Mike McGavick joined XL Group in 2008 as CEO as the group was reeling from direct hits incurred by its financial guarantee company during the credit crisis and many feared that it would not recover. Mr McGavick has, however, led a remarkable turnaround in fortunes for the group, which was recently confirmed by another decent set of quarterly numbers and the decision by Standard & Poor’s to affirm its credit rating and revise the outlook to ‘Stable’ from ‘Negative’. S&P also changed its assessment of XL’s Enterprise Risk Management [ERM] to ‘Strong’ from ‘Adequate’.
Commercial insurance buyers are being listened to in the Solvency II debate and the powers that be do know what a captive is. But Peter Skinner, MEP in charge of the new insurance capital adequacy regime, told CRE Editor Adrian Ladbury that risk managers must stay involved and state their case right up to the final whistle.
European corporate default rates are expected to fall modestly during 2011, but may rise again from 2012 in the face of economic headwinds and refinancing challenges, according to Standard & Poor’s (S&P) Ratings Services Annual European Corporate Credit Outlook.
Despite the 2010 Atlantic hurricane season being one of the most active on record no hurricanes made US landfall as the reinsurance industry avoided any tangible losses, rating agency Moody’s has reported.
Prospects for the US P&C market are unlikely to improve in 2011 as competitive fundamentals continue to promote inadequate pricing, according to Fitch Ratings in a new report.
Top European insurance officials have said that the time has come to simplify the Solvency II directive, in a quest to preserve competition in the insurance sector.
The CEA has responded to criticism of a ‘negative’ approach to mandatory financial security for the Environmental Liability Directive, and the search for alternative insurance solutions, from a leading environmental liability lawyer.
Risk managers of leading German companies believe Solvency II may cause problems for reinsurers, as consolidation amongst primary companies will lead to reduced demand for reinsurance.
Swiss Re’s economists have warned that insurers’ profits will be under pressure, amidst weak investment returns, and that a correction of the unsustainable premium rates currently witnessed is long overdue.
QIS5 natural catastrophe scenarios are, on an aggregate level, roughly within range of current industry models, according to Guy Carpenter’s Solvency II Update.