January 2008/2

Shares in Bermudian (re)insurer Aspen Insurance Holdings ltd have jumped by more than 10 percent in early trading after the group’s record full year net income rose by nearly a third on the same 2006 period.

Aon Corp is set to unveil a major restructuring which will see the formation of a new global retail business led by Steve McGill, the current head of the firm’s Americas division, The Insurance Insider can reveal.

Shares in Lloyd’s (re)insurer Omega Insurance Holdings have soared by nearly 10 percent after the firm announced it was in talks over its potential sale.

Despite reporting strong earnings, broker Willis Group disappointed analysts with its lack of organic growth for the fourth quarter.

The deregulated Brazilian (re)insurance industry is set to welcome its latest admitted carrier, German giant Munich Re which is setting up a subsidiary in São Paulo.

Bermudian XL Capital has reported fourth quarter earnings in line with last month’s sub-prime loss fuelled profits warning, but analysts continue to focus on uncertainty surrounding the troubled (re)insurer.

Amlin’s well-regarded head of underwriting has taken a leave of absence from the Lloyd’s insurer because of ill-health.

Aon Corp has hired the former Max Re chief executive Bob Cooney as managing director of its Capital Markets division, the unit which provides structured finance and capital markets products to the (re)insurance industry.

Bermudian reinsurer Everest Re reported a 21-point deterioration in its combined ratio, to 108.4 percent for the final quarter of 2007, owing largely to the $311.2mn asbestos charge announced in January.

The arrival of Brian Duperreault at the helm of Marsh & McLennan Cos (MMC) has reduced the likelihood of an imminent takeover bid by Willis Group Holdings, reflected in the rising share price at the smaller broker following the news.

Brian Duperreault, the former ACE Ltd chief, has been appointed president and CEO of Marsh & McLennan Cos (MMC) with immediate effect, in a bid to boost the fortunes of the ailing financial services group.

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.

Bear Stearns analyst David Small has praised AJ Gallagher management’s decision to sell its reinsurance division and was “encouraged” by plans to reduce its back office workforce by 400 positions.

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.

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

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

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.

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.

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.

Brit Insurance Ltd, Beazley Group plc, and Novae Group plc are the Lloyd’s insurers most vulnerable to exposure from sub-prime related liability claims, according to an industry analyst as he cut his target price on the companies.

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

Specialist UK broker THB Group plc has completed its £8.5mn acquisition of PWS Holdings plc’s Lloyd's business and overseas interests, it confirmed this afternoon (24 January).

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).

Troubled Bermudian XL Capital said last night it expects to book up to $1.7bn in after tax fourth quarter charges related to the sub-prime fallout when it reports its financials next month.

UK mid-market business is currently a tough sector with typically high service costs and falling commission rates. Occupying that role at Aon is now Robert Brown following the exit of the previous incumbent, John Thornton.

Despite Berkshire Hathaway's Swiss Re stake being a "vote of confidence" in its competitor, one analyst has highlighted the dilutive effect of the "attached" quota share deal on the reinsurance giant's earnings per share (EPS).

Berkshire Hathaway Inc has acquired a 3 percent stake in reinsurance giant, Swiss Re, while also entering into a major quota share reinsurance contract with the Warren Buffett-led group.

Shares in European (re)insurers have bounced back this afternoon after sliding in early trading today.

Shares in European and Lloyd’s (re)insurers have continued to slide this morning as fears of a US recession persist in the financial markets.

The Bermudian insurance group Ironshore Inc has told Heritage Underwriting Agency that it does not intend to make a formal offer for the Lloyd’s insurer.

US giant American International Group (AIG) leads the hull cover on the British Airways jet that crash-landed at London’s Heathrow Airport yesterday (17 January) while carrying more than 150 passengers.

Willis Group is likely to face significant regulatory hurdles if it is to be successful in concluding a possible takeover of its larger rival Marsh & McLennan (MMC).

Crystal ball-gazers of broker M&A activity have long predicted that Joe Plumeri has at least one major deal in him before he steps down at Willis Group and it could prove to be a spectacular one.