December 2007/2

Takeover speculation has again gripped reinsurance broker Benfield Group with Aon Corp the latest to be linked with the firm.

Swiss Re's shares lost 20 percent of their value in just four weeks following the firm’s shock SFr1.2bn ($1.1bn) mark-to-market loss from credit default swap exposures.

The founder and chairman of struggling Primary General, Jonathan Davey, has left the company, which looks set to restructure further.

Credit default swap (CDS) spreads for European insurance companies have again leapt, reflecting renewed sub-prime fears over insurance security.

Capacity moderately down as start-ups offset de-emptions

Analysts and commentators are becoming more confident in offering predictions on the estimated level of sub-prime related losses in financial markets and (re)insurance markets alike, with most agreeing that the worst news has yet to emerge.

It may still be unlikely, but there is always the potential of the nightmare scenario envisaged more than 20 years ago by industry legends Robert Clements and Robert Newhouse when they set up...

Barbican Syndicate 1955 became the latest Lloyd's start-up welcomed into the fold in November, the eighth new venture approved this year combining to bring in excess of £650mn fresh capacity to the market for 2008.

In addition to recent brokerage increases by its UK and European operations, Marsh is in discussions with carriers to introduce "enhanced commissions" in its US middle market and small commercial business.

In a special three-page report, The Insurance Insider has a comprehensive analysis of the various initiatives being deployed by brokers to raise revenues in the soft market

Additional commissions are only one of a number of new initiatives being imposed by brokers as they seek to protect their revenues in the current soft market conditions.

The Insurance Insider believes Marsh has made an excellent capture with its new chief executive, Dan Glaser