Currencies

China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

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Banks

Carney: UK is ‘investment banker for Europe’

The governor of the Bank of England has repeated his calls for a “smooth and orderly” UK exit from the EU, saying that a transition out of the bloc will happen, it was just a case of “when and how”. Responding to the BoE’s latest bank stress tests, where lenders overall emerged with more resilient […]

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Currencies

China stock market unfazed by falling renminbi

China’s renminbi slump has companies and individuals alike scrambling to move capital overseas, but it has not damped the enthusiasm of China’s equity investors. The Shanghai Composite, which tracks stocks on the mainland’s biggest exchange, has been gradually rising since May. That is the opposite of what happened in August 2015 after China’s surprise renminbi […]

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Capital Markets

Mnuchin expected to be Trump’s Treasury secretary

Donald Trump has chosen Steven Mnuchin as his Treasury secretary, US media outlets reported on Tuesday, positioning the former Goldman Sachs banker to be the latest Wall Street veteran to receive a top administration post. Mr Mnuchin chairs both Dune Capital Management and Dune Entertainment Partners and has been a longtime business associate of Mr […]

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Banks

Financial system more vulnerable after Trump victory, says BoE

The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging. The BoE said on Wednesday that vulnerabilities that were already considered “elevated” have worsened since its last report on financial stability in July, in the […]

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Categorized | Insurance

Three UK insurers face $380m bill on Sandy


Posted on December 18, 2012

Three listed Lloyd’s of London insurers have estimated they are facing combined losses of about $380m from superstorm Sandy but cautioned that the final hit they would take remained uncertain.

Catlin estimated it would endure net Sandy-related losses of about $200m, Hiscox claims about £90m and Novae says it would have costs of between $25m and $30m.

    The hurricane ravaged the eastern seaboard of the US, causing widespread flooding and severe damage to the homes, businesses and infrastructure that lay in its path.

    But even though seven weeks have passed since the storm, all three UK insurers cautioned they were still struggling to pinpoint exactly the size of the losses.

    Catastrophe analysts estimate Sandy will cost the insurance industry between $20bn and $25bn, which would make it the second-costliest storm on record – in absolute terms – after Hurricane Katrina in 2005.

    Shares in Catlin fell 3 per cent to 482.1p.

    Joy Ferneyhough, analyst at Espírito Santo Investment Bank, said Catlin’s estimated losses equated to 7.6 per cent of its tangible book value, after tax.

    This compared with 4.7 per cent for Novae, whose shares rallied 1.8 per cent to 376.25p.

    Hiscox shares fell 1.5 per cent to 461.9p.

    The Lloyd’s estimates comes a day after Zurich Insurance Group said it expected to face net claims of $700m.

    AIG has estimated that the storm would cause it post-tax net losses of about $1.3bn, while Swiss Re is expecting a pre-tax claims burden of about $900m.