January 2007/3

Ironshore Insurance Ltd, the Bermuda-based $1bn insurer formed by the father-and-son team Bob and John Clements at the tail end of last year, has received an A- (Excellent) rating from AM Best.

Beleaguered Bermudian PXRE is facing termination charges of up to $53.4mn on cat bonds and reinsurance contracts if, as expected, it goes into run-off.

Aon Corp posted flat fourth quarter net income last night of $224mn with broking revenues up 7 percent to $1.5bn.

The first sign of the magnitude of last month’s Florida legislation for reinsurers has emerged with Bermudian RenaissanceRe paring back growth targets for 2007 managed property cat reinsurance...

Veteran London market figure Graham White was appointed as the new deputy chairman of Lloyd’s by the Council of Lloyd’s on 5 February.

John Charman's AXIS Capital Holdings Ltd became the latest industry (re)insurer to beat consensus estimates and report record results for last year on the back of the benign catastrophe season.

A series of devastating tornadoes have ripped through Central Florida, killing at least 14 people and cutting power supplies to more than 40,000 residents.

Broker PWS Holdings is under investigation by the Serious Fraud Office (SFO) over an alleged $1.6mn Costa Rican reinsurance fraud.

Marsh & McLennan Companies, Inc (MMC) has confirmed the much anticipated sale of its asset management arm Putnam Investments to Power Financial Corporation subsidiary Great-West Lifeco Inc for $3.9bn in cash.

Hannover Re is set to enter a landmark financial transaction that will lay off credit risk on its reinsurance recoverables to the capital markets, a move first revealed by The Insurance Insider in January last year.

Bermudian ACE Ltd became the latest (re)insurer to benefit from an unexpectedly benign catastrophe environment as it revealed record 2006 operating income of $2.35bn.

“Class of 2005” (re)insurer Lancashire Holdings has stated it will not be affected by the increased underwriting capacity of the Florida Hurricane Catastrophe Fund, as it does not write property cat treaty in the state...

US giant Bank of America is set to launch a Lloyd’s syndicate specialising in writing long-tail lines, The Insurance Insider can reveal.

Benfield Group has appointed Jeremy Goodman to a senior position in its facultative business, as it attempts to fill the void left by the high-profile defection of Elliot Richardson and a number of his team to rival Aon last September.

David Margrett, the former group chief executive of Heath Lambert, is to take over as chairman and CEO of Willis Ltd, the broker’s UK operation.

Swiss Re expects its net losses from the European windstorm Kyrill to be around EUR140mn and gave an overall loss estimate for the industry at the lower end of predictions.

The specialty insurance group Markel Corporation was fast out of the traps yesterday with its 2006 results that saw the group’s combined ratio fall from 101 percent in 2005 to a mere 87 percent.

UK regulator the Financial Services Authority (FSA) said today (24 January) that it believes the insurance industry has met the challenge to achieve a solution to contract certainty in the UK.

After a year-and-a-half long investigation, the European Commissioner for Competition Neelie Kroes has published her preliminary findings into business insurance which raise a number of concerns including "potential conflicts of interest" amongst brokers.

Despite losses estimated as high as EUR8bn, Europe’s (re)insurers are unlikely to see any rating downgrades from the windstorm Kyrill, according to Fitch Ratings Agency.

Aon Corp has initiated a significant restructuring of its senior international management designed to enhance its client functions and global placement capabilities.

Marsh Inc has been awarded China’s first Wholly-Owned Foreign Enterprise (WOFE) insurance broking license, it announced yesterday (22 January).

UK insurer Royal & Sun Alliance Insurance Group plc (R&SA) has welcomed the ruling of a Michigan Circuit Court that General Motors (GM) is not entitled to coverage for its asbestos and environmental liabilities.

Share prices of Bermudian and Lloyd’s (re)insurers fell following the passage of a bill on Monday (22 January) that will see significant state intervention in the Florida insurance market and take an estimated $4bn premium ou

Florida lawmakers yesterday (22 January) overwhelmingly passed a bill aimed at lowering the cost of property insurance that will see significant state intervention in the insurance market.

Senior management at Windsor plc, the UK-quoted insurance broker, made public the terms of their £33.7mn acquisition proposal for the firm this morning (22 January).

Validus Holdings Ltd and Greenlight Capital Re Ltd have become the third and fourth reinsurers formed after Hurricane Katrina to confirm plans for initial public offerings (IPO).

Hannover Re has re-visited the capital markets in order to boost its Kaith Re "K5" securitisation to $520mn and expand the reinsurer’s underwriting capacity.

The fate of UK insurer Royal & Sun Alliance Group plc’s (R&SA) attempt to cut itself free from its US run-off business will be decided at a public hearing later this month.

Our monthly column keeping check on US and EU legal and regulatory developments

AM Best downgraded the financial strength rating of General Insurance Corp of India to A- from A.

Integro Ltd, the "fresh start" commercial broker launched in the wake of Spitzer's attacks on the US insurance industry, saw revenues grow last year – but it still has a long way to go before it can challenge the hegemony of Marsh, Aon and Willis.

Following the path of hedge-fund start-ups such as Bermudian Max Re Capital, set up in 1999 by Moore Holdings LLC, and successors CIG Re and Glacier Re, a number of standalone "unicycle" vehicles have emerged post-Katrina in search of direct access to pot

Goldman Sachs Asset Management (GSAM) is set to launch Steamboat Re, a Class III Bermudian incorporated reinsurer, The Insurance Insider can reveal.

Bob Clements’ Ironshore Ltd provides a further $1bn of scarce cat capital

Catlin Group estimated annual cost savings of $70mn from its £600mn+ acquisition of Wellington Group – with a proportion coming from job savings – so it was inevitable there would be some losses.