February 2008/1

Despite strong results, Axa SA has received a target price downgrade from Collins Stewart analyst Tim Young after concerns about continuing dollar weakness, asset market turmoil and the possible acquisition of Friends Provident.

Lloyd's has remained upbeat despite the market missing the 100 percent 2007 target for take-up on usage of electronic claims files (ECF) as it ended the year at 88 percent.

Despite weaker market conditions, US insurer Chubb Corp saw its 2007 earnings grow on the back of strong reserve releases.

Rating agencies - those all-powerful arbiters of insurers' destinies - are getting restless and it is not just the monoliners who are in their sights.

Ratings agency Standard & Poor's (S&P) has downgraded Bermudian life reinsurer Scottish Re Group after its investment portfolio continued to suffer from the sub-prime crisis.

UK regulator the Financial Services Authority (FSA) warned last week that it is scrutinising the wholesale broking industry and called on the sector to implement the necessary "culture change".

Aon Corp has hired the former Max Re chief executive Bob Cooney as managing director of its Capital Markets division, the unit which provides structured finance and capital markets products to the (re)insurance industry.

Two recent decisions in the US Supreme Court will aid professional liability insurers defending themselves against claims and litigation stemming from the sub-prime mortgage crisis, according to Chubb Corp vice chairman John Dengan.

The sub-prime mortgage crisis has had little impact on availability, cost or policy conditions of directors' and officers' (D&O) and errors and omissions (E&O) policies, according to a survey of financial sector risk managers and CFOs.

Giant bond insurer MBIA Inc has seen its results decimated by the recent sub-prime debacle, posting a $1.9bn loss last year, down from an $819.3mn profit in 2006.

Connecticut attorney general Richard Blumenthal has subpoenaed bond insurers as part of a probe into the fallout from the US sub-prime mortgage crisis.

The arrival of Brian Duperreault at the helm of Marsh & McLennan Cos (MMC) has been welcomed by the investor community - and reduced the likelihood of an imminent takeover bid by Willis Group Holdings, according to analysts.

Towers Perrin has strengthened its reinsurance team with three key appointments in Bermuda and France.

US insurer Allstate Corp has seen its reinsurance cost fall sharply after cutting back its catastrophe exposures.

Despite having to write down $27.1mn from sub-prime affected securities, US reinsurer Transatlantic Holdings Inc's 2007 profits were boosted by a stronger investment performance.

Bermudian reinsurer Everest Re reported a 21-point deterioration in its combined ratio for the fourth quarter after its larger-than-expected asbestos charge to reserves.

American International Group (AIG) settled lawsuits by nine states and the District of Columbia for $12.5mn last week that sprang from the former New York attorney general Eliot Spitzer's investigations...

AXIS Capital's newly launched US admitted property and casualty (P&C) insurer has been rated A by Standard & Poor's (S&P).

One of the largest providers of business to independent wholesale London market brokers is poised to launch an EC3 operation called Decus Insurance Brokers Ltd.

Recently listed legacy specialist Randall & Quilter Investment Holdings plc (R&Q) is to release £11mn in capital from its Chevanstell Ltd unit.

John Houldsworth, the former chief executive of Cologne Re Dublin, came under fire at the General Re finite trial with defence lawyers questioning his honesty, reliability and memory.

Shares in AJ Gallagher & Co traded up last week after the company revealed it was divesting its reinsurance unit.

St Paul Travelers' UK operations are following the lead of its US parent company and rebranding as Travelers.

The $250mn loss of an African telecommunications satellite at the end of last year was placed in the space insurance market by Willis, with cover understood to be led by Munich Re.

Specialty reinsurance broker Carvill’s ReAdvisory arm has appointed Dr Steve Smith as president of its new property solutions division.

Zurich Financial Services is expanding in Norway and Denmark through two new branches of Zurich Insurance Ireland Ltd (ZIIL).

The biggest fraud in investment banking history, at French bank Société Générale, may still result in a loss for the bank's insurers, as employee shareholders filed a lawsuit against unnamed directors at the firm.

AJ Gallagher & Co's (AJG) new onshore/offshore energy and utility broking subsidiary is set to welcome the latest addition to its team - Neil Jurd, who has resigned from JLT Agnew Higgins, Insider Week understands.

Geoff Bromley, the former chairman of Guy Carpenter's European and Asian operations, has joined Aon Corp after serving a long notice period following his resignation last year.