January 2006/2

Bermudian reinsurer Everest Re announced yesterday (12 January) that it is raising pre-tax loss estimates from last year’s trio of hurricanes by $200mn to $1.2bn, net of reinstatements.

Reinsurance broker Benfield Group predicted better than expected revenues for 2006 on the back of rising reinsurance rates in 2006 and 2007. In a 12 January trading statement, the broker said that it now expected 2006 turnover to grow by 20 percent...

Charles Philipps has warned that Lloyd’s must preserve its security rating, or face disastrous consequences that would spell the end of the market in its current form.

An end to contract uncertainty has been demanded by the director of the Financial Services Authority’s (FSA) retail firms division David Strachan, as he reserved the right to intervene in the market.

Although TRIA continues to provide a vital backstop against extreme losses, industry experts have warned that terrorism risk remains high and the burden on reinsurers continues to grow. Catastrophe modelling firm Risk Management Services (RMS) has...

Rating agency AM Best has affirmed Quanta Europe's financial strength rating of A- (Excellent) and removed the ratings from under review in the wake of affirming the ratings of its Bermudian parent's main operating arm, Quanta Reinsurance Ltd.

Bermudian reinsurer PXRE announced on 22 December that Robert P Myron has been promoted executive vice president, chief financial officer and treasurer of the group, replacing John Modin. Modin has chosen to pursue other opportunities, with his...

Lloyd’s insurer Beazley received a welcome boost from analysts Numis Securities after it failed to gain investor backing for a new syndicate last month. Numis has upgraded its rating on Beazley shares from ADD to BUY and increased its price target on..

Hurricane hit Lloyd's (re)insurer Advent confirmed on Friday (6 January) the completion of its £30mn share issue and the appointment of a new non-executive director following approval by shareholders at an extraordinary general meeting.

Investors can expect to see a rise in mergers and acquisitions (M&A) activity within the life sector over the next few years, according to a report from reinsurance giant Swiss Re. The report found that the need to consolidate had begun a busy phase...

According to a report by ACE European Group Ltd (ACE), outsourcing IT systems increase a company's vulnerability to security breaches, and inevitably cause long-term harm to its business.

A lawsuit has been filed on behalf of homeowners covered by an “all risk” policy with State Farm Fire and Casualty on 4 January as the fallout from Hurricane Katrina continues.

Bermudian reinsurer Montpelier Re has raised $100mn through a private sale of trust preferred securities boosting its total capital to over $1.4bn.

Bermudian (re)insurer XL Capital last Wednesday (4 January) announced a senior management reshuffle, as it steps up its long-term succession strategy to replace CEO Brian O’Hara. As part of the restructuring, James Veghte has been appointed chief...

US bank Marshall & Ilsley Corp (M&I) is suing Marsh parent MMC over accusations of overcharging premiums in relation to the contingent commission scandal that rocked the broking giant in October 2004.

Reports by two of the world's largest reinsurance brokers have found that the renewal season has so far been a "Tale of Two Markets". The reports from Willis Re and Guy Carpenter agreed that lines directly affected by hurricanes Katrina, Rita and...

Bermudian Arch has become the latest (re)insurer to enter into a sidecar arrangement following the establishment of Flatiron Re, which has itself become the first vehicle of its kind to be rated by Standard & Poor’s (S&P).

US broker Hub International has sold San Francisco-based Talbot Financial to a group that includes four members of Talbot’s management team. Talbot, which offers a range of financial services to banks and financial institutions, was classified as...

Bermuda-based run-off company Castlewood Holdings, together with Shinsei Bank, has bought Aioi Insurance Company of Europe (Aioi Europe) for £62mn. Aioi Europe, a London-based subsidiary of Japanese insurer Aioi Insurance Company, wrote the...

The increasing use of securitisation transactions by European life insurers for finance and risk transfer is set to keep on growing, according to a report by Standard & Poor's (S&P). The report predicts that deals in the class will continue to rise...

Deloitte & Touche, the audit firm embroiled in the controversial collapse of aviation reinsurer Fortress Re, has paid out around $100mn to Japanese insurer Sompo as part of a litigation settlement.

The Mutual Reinsurance Bureau (MRB) pool took its membership to five when the Country Mutual Insurance Company and Kentucky Farm Bureau Mutual were admitted at the beginning of this year.