February 2004/3

Although an appeal is inevitable, and settlement still a possibility, it is nevertheless conceivable that in the next two months we will know whether the 9/11 attacks on the World Trade Center amount to one insurable loss or two.

Latest figures from the International Underwriting Association (IUA) further underline the strength of bumper 2003 underwriting conditions, as the London company market showed a positive cash flow of more than £2.5bn.

On the eve of the key 12 February renewal date for shipowners’ protection and indemnity cover, came encouraging news from rating agency Standard & Poor’s (S&P).

Lloyd’s new digital hub Kinnect announced another first today (9 February, 2004) as it took its maiden complex open market risk.

Pool Re’s role as a terrorism reinsurer for commercial property has provisionally passed the antitrust test as the UK Office of Fair Trading (OFT) announced Friday (6 February, 2004) that it satisfies the conditions for exemption under competition law.

Established Bermudian RenaissanceRe trumped analysts’ expectations with record earnings figures last week, posting operating earnings of $524mn for 2003, equivalent to $7.38 per share and significantly higher than consensus estimates of $1.81 a share.

Bermudian giant ACE impressed analysts with a record set of results last Thursday (5 February, 2004), earning $1.4bn in 2003, equivalent to $4.93 per share, and up from $77mn or 19 cents per share the previous year, which was hit by a $354mn fourth quarte

Bermudian reinsurer Max Re has reported Q4 net income of $36.4mn, or $0.76 per diluted share, compared to net income of $11mn, or net income of $0.29 per diluted share, for the same period in 2002.

Bermuda based Everest Re saw its fourth quarter net profits double from $55.6mn to $121.8mn, or $2.15 a share, as the reinsurer continued to capitalise on the strong rate environment. Operating profits rose 95.9 percent to $118.6mn excluding realised capi

Legislation curbing the appetite of the US plaintiff bar to launch obesity class action suits took a step closer to reality after a US House of Representatives committee recommended the proposals to a formal vote.

Canadian insurance combine Fairfax Financial Holdings Ltd revealed a return to underwriting profit last week with “record” earnings of $271.1mn for 2003, which included a positive underwriting contribution of $87.7mn.

US insurer Chubb last week reported $808.8mn in net income for 2003, a 262.9 percent increase on 2002.