December 2003/3

Swiss Re has launched Vita Capital Ltd, the first ever bond securitising life reinsurance risk instead of retrocessional cover.

At last week’s Bermuda Angle conference, XL Capital announced it expects to earn between $9.05-9.25 per share for 2004, slightly down on consensus estimates of $9.28.

Bermudian reinsurer Renaissance Re said last week that it expects to earn between $6.10 and $6.50 per share in 2004, reflecting falling premium growth in property catastrophe business against moderating growth in specialty reinsurance and individual risk.

Bermudian giant ACE last week announced plans to spin off its financial guaranty business next year in a New York IPO. ACE said it will offer 65-75 percent of its interest in the new company.

London based insurer Catlin Group has appointed JP Morgan, Goldman Sachs and UBS to advise on a 2004 IPO, according to reports last week.

The promotion of Donald Kanak as AIG’s joint vice chairman and co-chief operating officer has muddied the succession issue of Maurice “Hank” Greenberg, the septuagenarian patriarch of the world’s most valuable insurance company.

A number of significant commutations and buy-back settlements have reduced Equitas’ reinsurance income, the run-off reinsurer revealed last week when publishing its six months summary financial income.

There was more insurance industry courtroom drama last week with a mammoth case management conference for the film finance litigation.

Liability start-up Illium began trading last week, issuing quotes for risks which attach from 1 January 2004.

Reinsurance focussed Lloyd’s insurer Liberty Syndicates continued its rapid advance last week when confirming that 2004 capacity will be £793mn – making it one of the largest Lloyd’s managing agencies behind Limit, Amlin and Hiscox.

Willis – the world’s third largest broker – announced last Thursday (4 December) it had successfully completed a finance deal providing it with $600mn unsecured credit facilities, made up of a $450mn term loan and a $150mn revolving facility.

The French and US governments look set for a courtroom showdown after failed attempts to settle a dispute over Credit Lyonnais’ 1991 takeover of failed Californian insurer Executive Life.

Despite recent interim results hampered by its ailing banking operation, German insurer Allianz had its AA- rating affirmed by Standard & Poor’s (S&P) last Wednesday.

Putnam Investments announced last week that its assets had plunged by more than $32bn in November following allegations of fraud and irregular trading.

Rating agencies rallied around beleaguered SCOR after the French reinsurer had its EUR750mn rights issue endorsed by 91 percent of shareholders at an extraordinary general assembly last Monday (1 December) and announced a complete exit from credit derivat

Marketform Acquisition Company Limited has attracted £15mn of equity finance from Caledonia Investments plc as it continues to capitalise on the strong rates for non-US medical malpractice and other specialty liability insurance.

Aspen Re – the spun-off Bermudian arm of Wellington Underwriting – announced last Wednesday (3 December) that it had exceeded expectations in achieving a $22.50 price for its New York IPO.