August 2008/1

Guy Carpenter is to target growth in its international facultative reinsurance business in the fall-out of the proposed acquisition of Benfield by Aon.

Reinsurance rates are declining in a “controlled glide rather than a crash landing”, according to rating agency AM Best.

The finite reinsurance deal used to inflate American International Group’s (AIG) loss reserves cost the giant $1bn, according to US prosecutors.

The relationship between alternative capital markets and reinsurance is maturing, according to Guy Carpenter’s David Priebe, as insurance linked securities (ILS) cement themselves as an “integral part” of major cat buyers’ strategy.

Industry veteran Bill Riker - who was due to become a director at Benfield Group Ltd - will not now join the reinsurance broker following its pending acquisition by Aon Corp.

John Charman, chief executive of Bermudian (re)insurer Axis Capital Holdings Ltd has revealed his firm is actively seeking acquisitions and that the industry has fellow Bermudian XL Capital in its sights as a potential takeover target, according to...

Hurricane Ike is on target to hit the south-east coast of the US from Miami to the Carolinas around 9 September either as a Category 3 or 4 storm, according to forecasters.

Shares in RSA were up by more than 4.5 percent in early trading today as German giant Allianz is linked with a possible takeover bid for the UK insurer.

Industry veterans Rod Fox and Jim Stanard's start-up reinsurance brokerage has formally launched under the new banner of TigerRisk Partners.

Gallagher UK is poised to buy the agency operations of London-headquartered Oxygen Holdings plc, The Insurance Insider can reveal.

Insider Publishing Ltd is delighted to announce the launch of Inside FAC, its latest title providing exclusive insight and analysis of the latest trends and developments in the growing global facultative marketplace.

RSA's UK chief executive Bridget McIntyre is stepping down, to be replaced by current chief operating officer Adrian Brown.

Hurricane Gustav has been downgraded to tropical storm status after skirting past New Orleans, with insured losses arising mainly from disruption to offshore oil and gas rigs.

William Stovin has been appointed as president and COO of Markel Corporation's London subsidiary Markel International, replacing US-bound Gerry Albanese.

Canadian (re)insurance conglomerate Fairfax Financial Holdings has declared its 165p a share cash offer for Lloyd’s (re)insurer Advent Capital Holdings Plc unconditional after securing a controlling interest in the company, as the Advent board reiterated

UK insurer Liverpool Victoria Insurance Company Ltd (LV) has emerged as the bidder for UK motor insurer Highway Insurance Group plc.

Lloyd's insurer Chaucer Holdings plc reported a slump in half-year profits as it was hit by the double whammy of heavy claims and difficult investment conditions.

Swiss-domiciled reinsurer Paris Re Holdings Limited has announced improved results for the first half of 2008, with net income up by around a third to $150.6mn despite taking a $14.2mn hit from Windstorm Emma.

Highway Insurance Group plc has confirmed that it is in "advanced discussions with a third party" about a potential takeover after shares in the motor insurer surged this morning amid M&A speculation.

Swiss Re is re-shuffling senior management in its beleaguered financial markets division, and putting its "non-core" businesses into run-off, The Insurance Insider can reveal.

SCOR has reported a 24.3 percent rise in half-year net profits as last year's Converium acquisition continues to fuel the reinsurer's results.

In common with many (re)insurers reporting half-year figures, Brit Insurance Holdings plc saw profits suffer as a result of unrealised losses on its investment portfolio, partly offset by reserve releases and a foreign exchange profit.

Bermudian CastlePoint Reinsurance Company Ltd has agreed a $135mn deal to buy US excess and surplus (E&S) lines and admitted insurer Hermitage Insurance Group.

Paul Lumbis, the former managing director at Guy Carpenter & Co Ltd's M&A division at GC Securities Ltd is to head a new corporate finance advisory practice Atlas Partners LLP.

AM Best has become the latest ratings agency to affirm XL Capital ratings and remove them from review after the Bermudian reinsurer closed a deal to end the majority of its exposure to former bond insurance arm Security Capital Assurance (SCA).

Aon Corporation is set to buy London-listed Benfield Group in a £844mn deal cementing the Chicago-headquartered firm's position as the world's largest reinsurance broker.

Allianz has a 10 percent share of the slip for the Spanair McDonnell Douglas MD-82 that crashed at Madrid airport on Wednesday, claiming 153 lives.

Randall & Quilter Investment Holdings plc (R&Q) and GLOBAL Reinsurance Company have formed a partnership for the purchase and management of non-life run-off companies in Europe.

Benfield Group Ltd has announced a management restructure at its specialist space insurance broker International Space Brokers Inc (ISB) following the resignation of former CEO Roger Bathurst.

Lloyd's (re)insurer Amlin plc has reported a drop of over £40mn in its post-tax profits for the first six months of the year after reporting a slump in investment income.

The former CEO of Guy Carpenter, David Spiller, has been appointed chairman of Lloyd's insurer Heritage Managing Agency plc.

Marsh & McLennan Companies Inc (MMC) has announced the appointment of Vanessa Wittman as the group's new CFO, who replaces outgoing executive officer Matthew Bartley.

Australian insurer QBE Insurance Group saw overall profits rise after strong performance from its insurance underwriting division during the first half of 2008.

Run-off specialist Enstar has completed the acquisition of failed (re)insurer Goshawk Insurance Holdings plc after securing ownership or offer acceptances for 89.4 percent of its issued shares.

Bermudian (re)insurer ACE Ltd leads the cover on the passenger plane that swerved off the runway in Madrid killing more than 150 people, The Insurance Insider understands.

Five former General Re and American International Group (AIG) executives found guilty for their part in a sham reinsurance transaction could face lengthy sentences, according to reports.

Senior producer Bill Farnan has resigned as executive vice president of Aon's US energy subsidiary to join Alesco Risk Management Solutions in a move that is likely to make the sector sit up and take notice of...

As windstorm Fay prepares to make landfall in Florida again after initially crossing the Florida peninsula some analysts are predicting a stronger impact on its return.

Alabama insurance commissioner Walter Bell is to join Swiss Re as chairman of its American division Swiss Re America Holding Corporation.

The head of Marsh's global industry practices, James Enelow, is to part company with the broker, The Insurance Insider can reveal.

Lloyd's insurer Hiscox Ltd has posted a rise in pre-tax profits with reserve releases, a solid investment performance and strong underwriting returns defying the gloom of the soft market and credit crunch.

RSA Insurance Group plc shares have closed the week up at 145p on the London Stock Exchange following fresh speculation over a possible imminent bid.

Benfield Group Ltd received a boost yesterday (13 August) after Merrill Lynch upgraded the stock to "buy" following its solid first-half year results.

Ratings agency Standard & Poor's (S&P) revised its outlook for the US commercial lines and property & casualty sector to negative yesterday on the back of continued price softening and declining investment returns.

Zurich Financial Services has announced net profits of $2.7bn and a combined ratio of 96.2 percent for the first half of the year, but only after making higher than expected reserve releases of $609mn.

Willis Group Holdings has announced two senior appointments as part of an overhaul of its reinsurance arm, Willis Re.

Royal Bank of Scotland's up-for-sale insurance division said operating profits leapt from £258mn to £403mn at the half-year stage although revenues were down slightly on business distributed by brokers and partners.

Catlin Group Ltd's pre-tax profits fell by $40mn in the first half of 2008 in what one analyst has called a "mixed bag" of results for the Bermudian-headquartered (re)insurer.

American International Group (AIG) shares are on course for their biggest single daily fall on record as investors reacted to the insurance giant’s announcement of a $5.36bn loss on heavy credit and investment writedowns.

A 23 percent rise in first-half post-tax profits for RSA Insurance Group plc could make it a potential merger & acquisition (M&A) target, says Keefe, Bruyette & Woods (KBW) analyst Grieg Paterson.

Hannover Re's operating profit was down 14.4 percent in the first half of 2008 to EUR400mn after being hit by a 24.1 percent fall in investment income in the period as the German reinsurance giant missed analyst targets.

Marsh & McLennan Companies Inc (MMC) has confirmed that at least 2,000 jobs will be cut in 2008 after announcing a further 900 positions will be axed.

Shares in American International Group (AIG) are set to suffer in trading today after the US giant booked a higher than expected $5.36bn net loss driven by more than $12bn in credit and investment writedowns.

Despite 30 percent growth in its marine, energy and power book, Benfield Corporate Risk continued to be a loss-maker for the reinsurance intermediary in the first half of 2008.

German insurer Allianz Group's net earnings fell 28 percent to EUR1.5bn in the second quarter of 2008, due mainly to a poor result in its banking arm, Dresdner Bank, which reported a EUR566mn operating loss for the period.

The recent leadership changes at Marsh & McLennan Companies (MMC) and its insurance broking unit Marsh appear to be having an impact on performance, with increased revenues and operating profits in the second quarter.

Despite the “extremely competitive market conditions”, AXIS Capital’s founding chief executive John Charman said the firm’s strong second quarter was testament to its underwriting strengths and strategy of diversifying its business relationships.

Standard & Poor’s (S&P) has removed its CreditWatch on XL Capital after the Bermudian successfully completed a deal to shed the lion’s share of its pre-IPO exposure to Security Capital Assurance (SCA) last night.

American International Group (AIG) has reported a $5.36bn net loss for the second quarter after taking a hit of more than $12bn in relation to further charges in its Financial Products Corp (AIGFP) division and investment writedowns.

Munich Re has confirmed its earnings warning in its first half results, with profits slashed to EUR1.4bn in the period, after the bottom line was hit by a slump in investment returns.