August 2006/1

Aon Ltd is set to announce a landmark £230mn+ deal to outsource its entire back office Client Operations division which could eventually provide the framework for a new London market broker process platform, The Insurance Insider can exclusively reveal.

Lloyd's has ruled out creating a fully-fledged US insurance company - an idea that was floated as part of the three-year strategic plan delivered in January.

Bermudian (re)insurer Endurance announced today (9 August) that Mark Boucher, CEO of its London market operation, is to leave the company with effect from January next year.

German reinsurer Hannover Re said today (8 August) it is on target to reach its annual return on equity target of 15 percent, despite producing a relatively modest increase in group net income of 4.2 percent for the first half of the year.

Swiss reinsurer Converium continues its recovery with another improved quarterly performance, reporting net income of $62.5mn today (8 August), compared with $46.9mn in the prior-year period.

Beleaguered Bermudian reinsurer PXRE Group admitted it was heading towards run-off after announcing today (8 August) that its net income had slipped to $2.1mn for the second quarter.

Bermudian powerhouse AXIS Capital yesterday (7 August) reported record second quarter net income of $223.4mn, or $1.37 a share, up 29 percent on the prior-year period on the back of increased investment income.

Over 80 percent of brokers believe that maintaining profit throughout the insurance cycle is still the greatest challenge for the insurance industry.

Bermudian life reinsurer Scottish Re was hit by a $130mn operating loss, a slew of downgrades, the collapse in its share price and two senior resignations last week.

Heritage Underwriting Agency plc has become the latest specialist Lloyd's insurer to list on London Stock Exchange's Alternative Investment Market (AIM) after trading in its shares began last week.

The continuing popularity of reinsurance securitisations was reflected this week with news that Bermudian (re)insurer Endurance Specialty Insurance has acquired $235mn of multi-year, collateralised US natural catastrophe reinsurance cover from...

South African broking group Alexander Forbes is thought to be close to a deal on its London based international arm, according to sources.