February 2008/2

Stephen Matanle, the long-standing Marsh executive who left the firm last month as part of a widespread restructuring, has joined Libero Ventures Ltd, the new Lehman Brothers subsidiary.

UK insurer Brit Insurance Holdings has posted £62.5mn of net reserves for sub-prime related liability claims, it revealed in its 2007 results this morning that saw pre-tax profits and return on equity beat the previous year's figures.

The proposed abolition of Lloyd's broker status to allow the market to accept business from a wider pool of intermediaries is just one suggested amendment to the legislation governing the Society.

Bermudian-headquartered run-off company Alea Group Holdings’ outstanding liabilities now stand at around $1.5bn after a series of major commutations, the company announced in its 2007 results.

Bermuda-headquartered (re)insurer Catlin Group Ltd reported an 8 percent increase in combined earnings to $462mn for 2007, on the back of the successful integration of acquired London (re)insurer Wellington Underwriting and growth in its US and internatio

Shares in quoted broker Jardine Lloyd Thompson Group plc (JLT) were trading up this morning after the company reported a 5 percent increase in pre-tax 2007 profits to £95.2mn, and turnover up 3 percent to £473.2mn.

Lloyd’s has approved Syndicate 2008 to write reinsurance to close (RITC) business, with the Shelbourne Syndicate Services Ltd (SSSL) managed vehicle already closing four open year syndicates with gross insurance reserves of around $455mn.

French insurance giant AXA has bought yet another UK broker after agreeing terms to acquire SBJ Group.

Bermuda-headquartered Lloyd's (re)insurer Hiscox Ltd has been propelled to a record full-year profit before tax of £237.2mn, up 18 percent, by the stellar performance of its Global Markets division.

(Re)insurance broker Willis Group Holdings has extended the contract of its chairman and CEO, Joe Plumeri, until 2011 as well as making a number of changes to its senior management.

Omega Insurance Holdings Ltd Lloyd’s Syndicate 958 has withstood the impact of hurricanes Katrina Wilma and Rita to post a profit for 2005, maintaining its pedigree of a pure underwriting profit in every year it has traded since its launch in 1980.

Insurance giant American International Group (AIG) slumped to a fourth quarter net loss of $5.29bn after taking a staggering $11.12bn pre-tax mark-to-market loss on the super senior credit default swap (CDS) book of its financial products division AIGFP.

Swiss Re has reported 2007 net income down 9 percent to SFr4.2bn, as its fourth quarter figures were decimated by a previously announced SFr1.2bn writedown of credit default swaps (CDS) in November.

Shares in American International Group (AIG) slid by more than 7 percent in early trading after the insurer announced the biggest quarterly loss in its history driven by a $11.12bn pre-tax writedown in its financial products division, AIGFP.

The appointment of Peter Zaffino as CEO of Guy Carpenter and Britt Newhouse as chairman does not signify “internal problems” at the reinsurance broker, according to one analyst.

Amlin's standing as a leader amongst the quoted Lloyd’s insurers was reinforced today with "record" results that included a 30 percent leap in pre-tax profits to £445mn and a lowly 63 percent combined ratio.

RSA has sold Guildhall Insurance Company to Enstar Group in a move that continues the group's disposal of its legacy business.

Guy Carpenter has suddenly replaced its chief executive David Spiller with Peter Zaffino, the firm's head of US treaty operations, The Insurance Insider can reveal.

US lawyers have brought a class action lawsuit against Swiss Re in connection with last November’s SFr1.2bn writedown of two credit default swap (CDS) contracts.

As broadly healthy earnings continue to be set against the threat of the softening market, AM Best has affirmed its stable outlook on the reinsurance sector, with a minority of upgrades and downgrades expected to balance out around a majority of...

UK general insurer Royal & Sun Alliance (RSA) bounced back to a profit of £638mn for 2007 despite taking a hit from last summer’s UK floods.

Directors’ and officers’ (D&O) rates for financial institutions have surged as the impact of the sub-prime crisis takes grip, according to new research.

US broker Hilb Rogal & Hobbs’ (HRH) acquisition of London market broker Glencairn hit its 2007 earnings by $0.11 per share it revealed yesterday (25 February).

Swiss reinsurer Glacier Re continued to grow in 2007 with an increase in premiums and the launch of its first securitisation.

Shares in Australian (re)insurer QBE Group dropped 10.2 percent in today’s (26 February) trading after the company missed analyst profit estimates for 2007.

A US jury has returned a verdict of guilty on all counts in the trial of Gen Re and American International Group (AIG) executives over a sham finite reinsurance contract between the two companies.

Further concerns have emerged over the future of XL Capital affiliate Security Capital Assurance (SCA), after the monoline bond insurer’s ratings were slashed by Standard & Poor’s (S&P).

Lloyd's insurer Beazley delivered record profits and strong top line growth for 2007, as it more than doubled business written in its US operation and benefitted from the benign underwriting environment.

Aon Corp has bought Chicago neighbour AJ Gallagher & Co's (AJG) reinsurance arm Gallagher Re - in a move first predicted by The Insurance Insider.

Canadian conglomerate Fairfax Financial Holdings reported record 2007 results fuelled by investment income of $1bn driven by credit default swaps (CDS) tied to US financial groups and bond insurers.

Willis has confirmed that it is not being investigated by the City of London Police over allegations of wrongdoing relating to Indonesian energy business.

City police are again investigating allegations of overseas corruption in connection with London market insurance brokers.

German financial services giant Allianz AG’s 2007 financial year results hit a historical high, with net income increasing 13.5 percent to EUR8bn accompanied by a proposed 45 percent dividend hike to EUR5.50 per share.

Republican Ron Reagan is set to introduce a bill tomorrow in Florida’s House of Representatives supporting proposals to scale back the state’s hurricane fund, potentially handing $3bn of limits back to the private reinsurance market.

Bermudian reinsurer Montpelier Re Holdings Ltd announced increased 2007 profits despite the expense of rolling out new platforms.

Munich Re beat its increased profit projections for 2007 as it booked a consolidated result of EUR3.9bn for the year, up 11.9 percent on 2006.