Thought Leadership - Reinsurance

Event Recap Report: February 27, 2010 Chile Earthquake
A powerful magnitude-8.8 earthquake struck central Chile on the morning of February 27th, 2010, killing at least 550 people, injuring thousands more and causing devastating damage. The main tremor occurred just off the coast of Chile at 3:34 AM local time (6:34 UTC) with an epicenter 100 kilometers (60 miles) north-northwest of Chillan, Chile or 325 kilometers (200 miles) southwest of Santiago, Chile. The temblor’s depth was measured at 35 kilometers (21.7 miles) beneath the earth’s surface. Residents close to the epicenter reported shaking for nearly 150 seconds. Following the main earthquake, over 200 aftershocks occurred, of which 150 of these were greater than magnitude-5.0 and 12 were greater than magnitude-6.0.
Mar-10Impact Forecasting

February 2010 Monthly Cat Recap - Impact Forecasting
- Magnitude-8.8 earthquake kills at least 799 people in Chile
- Windstorm Xynthia moves into Europe; insured losses expected to top EUR1.5 billion (USD2.1 billion)
- Successive winter storms affect the U.S. Mid-Atlantic States
Mar-10Impact Forecasting

January 2010 Monthly Cat Recap - Impact Forecasting
- Magnitude-7.0 earthquake in Haiti leaves at least 200,000 people dead
- Prolonged winter weather causes billions (USD) in damage across parts of the globe
- Flooding inundates parts of Africa, South America and Asia
Feb-10Impact Forecasting

Event Recap Report: January 12, 2010 Haiti Earthquake
A massive magnitude-7.0 earthquake struck Haiti on Tuesday, January 12th. The earthquake and over 40 aftershocks led to widespread catastrophic damage in the capital city of Port-au-Prince and in smaller towns surrounding the epicenter such as Jacmel, Carrefour, Léogâne, Petit-Goâve and Gressier. Fatality estimates from the United Nations, the International Red Cross and the Haitian government have settled around 200,000, though the final number may not be known for many months. At least three million people, nearly one-third of Haiti’s entire population, were affected by the earthquake. According to some estimates, it may take upwards of ten years for earthquake-stricken areas of Haiti to be rebuilt. Based on data from the United States Geological Survey (USGS), this is the third deadliest earthquake to strike the globe since 1900.
Jan-10Impact Forecasting

Insurance-Linked Securities - Fourth Quarter Update 2009
The fourth quarter has seen new issuance activity from repeat issuers following recent price tightening in the market. This inaugural quarterly update analyzes these and other market developments, providing readers with a current and in-depth view into this important market. The update highlights that a total of $3.4 billion of ILS transactions closed during the year, including $1.6 billion in the fourth quarter alone. The three months witnessed a dramatic reduction in spreads, most prominently in the U.S. Wind and Multi-Peril sectors, which decreased by 36% and 26% respectively on a non-seasonal adjusted basis. Aon Benfield Securities forecasts that ILS issuance volumes will grow during 1H 2010, as approximately $2 billion of transactions come off-risk and sponsors seek to replace the capacity via capital markets solutions.
Jan-10Aon Benfield Securities

Reinsurance Market Outlook – Remarkable Recovery
Reinsurance Market Outlook – Remarkale Recovery provides Aon Benfield’s review of the main industry trends at the January 1 reinsurance renewals and our outlook for the April, June and July renewal seasons. Aon Benfield forecasts continued softening over these upcoming renewal periods, assuming no significant reinsured catastrophes occur prior to final negotiations. The report highlights that insurer and reinsurer capital increased dramatically from the lows experienced in March 2009, and that the January 1 catastrophe reinsurance renewals were focused on rate decreases in the market’s peak zones of U.S. hurricane and U.S. earthquake. Also covered in the outlook: detailed renewal highlights at geographic and line levels, capital bond market update, rating agency perspectives, ERM, Solvency II, Florida market capacity update, and financial markets.
Dec-09Analytics

Annual Global Climate and Catastrophe Report: Impact Forecasting - 2009
Impact Forecasting's Annual Global Climate and Catastrophe report provides analyses of global natural perils in 2009 and the resultant economic and insured losses. The report reveals that insured losses from worldwide natural catastrophic events were USD20bn with a total economic loss of USD58bn. Catastrophe activity levels were similar to the past two years, comprising at least 222 separate events compared to 213 events in 2008 and 217 events in 2007.
Dec-09Analytics