December 2007/1

UK businesses are facing an "unprecedented threat" from home-grown terrorism, Lloyd's has warned.

Powerful consolidators are forcing insurers to "fundamentally re-examine their operating models" as they tighten their grip on the commercial SME market, according to the latest research.

As the wide spread of the global credit crisis becomes clearer, more insurers are investigating protection against reinsurer default, according to reinsurance broker RK Carvill.

Catlin Group Ltd's financial strength and counterparty credit ratings remain unchanged, despite the (re)insurer announcing that it expects to take a $75mn charge against the value of sub-prime-related securities in its investment portfolio.

Ping An Insurance, China's second largest life insurer, bought 4.18 percent of Benelux financial services group Fortis, at a cost of EUR1.81bn, last week.

Chaucer Holdings plc became the latest Lloyd's insurer to offer more capital back to shareholders when it promised to increase its total 2007 dividend by 25 percent.

Marsh Inc has completed its search for a new chief executive with the appointment of Daniel Glaser.

Reinsurers have been warned about the costs arising from claims inflation in severe bodily injury claims.

Chicago-based global broker Aon Corp's consulting arm has appointed Mark Blumenthal as its new chief financial officer.

French reinsurer SCOR SA successfully closed its EUR160mn Atlas IV cat bond transaction, taking its tally of insurance linked securities deals to five.

Prudential's UK division has entered into a 15 year outsourcing contract, which is expected to be worth £722mn, with Capita Group plc.

Montpelier Re has continued to build its US operations with the launch of a new direct property facultative division to write business on behalf of its Lloyd's Syndicate 5151.