August 2006/5

If 2006 proves – as it has thus far – to be a benign natural catastrophe year, then Amlin’s management duo of chief executive Charles Philipps and underwriting director Tony Holt will have again called the right numbers.

Lloyd’s insurer Hiscox plc revealed today (1 September) that it is close to setting up a Bermudian sidecar operation to reinsure its Lloyd’s Syndicate 33.

Lloyd’s insurer Wellington Underwriting plc revealed that further expansion is key to its strategic development when it announced its interim results this morning (31 August).

Lloyd’s insurer Beazley Group plc shrugged off fears of declining liability rates, by claiming it had benefited from a 3 percent average rate rises in its casualty book in the first half of the year.

AIM-listed UK broker CBG Group announced a rise of 117 percent in its pre-tax profits for the half-year on 22 August.

Specialist Lloyd's reinsurer Advent Capital (Holdings) plc reported an increase of over 300 percent in its pre-tax half-year profits due to market conditions that it said were among the "best experienced by the company".

UK-listed Lloyd's insurer Chaucer Holdings plc has increased the forecasts for its Lloyd's syndicates, it announced last week. Chaucer raised its forecasts on both of its syndicates for both last year and 2004.

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.

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.

Two subsidiaries of Canadian combine Fairfax Financial Holdings, Crum & Forster and Odyssey Re Holdings, filed delayed 10-Q results forms with the Securities and Exchange Commission.

ACE Ltd is believed to one of the insurers of the Comair jet plane Flight 5191 which crashed on Sunday (27 August) with the loss of 49 lives, according to market sources.

Cayman Island-based Greenlight Re received an A- financial strength rating from agency AM Best on 25 August. Best also assigned the "Class of 2005" reinsurer an issuer credit rating of a- and the outlook on the company's ratings is stable.

Clive Washbourn, Beazley Group's head of marine, is to lead the London Marine Market Committee on hull war risk issues.

ACE Ltd has acquired Munich Re's 15 percent stake in Russian Re, the Moscow-based independent reinsurer.

US mutual insurer FM Global has launched a second $300mn catastrophe bond to protect against earthquake losses in the Pacific Northwest region of North America.

Reinsurance broker Benfield has opened a branch office in Taipei, Taiwan as it continues to enhance its presence in China.

Rating agency AM Best has affirmed its ratings on Swiss Re and removed the company from review with negative implications it announced last week.

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.

SCOR is facing further legal action in its long-running dispute with Highfields investment funds, the former main minority shareholder in IRP Holdings Limited, the Dublin-based quota share sidecar it established in the aftermath of 9/11.

The growing trend for (re)insurance securitisations was demonstrated last week with a $200mn Cat bond launched by Japanese (re)insurer, Tokio Marine & Nichido Fire Insurance Co Ltd.

The Lloyd's Market Association (LMA) has launched its London Market Wordings Repository today (29 August) as it continues to drive process reform and assist (re)insurers reach their contract certainty targets.