August 2006/4

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.

Zurich American Insurance has settled a business interruption claim, stemming from the 2001 World Trade Centre loss, for $80mn with ABM Industries.

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

Insurance giant Zurich Financial Services (ZFS) last Thursday (17 August) 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.

In a twist on the industry’s current enthusiasm for Cat-linked securitisations, Goldman Sachs has advised on a securitisation linked to assets held by Japan Earthquake Reinsurance (JER), the government backed Cat reinsurer.

The UK Competition Commission has published a Statement of Issues for its inquiry into Lloyd’s members agency Hampden Private Capital’s acquisition of its rival CBS Private Capital’s advisory business.

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.

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.

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

Fitch Ratings has affirmed Lloyd's Financial Strength (IFS) rating of A (excellent) with an Issuer Default Rating (IDR) of A-. Both ratings have been assigned a stable outlook.