January 2006/1

A record year for CAT bond issuance was rounded off on 22 December when Montpelier Re announced two bond transactions worth $90mn in cover with Cayman-based Champlain Limited.

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.

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.

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.

UK listed broker Jardine Lloyd Thompson Group plc saw its reinsurance arm commence trading as a separate entity under the name JLT Re on 1 January.

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

Giant reinsurer Munich Re has predicted that it will hit its results target for 2005 despite it being the most expensive year ever for natural disasters.

Analysts from US market information firm Advisen have estimated worldwide insurance and reinsurance losses from the trio of major hurricanes hitting the US last autumn will hit $57.6bn, based on reported property and business interruption losses and...

Amlin Bermuda has received ratings from Standard & Poor’s (S&P) and Moody’s, becoming the first “Class of 2005” reinsurer to be rated by the agencies.

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

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.

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..

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.

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.

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.

As revealed by Insider Week in November, Creechurch Underwriting has announced that it is to form Lloyd’s first takaful syndicate, which will be compliant with Shari’a law.

US insurer HCC Insurance Holdings has completed the acquisition of the 80 percent outstanding shares in Illium Insurance Group, the parent company of Lloyd’s managing agency Illium, which manages liability and motor Syndicate 4040.

Bermudian reinsurer Montpelier Re confirmed yesterday (2 January) the capitalisation of $300mn start-up Blue Ocean Reinsurance Ltd to write retrocessional business on its behalf.

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.

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.