August 2003/5

Despite recording healthy half yearlies significantly outpacing analysts’ expectations, Zurich Financial Services (ZFS) continues to be clouded by concerns over its loss-making finite reinsurance arm Centre.

Quoted Lloyd’s insurer Hiscox plc announced bullish trading figures last week and took the opportunity to resolve the growing uncertainty over its World Trade Center provisions.

Despite continuing optimism that the North American power blackout on 14 August will not lead to major industry exposures, losses are still likely to breach the technical threshold of $25mn for a catastrophe.

Releases from prior year loss reserves have helped Hardy Underwriting Ltd improve its profit estimates on the 2001 year of its Lloyd’s Syndicate 382.

Sovereign Risk Insurance Ltd, the political risk insurer set up as a joint venture between Bermudian giants ACE Ltd and XL Capital Ltd, revealed net written premiums of $48.6mn (GWP $60.5mn) for the year ending 30 June 2003.

After an eight-year dispute with claimant Minnesota Mining & Manufacturing (3M), insurers lost a $250mn legal battle over liability associated with silicone gel breast implants.

Lloyd’s insurer Brit Insurance Holdings Plc revealed that 2002 forecasts for its flagship Syndicate 2987 have improved, leading to the possibility of a return equivalent to 15 percent on its £450mn capacity.

QBE boss Frank O’Halloran is confident his Australian based (re)insurer can exceed 2003 forecasts after delivering upbeat interims last week.

Kiln became the latest Lloyd’s insurer to paint an attractive picture of 2002’s prospects when unveiling its syndicate forecasts this morning (26 August).

Litigation Control Group Ltd, the insurance services company formed by ex-Lloyd’s debt collector Philip Holden, has acquired Trenwick Group’s run-off insurer Trenwick International Ltd.