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.

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).

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.

Bermuda-based (re)insurer White Mountains Insurance Group Ltd revealed last week that the Massachusetts attorney general is investigating one of its units.

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.

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

Last week’s Peruvian air crash will cost insurers £3mn but the repercussions of the five air crashes this month are multiplying.

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

When Lloyd’s insurer Beazley Group plc reports its 2005 half results on 7 September, they are likely to be higher than expected at over £35mn because of the impact of accounting changes, the company explained last week.

SVB Holdings, the Lloyd's insurer battling against its legacy liability exposures, issued a steady trading statement last week but still saw its corporate broker downgrade the company’s full-year earnings forecast.

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.

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.

The head of General Electric’s (re)insurance arm confirmed last week that the giant conglomerate will probably sell or spin-off all its underwriting units in due course.

Pat Ryan, the founding chairman of broking giant Aon Corp, announced plans to sell five million shares in the company, equivalent to some $146mn.

Reinsurance broker Benfield has won the account for Californian State Compensation Insurance Fund from incumbents Aon Re and Guy Carpenter, Insider Week can reveal.

In a surprise move, reinsurance giant Swiss Re announced last week that Jacques Aigrain will succeed John Coomber as its chief executive.

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.