The Bermuda Stock Exchange is looking for a comeback this year. For 2009, the shares traded on the BSX were off close to 40%, reflecting the brutality of the financial crisis on the island known primarily for its insurance business (oh, and people go on vacation there, too ... and not just insurance people). In 2010, the BSX sees catastrophe bonds and other insurance-linked securities as fundamental to a strong year. A BSX statement reads, "The BSX's listing business has remained buoyant and the BSX has made continued progress in entering and supporting the insurance linked security space." With the 2009 Insurance Amendment Act approved last October, Bermuda hopes to lure cat bond listings away from the Cayman Islands Stock Exchange.

Natural catastrophes weren't as expensive in 2009, as it seems the cost of everything imaginable also got smacked. Munich Re (0KFE), the world's largest reinsurer by revenues, pegs the total economic loss from natural catastrophes at $50 billion this year, only a quarter of the result for 2008. Of course, the benchmark year included Hurricanes Gustav and Ike. Natural catastrophe losses remained far below the 10-year average of $115 billion.

Insured losses from natural catastrophes plunged, as well. In 2009, they reached only $22 billion worldwide, a decline of more than 50% from 2008. Winter storm Klaus, striking northern Spain and southwest France nearly a year ago, topped the list of costliest natural catastrophe events in 2009. It generated total losses of $5.1 billion and insured losses of $3 billion.

There's only one month left. If it can pass with no major catastrophic rocket failures, the space insurance sector will look back on a fantastic -- and profitable -- 2009. Insurance for this market can be a tough business, as failures are frequent, and the cost to launch can reach (or even exceed) $250 million. So, it's not always easy to eke out a profit.

Aon (AOC) International Space Brokers forecasts space insurance sector profits of above $400 million this year, making it another strong annual performance for this line. The space carriers have sustained losses of $400 million to $450 million in 2009, but premiums paid to the insurers exceeded $800 million for the first three quarters of the year.

Insurance giant Chubb Corporation (NYSE: CB) last month reported solid first-quarter 2007 earnings of $710 million in net income, $1.71 EPS, compared to $672 million, $1.58 EPS in 1Q 2006. Operating income increased a respectable 5% to $634 million, with operating income per share increasing 8% to a record $1.53. Loss and expense ratio was slightly higher in 1Q 2007 than in 1Q 2006. Chubb was able to post profits despite the fact that net written premiums declined 2% to $2.9 billion for the quarter. The 1% decrease in US-based premiums was more than offset by a 7% increase in premiums outside the US. Chubb's catastrophic reinsurrance business declined by 69% but that was due to Chubb's decision to sell its Re-Harbor Point unit. Income after taxes from property and casualty investments increased 9% to $305 million.

The Chubb personal insurance segment grew 6% to $840 million for 1Q 2007 in terms of the value of premiums with higher catastrophic losses in 2007 than 2006. Despite the major slow down in the home building industry, Chubb's homeowner insurance unit grew 7% while consumer automobile premiums declined 5%. Chubb's commercial insurance declined slightly to $1.3 billion for the quarter, with a renewal rate of 84% for US premiums. Chubb specialty insurance, including professional liability insurance, was flat at $681 million.

Chubb has plenty of money and used $605 million to repurchase almost 12 million shares of its stock. There are still 28 million shares available on the open market. In order to expand its repurchasing program, Chubb offered $1 billion of subordinated capital securities during 1Q 2007 to raise funds for accelerated repurchases. For the time being, Chubb is sticking with FY 2007 operating income per share of $5.00-$5.40. The stock recently closed at $55.64, up $0.38.