February 2008/2

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.

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.

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.

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

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.

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.

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.

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.

(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.

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.

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.

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.

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.

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.

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

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.

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.

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...

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.

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).

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.

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.

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.

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.

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.

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

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.

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

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.

The London market has moved closer to eliminating paper from premium processing as the Market Reform Group (MRG) announced today (19 February).

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.

Market veteran John Charman has signed a five-year deal that will see him continue to head up Bermuda-based AXIS Capital Holdings Limited, the company he founded.

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.

A third senior Marsh Ltd executive, Toby Foster, is also to part company with the firm, The Insurance Insider has learnt.

AM Best has become the latest ratings agency to respond to American International Group’s (AIG) admission that it faces far greater losses from its exposure to the continuing credit crisis by placing the ratings of the firm under review...

Zurich Financial Services Group’s (ZFS) cost cutting plans helped push the company’s profit to a record $5.6bn last year with improvements made across all its business divisions.

Shareholders in Lloyd's (re)insurer Kiln Ltd have approved the cash acquisition of the firm by Tokio Marine & Nichido Fire Insurance Co Ltd at a special general meeting yesterday.

Senior Marsh Ltd executives Stephen Matanle and Julian Wallers are to part company with the broking giant, The Insurance Insider has learnt.

Lancashire Holdings Ltd has only traded for two years and, with its focus on specialty short-tail lines, couldn't be better timed. The lack of US natural catastrophes, energy or terrorism losses has enabled the "class of 2005" Bermudian start-up to post..

The introduction of the Solvency II directive will drive an increased focus on run-off across Europe, according to a new survey launched by PricewaterhouseCoopers LLP (PwC) in conjunction with the Association of Run-Off Companies.

French reinsurer SCOR said 1/1 renewals confirmed the successful integration of last year’s acquisition Converium, with a high retention rate and access to new business.

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.

Ratings agency Standard & Poor's has responded to American International Group's (AIG) admission that it faces far greater losses from its exposure to the continuing credit crisis by placing the ratings of the firm on Negative outlook.

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

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.

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.

Enstar Group Ltd is close to a deal that will see it acquire Royal & SunAlliance's (R&SA) up-for-sale UK legacy units, The Insurance Insider can reveal.

The run-off market has welcomed a potential new buyer of discontinued books – JMD Specialist Insurance Services.

DE Shaw-backed $250mn start-up gets A- rating; AM Best affirms New Castle Re; Banks consider bond insurer bailout; SCOR free of monoliner exposure...

MGA Euro International Underwriting Ltd underwriter Christopher Henton, who was banned from operating over his "dishonest involvement" in the notorious Sphere Drake managing general agent (MGA) was...

The jury in the trial of four former Gen Re and an ex-American International Group (AIG) executive charged with transacting an allegedly sham finite reinsurance contract between the two firms is due to retire in mid-February.

Aon Corp has hired 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.

Swiss Re has closed its $85mn GlobeCat transaction, providing one year of cover for Central American earthquake and six years for Californian earthquake and US windstorm.

RK Carvill has confirmed that Deutsche Bank will provide Standard & Poor's AA rated security to hurricane derivatives transformed into reinsurance contracts through transformer vehicle Mount Prospect Ltd.

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

An annus horribilis in the space insurance market tailed off with a second potential satellite loss in December.

The European Commission is backing down from its concerns over co-insurance, or subscription, markets and is likely to sanction the previously under-fire practices of harmonised terms and conditions, The Insurance Insider has learned.

ECF figures improve after re-audit; P&I reinsurance structure static, but costs rise; Lloyd's capacity static for 2008; THB finalises PWS deal...

A New York court has recognised the jurisdiction of the UK courts in the insolvency of run-off insurer Highlands Insurance Company (UK) Ltd.

In January, IFEX saw trading volumes increase and added depth to the market with the partnership of Swiss Re as market maker.

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.

Broking giant Aon Corp has unveiled a major restructuring with the formation of a new global retail business led by Steve McGill, the current head of the firm's Americas division.

Sciemus Ltd is set for a 1 March underwriting start in the power market, after securing capital for the venture, The Insurance Insider can reveal.

Finality expected on some of the market's kitchen sink years