April 2010/5

International lawyers have moved to ease insurance industry concerns over President Barack Obama bolstering US treasury powers to aid the fight against piracy off Somalia.

A UK judge's ruling on the preliminary issues in a passenger aviation claim could have far-reaching ramifications for insurers, after it was decided that the Montreal Convention may not provide an exclusive remedy in awarding compensation for air disaster victims.

AJ Gallagher has delivered better-than-expected first quarter results amid tough conditions for brokers, with its bottom line boosted by growing supplemental and contingent commissions.

Senior figures in the London insurance community have criticised an International Monetary Fund (IMF) proposal to include (re)insurers in a global banking levy.

Aerospace insurance premiums are set to continue their decline in 2010, marking the fourth consecutive year of softening, according to Aon's latest aerospace insurance markets outlook report.

The latest Solvency II proposals are significantly more lenient than the terms recently set out by the Committee of European Insurance and Occupational Pensions Supervisors (Ceiops), according to analysts.

Connecticut Attorney General Richard Blumenthal has heralded a court victory against a subsidiary of US broker and financial services provider Wells Fargo as a resounding message to insurance brokers to be open and honest with clients.

Florida-headquartered independent broker Brown & Brown (B&B) has reiterated its commitment to acquire other agencies as it revealed that first quarter revenues declined 4 percent.

A sluggish first quarter saw total insurance-linked securities (ILS) issuance of $300mn - almost half the levels over the same period last year - according to Aon Benfield Securities.

As Marsh looks to bed down its acquisition of HSBC Insurance Brokers Ltd (HIBL), it has announced a reorganisation of its UK and Ireland mid-market business that places staff from the acquired broker in key positions.

The Lloyd's and London market directors' and officers' (D&O) insurers that underwrote the $90mn+ policy for Stanford Financial Group (SFG) executives must pay out defence costs for at least another five months.

Expansive legacy and services specialist Randall & Quilter (R&Q) unveiled another modest acquisition last week, with a EUR3.2mn deal to take over French reinsurer La Licorne Compagnie de Réassurances.

North Carolina's state-backed catastrophe insurance plans are to bring a $200mn wind catastrophe bond to market, which will bring the total risk placed into the capital markets in 2010 to $850mn.

The New York Attorney General has "a devastating case" against Hank Greenberg relating to sham reinsurance transactions entered into by American International Group (AIG) 10 years ago, according to a US judge.

Resolute Management Services - the firm that manages Lloyd's run-off vehicle Equitas - has moved the majority of Equitas' claims adjusting services to the US.

The International Air Transport Association (IATA) has estimated that the volcanic ash cloud above Europe has cost airlines more than $1.7bn, describing the revenue loss as "devastating".

AM Best goes negative on Ariel's ValiantPrivate equity duo secure acquisition of Sedgwick CMS; Pru approved for Hong Kong float and lines up for Singapore...

Investment bank UBS and accountants Ernst & Young have agreed to pay $250mn to stock and bondholders of HealthSouth, settling a class action over the Alabama hospital rehabilitation chain's massive accounting fraud.

The US National Association of Professional Insurance Agents (PIA) said last week that it is encouraged by a new Congress bill that makes key reforms to the National Flood Insurance Program (NFIP).

Zurich Financial Services and Travelers have added an additional $286mn to the property and casualty (industry's Chile earthquake total, with loss estimates of $200mn and $86mn respectively.

Willis appoints former Irish national debt boss to key risk role;Aon expands actuarial team; QBE appoints first global distribution head; Kingsway names new CEO...

Swiss Re could sustain net losses close to $1bn from the 27 February Chile earthquake - double the $500mn estimated by the reinsurance giant - according to Keefe, Bruyette and Woods (KBW).

Italy's biggest insurer, Generali, has ended the long-running speculation surrounding outgoing company chairman Antoine Bernheim by appointing frontrunner Cesare Geronzi as his successor.

Chartis UK has seen its 2009 combined ratio balloon to 105.8 percent, due to the combined effect of lower ceding commissions and claims arising from the global financial crisis.

Hopes that the loss-making UK motor sector would continue to accelerate smoothly with rate increases into 2010 have come to a shuddering halt, with evidence from a leading index that premiums actually fell in the first quarter.

Administrators of the distressed Irish insurer Quinn are welcoming interest from private equity firms - in contrast to the aborted sale last year of Royal Bank of Scotland (RBS)'s insurance businesses.

American Insurance Group (AIG) subsidiary Chartis International is leading the directors' and officers' (D&O) coverage for investment bank Goldman Sachs.

Willis Group has marked the opening day of the Risk and Insurance Management Society's (Rims) conference with a campaign to distance itself from rivals Marsh and Aon on the vexed question of contingent commissions.

Federal investigators probing allegations that hedge fund trader Raj Rajaratnam engaged in insider trading of Goldman Sachs stock believe that a director at the investment bank tipped him off about Warren Buffett's $5bn investment, according to The Wall Street Journal.

Ariel Holdings has appointed Tom Hulst as chief executive of its reinsurance business, following founder Don Kramer's announcement last month that he is standing down as CEO.

The bailout of American International Group (AIG) at the height of the financial crisis will eventually cost the American taxpayer some $50bn, according to a US government forecast.

Bermudian short-tail specialist Lancashire Holdings has unveiled a $200mn credit facility with UK banking group Lloyds TSB.

Ian Beaton, the CEO of private equity-backed Lloyd's insurer Ark Syndicate Management Ltd, is poised to become a non-executive director to the Xchanging Claims Services (XCS) board.

John Coldman, who was parachuted in as chairman of Bermuda-based Omega Insurance Holdings last month, has revealed to shareholders that he is undertaking a "comprehensive review" of the business.

AM Best and Conning Research & Consulting have predicted a troubled 2010 for the US property and casualty (P&C) insurance industry, as softening rates, anaemic investment returns and dwindling reserve releases erode profitability.

Lloyd's has moved to impose controls on managing agents that write errors and omissions (E&O) policies for insurance brokers that also place business with them, The Insurance Insider can reveal.