What’s New: In Brief (May 06, 2008)

Echelon General Insurance Co. is underwriting a new insurance program for sheep farmers to better manage risk in case of an outbreak of blue tongue, an insect-borne viral disease of sheep.
The Canadian Sheep Federation (CSF) and federal government teamed up with Echelon in addition to partners Sylvite Financial Services and The Precept Group, an administrative broker to roll out the program, a CSF release says.
The program is expected to cover participating producers for mortalities, consequential loss (drugs, treatment materials, vet bills, diagnostic fees, euthanasia) and business interruption (extra feeding and management costs, loss of productive capability).
Coverage will cost 0.55% to 1.78% of the sum insured, depending on the province, CSF said.

Hannover Re Group has reported a net income of EUR151.5 million (about Cdn$235 million) for 2008 Q1, a 22.6% increase over 2007 Q1.
Net premium earned decreased 3.3% to EUR1.68 billion (approx. Cdn$2.6 billion), a statement from the company says.
Combined ratio for the non-life reinsurance sector was 99.5% for the quarter, down from 105.5% in 2007 Q1.
Retention also increased to 88.7% in 2008 Q1 from 84.9% in 2007 Q1.
The company reported catastrophes/major losses accounted for 6.8% of net premium earned in 2008 Q1, down from 2007’s 15.9% for the quarter.