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.

An additional $1bn of US property catastrophe focused capital will be provided following the imminent launch of Ironshore Ltd, The Insurance Insider can reveal.

After last year’s record catastrophe insured losses of more than $100bn, the benign conditions of 2005 look like costing the (re)insurance industry just $15bn in losses from natural and man-made catastrophes, according to preliminary figures from Swiss Re

Apparent tensions between Catlin Group and AM Best have re-surfaced with the rating agency confirming today (20 December) it would maintain its review with negative implications of the insurer’s rating despite the unconditional declaration earlier this we

The trend for US retailers acquiring London market platforms has continued with Hilb Rogal & Hobbs (HRH) buying Glencairn Ltd.

In a year characterised by the growing interaction between the capital markets and the reinsurance industry comes the launch of a new index to trade US hurricane risks as a derivatives contract.

Lloyd’s aims to have a structure in place to allow special purpose reinsurance syndicates to start mid-2007, along with a more streamlined timetable for Integrated Lloyd’s Vehicle (ILV) business plans and capital setting.

Brit Insurance Holdings has announced its long-awaited Bermudian sidecar-style vehicle Norton Re Insurance Limited, which will resume writing the catastrophe retro business the UK insurer withdrew from at 1 January 2006 renewals.

German reinsurer Hannover Re has sold its US subsidiary Praetorian Financial Group for $800mn to Australia’s QBE Insurance Group Ltd.

A trial date of January 2008 has been set to hear Lloyd’s case against Benfield and Aon, the two brokers who placed the £500mn Central Fund insurance contract that failed to engage following an arbitration decision last year.

Barclays Bank reinstated as Enron defendant; Aon gains $800mn from spin-offs; Willis loses senior figure as Colraine steps down; Scottish Re boosted by investment; AWAC adds Lloyd’s presence...

Insurance Australia Group’s determination to buy UK motor insurer Equity led to the firm paying around 10 percent more than it had initially bid, The Insurance Insider can reveal.

Perhaps demonstrating the capital market's restraint over supporting new reinsurance ventures, a trio of start-ups in the sector that were mooted to list on the London Stock Exchange's Alternative Investment Market (AIM) have been withdrawn.