January 2006/1

Failed (re)insurer GoshawK has today (3 January) announced increased provisions at its Bermudian subsidiary Rosemont Re for losses arising from last autumn’s hurricanes and prior-year legacy issues.

AIG subsidiary National Union Fire Insurance Co of Pittsburgh is being sued by Gemstar-TV Guide International (Gemstar) for $50mn over liability cover the US media company says it has for claims arising out of lawsuits over inflated revenues.

The annual report of “Judicial Hellholes” has been published by the American Tort Reform Association (ATRA) naming and shaming the worst jurisdictions in the USA. ATRA defines “Judicial Hellholes” as places where “judges systematically apply laws and..

A report by Guy Carpenter has put the total insured loss from last year’s flooding in central and eastern Europe at EUR1.25bn.

Reinsurance giant Swiss Re last week (28 December) announced that it had completed a second deal securitising future profits from a portfolio of US insurance policies bought up by its Admin Re division.

Swiss reinsurer Glacier Re announced on 21 December that it has raised $50mn in new capital.

Lloyd’s insurer Beazley announced on 23 December it has scrapped plans to form a new short-tail property reinsurance syndicate after failing to get the required support from investors for the initiative.

Ratings agency AM Best affirmed the crucial A- financial strength ratings of Bermudian (re)insurers Quanta and PXRE in time for the renewal season. Ratings for both companies remain on negative outlook.

Amlin Credit, the trade credit insurance arm of UK listed insurer Amlin plc, today (3 January) announced the appointment of Ray Massey as its new risk director.

Mike Mackenzie has become the latest senior figure to part company with rating agency AM Best’s European operation. Mackenzie resigned his position as general manager of European business development.

The International Underwriting Association (IUA) is set to start 2006 by testing a new electronic claims system that aims to speed up the settlement of insurance and reinsurance claims in the London Market.

Over 70 percent of Aon’s US clients have accepted the broker’s offers as it attempts to compensate clients for contingent commissions, after the broker extended its opt-in deadline by a month.