December 2006/3

Catlin Group Ltd says the integration of Wellington Underwriting has gone well with more business retained than expected and only a small number of unplanned resignations from key staff.

Stan Kott, CEO of Wellington Underwriting plc’s US arm - Wellington Underwriting Inc - has become the latest high-profile departure following the company’s £600mn takeover by Catlin Group with his resignation this week.

Lloyd’s based (re)insurer Amlin plc reported today (10 January) that its Bermudian reinsurance operation has written $87mn of business this year, a 58 percent increase on last year.

The new Bermudian reinsurer Aeolus Ltd has doubled its capital to more than $1bn following a second fund raising. The reinsurer – which was formed in July 2006 by the former Arch Capital chief executive Arch Capital and the ex RenaissanceRe President..

The exit of former Wellington Underwriting staff following the company’s £600mn takeover by Catlin Group has continued with the departure of its two senior aviation underwriters.

French giant AXA today (4 January) announced it has agreed a deal to sell the US operations of its recent acquisition Winterthur to QBE Insurance Group for total consideration of $1.8bn.

Castlewood Holdings Ltd, the Bermuda headquartered run-off acquisition and consultancy firm, has bought Inter-Ocean Holdings Ltd for $57mn.

Paris Re Holdings has become the latest reinsurer to launch a sidecar-style vehicle with the establishment of Triomphe Re, a $185mn Bermuda domiciled Class 3 reinsurer.

In a record year for securitisation in the sector, French reinsurer SCOR has become the latest (re)insurer to issue a catastrophe bond, with its EUR120mn Atlas III transaction to cover against European windstorm and Japanese earthquake losses.

Munich Re has regained its targeted AA- rating from Standard & Poor’s (S&P) today (22 December) with the rating agency upgrading the German giant from A+ and assigning a stable outlook.

Munich Re has made its latest foray into the world of reinsurance securitisation with the launch of a $190mn cat bond on behalf of Zurich Financial Services Group (ZFS) to cover Californian earthquake risks.

Despite his imminent departure to Albany, the New York attorney general Eliot Spitzer has filed a lawsuit against Acordia Inc accusing the US’ fifth largest insurance broker of illegally steering business to companies who paid them kickbacks.