August 2006/3

South African-headquartered broker Alexander Forbes Ltd has reached an £86mn deal with US broker Lockton Companies Inc and private equity firm Stone Point Capital LLC to sell Alexander Forbes Risk Services Holdings, the holding company of its London-based

Swiss giant Zurich Financial Services (ZFS) this morning reported half-year net profits of $1.96bn, up 9 percent on the first six months of 2005, and ahead of analysts’ consensus of $1.8bn.

Randall & Quilter Group Investment Holdings Ltd, the UK based acquirer of run-off businesses, has acquired Chevanstell Ltd, The Insurance Insider can reveal.

Australian-headquartered (re)insurer QBE Insurance Group announced today (16 August) that its after-tax operating profits were up 20 percent to Aus$591mn for the first half of 2006.

Sports underwriter Sportscover today (15 August) announced that it is launching a new Lloyd’s syndicate specialising in covering amateur sports.

Swiss-based reinsurer Glacier Re has responded to rating agency concerns following last year’s hurricanes by further bolstering its capital base with a $30mn cash injection from existing shareholders.

Mark Boucher is to step down as CEO of Endurance Worldwide Insurance Ltd (EWIL), the London market operation of Bermudian (re)insurer Endurance Specialty Holdings Ltd, with effect from January 2007 it was revealed last week (9 August).

Distressed insurance company Quanta Capital Holdings Ltd revealed a $42.9mn loss for the second quarter and said it was talking to its bankers after defaulting on its credit facility following the rating downgrades earlier this year.

Bermudian powerhouse AXIS Capital 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 on 7 August.

If Converium can sell-off its discontinued US arm, Converium North America, then it is likely to spark an upgrade by Standard & Poor's back to the longed-for A territory.

The decision by Aon Ltd to outsource its entire back office Client Operations division could provide the framework for a new approach by London market brokers to process their business.

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.