A massive earthquake struck off the coast of Maule in Chile at 06:34 UTC on February 27(03:34 local time), causing severe damage across of the country and claiming up to 800 lives in Chile’s biggest earthquake for around 50 years. The earthquake, measuring 8.8 Mw, was located 60 miles (100 kilometers) north-northwest of Chillan and 205 miles (330 kilometers) southwest of Santiago, according to the US Geological Survey (USGS). The USGS added that the quake was centered about 21.7 miles (35 kilometers) underground and was felt in Argentina. This is the joint fifth largest earthquake ever to be recorded, according to the USGS. Around 200 aftershocks have hit the region since the main earthquake, the most powerful at 6.9 Mw.

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The strengthening Australian dollar against other key currencies (GBP, Euro, USD) did not dampen available capacity. The market was characterized by a more than adequate supply for all lines of Australian/New Zealand reinsurance business. Average rate changes for loss free lines of business were flat or declined 10 percent. Major renewals tended to be in the market early with subsequent early completion of placement.

Average rates on line remained stable on exposures that generally increased in size at the renewal season in the Benelux countries (Belgium, Netherlands, Luxembourg). Buyers, cognizant of the emerging capital standards around Solvency II, often increased their purchased capacity.

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Austria saw prices increase at the January 2010 renewal as catastrophe capacity was less available due to further increases in loss frequency in 2009 following the poor performance of years 2006 through 2008. Average Rate on Line increases of 20 percent were seen for excess of loss cat risks with losses, and average increases of 5 percent for those with no losses.

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A strong earthquake struck southern Taiwan at 0:18 UTC earlier today, causing minor damage and disrupting transport. The earthquake, measuring 6.4 Mw, was located 25 miles (40 kilometers) west-northwest of Taitung and 40 miles (60 kilometers) east-southeast of Tainan, according to the US Geological Survey (USGS). The USGS added that the quake was centred about 14.4 miles (23.1 kilometers) underground. Fifteen aftershocks have been recorded following the main earthquake, reports said. The USGS said more than 3.1 million people live in areas impacted by a Modified Mercalli Intensity (MMI) of V or higher (see Table 1 below), equivalent to moderate shaking with the potential for light damage. This number includes the 765,000 people living in the city of Tainan, the USGS said. No tsunami alert was issued.

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A powerful Atlantic storm named Xynthia battered western Europe with hurricane-force winds, surging seas and driving rain on February 27 and 28, causing widespread property damage and severely disrupting transport networks and infrastructure. The most severe damage was predominantly seen in western France, though disruption was reported across several countries in western Europe. According to recent estimates, the storm left at least 62 people dead across France, Germany, Spain, Portugal and Belgium, and more than 1 million households lost power at the height of the storm. At least 51 of the fatalities occurred in France, which was the country worst-affected by the windstorm.

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Primary rates for the surety line have remained stable even as the recession weakened the financial strength of many principals. Over the past three years surety loss ratios have remained low compared to their historical trend. Profitability levels in the surety line along with a competitive environment trying to increase market share have held back potential industry-wide rate increases.

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A massive earthquake struck off the coast of Maule in Chile at 06:34 UTC on February 27 (03:34 local time), causing severe damage across of the country and claiming more than 700 lives in Chile’s biggest earthquake for around 50 years. The earthquake, measuring 8.8 Mw, was located 60 miles (100 kilometers) north-northwest of Chillan and 200 miles (325 kilometers) southwest of Santiago, according to the US Geological Survey (USGS). The USGS added that the quake was centred about 21.7 miles (35 kilometers) underground and was felt in Argentina. This is the joint fifth largest earthquake ever to be recorded, according to the USGS. Around 150 aftershocks have hit the region since the main earthquake, the most powerful at 6.9 Mw.

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UK average rate changes ranged from declines of 15 percent to flat.  Excess of loss Cat rates declined by 5 percent to 10 percent. Property Fire Risk rate changes ranged from declines of 15 percent to flat, with variations determined by loss experience. Risk pricing will continue to be under pressure and the market competitive as long as the primary market continues to see depressed rating levels. The Reinsurance Property lines have been profitable over time, but because the UK falls into reinsurers’ peak Northern European Cat zone, capacity is usually finite. However, several new entrants in the UK market are offering additional capacity. Retentions levels have remained stable and recent flooding in the UK has highlighted the need to protect earnings from attritional cat events.

A powerful Atlantic storm named Xynthia battered Western Europe with hurricane-force winds, surging seas and driving rain on 27 and 28 February, causing widespread property damage and disrupting transport networks. According to recent estimates, the storm has left at least 56 people dead across France, Germany, Spain, Portugal and Belgium, and more than 1 million households have been left without power. At least 47 of the fatalities have occurred in France, which has been the country worst-affected by the windstorm.

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