Reinsurance

Standard & Poor’s lowered the insurer financial strength rating of three Bahraini insurers while affirming the financial strength of three others domiciled there after lowering the sovereign rating of the kingdom of Bahrain.

Flagstone Reinsurance Holdings said losses from natural catastrophes in Australia during the first quarter are expected to be between $60 million and $80 million, while Validus Holdings said last week's Christchurch, New Zealand earthquake could cost the company between $25 million and $50 million.

Warren Buffett bemoaned the continued competition of the soft market, making a critical assessment of chief executives who pursue market volume over underwriting profit as Berkshire Hathaway's insurance business produced a profit of 38 percent.

The latest New Zealand earthquake is "absolutely not" the type of event to harden the reinsurance market, said the global head of business intelligence for Guy Carpenter.

Moody's Investor Services said it will take no immediate action on New Zealand and Australia issuers as a result of the Christchurch earthquake on Feb. 21 but that losses could hinge on whether this quake is considered a new event.

Catlin U.S. said it has appointed Steven Ensign as director of the Direct Property Facultative Department for Catlin’s U.S. Reinsurance Operations in Hartford.