BestWeek: January Renewals Tell a ''Tale of Two Markets''.

OLDWICK, N.J. -- A few months after the record-breaking losses insurers suffered from last year's hurricanes, speculation has been rife in the property/casualty markets about the impact of all that destruction on reinsurance treaties in the January renewal season. Reinsurers still are gathering their data on renewals, but brokers say it appears a "tale of two markets" is unfolding, according to an exclusive story in the Jan. 23 issue of BestWeek.

The "two markets" phrase comes from Grahame Millwater, chairman and chief executive officer of broker Willis Re. In a foreword to his company's "Re-View" report on January renewals, Millwater said reinsurance lines directly affected by hurricanes Katrina, Rita and Wilma are "in significant turmoil and undergoing major revisions of terms, conditions and structure." From the vantage point of London, last year's major hurricanes in the United States had a relatively subdued effect on reinsurance renewals.

Charles P.T. Cantlay, deputy chairman of Aon Re U.K., described the upward pressure on the Jan. 1 reinsurance renewals as "very narrowly focused" on such U.S. lines as property, retrocessional, energy and marine. For these categories, Cantlay told a Jan. 12 press briefing at Aon's London offices, "it has probably been the most difficult season in many, many years. Apart from (those), it was flat."

Also in the Jan. 23 BestWeek:

--Why insurers are shying away from advertising in either of the year's biggest sporting events -- Super Bowl XL and the 2006 Winter Olympics;

--Why SBLI USA Mutual Life Insurance Co. is reaching out to underserved consumers in the United States by marketing life insurance through retail stores; and

--How catastrophes are destined to play a big role in shaping capital strategies linked to insurance markets in 2006.

Also featured is Best's Insurance Composite Index, which finished the week of Jan. 19, 2006, at 1,158.01, up 17.03% compared with a year ago. The composite index reflects the performance of 137 insurance stocks. The week's top performers were Gainsco Inc.; Mercer Insurance Group Inc.; Vesta Insurance Group Inc.; National Atlantic Holdings Corp.; and Meadowbrook Insurance Group Inc.

BestWeek is published by A.M. Best Co. for insurance professionals, including home office executives, agents and brokers.

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A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.