August 2006/1

German reinsurer Munich Re announced half-year profits of EUR2.1bn on 3 August, a leap of 143 percent from last year, driven by both strong underwriting and investment returns.

Berkshire Hathaway more than doubled its reinsurance business in the first half of 2006 as it exploited the capacity crunch felt for US property catastrophe business.

The conflict in Lebanon has prompted London market cargo underwriters to increase additional premiums by as much as triple on shipments to Israel, according to Aon Corp.

US insurer HCC Insurance Holdings reported "record" results on 3 August and at the same time announced its latest acquisition, the medical insurance division of Allianz Life.

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.

Rating agency AM Best affirmed its ratings financial strength rating of A (Excellent) and issuer credit rating (ICR) of 'a' on Lloyd's of London on 31 July.

Bermudian giant XL Capital last week (1 August) announced the latest step in a series of organisational changes with plans to develop an integrated European platform for its reinsurance operations.

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.