January 2007/3

The pricing differences prevalent through 2006 continued during the important 1 January reinsurance renewals with US cat exposed property lines maintaining an upwards trajectory while other classes and territories under pricing pressure.

German reinsurer Hannover Re will listen to offers for its run-off programme business Clarendon following the sale last month of its US subsidiary Praetorian Financial Group to Australia’s QBE Insurance Group Ltd.

The renewal of the flagship Lufthansa airline account last year highlights the soft market for airline insurance, The Insurance Insider can reveal.

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.

The North Korean state owned insurer Korea National Insurance Corporation (KNIC) has begun legal proceedings against a number of London market reinsurers that are refusing to pay a controversial claim.

Bermudian (re)insurers are expected to play a bigger part in the world’s largest reinsurance contract for the International Group of P&I Clubs as broker Miller Insurance takes the programme to market ahead of next month’s renewal.

Markel calls for greater Franchise powers; Beazley increases capacity with Santam acquisition; Amlin Bermuda’s business increases; Aviva grows Moss; MAP launches sidecar syndicate; Lloyd’s Central Fund trial set for January 2008

Mitsui appoints PRO for US business; Capita in short-list for Axiom sale; Bridges appointed to Quanta board; Cane appointed Whittington Europe CEO

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

UK regulator the Financial Services Authority (FSA) has pledged to review the market’s progress on contract certainty again this month.

"Two large claims" which incurred in January 2005 led to AM Best double downgrading Primary Group's Irish insurance subsidiary Primary Insurance Company Ltd (PICL) before the Christmas break from B++ to B.

Windsor plc, the UK-quoted insurance broker in management buy-out talks, announced a small dip in profits for the year ending 30 September 2006.