April 2009/1

Lloyd’s (re)insurer Hiscox has revealed strong growth in its top line for the first quarter as it benefited from the improved reinsurance pricing environment and the strong dollar on its expanded underwriting platform.

Charles Taylor Consulting plc will pay up to £7.85mn to acquire the struggling London based insurance and run-off services company, Axiom Consulting, it confirmed today (8 May).

Swiss Re profits slumped by 75 percent to SFr150mn for the first quarter, as the reinsurance giant took SFr2.1bn in net unrealised investment losses.

Marsh & McLennan Companies (MMC) saw group revenues fall 13 percent but operating margins significantly improve in its Risk and Insurance Services (RIS) division, as its recent cost-cutting drive appears to have borne fruit.

Reinsurance giant Munich Re booked a fall in net profit from EUR777mn to EUR420mn for the first quarter of the year, as its investment portfolio was hit again.

Randall & Quilter (R&Q) weathered a brutal year for acquirers of run-off (re)insurance businesses to post a profit before tax of £8.8mn for 2008 and an 8 percent growth in net assets.

American Financial Group raised its 2009 earnings projection after posting "record" first quarter net earnings of $103.8mn.

Global reinsurer Hannover Re produced solid results for Q1 2009 and declared an end to the worst of the financial crisis, as net earned premiums surged ahead 24.6 percent to EUR2.1bn.

Expansive Bermudian (re)insurers Flagstone Re and Validus Holdings booked increases in net profits for the first quarter, but reported conflicting fortunes on their underlying business.

Ambitious London market broker Cooper Gay has reported a 22 percent rise in 2008 revenues to £83mn, up from £68.1mn in 2007, fuelled by the arrival of new broking teams.

Troubled US insurer The Hartford Financial Services Group has slumped to a $1.2bn first quarter net loss, as it took a heavy charge to reflect the impact of equity market declines on future profits in its life operations.

RenaissanceRe (RenRe) has become the latest international underwriter to secure a Lloyd's platform after receiving approval from the Franchise Board for Syndicate 1458, in a move first revealed by The Insurance Insider.

European reinsurer Scor said first quarter profit declined 30 percent to EUR93mn as investment writedowns combined with the impact of European Windstorm Klaus.

A strong performance from Willis Group's international and London market operations ensured a healthy 29.8 percent adjusted operating margin for the global (re)insurance broker in its first quarter.

Argo International Holdings is set to unveil Julian Enoizi – the former head of CNA’s European operations – as CEO of its Lloyd’s arm Heritage Managing Agency Ltd, The Insurance Insider can reveal.

QBE has appointed Jonathan Beck as class underwriter for Kidnap and Ransom (K&R), within its specialty division.

UK regulator the Financial Services Authority (FSA) has approved the launch of Reale Insurance Brokers Limited – a new broker in the Market Insurance Brokers (MIB) group of companies.

Novae Group – the Lloyd's insurer which withdrew from merger discussions with rival Chaucer Insurance Holdings earlier this year – increased its revenues by almost a third, posted another impressive return from investments and said it was enjoying rate ri

ACE Ltd and Arch Capital Group Ltd reported contrasting Q1s, with the former posting a 50 percent rise in net profits that it said was aided by firming rates and the latter seeing net profits dip 26 percent as a result of impairments on its investment por

American International Group (AIG) has moved to calm the choppy waters around the unwinding of its doomed financial products business (AIGFP) by persuading a senior executive at the division to reverse his resignation in order to avert potential legal act

Willis Group is not in dispute with shareholders in its affiliate Gras Savoye & Cie over the valuation of the French broker.

XL Capital saw its revenues fall sharply and earnings dented in the first quarter but said a “back to basics” approach was beginning to pay dividends with a healthy 93 percent combined ratio in its core P&C operations (93.6 percent 1Q, 2008).

WR Berkley has confirmed the launch of its Lloyd's platform headed by former Brit Insurance executive Mike Sibthorpe, a move first revealed by The Insurance Insider.

What looks to have been a benign first quarter for losses helped a trio of Bermudian (re)insurers book relatively solid underlying results, but was not enough to spare US insurer WR Berkley from falling to a net loss for the period.

German regulator Bafin has approved Augur Capital's EUR20mn acquisition of AIG subsidiary Deutsche Versicherung und Rückversicherungs-AG (Darag).

Lancashire Insurance Group is filling part of the growing void in Gulf of Mexico (GOM) windstorm cover by opening up its OCTOPUS product to the wider market.

IPC Holdings has seen its first quarter net income plummet to $8.3mn – down from $86.8mn in the first quarter of 2008 – after losses from European winter storm Klaus ($15mn) and the Australian bushfires ($13.3mn).

Mark Cloutier, the chief executive of run-off (re)insurer the Alea Group, will step down next year, the firm has confirmed.

Chubb’s income for first quarter 2009 almost halved compared to the same period last year – as net profits fell to $341mn compared to $664mn.

Beleaguered US insurance giant Hartford Financial Services Group may be broken up, after reports emerged that it is seeking bids for its core property and casualty (P&C) insurance business.

American International Group (AIG)'s property and casualty (P&C) division, American International Underwriters (AIU), has suffered a further blow to its energy team with the departure of Rick Gibbons, head of its Global Energy Property practice, to rival

The exodus of senior figures from American International Group (AIG) to Ironshore seen in recent months continued this week, with the appointment of Andrew Archambault as senior vice president of reinsurance.

Lloyd's insurers are set for a boost as the UK Treasury confirmed it will bring the tax treatment for their equalisation reserves in line with general insurance companies.

Lloyd's has made a tender to repurchase up to £100mn of the approximate £1.1bn in long-term corporate debt it manages as part of the central assets the Society holds on behalf of the market.

The European Parliament (22 April) approved the Solvency II framework directive without the contentious group support provision – a development which European insurance and reinsurance federation the CEA described as a "missed opportunity".

The chairman of Munich Re's board of management has described the emergence of a "satisfactory" first quarter result ahead of the publication of its Q1 figures on 6 May.

American International Group (AIG) is speeding up the process of ring-fencing its general insurance operations, as it looks to reposition them as an independent entity ahead of a potential initial public offering (IPO).

Troubled American International Group (AIG) has finalised its latest round of government funding – a $29.84bn purchase agreement with the US Treasury which it first announced in March.

As the US property and casualty (P&C) industry converges on Orlando, Florida, for the annual RIMS conference, one of the key themes is the impact the economic crisis is having on the market.

American International Group (AIG) has agreed a deal to sell its 21st Century US personal auto business to Zurich Financial Services for $1.9bn, representing the biggest insurance disposal in its asset sale programme so far.

American International Group (AIG) is close to selling its US motor insurance business to Zurich Financial Services (Zurich) in a deal worth between $1.5bn and $2bn, according to reports.

Australian insurer QBE ended the search for a new CEO of its Americas division with the internal appointment of John Rumpler, announced at its shareholders’ AGM last week (8 April).

Aon UK is planning to lower its standard employer pension contribution to 6 percent of salary across the board in an overhaul it says will enable it to reduce fixed costs and protect its business under challenging economic conditions.

Shares in Lancashire Holdings traded down after the Class of 2005 (re)insurer increased its estimate of expected losses from Hurricane Ike by $38.4mn, swelling the ranks of those underwriters who have upped their estimates in recent months.

IPC Holdings’ board has rebuffed fellow Bermudian Validus Holdings’ approach as it reaffirmed its recommendation to shareholders for a merger with Max Capital.

As underwriters continue to shy away from the troubled Gulf of Mexico (GOM) wind-exposed energy insurance sector, it seems that buyers are also beginning to vote with their feet and move...

Interest in accessing the Lloyd's platform continues unabated with a number of pipeline ventures thought to be in the early process of engaging the Corporation for a late 2009 or early 2010 start.

Buffy, the long-suffering Lloyd's Name, rails against Lime Street's capital rules

Solvency II compromise could fuel branch growth; EC antitrust stance leaves scope for further lobbying; US capital relief requests; Federal regulation edges closer

Lloyd's bolts on Berkshire exec; Pembroke expands capacity - confirms Liberty hires; Allianz led $18.5mn North Sea helicopter loss; Former Gen Re exec in FSA ban; Colemont takes Aon duo; Turner attacks EU passporting; Ark builds on strong first year; Case

Swiss Re's efforts to rehabilitate itself with investors will include cutting its workforce by 10 percent over the next 12 months and streamlining its global operations under new chief operating officer Agostino Galvagni.

The new sidecar? Proportional reinsurance back in vogue as other capital avenues close...

Aon launches investment firm; Willis hires new capital markets head; Kepler Re wound up early

The success of a controversial $45mn claim from Stanford Financial Group (SFG)'s former chief investment officer (CIO) against a number of Lloyd's insurers will boil down to the specific wording of the original directors' and officers' (D&O) policy in whi

UK regulator the Financial Services Authority (FSA) has granted "Industry Guidance" status to the market guidelines developed by broker trade bodies to deal with the thorny issue of transparency and disclosure around commissions and conflicts of interest

Without the fillip of significant reserve releases to boost results in 2009, Lloyd's director of finance, risk management, and operations, Luke Savage, also sounded a warning on investment returns.

Despite broadly outperforming its international peers on both underwriting and investments last year, Lloyd's will face additional challenges in 2009 if it is to maintain its level of profitability.

German insurer returns to ILS market with novel structure; but sharks circle legacy transactions...

At a recent London 100 roundtable hosted by The Insurance Insider in London, senior industry figures agreed that existing estimates of the global (re)insured losses arising from the emerging web of law suits and class actions are "intuitively low".

Defections from Aon Benfield have continued, with confirmation that the former head of Benfield's Brussels office Wim Raeymaekers and his colleagues, Petra Vynckier and Karen Serrus, are joining rival broker Guy Carpenter...

The muscular yen contributed to average rate rises of 5-10 percent on Japanese property cat treaties at the key 1.4 renewal, according to reinsurance brokers Willis Re and Aon Benfield.

SCOR chairman and CEO Denis Kessler has confirmed the global reinsurer's interest in greater participation in the Lloyd's market, The Insurance Insider can reveal.

Welcome to The Insurance Insider's regular section, Courtwatch, dedicated to providing analysis on all UK litigation involving (re)insurers with a particular mandate to focus on the impact of the credit crunch…

Run-off (re)insurer Alea Group turned around its 2007 post-tax loss of $78.2mn with a 22.5 percent reduction in its liabilities from $1.5bn to $1.2bn and a profit of $3.9mn.

The Insurance Insider's Helvetian correspondent looks at the boardroom partnership appointed by Swiss Re to reverse its fortunes...

Ahead of the crucial mid-year renewals, Lloyd's is confident that a capacity crunch will be averted after syndicates inject over £1bn of new capital to support their US writings...

Bermuda calls in McKinsey; Cash out at Juniperus; Former Gen Re CFO receives 18 months for $500mn fraud; Deutsch leaves Ironshore; FASB eases fair value rules; G20: Rating agencies to be regulated; Heritage opens Dubai office

Texan lawmakers are weighing up a raft of proposed legislation that could overhaul the state's loss-struck wind pool - triggering an increased reinsurance spend...

Troubled outsourcing firm Axiom Holdings is believed to be considering job cuts as part of the terms of its proposed acquisition by Charles Taylor Consulting.

German hedge fund Augur Capital will pay EUR20mn to acquire the former East German state marine (re)insurer Deutsche Versicherungs-und Rückversicherungs-AG (DARAG), representing a discount of approximately EUR7mn to net asset value, The Insurance Insider

Copenhagen Re, the Danish reinsurer that was a victim of the industry's 2001 WTC losses, has now drawn up a short-list of bidders for the run-off company, The Insurance Insider can reveal.

The battle to win the favour of IPC Holdings has descended into tit-for-tat exchanges between the cat specialist's Bermudian neighbours Max Capital and Validus Holdings.

UK insurer RSA has again put its legacy portfolio British Engine up for sale, in a move that - together with the current auction of Copenhagen Re - will be a litmus test of buyers' willingness...

Your (re)insurer wriggles out of its underwriting liabilities? Don’t worry; you've always got Plan B - sue the broker...

Berlin-based run-off (re)insurance group BF Rückversicherung is seeking a buyer for its non-life reinsurance portfolio, which has approximately EUR100mn in liability reserves, The Insurance Insider can reveal.

The legacy of the infamous workers' compensation carve-out saga of the late nineties - epitomised by the Unicover pool which collapsed in 1999 - has resurfaced after a New York jury found that broking giant Aon bore no liability for Unicover's collapse.

Glacier Re, the Swiss-headquartered reinsurer, is still considering bid interest after putting itself up-for-sale earlier this year, The Insurance Insider can reveal.

Lockton International is outsourcing its London professional indemnity (PI) claims broking department to commercial liability claims specialist Devonshire Claims Services (DCS).

Despite their recent travails, American International Group (AIG) and XL Capital security featured heavily on the Millers-placed International Group of P&I Clubs (IG) excess of loss programme.

UK-listed legacy vehicle Tawa plc saw deepening losses in the bond portfolio of its run-off subsidiary CX Re drag it to a 2008 after-tax loss of $42.4mn.

Aon veteran Dennis Mahoney is set to retire from the broking giant, The Insurance Insider understands...

Lloyd's was able to show further progress in shutting down prior-year liabilities in its 2008 annual results, as a flurry of year-end transactions demonstrated the appetite in the market to write reinsurance-to-close (RITC) business.

The presence of Lloyd's own run-off vehicle Centrewrite on the roll call of providers closing open years shows that the Corporation is comfortable with the RITC market, according to its director of finance, risk management, and operations, Luke Savage.

Pamplona Capital Management, the private equity firm that is in a three-horse race to acquire Chaucer Holdings, is considering an offshore special purpose vehicle (SPV) structure to own...

Deutsche Rück has scheduled an 18 May creditors' meeting to test the waters for approval of its solvent scheme of arrangement.

The bitter dispute between rival London market brokers BMS Group and CJ Coleman (CJC) has erupted again, The Insurance Insider can reveal, after former managing director of BMS Harris & Dixon Ltd (BMS H&D) John McCormack allegedly breached restrictive cov