August 2005/6

German reinsurer Hannover Re became the latest company to release its estimates of losses from Hurricane Katrina today, warning that it was expecting a “loss burden” of €250mn before tax.

Supporters of UK solvent schemes of arrangement were encouraged by a Scottish Court’s decision to sanction the M&G Re scheme yesterday.

Shares in London-listed reinsurer Alea Group slipped further today after Standard & Poor’s (S&P) warned it may downgrade the reinsurer following its disappointing interim results earlier this week.

Hannover Re has warned that the cost of Hurricane Katrina would mean the world's fourth-largest reinsurer is unlikely to meet its profit forecasts for 2005.

UK listed insurer Alea Group Holdings has suffered a steep decline in its share price after revealing a 47 percent slump in first half 2005 pre-tax profits today (31 August).

Hurricane Katrina is still expected to be the most costly in US history with forecasts of up to $26bn in claims after the storm devastated Louisiana and halted offshore oil and gas production.

Lloyd’s run-off vehicle Equitas has announced significant settlements with a further six policyholders totalling of $300mn. Among the signatories to the settlements announced today (30 August) are...

The liquidating trustees of collapsed Bemudian headquartered insurer Trenwick Group is suing its accountants, advisers and former directors for allegedly illegally diverting funds to ensure they were all paid.

Rod Fox, the former chief executive of Benfield’s US arm, is set to return to operations at the reinsurance broker after being granted a leave of absence in the spring following allegations concerning his private life.

Lloyd’s insurer Illium has reached a provisional agreement to expand its 2006 capacity through a coinsurance arrangement with Great Lakes UK, a subsidiary of world’s largest reinsurer Munich Re.

Extreme weather conditions hit Europe last week with insured claims for flood damage in Switzerland alone estimated at $395mn by Swiss Re.

Lloyd’s insurer Kiln forecasts for the years 2003 and 2004 were released on 24 August and contained no real surprises.