August 2006/3

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.

Willis Group has confirmed that it has recruited a team of Jardine Lloyd Thompson's (JLT) Financial and Professional lines brokers led by Julian Martin, the recent leader of JLT's UK D&O team.

German reinsurer Hannover Re says 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.

Martin Sullivan, the president and CEO of US giant American International Group (AIG) said the group saw no insurance impact from the terror plot exposed by UK authorities last week.

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.

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.

UK insurer Royal & Sun Alliance (R&SA) last week (10 August) reported interim after-tax profits up 22 percent to £238mn on the first six months of 2005, driven by a strong showing in its so-called core group of business.

Lloyd's Names will be able to give their views on Hampden Private Capital's acquisition of the Names' advisory business of CBS Private Capital after receiving a questionnaire from the Competition Commission last Friday (11 August).

At a time of perhaps unprecedented capacity shortages for Gulf of Mexico energy risks, Willis Group has formed a global energy business designed to deliver a “deep understanding of its clients’ technical and operational needs”.

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.

No capital differential for 2007, but performance framework on track As well as ruling out the formation of an admitted lines US insurer – at least for now – Lloyd's last week (10 August) provided a comprehensive progress report on the initiatives...

Capita Insurance Services, part of the UK outsourcing giant, Capita Group plc, announced on 10 August that it had secured a deal to process claims for Chaucer Syndicates.