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.

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.

London market broker Humphreys Haggas Sutton & Co is to rebrand following its acquisition by Integro Ltd earlier this year. Humphreys Haggas Sutton & Co Ltd – which was formed in 1994 – will trade going forward as Integro Insurance Brokers Ltd.

Another subsidiary of Canadian combine Fairfax Financial Holdings announced last week that it would be delaying the filing of its second quarter results because it needed extra time to adjust accounting errors.

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.

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

Lloyd’s insurers Hiscox plc and Omega Underwriting Holdings plc have announced unchanged mid-point profit forecasts for the 2004 and 2005 underwriting years.

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.

Shipowners will face rate rises of up to 10 percent on protection & indemnity (P&I) premiums at the 2007 renewals as the marine industry feels the effect of a raft of social and regulatory legislation, according to a report from Aon.

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.