E&S/Specialty

Although Bermuda insurers and reinsurers were hit with more than $3.5 billion in catastrophe losses from worldwide disasters in 2010, roughly $2.7 billion in favorable prior-year loss development helped cushion the blow, according to NU tallies.

While the types of captives formed and the coverages may vary, one point regulators agree on is that business is up and more captives are in the pipeline for 2011.

The industry should “stay tuned” as the revised catastrophe model from Risk Management Solutions rolls out, the CEO of RenaissanceRe told NU, describing the model changes and potential market impacts as meaningful.

Bermuda-based Aspen Insurance Holdings Limited is positioning its U.S. specialty insurance operation for an inevitable market turn by hiring experienced professionals, according to CEO John Cavoores. Mario Vitale, an alumnus of Zurich and Willis, joined the leader board as president last week, bearing the battle scars of prior soft markets.

Reinsurers have let it be known that the reinsurance market would be prepared to take on some flood risk if Congress decides to pursue that option.

After a panel of excess-and-surplus lines industry leaders recently expressed concerns about insurers abandoning the wholesale-distribution channel, two E&S carrier executives reiterated their commitment to both wholesaler brokers and surplus-lines business.