August 2006/4

Wellington Underwriting Inc, the US platform of Lloyd’s insurer Wellington Underwriting plc, announced today (29 August) that it is expanding with the launch of a marine reinsurance arm.

Concord Re, the latest sidecar to roll off the industry’s production line, means almost $4bn of capital has been raised for these non-life reinsurance vehicles in the aftermath of Hurricane Katrina.

The blanket ban on contingent commissions or Placement Service Agreements (PSAs) imposed by New York attorney general Eliot Spitzer following his 2004-2005 investigations into the major US brokers have been moderated.

The Legal Services Bill currently passing through the UK Parliament will cause major changes in the structure and ownership of many major law firms and increase their risk exposure, according to broker Marsh.

Leading sports underwriter Sportscover announced on 15 August that it is launching a new Lloyd’s syndicate specialising in covering amateur sports.

Embattled life reinsurer Scottish Re Group and its subsidiaries suffered further downgrades from rating agency Standard & Poor’s (S&P) last week.

Alexander Forbes International Risk Services’ (AFIRS) tie-up with US broker Lockton Companies Inc provides not only a new lease of life for the London-based firm, but a new global presence in the broker market, according to the parties involved.

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.

Following the resignation of its deputy chairman Michael Murphy last month, Quanta Capital Holdings has suffered further setbacks. The insurance company has suffered a 3.3 percent drop in its shares today (21 August) on top of a 9 percent drop last Friday

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

US insurer Nationwide Mutual Insurance Co won the first of the many “wind versus water” lawsuits spawned by Hurricane Katrina last week, although experts warned that it is unlikely to set a precedent as the cases vary widely.

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 its London-based international arm, Alexander Forbes International Risk Services