August 2007/3

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

Despite increasing second quarter profits by 45 percent to SFr1.2bn over the prior-year, world’s largest reinsurer Swiss Re failed to impress analysts with its figures.

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.

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

German (re)insurance group, Allianz has raised its estimate for the UK’s summer floods by EUR135mn to EUR158mn in total for June and July.

Highly leveraged insurance brokers and service providers are subject to high credit risk and may face downgrades, rating agency Moody’s Investor Services warned last week.

The UK’s largest privately-owned insurance group, Towergate Partnership (Towergate) announced a 31 percent increase in gross written premium despite softening market conditions.

Marsh & McLennan Companies Inc (MMC) reported slow second quarter revenue growth in its broking division as new business wins were offset by the softening commercial (re)insurance market.

Bermudian Arch Capital Group has struck back at Gen Re in the latest round of the legal dispute over the departure of four Gen Re executives to Arch in April.

The independent UK broker Heath Lambert Group plc has appointed corporate financiers Hawkpoint Partners to advise on options which could involve a refinancing to pay down debt and raise capital or a complete sale, The Insurance Insider revealed last week.

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.

Despite signs earlier in the year that demand was drying up for the vehicles, a new model of sidecar is emerging, with the recent launch of Mont Gele Re and Emerson Re.