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

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

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.

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.

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.

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.

CV Starr & Co (California), a subsidiary of Hank Greenberg's CV Starr, has hired former AIG executive Jeffrey Hafter as executive vice president in charge of developing the East Coast operations under the agency's Pacific Starr of New York, Inc. entity.

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...

American International Group (AIG) is continuing to divest its interest in reinsurers it helped found, with the US giant putting its 24.2 percent stake in Bermudian IPC Re up for sale last week. AIG launched the cat reinsurance specialist in 1993...

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...

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.

Lloyd's of London has announced the appointment of Ian Faragher as chief operating officer for its new Chinese onshore reinsurance operation in Shanghai. Director of worldwide markets, Julian James welcomed the appointment: "Ian brings with him...

HSBC Insurance Brokers have appointed the former KPMG executive Alexander Pohl to its Corporate Finance Division. Pohl, who spent five years with the accountancy giant advising clients on financial, commercial and environmental issues arising from...

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...

Maurice Sabbah, a co-founder of the controversial aviation reinsurance pool Fortress Re, died last week at the age of 77. Sabbah, together with the colourful Kenny Kornfeld, became a dominant force in aviation reinsurance through its North-Carolina...

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...

Susan Rivera, one of Eliot Spitzer's biggest scalps when she resigned as head of ACE Group's US property & casualty operations last year, has returned to the industry as president of the Hannover Re Group's rebranded US specialty operations, Praetorian...

Investment bank JP Morgan Chase has settled it initial public offering class action suit after agreeing in principle to pay $425mn. JP Morgan spokesman Joseph Evangelisti said an agreement had been reached in principle and that the settlement...

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...