February 2006/1

UK insurer Brit saw its shares power ahead to around 96p on the London Stock Exchange last week after revealing that it now expects to make a pre-tax profit of £60mn for 2005.

US insurance giant St Paul reported last Thursday (2 February) that its fourth quarter results for last year had plummeted 41 percent as the insurer was hit by reserve charges for asbestos and increasing hurricane costs.

Christian Milton, the former head of reinsurance buying at insurance giant American International Group (AIG), and three former senior General Re executives, were indicted by a federal grand jury last week.

Lloyd’s confirmed last week that it will pursue legal action against Benfield and Aon, the two brokers who placed the £500mn Central Fund insurance contract which failed to engage following an arbitration decision last year.

The defunct Australian insurer HIH Casualty & General is alleging fraud against its broker JLT Risk Solutions over controversial film finance losses written in 1997. The case is being heard by the Honourable Mr Justice Langley...