December 2007/4

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

Anxious investors are awaiting the release of fourth quarter results from a number of banking groups this week, with concern mounting over the size of sub-prime related losses yet to come to light in the banking system.

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.

AM Best bolstered its London operations with the hiring of Lloyd's head of capital and broker relationships, Nick Charteris-Black.

Ironshore Inc - the Bermudian start-up insurer currently circling the quoted Lloyd's minnow Heritage Underwriting - has appointed the former Lloyd's chief executive Ron Sandler as chairman.

Ratings agency Moody's Investors Service has placed the financial strength ratings (FSR) and subordinated debt rating on Hannover Re Group subsidiaries on review for possible upgrade.

Catlin Group Ltd's Bermudian operating subsidiary has launched a new cat bond, Newton Re, providing $225mn of cover in two tranches for US wind and quake over a three year period.

Non-life insurance stocks contain some risk, but more reward despite exposure to the sub-prime crisis and the downward pressure on rates, according to Standard & Poor's (S&P) analyst Tony Silverman.

The Association of Insurance and Risk Managers (AIRMIC) has welcomed moves by the Financial Services Authority (FSA) to further investigate inefficiencies in the commercial general insurance market.

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.

Standard & Poor's (S&P) has upgraded ratings on Renaissance Reinsurance Ltd from A+ to AA- as it praised the company's parent for holding onto its competitive position in the property cat market following the departure of senior management in 2005.

Marsh UK is expected to decide before year end on how it will deal with its embedded legacy burden, the broker has confirmed.