BRAVE Partners LLP

Carbon cap loses out to drilling curbs as BP spill drives U.S. Energy Bill Marine ILW buyers struggle for low-end cover after Deepwater. (Insurance Insider) Fears grow that further Solvency II delay will kill scheme. (Global Broker and Underwriter) Insured losses hit $22bn in H1. (Insurance Day) Internal models "Crucial" in boosting reinsurance value, says AON. (Global Broker and Underwriter) Lloyd's shells out £ 50mn annually on SII preparations. (Insurance Insider) Catastrophe bonds slump most since 2008 as storm forecasts spook investors. (Bloomberg) BP row spilling over as US looks at liability limits. (Global broker and underwriter) Bangkok riots burn standalone terrorism maket with $1bn bill. (Insurance Insider) Chevron Chief calls deep-water moratorium unnecessary: WSJ link. (Bloomberg / WSJ) US oversight panel slams AIG rescue. (Insurance Day) Validus $300mn buyback steps up capital return spree. (Insurance Insider)

Insurance: Who dares. Who dares who wins has been the motto of nine elite armed forces around the world. BRAVE Partners believes that a financial risks specialty insurer with a similar view is set to win in the current market. Insurance: Running-off to stand still. Solvency II will change the run-off landscape. Those run-off specialists who adapt wisely will be able to propel themselves out of the brutally competitive landscape that they currently find themselves in. Alternative energy: Feed me. Subsidies for alternative energy are an emotive issue. BRAVE Partners looks at one of the more controversial – feed in tariffs. Insurance: Weather risk. Weather derivatives have been around for a long time. It seems, to BRAVE Partners, that the time has come for this market to emerge. Insurance: My name is Bond. BRAVE Partners thought that the $3bn cost estimates for the Deepwater event were low. now BP was established an uncapped $20bn the firm seems justified. The losses, however, do not stop here, it extends to Chevron and others. BRAVE Parnters looks to a cat bond solution. Solvency II: Pop QIS. QIS5 looms. Clarity is growing on how Solvency II will impact individual businesses and business lines. A diversification benefit is back on the table. This will have a negative impact on small, niche businesses unless it is handled with care. Insurance consolidation: Hard sell. AIA is proving to be a hard sell all round:

• For the Pru board to their shareholders
• For AIG to anyone
• For the Fed and AIG to the American taxpayer

BRAVE Partners concludes that AIA is worth $35bn because it has to be and for no other reason.