August 2008/1

As the softening insurance cycle continues to pervade the industry – putting pressure on commissions and increasing competition between brokers for clients – the battle for market share is as fierce as ever.

Shares in Jardine Lloyd Thompson Group plc (JLT) fell around 2 percent to 404.5p despite the firm booking a 9 percent increase in revenues and trading profits in its half-year results.

Like its larger rivals Aon and Willis, Arthur J Gallagher & Co was able to report a rise in total brokerage and risk management revenue of 6 percent, but the Chicago-based firm missed Wall Street estimates in its Q2 figures as the soft market hit results.

Despite both booking a 6 percent rise in total revenues for the second quarter, Aon was able to trump rival Willis on its reinsurance operations.

A second consecutive quarter of heavy catastrophe losses took its toll on early reporting US insurers as profits slipped at Allstate Corp, Travelers, Liberty Mutual, WR Berkley and Chubb.

In contrast to the familiar pattern of capital-strong Bermudians boosting figures in the soft market with reserve releases, White Mountains Insurance Group took a $51mn Q2 hit as a result of adverse development in its reinsurance business.

Aspen Insurance Holdings warned of the danger to the (re)insurance industry from inflation – particularly in crop prices – as it booked Q2 net profits up 11 percent to $126.9mn, boosted by strong underwriting results and "solid returns" from investments.

US national carriers and Florida-only insurers created a surge in demand for Industry Loss Warranties (ILWs) last month, according to Jim Bryce, president and CEO of Bermudian cat specialist IPCRe.

Early reporting Lloyd's (re)insurers offered results hit by the year's heavy cat claims and difficult investment conditions.

Two former directors of failed Lloyd's insurer Euclidian Underwriting Ltd have been fined, ordered to pay costs and agreed not to transact business at or set foot in Lloyd's without prior permission after being found to have failed to deal "in a transpare

Lloyd's insurer Jubilee Managing Agency Ltd is continuing its expansion strategy with the appointment of property underwriter Martin Pope and a team from Travelers, The Insurance Insider understands.

Settlement talks between the New York attorney general's office and Maurice "Hank" Greenberg have postponed a deposition involving the former American International Group (AIG) CEO until after 1 September.