Combi-boilers can save homeowners space and money

Combi-boilers can save homeowners space and money

Investing in a combi-boiler will give property owners the chance to increase the size of their bathroom, according to an expert.

Andrew Aitken, area sales manager for East Midlands for Remeha, explained that homes with a traditional system will often feature a tank in the loft, a hot water cylinder in the airing cupboard and an iron heat exchanging boiler downstairs.

These items will take up a lot of room, and replacing the setup with a combi-boiler will negate the need for facilities in the loft and airing cupboard.

If homeowners desire, they could re-design their bathroom and use this newly freed-up space to install a shower or towel rail, while there could also be room for a walk-in wardrobe.

"The combis of years ago worked that weight on water flow, as the kilowatt ratings weren't that high – 25 to 30 kilowatts maximum. Now you've got combination boilers where you can get 35 to 39 kilowatts and 60 litres of water flow. That's terrific," Mr Aitken said.

He noted that there is an increasing desire among households to invest in a combi-boiler, as these systems can also help to save energy costs.

"With a combi you pay as you go with the water, so when you turn the tap on you're paying for the gas. So if you only have the tap on for ten minutes you're paying for ten minutes of gas, while with any traditional system you're paying to heat up your store of water every time."

By removing the tanks from the loft, this couldfree up space for a conversion, giving the property an extra bedroom, playroom or office.

A space of quietness away from the rest of the household can be created, which will be ideal for those who need to work from home on a regular basis.

As well as making the home bigger for a growing family, value might also be added to the abode, which will be an important boost given the current state of the housing market.

Catlin Bermuda GWP down 16% as it rejects poorly-rated business

Group-wide premium income up 12%; rates rise 4%

Lloyd’s insurer Catlin has slashed gross written premium in its Bermuda operation by 16% in the first quarter of 2012 after exiting  what it considered to be poorly-rated business.
Gross written premium at the division dropped to $185m (£114.6m) from $219m, which Catlin said “reflects the decision not to renew certain property reinsurance contracts whose rates did not meet the Group’s expectations.”

It added that it expects to use the capacity that would have been used on these contracts later in the year.
Despite the Bermuda slump, Catlin’s overall gross written premium  increased 12% in the first quarter to $1.6bn (Q1 2011: $1.5bn). The biggest growth came from its international book, where gross written premiums increased 27% to $395m (see table below).
The company also reported that rates increased for most lines of business. resulting in average group-wide price hikes of 4% during the first quarter this year. Rates for catastrophe affected business increased 10%, while prices in non-catastrophe classes rose by a more modest 1%.
Chief executive Stephen Catlin praised the results. “Catlin performed well during the first quarter of 2012, thanks to continued growth in gross premiums written and the absence of catastrophe losses,” he said. “Nearly all areas of the business continue to grow, including our US and International underwriting hubs.”
He added: “It is gratifying that the market is heading in the right direction for nearly all classes of business after last year’s unprecedented series of catastrophe losses. I am also pleased to report that rates for Japanese reinsurance renewals at 1 April were slightly ahead of our expectations. We expect market conditions to continue to improve as the year progresses.”
Catlin also thanked departing chairman Sir Graham Hearne, who retired at the conclusion of Catlin’s annual general meeting yesterday, for his contribution. John Barton has succeeded Hearne as chairman.

SCOR buys €75m of contingent capital cover

Cost-effective alternative to retro intended as ‘last resort’ nat cat protection

SCOR has signed a new natural catastrophe financial coverage facility in the form of a contingent capital equity line with UBS. The new facility – providing cover of €75m ($95m) – is an extension of its existing 2010 contingent capital equity line.
With the new arrangement SCOR has extended its existing contingent capital equity line from €75m to €150m.
 
The contingent capital is considered as last-resort protection. The cover is designed to be triggered after SCOR’s traditional retrocession and insurance-linked securities (ILS) solutions.
The issuance of new shares under the extended contingent capital equity line will only be triggered when SCOR has experienced total annual aggregated losses from natural catastrophes above a certain predetermined threshold in a given calendar year.
In addition, this extension of its contingent capital solution allows the SCOR group to further diversify its means of protection, offering a very cost-effective alternative to traditional retro and ILS.
In the absence of the occurrence of any triggering event, no shares will be issued under the facility. The facility may therefore reach its term without any dilutive impact for the shareholders.
Under the extended facility, the eligible worldwide natural catastrophe events under the transaction include the following:

• earthquake, seaquake, earthquake shock, seismic and/or volcanic disturbance/eruption;
• hurricane, rainstorm, storm, tempest, tornado, cyclone, typhoon;
• tidal wave, tsunami, flood;
• hail, winter weather/freeze, ice storm, weight of snow, avalanche;
• meteor/asteroid impact; and
• landslip, landslide, mudslide, bush fire, forest fire and lightning.

Fitch warns Lloyd's to heed emerging market risks

Last year’s Asia-Pacific cats highlight the risks of writing in less well-understood markets

The Lloyd’s market’s planned expansion into emerging markets is a net positive, even though writing insurance outside of established markets carries additional risks, according to Fitch Ratings.
Last year’s Asia-Pacific catastrophes – including locations traditionally viewed as non-peak – highlight the risks of writing insurance in less well-understood markets.






These incidents led to significantly higher underwriting losses than reinsurance companies had forecast, due partly to the limited historical loss and exposure data compared with the USA and western Europe.
This shortcoming has been compounded by the insurance industry’s increasing reliance on catastrophe models to assess the risk contained within their portfolios.
Nevertheless, the rating agency expects the economic development of emerging market economies to boost demand for insurance and reinsurance. Lloyd’s already writes 25% of its business outside of Europe and North America, with the growth of insurance premiums outpacing that of developed markets.
The syndicated nature of Lloyd’s should work to its advantage in tapping new markets. The structure of the Lloyd’s market assists it in sourcing new capital and underwriting large complex risks, compared with an individual company.
Adding to this flexibility is the presence of special purpose syndicates, which allow individuals to invest capital to support underwriting on a limited time basis.

Malaysia's BEST RE gets negative outlook from AM Best

Parent company fails to make cash injection as capital levels deteriorate

AM Best Europe has revised the outlook to negative from stable and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of BEST RE (Malaysia).
The negative outlook has been assigned as a result of deterioration in risk-adjusted capitalisation. The rating agency is also concerned about the level of support provided to BEST RE from its parent company, Islamic Arab Insurance Company (Salama) (UAE).
During 2011, faster than anticipated growth in premium income significantly increased BEST RE’s capital requirements. At the same time, growth in available capital has been below expectations.
BEST RE’s gross written premiums increased by 21% from $368m to $444.8m, while its capital base grew by less than 1% from $145.8m to $146.3m.
Despite losses incurred as a result of the floods in Thailand during 2011, BEST RE maintained a net profit for the financial year of $0.4m.
Furthermore, the ratings of BEST RE were affirmed by AM Best as recently as December 2011, and factored into the affirmations was an expected capital injection of $50m from Salama during the first three months of 2012. This capital injection did not materialise as was anticipated.
However, a reduction in business volume over the medium term combined with sound underwriting results may alleviate concerns regarding BEST RE’s capital position.

Buffett Said to Have Pursued ResCap Purchase Before Bankruptcy

Buffett sought to avoid a ResCap bankruptcy filing because Berkshire had unsecured debt in the mortgage unit, according to the people. Detroit-based Ally turned down the Weschler proposal after deciding that a bankruptcy filing and sale better protected the company from future liabilities, the people said.
ResCap’s board voted to declare bankruptcy and arrange a sale to Fortress Investment Group LLC (FIG) and Nationstar Mortgage Holdings Inc. for about $2.3 billion, ResCap Chairman and Chief Executive Officer Thomas Marano said in an interview this week. Fortress and Nationstar won’t take on the liabilities that Berkshire had proposed assuming, according to the people.
“We are confident in the bankruptcy court-supervised bidding process, which is designed to ensure that the ResCap estate receives the best possible combination of price and terms for its assets in a court-approved transaction,” said Susan Fitzpatrick, a ResCap spokeswoman, in an e-mailed statement.
Buffett, 81, didn’t return a message left with an assistant at Omaha, Nebraska-based Berkshire seeking comment. Gina Proia, a spokeswoman for Ally, and the U.S. Treasury Department’s Matt Anderson declined to comment.

Losses Piled Up

ResCap sought court protection May 14 after losses piled up on subprime and Alt-A mortgages bundled into bonds during the credit crisis. The Chapter 11 reorganization is one of the biggest collapses of a home lender since Wachovia Corp. agreed to be acquired by Wells Fargo & Co. at the end of 2008.
Ally agreed to pay $750 million to ResCap to settle any claims against the parent company, such as those brought by bondholders or other third parties, CEO Michael Carpenter said this week. A Chapter 11 filing protects a company from creditors and allows it to operate while a turnaround is devised.
The U.S. Trustee, which monitors bankruptcy proceedings as part of the Justice Department, selected members of the unsecured creditors committee for ResCap’s bankruptcy, according to a filing in U.S. Bankruptcy Court in Manhattan. American International Group Inc., Allstate Corp. and FGIC Corp. were among nine members named to the committee, which will negotiate on behalf of unsecured creditors.

Missed a Chance

Buffett missed a chance to acquire ResCap’s home-loan origination business and mortgage-servicing assets on $374 billion of loans, which Nationstar, majority-owned by Fortress, agreed to purchase. Mortgage servicers handle billing, collection and foreclosures. Buffett may still bid on ResCap in the court-supervised process.
The billionaire has been preparing Berkshire for his eventual departure, in part by hiring Weschler and former hedge- fund manager Todd Combs to help oversee investments in the past two years. The two apprentice stock pickers oversee $2.75 billion each, Buffett said at the firm’s May 5 annual meeting.
Weschler, before joining Berkshire, ran hedge fund Peninsula Capital Advisors LLC and became one of the largest investors in bankrupt chemical maker W.R. Grace & Co. A 2005 regulatory filing shows he served as chairman of the official committee of equity security holders.
Berkshire joined Leucadia National Corp. in 2009 to buy bankrupt Capmark Financial Group Inc.’s loan-servicing and mortgage business for more than $400 million. Capmark, a commercial-mortgage firm, had been owned by Ally when it was called GMAC LLC.

BRIEF: Reality TV star 'Dog' and family on receiving end of death threats [The Honolulu Star-Advertiser]

May 18--Duane "Dog" Chapman and his family have been receiving threatening emails in the past few weeks.
The messages say the television personality and his family will be killed, Chapman's Da-Kine Bail Bonds' office in Honolulu confirmed Thursday.
The Chapman family sent the emails to the Federal Bureau of Investigation in Los Angeles, and the family's complaint has been referred to the FBI office in Honolulu, FBI spokesman Tom Simon said.
Simon said the FBI could neither confirm nor deny that an investigation is taking place.
On the "Dog the Bounty Hunter" website, one of the threatening emails initially posted by radaronline.com said, "I'm going to murder you. ... You are next on my list and are the bane of society. I will deliver you to God."
Chapman and his wife, Beth, who were traveling to the mainland, were unavailable for comment.
The Chapmans star on A&E's "Dog the Bounty Hunter," which launched its eighth season in January, tracking down bail jumpers in Hawaii and on the mainland.

Research and Markets: Philippines Insurance Report Q1 2012: Spectacular Growth Figures for Life Insurance

In face of the political and economic challenges faced by the Philippines over the last four decades, the insurance sector has shown resilience. Many of the local non-life companies are affiliates of the country's major financial services groups and family-owned conglomerates. They have the financial strength and the risk tolerance to ride out storms - sometimes literally. In contrast, the life segment is dominated by the local subsidiaries of AIA, Manulife, AXA, Sun Life Financial and Prudential plc. That the small minority of Filipinos who actually use life insurance - rightly - trust these multinational giants is a part of the strength of the entire sector.
Business Monitor International's Poland Insurance Report provides industry professionals and strategists, corporate analysts, insurance associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Poland's insurance industry.
The Philippines is at an early stage of a transition from a situation where the non-life segment consists of dozens of tiny, and under-capitalised firms. As is the case in some other Southeast Asian countries (and in the Middle East) it is not obvious that many of these companies have a clear competence in insurance.
The slippage in non-life penetration over recent years is a clear sign of a lack of discipline in pricing risks. Minimum capital requirements are being increased - as a part of the preparation for 2015, when the arrival of the ASEAN Free Trade Agreement (AFTA) could result in much higher competition from other companies that are based elsewhere in the region. In practice, BMI is not certain that other ASEAN-based non-life insurers will see the opportunities in the Philippines as being more attractive than those at home.
However, BMI would be amazed if there is not a wave of mergers & acquisitions over the coming two years.