The Week in a Minute, Feb. 24, 2012

  • Accuweather predicts an above-average tornado season this year, according to the cat bond experts at Artemis. January got off to a rousing start with 95 twisters, more than double the average. The storms are set to infest the South in March, then move northward a month later.
  • Good news for AIG, which earned $19.8B in Q4. Of course, $17.7B came from reinstituting a tax break. Still, core p/c business Chartis posted a $348M profit.
  • Stickier situation for the Hartford, where key investor (and hedge fund manager) John Paulson has called for the company to split its life and p/c units, detailing the plan to unlock the synergies of breakup in an SEC filing. Actuary/investment analyst Todd Bault glanced at the matter quickly and conjectured that Hartford won’t split because the life company could be more or less worthless. Here’s the company’s statement.
  • Tim Zawacki at SNL blogs (paywall, folks) the quote of the week: “If we were a normal insurance company, we’d be belly up right now.” That from an unidentified governor of Florida’s Citizens Property Insurance. He had just heard a presentation on the impact of sinkhole claims on 2011 results.  46% of the state-run insurer’s losses last year came from sinkholes.

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