Like Willis Re (WSH) and Marsh & McLennan's (MMC) Guy Carpenter, reinsurance broker Aon Benfield (AOC) found risk-transfer pricing to have softened at the April 1, 2010 reinsurance renewal. It was the same story around the world: the Q1 catastrophes may do some damage to earnings, but the sector was sufficiently capitalized to absorb the shocks. In fact, Aon Benfield reported that the reinsurance industry had nearly returned to record capital levels. At the beginning 2008, the sector was in the same situation before the financial crisis and Hurricane Gustav and Ike depleted balance sheets on the same weekend in September.

Twitter's a pretty lucky company. Few get two bytes at the hype apple in rapid succession, but this social media platform has found a way to make up for its disappointing announcement about its advertising model. According to VentureBeat, Twitter might unveil its long-awaited, heavily-hyped and possibly investor-satisfying corporate accounts. Next month, at its inaugural Chirp developer conference, we could finally see what might just be the foundation of Twitter's business model.

The end of a year means a rush of data from the insurance and reinsurance industries, as treaties are renewed for the coming year. Catastrophe bonds are a part of this annual orgy of data production, as a flurry of activity occurs in December, with the industry's commitment to this form of alternative property-catastrophe risk-transfer setting the tone for the year to come. The cat bond market isn't big enough to push reinsurance rates, but you can generally get a sense of what the coming year will look like for cat bonds based on pricing for traditional reinsurance.

A rapidly hardening property insurance market in the first half of the year slowed down a little bit in the third quarter, according to insurance broker Aon (AOC). Property rates increased 4% to 5% on average, with some corners of the market surging more than 20%, during the first half 2009. In the third quarter, rates were up an average of only 0.2%.

Low levels of insured loss have contributed to strong profits for property carriers, and the industry's surplus is up $463 billion -- all of which means there is little reason to pump up insurance rates. Rates should remain stable for the rest of the year.

Aon (NYSE: AOC) thinks that risk brokerage and consulting has the best future, in terms of margins and growth.

To that end, the company announced Monday that it is selling off its underwriting businesses. Combined Insurance Company was sold for $2.4 billion to ACE Limited (NYSE: ACE), while Munich Re bought Aon's Sterling Life segment for $352 million.

Yes, even in the massive insurance business, this is a good chunk of change for Aon.

MAJOR PAPERS:

• Negotiations continued last night on a new labor agreement between Chrysler and the UAW, but it is unclear if an agreement will be reached by today's 11am deadline, reported the Wall Street Journal (subscription required).
• MGM Mirage (NYSE: MGM) is today expected to announce plans to build a $5B resort in Atlantic City, NJ that will be completed in 2012, reported the Wall Street Journal.
• The CEO of Swiss pharmaceutical company Roche Holding (OTC: RHHBY), Franz Humer, said he has no intention of increasing his company's $75 per share bid for U.S. diagnostics company Ventana Medical Systems (NASDAQ: VMSI), and is "very confident" that the offer will succeed, reported the Financial Times (subscription required).

• Crain's Chicago Business reported that Aon Corporation (NYSE: AOC) has won back the insurance brokerage business of Sears Holdings Corporation (NASDAQ: SHLD).

• Harry Reid, the Senate Majority Leader, confirmed that there's little chance this year -- due to a crowded legislative calendar -- that there will be legislation to increase taxes on the private equity industry, reported TheDeal.com (subscription required).