February 2006/3

Lloyd’s confirmed on 3 February 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.

As London market brokers wrestle with the heavy burden of their back office legacy issues, Aon Ltd has confirmed it is considering the unprecedented step of outsourcing its entire back-office in a bid to drive down costs.

Mike Hammond, the former chief executive of broker Marsh’s UK operations, may be set to make a swift return to the London market after leaving Jardine Lloyd Thompson plc by joining Arthur J Gallagher & Co, The Insurance Insider can reveal.

Stone Point Capital, the former private equity arm of MMC, formed a new wholesale broker last month which is designed to capitalise on the changing dynamics of the broking model. Mercator Risk Sevices will provide wholesale and specialty services...

Industry veteran Bob Clements exclaimed he has never had so much fun in his business career as he builds his broking start-up Integro Ltd. The former chairman of J&J Marsh & McLennan Inc was in London last month to celebrate the opening of Integro’s...

Defunct Australian insurer HIH Casualty & General has withdrawn the fraud allegations from its litigation against its broker JLT Risk Solutions over controversial film finance losses written in 1997. The case, which began on 1 February, in London’s...

After less than a year at Aon, the former JLT Group chief executive Steve McGill has moved across the Atlantic to replace Michael Rice as chief executive of Aon Risk Services Americas. In a bold decision by Aon Corp’s chief executive Greg Case...

Nottingham-based insurer IGI is set to open a London market underwriting office following its acquisition by the expansive Icelandic insurance group Vatryggingafelag Islands hf (VIS). VIS – which acquired a majority stake in IGI earlier this month...

The former British conglomerate Hanson plc revealed on 13 February that an asbestos-hit US subsidiary has reached a settlement with its liability insurers. According to the group, the settlement is effective from January 2006 and resolves a number...

The question of whether reinsurers or reinsureds are liable to pay premiums to their brokers could be tested in the UK courts again this year when Absalom v TCRU reaches trial. The obligation appeared to have shifted to the reinsured during...

Ex-Gen Re and AIG execs indicted over $500mn reinsurance deal; Omega gets Bermuda licence; Swiss Re completes EUR252mn credit reinsurance securitisation; Kanak resigns from AIG; Arch raises $200mn; Hannover Re completes $370mn cat bond; Validus makes 1/1;

Atrium gives upbeat trading statement; Insurers win pleural plaques appeal; Kendrick replaces Brit CEO as LMA chairman; Rubicon Corp forced to call in administrators; Brit profits ahead of expectations; et al