Currencies

Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

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Property

Spanish construction rebuilds after market collapse

Property developer Olivier Crambade founded Therus Invest in Madrid in 2004 to build offices and retail space. For five years business went quite well, and Therus developed and sold more than €300m of properties. Then Spain’s economy imploded, taking property with it, and Mr Crambade spent six years tending to Dhamma Energy, a solar energy […]

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Currencies

Euro suffers worst month against the pound since financial crisis

Political risks are still all the rage in the currency markets. The euro has suffered its worst slump against the pound since 2009 in November, as investors hone in on a series of looming battles between eurosceptic populists and establishment parties at the ballot box. The single currency has shed 4.5 per cent against sterling […]

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Banks

RBS falls 2% after failing BoE stress test

Royal Bank of Scotland shares have slipped 2 per cent in early trading this morning, after the state-controlled lender emerged as the biggest loser in the Bank of England’s latest round of annual stress tests. The lender has now given regulators a plan to bulk up its capital levels by cutting costs and selling assets, […]

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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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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.