|
Hurricane damage still comes in
Losses from last year’s US hurricanes continue to focus attention among London market insurers. Among the Lloyd’s players, troubled GoshawK was forced to increase its catastrophe loss provision by £14.8 million to £76 million and warned new provisions for non-catastrophe losses might be needed, too. GoshawK warned its Bermuda subsidiary Rosemont Re had fallen below Bermuda’s statutory minimum solvency limit, while the parent company was also in breach of some banking covenants. A new management regime under chief executive Michael Dawson is striving to find a solution. Another Lloyd’s group, Catlin, said the three US hurricanes, Rita, Katrina and Wilma, would together cost it a combined £174 million for 2005. However, the company maintained it would still show a small annual profit. The consensus has been that those insurers not facing ruinous losses without enough reinsurance protection should stand to benefit from an upturn in premiums provoked by the hurricane claims. That was the experience after 9/11. Among the giant general insurers, it emerged that Aviva, parent of Norwich Union, and the Pru had held informal merger discussions in 2004. Suggestions of an imminent revival of these talks were countered by the consideration that the Pru is still being turned around by a new regime after past problems.
|
