August 2008/1

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.