January 2008/2

Lloyd’s insurer Amlin plc has seen its premium income drop 7 percent so far this year reflecting the softer market conditions.

Issuers of natural catastrophe bonds finished 2007 strongly, with four cat bonds brought to market, totalling $781mn and EUR200mn.

Aon Corp has continued to strengthen its European reinsurance arm as it prepares for the arrival of Geoff Bromley, the former chairman of Guy Carpenter’s European and Asian operations, next month.

US insurer CV Starr & Co Inc has launched a Lloyd's energy syndicate with £30mn 2008 capacity in partnership with private equity firm First Reserve Corporation.

With six significant M&A deals in the Lloyd's sector since the takeover of Wellington Underwriting by Catlin Group in December 2006 - including two agreed transactions last month - the theme looks set to continue this year.

New Marsh CEO Dan Glaser wasted little time in stamping his authority on the broker as the MMC subsidiary made its second management reshuffle in a matter of months as part of an organisational restructure to "improve efficiencies".

The London market has begun its fight back against "unfounded" findings in the EU competition inquiry into business insurance criticising subscription market practices.

Insurance specialists Edwards Angell Palmer & Dodge LLP (EAPD) and London-based Kendall Freeman have completed their merger, a deal that was first predicted by The Insurance Insider.

With Lloyd's global capacity thought to see a moderate fall at the start of 2008, new start-ups have played a significant part in offsetting de-emptions by some of the market’s larger players.

Sub-prime related writedowns have so far wiped more than $170bn from the balance sheets of companies worldwide, according to data compiled by information provider Advisen.

Renewable energy insurer GCube has opened for business offering up to $600mn cover per project, for onshore and offshore, with capacity provided by a consortium of Lloyd’s underwriters.

Competition has forced reinsurance rate reductions of up to 15 percent at 1 January as the industry shows signs of reverting to its historic pattern of "feast and famine", according to leading market players.