February 2008/2

ESR Insurance Ltd – the Lloyd’s broker hit by allegations of fraud in its surety bond division – has gone into administration.

Organic growth boosted Marsh and McLennan Companies Inc’s (MMC) 2007 revenues, the company reported today (12 February).

After two years characterised by more financial strength ratings upgrades than downgrades, AM Best has predicted actions will be more “fairly balanced” for US property and casualty (P&C) insurers in 2008.

American International Group (AIG) saw its share price tumble over ten percent yesterday (11 February) to a five-year low as it spooked investors over the size of its exposures to the continuing credit crisis.

Veteran class action lawyer Bill Lerach, who represented Enron investors and other shareholders suing large corporations, has been sentenced to two years in jail for making improper payments to clients in a kickback scheme.

Bermudian reinsurer RenaissanceRe is to launch its first cat bond - CPX Re - to provide US all natural perils cover, our sister publication Trading Risk revealed.

Despite the unprecedented scale of the Societe Generale "rogue trader" fraud, the bank's insurers may not be exposed to their full limits because of the technical nature of financial institutions (FI) cover...

Warren Buffett has accused major investment banks of being the architect of their own downfalls through the collapse in the US sub-prime mortgage market.

Other than the fact that Warren Buffett has promised $37bn+ of his fortune to Bill Gates' charitable foundation, Keefe, Bruyette & Woods analyst William Hawkins' observation...

European reinsurers Munich Re and Hannover Re both declared 1 January renewals a success, despite falling rates.

In contrast to its troubled rival, ACE Ltd - which was set up with XL on Bermuda in the mid-'80s - reported record full year 2007 net income of $2.58bn, up 12 percent on the prior year...

US retail broker Brown & Brown is poised to launch an EC3 platform, called Decus Insurance Brokers Ltd, which is likely to draw business away from independent wholesalers who currently access the London market on its behalf.