December 2007/2

Aon Corp is selling its US property and casualty arm Combined Insurance Co to ACE Ltd for $2.4bn and has committed to returning all the proceeds to its shareholders.

Catlin Group Ltd’s Bermudian operating subsidiary is poised to launch a new cat bond believed to be providing $225mn of US wind and quake cover for the firm.

Arthur J Gallagher & Co (AJG) has acquired a 38.5 percent interest in Jamaican-headquartered intermediary CGM Group (CGM) as part of the US-firm's strategic growth in the region, The Insurance Insider has learnt.

The Financial Services Authority (FSA) has banned four executives from operating in the market over their "dishonest involvement" in the Sphere Drake managing general agent (MGA) debacle of the late 1990s.

The board of Kiln plc has recommended a 150p per share cash offer for the Lloyd's insurer by Tokio Marine & Nichido Fire Insurance Co (TMNF), as predicted by The Insurance Insider.

Standard & Poor’s (S&P) has upgraded ratings on Renaissance Reinsurance Ltd from A+ to AA- as it acknowledged uncertainty that had surrounded the company’s parent over the departure of senior management in 2005 has lifted.

Shares in Kiln plc surged a further 13.18 percent this morning after the Lloyd’s insurer announced it would recommend a £442.2mn offer from Japan’s Tokio Marine & Nichido Fire Insurance Co (TMNF).

Ratings agency Fitch has placed monoline bond insurer Security Capital Assurance (SCA) on review for possible downgrade in a move that will continue to increase pressure on its 46 percent owner XL Capital.

Tokio Marine & Nichido Fire Insurance Co has emerged as a possible bidder for Kiln plc amid feverish speculation after the Lloyd’s insurer revealed yesterday it was in talks with an unnamed party over a possible takeover.

Paris Re Holdings Ltd has become the latest reinsurer to announce capital management initiatives including the approval of a share buy-back programme and plans to distribute $400mn of capital by reducing the nominal value of shares, funded by a propose

Bond investors on Zurich Financial Services' (ZFS) loss-stricken Kamp Re 2005 will pay out $29.7mn in losses from the principal amount of the notes on 14 December.

Standard & Poor's (S&P) has upgraded the financial strength ratings on the main subsidiaries of The Royal & SunAlliance Group (R&SA) from A- to A.