January 2006/3

US insurer Markel weathered a record hurricane season to report full-year profits just 10.5 percent down for 2005 from $165.5mn in 2004 to $148mn.

As exclusively revealed by our sister publication The Insurance Insider on Friday (13 January), Lloyd’s has unveiled its vision for the marketplace, which may see differential charging for the Central Fund and a number of other significant reforms...

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

Reinsurance giant Swiss Re announced on 28 December that it had completed a second deal securitising future profits from a portfolio of US insurance policies bought up by its Admin Re division. The so-called ALPS securitisation “benefits Swiss Re by...

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 rating agency Standard & Poor’s (S&P).

Allied World Assurance Company’s (AWAC) move towards independence has cost it a ratings downgrade amid rumours that it is set to become the last of the so-called “Class of 2001” to go public with an IPO. Rating agency AM Best said it had decided to...

Bermuda-based run-off company Castlewood Holdings, together with Shinsei Bank, has bought Aioi Insurance Company of Europe (Aioi Europe) for £62mn.

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...

A panel of High Court judges has thrown out an appeal by reinsurers against Justice Morison’s 21 December 2004 judgement in favour of claimant reinsureds and defendant brokers on all points in the notorious Aon 77 dispute.

Bermudian Arch has become the latest (re)insurer to enter into a sidecar arrangement following the establishment of Flatiron Re. Flatiron Re follows XL sidecar Cyrus Re and Montpelier’s Blue Ocean, and carries the distinction of becoming the first...

Swiss reinsurer Converium finally ended the search for a new CEO on 14 December as it announced the appointment of Inga Beale to the post. Beale will join the company early this year from GE Insurance Solutions (GEIS), where she currently heads up...

Six of the "Class of 2005" receive AM Best rating just in time for 1/1 entry. As predicted in the December issue of The Insurance Insider, rating agency AM Best rubber stamped a number of Bermuda’s so-called “Class of 2005” reinsurers, dishing out...

Bermudian (re)insurer XL Capital announced 4 January 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...

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. Speaking at Lloyd’s on 11 January as part of a series of lectures...

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...

Out of court settlements appear to be close in the £80m fraud trial between Cable & Wireless and former employees of its defunct captive insurer Pender Insurance. The case met for a ‘mention’ at the High Court on 12 January and has been scheduled...

Montpelier Re, PXRE and Quanta action rewarded with AM Best affirmations. While the “Class of 2005” sought ratings and finalised plans to start underwriting in time for 1/1 renewals, three of Bermuda’s existing players hardest hit by the devastating...

Equitas disappointed with reinsurance deals ; Ascot reveals hurricane losses ; Liberty ups capacity to record level ; Hardy founder steps down ; RFIB makes Moscow move ; Independent executives bailed on fraud charges ; JLT Re begins trading ; et al...

Hannover Re is understood to be looking at solutions to reduce its exposure to reinsurance recoverables, which have risen significantly on the back of last autumn’s record industry hurricane losses.

Proposals set to include differential charging of Central Fund in bid to reduce cost burden on members. Lloyd's is set to publish a radical blueprint for change later this month which will raise the prospect of a fundamental overhaul of the...

Run-off services provider CMGL has launched a fraud investigations unit under the auspices of John Halls, who returns to the company after six years at Omni Whittington and Axiom.

Insurance giant ZFS is mulling over a significant German acquisition, according to sources. The Zurich-headquartered firm – which has been widely tipped to participate in M&A activity this year – is thought to be considering a mid-tier German...

There were some high hopes and bold predictions that post-Katrina renewals would be a time of plenty for (re)insurers with significant rate rises across all lines of business. But in a look at the state of the market The Insurance Insider has found...

2005 was a terrific year for European insurance stocks, but investors should now prefer the life sector, over property & casualty, warned analysts at Merrill Lynch. Overall, the European insurance sector rose 31 percent in 2005, outperforming...