August 2007/2

Bermuda-based (re)insurer Catlin Group reported 29 percent first-half premium growth following its acquisition of Wellington Underwriting, but profits fell as a result of the deal's expenses.

Although revenue growth impressed at Benfield Group Ltd’s Corporate Risk business (BCR), shares in the broker fell as the John Lapsley-headed division reported a trading loss of £4.6mn for the first half of 2007.

Canopius Group Ltd has become the latest Lloyd’s insurer to launch a Bermuda platform with the formation of Canopius Bermuda Ltd, a class 3 reinsurance company with $250mn of capital.

The continued pressure on rates has dampened Kiln plc’s premium growth with the (re)insurer confirming plans to reduce its participation in the Lloyd’s market.

Tim Mahoney has become the latest senior executive to make the switch from Marsh Inc to rival firm Integro Ltd as it continues to raid Marsh & McLennan's companies.

Insurer Brit Holdings plc has reported flat first half profits of £106.8mn following a drop in underwriting profits in the “difficult” UK market.

Oxygen Holdings plc, the independent London-based intermediary, has acquired Lloyd's broker Robertson Taylor.

Amlin plc is now expected to deliver consensus-beating results and its interims this morning proved no exception as the Lloyd’s insurer posted a 54 percent leap in first half pre-tax profits to £154mn.

Recently-listed European reinsurer Paris Re suffered a drop in profits after exposure to 2007’s catastrophes negatively impacted its bottom line.

The leap in gross written premiums at French reinsurer SCOR Group following its acquisition of life reinsurer Revios has driven a 77 percent increase in net income to EUR181mn during the first half of 2007.

The current crisis in the money markets has led to insurers cancelling planned debt issues, The Insurance Insider can reveal.

Despite the fact it was the third-most intense Atlantic hurricane to make landfall since records began Hurricane Dean's "extraordinarily fortunate track" left (re)insurers facing only modest losses.

Three months into the 2007 hurricane season, the first Re-Ex Index catastrophe derivative has gone through on the New York Mercantile Exchange (NYMEX).

Insured losses from Hurricane Dean will be in a range of $0.75-1.5bn, substantially less than first feared due to the storm’s “extraordinarily fortunate track”, according to modelling firm Risk Management Solutions (RMS).

French reinsurer SCOR Group has revealed a 55 percent increase in its gross written premium during the first half of this year, primarily driven by its acquisition of the life reinsurer Revios.

Shares in Hiscox Ltd increased over 5 percent this morning after the company was propelled to a record half-year profit before tax of £105.6mn, up 72.1 percent, by the stellar performance of its Global Markets division.

The European Commission (EC) is set to launch a probe into the role of rating agencies over their response to the US sub-prime mortgage crisis, according to reports.

Lloyd’s investment vehicle Hampden Underwriting plc (HUP) is planning an August float on the London Stock Exchange’s Alternative Investment Market (AIM) in a bid to raise £15mn.

Newly-listed Bermudian (re)insurer Validus Holdings’ reported strong inaugural results as a public company yesterday.

“Class of 2005” start-up Flagstone Reinsurance Holdings Ltd unveiled a second sidecar as it reported Q2 profits hit by $31mn losses from the UK floods in June and $23.5mn from the Australian storm and flooding.

The Travelers Companies and The Hartford Financial Services Group both resolved legacy disputes in July, and reported strong second quarter results.

Bermudian giants ACE Ltd and XL Capital announced catastrophe charges of $88mn and $30mn respectively for the UK, US and Australian floods in their Q2 results.

Not even RenaissanceRe Holdings Ltd was immune to the late July/early August share sell-off, despite upping estimates for catastrophe reinsurance business after writing more premiums than expected in the first half of the year.

Worst hit by the dual impact of second quarter cat losses and the stock market slide was IPC Holdings, as it followed a July profits warning with confirmation of second...

The UK's Court of Appeal has upheld the decision that broker JLT Risk Solutions (JLT) owed Australian insurer HIH a "duty to inform" post-placement in a decision which is seen as...

London market reinsurers led by Allianz will continue their High Court battle with the North Korean national insurer over a controversial EUR44.3mn claim despite a setback in a pre-trial hearing last month.

Although the majority of the $25bn of insurance-linked securities (ILS) issued to date have been brought to market by reinsurers, recent research by William Hawkins, analyst at Keefe, Bruyette & Woods (KBW) shows that...

UK composites confirm rate rises after heavy flood losses

UK (re)insurer Aviva reported heavy losses of £235mn for the UK floods in June, dwarfing those of UK competitor Royal & Sun Alliance, who reported flood losses of £55mn for the second quarter.

French (re)insurance giant AXA reported strong first half results for 2007 on a comparable basis with 2006, boosted further by the successful integration of Winterthur.

Guy Carpenter chairman to join Aon; Integro CEO sues MMC over departure; Evans to joins White Mountains Re; Marsh set to take fees from insurers; Flood exclusions stand after Katrina decision...

Tolle commitment adds stability for potential buyers

UK regulator the Financial Services Authority (FSA) has recommended the appointment of policyholder advocates for non-life schemes of arrangement.

Newly listed run-off firm Tawa plc could earn shareholders a 30 percent return on equity (ROE), according to research into the IPO by stockbrokers KBC Peel Hunt.

Despite initially falling 10 percent in early trading, shares in Jardine Lloyd Thompson Group plc have recovered from a low of 362.25 to 408p at time of going to press, as markets responded to credible numbers...

Marsh & McLennan Companies Inc (MMC) shares continued to slide as its broking division reported second quarter revenue growth that lagged behind rivals Aon Corp and Willis Group Holdings.

Unlike its peers, CNA Financial Corporation shares were hit by disappointing second quarter results that included net investment losses of $91mn, with $20mn attributable to securities "with exposure to subprime mortgage collateral".

Berkshire Hathaway's (re)insurance operations contributed heavily to second quarter profits up almost 33 percent, but the investment conglomerate also highlighted increased competition in the business.

With Lloyd's results season due to kick off in earnest over the next six weeks, the market's listed (re)insurers prepare to report in unforgiving conditions as shares continue to suffer from widespread uncertainty driven by the US sub-prime crisis.

QBE frustrated by Names’ exit expectations; Bedford to head up GCFac UK; Cost cutting continues at R&SA; Goldsmith retires from Towers Perrin; Re-Ex sees first cat option transaction...

UK broker says defections not an issue as it appoints corporate financier to advise on options

$500mn Emerson Re latest to roll off production line

The early signs are that Lloyd's capacity will be reduced next year as (re)insurers brace themselves for the softer market that appears to be on its way.

Our monthly column keeping check on US and EU legal and regulatory developments, in association with Sidley Austin LLP

There was time when marketing to a Lloyd's underwriter often meant a convivial lunch when their clients came to London for their annual visit. The rest of the year syndicates were often content...

Despite strong half-year 2007 operating performance across the (re)insurance sector, shares fell indiscriminately as equities suffered severe jitters over the global credit crisis.

After a drawn-out process, approval was finally granted for the transfer of the motor books of syndicates 37 and 2037 from Lloyd's to Highway Insurance Company using the Part VII mechanism.