January 2008/2

US insurer Allstate Corp has cut its reinsurance programme as it scales back its property book in hurricane-exposed states.

AJ Gallagher is likely to receive plaudits from analysts tomorrow – and perhaps even a fillip to its share price - after confirming this evening that it is divesting its reinsurance unit.

German giant Munich Re said this morning (30 January) it expects to book record 2007 profits of EUR3.9bn – up from EUR3.5bn in the prior year - as it revealed minimum exposure to sub-prime related losses in the fourth quarter.

Lloyd's has remained upbeat despite the market missing the 100 percent 2007 target for take-up on usage of electronic claims files (ECF) as it ended the year at 88 percent.

Guy Hengesbaugh, the former chief operating officer of the defunct catastrophe reinsurer PXRE, is to head up Towers Perrin’s Bermudian reinsurance broker.

AXIS Capital has launched a property and casualty (P&C) insurer to write on an admitted basis in the US.

Lloyd’s has confirmed underwriting capacity at 1 January 2008 of £15.95bn, only fractionally down on the £16.1bn the market began 2007 with.

Troubled XL Capital was downgraded by both AM Best and Fitch Ratings late last week, with analysts warning the rating action could limit the (re)insurer’s competitive position, particularly in US casualty business.

Bear Stearns analysts have trebled estimates for insured management and professional lines losses relating to the sub-prime crisis from $3bn to $8-9bn as notifications and class action lawsuits continue to mount.

The biggest fraud in investment banking history, at French bank Société Générale, is unlikely to translate into a large insured loss because it did not buy unauthorised trading cover, according to senior market sources.

Security Capital Assurance Ltd (SCA) and its financial guaranty insurance subsidiaries have had their insurer financial strength ratings slashed from AAA to A by Fitch Ratings after investors – including XL Capital – effectively decided against bailing ou

The takeover of PWS Holdings plc's Lloyd's business and overseas interests by specialist broker THB Group plc could be completed as early as today (24 January).