August 2008/2

Berkshire Hathaway saw net profits fall by around $1.9bn for the first six months of 2008 after reporting a $952mn loss on financial derivatives for the period and lower underwriting profits.

CNA Insurance Co and American Reliable are suing Willis for $275mn and $251mn respectively over allegations relating to their placement of toxic Personal Accident spiral and workers' compensation business in 1996-1998.

In an active year-to-date for industrial and energy losses, (re)insurers are bracing themselves for another significant claim after a series of explosions at a Canadian propane gas facility yesterday.

Marsh & McLennan Companies Inc (MMC) won plaudits last week for its restructuring initiatives after confirming that at least 2,000 jobs will be cut in 2008.

Every analyst is entitled to at least one blooper - so the UBS trio Andrew Kligerman, Julie On and Brian Meredith deserve a degree of sympathy after their upbeat assessment of American International Group's prospects on the eve of the insurer's results.

As the remainder of the (re)insurance industry's second quarter results trickle through in the coming weeks, a clear distinction is emerging between winners and losers in the sector against the backdrop of a soft market and the deepening credit crunch.

US insurer Allstate is thought to have submitted a bid for Royal Bank of Scotland's up-for-sale insurance division (RBSI) of around £5bn, The Insurance Insider understands.