"The new proposal places Aspen’s fate in its shareholders’ hands, in hopes they will break with management and vote to sell the company. But it represents a risky play. If Aspen’s investors stand firm, Endurance could be forced to abandon its takeover attempt for good. The consequences of that high-stakes gamble will likely ripple through the rest of the reinsurance industry, analysts said, as companies try to weather a seismic shift in the sector’s competitive dynamics."
"The insurer’s comeback was far from assured just five years ago. When McGee took the helm in October 2009, he inherited a company crippled by the financial crisis. The Hartford’s massive bet on variable annuities years earlier had backfired, draining its capital as equity markets plunged and the recession took hold. It took emergency financial support from Allianz SE and $3.4 billion in TARP funds to keep the company afloat. Even with that, The Hartford’s stock had at one point dipped below $4.00 per share, and analysts harbored concerns about its ability to rebuild.”
"A discussion draft of Neugebauer’s TRIA Reform Act of 2014 obtained by SNL would extend the federal backstop through Dec. 31, 2019. However, it would progressively raise the industry aggregate loss threshold necessary to trigger the program. Insured losses from a certified terror attack currently need to exceed $100 million. The House bill would raise that level to $200 million in 2016. It would then increase the threshold by $100 million each year, eventually hitting $500 million in 2019."
"The industry criticized new terms included in the proposal that would make it harder for insurers to receive financial support following a terror attack and argued that the bill would hurt competition and drive up coverage premiums. Some also worried that the measure would open the door to eliminating the federal program altogether, potentially destabilizing the terrorism insurance market and disrupting large-scale construction activity."
"Property catastrophe reinsurance rates fell only about 5% in January 2013. In April and June, reinsurance brokers said renewal prices routinely dropped by 10% to 20%. Another period of similarly severe discounts would push rates below pre-Sept. 11, 2001, levels, Moody’s warned June 18, making it difficult for reinsurers to earn their cost of capital."
"Neugebauer and Hensarling will now push for House consideration of the five-year renewal within the next few weeks. If it passes, lawmakers will likely have to reconcile it with a competing bill expected to be approved in the Senate. The Senate bill would reauthorize the program for seven years, and make only incremental changes to the government’s financial responsibilities.
Though Neugebauer has threatened to hold up the process in favor of a short-term extension if he cannot secure “a good bill,” it is unclear how much support he could rally.”