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.

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.

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...

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.

French giant AXA said it had produced a "strong first half" performance with underlying earnings up 19 percent to EUR2.1bn.

An improved performance in the property and casualty division fuelled a 16 percent rise in net income at Swiss Re, when it announced its half-year profits of SFr1.6bn on 4 August.

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.

Bermuda-based White Mountains Re has reshuffled its management team, with Chuck Chokel, previously managing director and general auditor at parent White Mountains Insurance Group, appointed...

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.

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.

UK general insurer Royal & SunAlliance (R&SA) announced last week (1 August) the cash acquisition of Irish insurer EGI Holdings Limited for EUR25.3mn (£17.3mn), subject to regulatory approval.

Over 60 percent of UK businesses do not have the necessary business continuity management (BCM) plans to protect them in the event of a disaster, according to a survey conducted by Marsh.

"Class of 2005" start-up Lancashire Holdings Ltd has invested $20mn in a new Bermudian sidecar operation named Sirocco Re, it announced today (7 August).

Jardine Lloyd Thompson Group plc (JLT) plans to overhaul its staff pension scheme in a bid to reduce the £146mn deficit which hangs over the company.

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.

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

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

GCFac, the facultative arm of reinsurance broker Guy Carpenter, has bolstered its ranks with the launch of a structured risk team headed by former Jardine Lloyd Thompson (JLT) broker John Lobek.

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.

Aspen Insurance Holdings Limited today (7 August) announced the appointment of Stuart Sinclair as its president and chief operating officer.