January 2007/2

US insurer St Paul Travelers is to terminate the payment of contingent commissions to brokers by the end of the year, according to Connecticut attorney general Richard Blumenthal.

Around 80 percent of claims, estimated to total $32bn, arising from hurricanes Katrina, Rita and Wilma remain unpaid, according to Charlie Cantlay deputy chairman of Aon Re UK.

The exit of former Wellington Underwriting staff following the company’s £600mn takeover by Catlin Group has continued with the departure of its two senior aviation underwriters.

The new Bermudian reinsurer Aeolus Ltd has doubled its capital to more than $1bn following a second fund raising.

French giant AXA announced late Thursday (5 January) it has agreed a deal to sell the US operations of its recent acquisition Winterthur to QBE Insurance Group for total consideration of $1.8bn.

Plummeting rates during last year's airline renewals have left the market close to its "burning cost" where it could struggle to turn a profit.

Reports by two major brokers on the 1/1 reinsurance renewals have taken different views on the size of rate rises for US catastrophe exposed property lines.

Catlin Group Ltd said its 2007 renewals came “in line with expectations” with a contrast between catastrophe and non-catastrophe exposed business.