Typhoon Mirinae is located approximately 645 miles (1,040 kilometers) east of Manila in the Philippines and is tracking west-southwest, according to the Joint Typhoon Warning Center (JTWC). Mirinae is currently a Category 2 typhoon and is moving at 19 mph (30 kmph) with sustained winds of around 104 mph (167 kmph).

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October 29th, 2009

Despite a Year of Change, Stable Renewal Is Likely

Posted at 1:00 AM ET

smallmarcell_andrew_photographAndrew Marcell, CEO — Americas Broking Operations
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Capital management discipline has guided the (re)insurance industry through a turbulent year. Volatile financial markets, capital constraints and general uncertainty caused many carriers, a year ago, to fret over the coming renewal and the availability of capacity. Some were calling for sharp increases in reinsurance rates, and concerns of a capital shortfall were widespread. As we have seen, however, this did not occur. Despite the calamity visited upon the global financial services industry, (re)insurers have persevered, and the coming renewal is likely to be notable for its stability.

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October 28th, 2009

Five Ways to Find and Manage Hidden Risks

Posted at 1:00 PM ET

metropoulos_emil_bioEmil Metropoulos, Senior Vice President
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Some casualty risk accumulations stay hidden, but this doesn’t mean your exposure disappears. A single event could trigger a chain reaction of insured losses on professional and product liability covers, depleting your capital and possibly destroying shareholder value. In extreme cases, even solvency could be threatened. Using Guy Carpenter’s Casualty Cat model, developed jointly with Arium, Ltd., it’s possible to identify some of these “casualty catastrophe” risks early — before they drain your balance sheet.

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October 28th, 2009

Mergers & Acquisitions Update: Third Quarter 2009

Posted at 12:30 AM ET

gc-securities-logoNorman Brown, Managing Director, GC Securities and Bart Zanelli, Managing Director, GC Securities*
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A mergers and acquisitions (M&A) trend is beginning to form in the (re)insurance industry. With capital being restored to carriers’ balance sheets, M&A is expected to accelerate next year and particularly in 2011. Both strategic and tactical opportunities are being pursued, and as some (re)insurers capitalize on them, others will follow. A podcast at the end of this article provides deeper commentary and insights into the (re)insurance M&A market.

Click here to listen to the podcast >>

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October 28th, 2009

GC Podcast 11 - M&A (Norm Brown and Bart Zanelli)

Posted at 12:29 AM ET

podcast_brown_zanelliNorm Brown and Bart Zanelli, both Managing Directors in GC Securities*, discuss the (re)insurance industry M&A market in this new GC Capital Ideas podcast. Click the audio player below to listen to the interview, or download the interview in a file that will work with your iPod.

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* Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities Corp., a US registered broker-dealer and member FINRA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000. Securities or investments, as applicable, are offered in the European Union by GC Securities, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Services Authority. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities Corp., MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh & McLennan Companies, Inc. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument, reinsurance or insurance product.

October 28th, 2009

Chart: 3Q2009 M&A Update

Posted at 12:28 AM ET

m-and-a-chart

After a record year of M&A in 2003, the (re)insurance industry nearly fell silent in 2004. The number of transactions completed dropped from 42 (at a value of USD18 billion) in 2003 to 17 in 2004, with a total value of USD449 million. From 2005 through last year, the M&A market saw a growth trend emerge, ultimately reaching 59 transactions at an aggregate value of USD16.6 billion in 2008. Carriers have been busy this year, too: 40 deals have closed, with a total value of USD7.1 billion, at the end of the third quarter of 2009. And, the trend is likely to continue upward.

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* Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities Corp., a US registered broker-dealer and member FINRA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000. Securities or investments, as applicable, are offered in the European Union by GC Securities, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Services Authority. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities Corp., MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh & McLennan Companies, Inc. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument, reinsurance or insurance product.

October 27th, 2009

Update: Risk Profile, Appetite, and Tolerance: Fundamental Concepts in Risk Management and Reinsurance Effectiveness

Posted at 1:00 AM ET

Financial Intelligence Team
Contact

In April 2009, Guy Carpenter’s Financial Intelligence Team published a briefing entitled Risk Profile, Appetite and Tolerance: Fundamental Concepts in Risk Management and Reinsurance Effectiveness. That briefing included definitions of Risk Profile, Appetite and Tolerance and how these concepts fit into an Enterprise Risk Management (ERM) framework. It also presented the results of our initial Risk Tolerance Benchmarking study, which summarized the information publicly disclosed in this area.

Download the briefing as a PDF >>

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October 26th, 2009

Explosion at Oil Storage Facility, San Juan, Puerto Rico

Posted at 5:00 PM ET

A massive explosion on October 23, 2009 caused severe damage at Caribbean Petroleum Corporation’s Bayamon oil storage and refinery facility near Puerto Rico’s capital of San Juan. The blast and subsequent fire, one of the largest ever seen in the US Caribbean island territory, sent a towering column of black toxic smoke into the air, raising fears of a public health risk and pollution damage. Around 1,500 people were evacuated from the nearby Sabana Amelia neighborhood due to smoke contamination concerns as the fire burned for more than two days. Reports said the explosion and fire destroyed at least 18 of the oil facility’s 40 storage tanks, which contained products such as jet fuel, bunker fuel and gasoline. The tanks at Caribbean Petroleum hold about 10 percent of the gasoline consumed in Puerto Rico, according to Consumer Affairs Secretary Luis Rivera Marin. However, he added there was no risk of shortages.

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