January 2004/6

Just two months after news of the proposed St Paul Travelers supermerger broke, St Paul admitted last week it would take a $350mn pretax fourth quarter reserve charge to bolster its healthcare business in run-off.

Rates for directors & officers cover in the US climbed to an all time high last year as insurers continued to increase rates, according to Tillinghast’s 2003 Director’s and Officers Liability survey.

Bermudian (re)insurer Endurance announced last Thursday (22 January) that its 2003 net income has rocketed 158 percent to $263.4mn, or $4.00 per diluted share.

In a new report, ratings agency Moody’s has suggested that core reserves (i.e. reserves excluding asbestos and environmental liabilities) for the insurance industry may be short by as much as $30bn.

Consultants Watson Wyatt has announced that it will establish an insurance and financial services consulting team based in Munich.

US insurer Safeco announced today (26 January) that its has almost trebled its fourth quarter net income year-on-year, returning $166.2mn, or $1.19 per share compared to $57.1mn, or 42 cents a share in the same period of 2002.

The imminent expansion of the European Union – creating the largest trading bloc in the world – will benefit the insurance industry, according to actuaries Tillinghast.

Recently aired views on declining property rates were backed up last week by a survey from the Risk Insurance Management Society (RIMS) in the US, which found that the cost of premiums fell 8.8 percent in the final quarter of 2003.

Practitioners in the London market have agreed the standard template of a binding authority agreement which will be incorporated into a new LMP slip, it was revealed today (26 January).

Independent Lloyd’s brokers Lochain Patrick Insurance Brokers Limited has announced plans to acquire London Special Risks Limited (LSR), the specialist marine insurance and reinsurance advisory and broking company.

R&SA has announced the sale of its 37.1 percent shareholding in South Africa’s Mutual & Federal Insurance Company Ltd.

UK run-off firm Omni Whittington Capital Management Ltd will manage the affairs of Talbot’s loss-struck Syndicate 376 when a novation of the managing agent’s agreements occurs later this year.