Archive for August, 2010



August 31st, 2010

Update: Hurricane Earl

Posted at 9:37 AM ET

earl-tues-smallHurricane Earl has strengthened to category 4 on the Saffir-Simpson hurricane wind scale. According to the National Hurricane Center (NHC), the center of Earl is located around 150 miles (240 kilometers) north north-west of San Juan Puerto Rico and around 290 miles (470 kilometers) east south-east of Grand Turk Island.

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August 31st, 2010

Register for E-mail Updates from GC Capital Ideas

Posted at 1:00 AM ET

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August 31st, 2010

Business Insurance Readers Choice Awards 2010

Posted at 1:00 AM ET

Business Insurance magazine is once again requesting its readers to submit votes for its Readers Choice Awards. Insurance professionals have the opportunity to recognize the organizations they believe to be the best in their fields. Readers consider these organizations to be leaders in terms of service, quality and innovation.

Guy Carpenter & Company, LLC encourages its clients and GCCapitalIdeas readers to vote for their preferences.

Click here for a link to the survey questionnaire.    

Thank you. 

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August 30th, 2010

Guy Carpenter’s Financial Intelligence Team: Top Stories, 2010 Year to Date

Posted at 1:00 AM ET

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Here we highlight the top stories from Guy Carpenter’s Financial Intelligence Team that appeared on GCCapitalIdeas.com in 2010.

QIS5 - Premium and Reserve Risk: Sufficient Consideration of Non-proportional Reinsurance?  On July 6, 2010 the Committee of European Insurance and Occupational Pensions Supervisors published the technical specification for the latest Solvency II Quantitative Impact Study (QIS) 5. QIS5 is scheduled to be carried out from August to November of 2010, with a report summarizing the results scheduled for release in April of 2011. Regarding the non-life premium and reserve and risk, Guy Carpenter & Company, LLC has observed a return to capital requirements more in line with QIS4 and an implicit incentive for the use of an internal model.

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Solvency II - Non-Life Underwriting Risk in Light of QIS 5: On April 15th, 2010, the European Commission (EC) published its draft technical specifications for the next Quantitative Impact Study (QIS) 5, which will be implemented from August to November of 2010. Based on empirical evidence, the general calibration of the standard formula solvency capital requirement (SCR) may fall between the calibration of QIS 4 and the calibration seen in the rigid proposals of the various consultation papers (CP) submitted during 2009. This article takes a deeper look at the calibration of non-life underwriting risk as part of the overall SCR calculation.

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Solvency II - Approval of Internal Models:   The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) published many consultation papers in 2009 focusing on Level 2 implementation measures for Solvency II. Consultation Paper (CP) 37 addressed the procedures for approval of internal models. It was followed by a final paper entitled “CEIOPS Advice for Level 2 Implementing Measures on Solvency II ‘The procedure to be followed for the approval of an internal model’”, published in October, 2009.

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August 27th, 2010

Update: Hurricane Danielle

Posted at 3:25 PM ET

danielle-friday-small1Hurricane Danielle, the strongest hurricane of the 2010 Atlantic hurricane season, strengthened to a Category Four storm today. According to the National Hurricane Center (NHC), the storm is currently located approximately 480 miles (770 kilometers) southeast of Bermuda. Danielle is moving in a north-westerly direction with maximum sustained winds of around 135 mph (215 kmph). The storm is predicted to turn toward the north on Saturday, with the center of the hurricane passing well east of Bermuda on Saturday night. According to the NHC, some additional strengthening is possible in the next 24 hours. Hurricane-force winds have been reported up to 60 miles (95 kilometers) from the center of the storm while tropical storm-force winds extend 205 miles (335 kilometers) from the center.

Continue reading…

August 27th, 2010

Week’s Top Stories: August 21 - August 27, 2010

Posted at 10:26 AM ET

QIS5 - Premium and Reserve Risk: Sufficient Consideration of Non-proportional Reinsurance?   On July 6, 2010 the Committee of European Insurance and Occupational Pensions Supervisors published the technical specification for the latest Solvency II Quantitative Impact Study (QIS) 5. QIS5 is scheduled to be carried out from August to November of 2010, with a report summarizing the results scheduled for release in April of 2011. Guy Carpenter & Company, LLC has observed a return to capital requirements more in line with QIS4 and an implicit incentive for the use of an internal model regarding the non-life premium and reserve and risk.

Read the article »

Chart: Guy Carpenter Global Reinsurance Composite First Half 2010: Combined Ratio:   The weighted average of the combined ratio of the Guy Carpenter Global Reinsurance Composite increased from 92.1 percent at end of year 2009 to 102.5 percent at first half 2010, the highest combined ratio since 2005, the year of the Katrina/Rita/Wilma Hurricanes.

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Chart: Guy Carpenter Global Reinsurance Composite First Half 2010:   Earnings:   Total earnings for the Guy Carpenter Global Reinsurance Composite in the first half of 2010 decreased by 6.4 percent to USD4.8 billion compared with the same period in 2009. The principal driver was an underwriting loss of USD901 million compared with profit of USD2.4 billion in the prior year.

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Update:  Hurricane Danielle:  Danielle has strengthened over the last 24 hours to become the second hurricane of the 2010 Atlantic hurricane season, and the storm is currently located approximately 1,110 miles (1,790 kilometers) east of the Lesser Antilles, according to the National Hurricane Center (NHC). Danielle packs sustained winds of around 100 mph (160 kmph) and is currently traveling in a westerly direction. Danielle is expected to take a turn to the west-northwest and then the northwest over the next 24 hours. The storm is also forecast to strengthen during this time as it moves into a favorable environment for intensification, and the NHC says Danielle could become a major hurricane by Wednesday. The NHC said hurricane-force winds extend 30 miles (45 kilometers) from the center of the storm while tropical storm-force winds extend 115 miles (185 kilometers).

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Catastrophe Bond Update: Second Quarter 2010 - Activity Surges…Reflecting Favorable Issuance Conditions and Strong Investor Demand:* In the second quarter of 2010, eight catastrophe bond transactions were completed, and USD2.05 billion of risk capital was issued making it the second most active second quarter on record. USD1.70 billion of this total (and all but one transaction) included exposure to U.S. wind as sponsors and investors focused on this peril, leading into what is expected to be an active North Atlantic hurricane season.

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And, you may have missed…

GC Videocast - Dramatic Improvement in Reinsurer Earnings and Balance Sheets Following Financial Crisis:    Chris Klein, Guy Carpenter’s Head of Business Intelligence, reviews the dramatic change and improvement in reinsurers’ fortunes following the global financial crisis. He reviews the year- end 2009 earnings results of the Guy Carpenter Bermuda Reinsurance Composite. He also reviews the primary drivers for capital decline and then growth among those reinsurers in 2008 and 2009, respectively. The impact of capital growth on capacity is also discussed.

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ILW market commentary provided by
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• Larry Rothstein, Vice President (Guy Carpenter London)

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August 27th, 2010

Update: Tropical Storm Earl

Posted at 9:06 AM ET

earl-2-smallTropical Storm Earl is located approximately 1,430 miles (2,300 kilometers) east of the northern Leeward Islands and packs sustained winds of around 45 mph (75 kmph), according to the National Hurricane Center (NHC). Earl is currently traveling in a westerly direction and this general motion is expected to continue for the next couple of days as the storm strengthens. The NHC said tropical storm-force winds extend 85 miles (140 kilometers) from the center of the storm.

Continue reading…

August 26th, 2010

Update: Hurricane Danielle

Posted at 3:52 PM ET

danielle3-smallDanielle, the second hurricane of the 2010 Atlantic hurricane season, has strengthened today. According to the National Hurricane Center (NHC), the storm is currently located approximately 630 miles (1,015 kilometers) northeast of the Northern Leeward Islands and 770 miles (1,235 kilometers) southeast of Bermuda. Danielle packs sustained winds of around 105 mph (165 kmph) and is currently traveling in a north-westerly direction. Danielle is expected to continue in this direction while experiencing a gradual decrease in forward speed over the next couple of days. The NHC predicts Danielle will strengthen somewhat in the next 24-36 hours, and could become a major hurricane during this time. The NHC reports hurricane-force winds extending 40 miles (65 kilometers) from the center of the storm and tropical storm-force winds extending 175 miles (280 kilometers).

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August 26th, 2010

Tropical Storm Earl

Posted at 1:23 PM ET

earl-smallTropical Storm Earl, the fifth named storm of the 2010 Atlantic hurricane season, developed at 21:00 UTC on August 25 and is currently located approximately 695 miles (1,120 kilometers) west of the Cape Verde Islands, according to the National Hurricane Center (NHC). Earl packs sustained winds of around 45 mph (75 kmph). The storm is traveling in a west-northwest direction and this general motion is expected to continue for the next 48 hours as the storm strengthens. The NHC said tropical storm-force winds extend 60 miles (95 kilometers) from the center of the storm.

Continue reading…

August 26th, 2010

Chart: Guy Carpenter Global Reinsurance Composite First Half 2010: Combined Ratio

Posted at 1:00 AM ET

The weighted average of the combined ratio of the Guy Carpenter Global Reinsurance Composite increased from 92.1 percent at end of year 2009 to 102.5 percent at first half 2010, the highest combined ratio since 2005, the year of the Katrina/Rita/Wilma Hurricanes.

globalcompositeaug-cr

Source: Guy Carpenter & Company, LLC

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