December 2007/2

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.

Capacity moderately down as start-ups offset de-emptions

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.

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

Marsh UK is mulling a major overhaul of its embedded legacy burden with the outsourcing of its entire back office, The Insurance Insider can reveal.

Members of a personal accident (PA) team dismissed by Imagine Group's Danish Re after handing in their notice are suing the reinsurer for unfair dismissal.

American International Group (AIG) executives including CEO Martin Sullivan and CFO Steven Bensinger have been named in a suit filed by shareholders over the firm’s handling of its exposure to the sub-prime crisis.

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

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.

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.

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...