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.

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.

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.

Willis Group Holdings threw down the gauntlet to rivals MMC and Aon Corp with a solid quarter that included a ten percent organic growth in revenues and details of a new $1bn share buyback programme.

Aon Corp was the last of the three global brokers to report its second quarter results last week and they were perhaps the least remarkable.

Strong growth from reinsurance was a key positive from MMC's second quarter results, but overall broking revenues were down on falling insurance rates and loss of clients in its European operations.

German giant Allianz has upped its 2006 earnings forecasts following a set of strident second quarter figures that include a 64 percent rise in net profit to EUR2.3bn against analysts' consensus of EUR2bn.

Aon Corp has overtaken Marsh Inc to become the world's largest (re)insurance broker by brokerage revenues.