April 2006/5

UK regulator the Financial Services Authority (FSA) has fined Lloyd’s broker Besso £20,000 for failure to apply for approval of a member of its management who had previous fraud convictions and is alleged to have gone on to commit fraud whilst at the firm

Bermudian giant XL Capital reported record first quarter income of $405.5mn, or $2.26 per ordinary share, yesterday (25 March).

Bermudian (re)insurer IPC Re announced on 25 March that its net income rose by over 42 percent to $62.65mn for the first quarter of 2006.

Lloyd’s insurer Atrium Underwriting plc today (26 April) announced pre-tax profits of £10mn for last year, 68 percent down on 2004’s record return of £31.6mn.

Canadian energy company Suncor Energy Inc announced yesterday (25 April) it has agreed an $830mn settlement with insurers over business interruption (BI) claims arising from a major fire at its Oilsands facilities in northern Alberta last January.

Bermudian reinsurance ACE Ltd has announced a record net income of $489mn for the first quarter of 2006 despite an $80mn charge to cover an imminent settlement with regulators.

Bermudian (re)insurer Partner Re has unveiled a strong set of first quarter results, with net income of $193.1mn and operating income of $133.7mn, up from $111.4mn and $67.6mn respectively in the prior-year period.

Everest Re has prompted fears of more hurricane pain for reinsurers after revealing further deterioration in losses from last autumn’s storms in its first quarter results published yesterday (24 April).

US insurer WR Berkley yesterday (24 April) reported a 34 percent rise in its first quarter net income from $121mn last year to $162mn in 2006.

The post-Katrina love affair between the capital markets and reinsurance continues to blossom with news that Benfield Group is collaborating with Merrill Lynch to provide a catastrophe bond scheme for reinsurance buyers. Although the announcement...

US property casualty insurers are expected to pay out approximately $1.38bn in insured losses for the first quarter of the year, according to ISO's Property Claim Services. The losses are the result of damages to homes, commercial properties and...

Arthur J Gallagher was the first of the major brokers to publish its first quarter 2006 results last week - setting a scene of competitive trading conditions likely to be followed by its rivals over the next few weeks.

A federal judge has ruled that flood exclusions in Allstate's homeowners’ policies are "valid and enforceable" in Mississippi. Elmer and Alexa Buenta, whose home was badly damaged by tidal surge from Hurricane Katrina, sued the insurer after it...

Beleaguered Bermudian PXRE was dealt another blow last week as chief operating officer Guy Hengesbaugh handed in his notice at the reinsurer. In an SEC filing last Tuesday (18 April), the company revealed that Hengesbaugh had given notice of...

Lloyd's insurer SVB is on course to executive its restructuring plan after its proposed scheme of arrangement to introduce a new listed holding company, Novae Group plc, was approved in a court ordered meeting today (24 April).

America's second largest personal line insurer, Allstate reported a 26 percent jump in its first quarter profits on 18 April. Net income totalled $1.42bn, or $2.19 per share, for the first three months of 2006, up from $1.12bn, or $1.64 per share...

Insurance Australia Group (IAG) has revealed that its exposure to Cyclone Larry could be up to Aus$135mn - worse than it first anticipated. The company has received nearly 6,000 claims since Larry hit Far North Queensland last month.

Companies that fail to plan strategically and operationally for the effects of climate change face a loss of brand reputation as "climate change villains", according to a new report from broking giant Marsh.

Our 2006 London Market survey continues to provide interesting feedback on the structure of the market, the demise of Kinnect, the rise of the "gang of six" and the possible solutions available to improve efficiencies in the market.

The run-off acquisitions firm LCL Acquisitions Ltd has completed its ownership of the Isle of Man insurance administration firm FIT Administration (IoM) Ltd. LCL - which was itself acquired by the London Stock Exchange quoted...

Lloyd's insurer Amlin has conditionally agreed to raise £230mn through a long-term debt issue in order to refinance its expansion into Bermuda. Amlin intends to use the two-tier subordinated notes in order to refinance existing loans and letters of...

Shares in Lloyd's insurer Brit Insurance Holdings plc climbed to 98.5 pence on 18 April following an upgrade to BUY from analyst and house broker Numis Securities. In a research note, Numis analyst Nicholas Johnson said: "Brit's shares enjoyed a...

UK insurer Royal & Sun Alliance (R&SA) last Thursday (20 April) announced plans to swap its US dollar subordinated bonds - so-called "Yankee Bonds" - for sterling perpetual guaranteed bonds to boost regulatory capital. Under the FSA's prudential...

Despite recent negative comments from analysts on the performance of its banking arm, Allianz received a boost from Standard & Poor's (S&P) last week, as the agency upped its outlook on the insurer to positive and affirmed its AA- financial strength...