February 2008/2

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.

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).

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).

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

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

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.

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.

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.

Reinsurance intermediary Benfield Group is facing a near “perfect storm” of negative issues that are unlikely to dissipate in the near future, according to a research note by Panmure Gordon & Co analyst Barrie Cornes.