January 2007/6

Broking giant Aon Corp confirmed last week that it is to lose 550 jobs in its US operations as part of its ongoing efficiency drive.

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.

Benign catastrophe conditions contributed to US insurer The Hartford Financial Services Group reporting record fourth quarter net income of $783mn, or $2.42 a share, and full year 2006 net income of $2.7bn – a 21 percent increase on 2005.

German reinsurer R+V has been awarded £14mn, plus interest, in its long-running dispute with the former Lloyd’s-based managing agency Risk, Insider Week can reveal.

Benfield Group has appointed Jeremy Goodman to a senior position in its facultative operations, 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.

State-founded Citizens Property Insurance – already the largest insurer in Florida – is likely to gain an even bigger share of the market as a result of legislation signed into law by Governor Charlie Crist on Friday.

Hannover Re expects its losses from Windstorm Kyrill to be between EUR120-180mn before tax with an overall industry loss estimated at EUR4-7bn.

Bodies representing the reinsurance industry have responded to criticism over their lobbying of Florida lawmakers that last week passed legislation significantly disintermediating the role of property reinsurers in the state.

London market brokers are pushing for Lloyd’s to mandate change in a push to see all claims processed electronically by the end of the year.

The Financial Services Authority (FSA) acknowledged last week that the UK insurance industry has met the challenge set by the regulator to achieve contract certainty.

Morgan Keegan insurance analyst and long-term bear of Canadian combine Fairfax Financial Holdings, John Gwynn, has announced that he is dropping the company from his coverage due to a stock manipulation lawsuit.

The specialty insurance group Markel Corporation unveiled its 2006 results last week which saw the group’s combined ratio fall to a mere 87 percent while investment earnings leapt to an impressive $160mn.