April 2004/4

Last week saw victory for Californian governor Arnold Schwarzenegger in his crusade to reform the state’s troubled workers’ compensation system, as a landmark bill was passed with an overwhelming 77-3 vote in the State Assembly and 33-3 in the Senate.

French reinsurer revealed last week that it has applied for a licence with the China Insurance Regulatory Commission (CIRC) to write reinsurance business in China.

Stabilising economic conditions and effective portfolio management are factors warranting a stable outlook for the European credit insurance industry, says ratings agency Moody’s.

Ratings agency Moody’s says improved underwriting performance, historically cautious reserving practices and relatively low levels of financial debt justify its stable outlook for German non-life insurers.

German reinsurer Munich Re went on the offensive last week by publishing its objectives for the coming year - key of which was the restoration of its treasured double-A rating.

Ratings agency Standard & Poor’s (S&P) announced last Thursday (15 April 2004) that it will hold its negative outlook on the global reinsurance industry, voicing concerns over the potential for further development of prior-year reserves in the coming year

WTC leaseholder Silverstein Properties and insurers led by reinsurance giant Swiss Re are litigating over which contractual wordings the various parties used in placing the building’s insurance cover.

The rating of Sirius International - the Swedish insurer recently acquired from ABB by the White Mountains Insurance Group – is under review by AM Best.

MMC is facing the prospect of a further, unwelcome regulatory probe as the New York Attorney General Elliot Spitzer examines commission payments charged by insurance intermediaries such as Marsh, the world’s largest insurance broker.

Royal & Sun Alliance’s strategic move to lose its non-core international operations may extend to its Scandinavian arm – despite only last year saying the area was one of its three areas which it would focus on.

The triumvirate of financial institution brokers who left Aon last summer have finally completed their notice period and joined Willis.

Claims management and outsourcing firm Xchanging is in negotiations with Deutsche Bank to take over the handling of its back office securities clearing processes.