July 2002/1

London based broker HLF was forced to pull its planned float after twice extending the pricing deadline to continue discussions with potential investors.

Munich Re, the world's second largest reinsurer, increased its WTC loss reserves by a further $500mn to €2.7bn sparking a collapse in the value of European stocks.

ACE is poised to announce a settlement with Jane Hayes, the former ACE underwriter who earlier this year appealed after her Court failure to prove sexual discrimination and unfair dismissal against ACE’s Charman Underwriting.

XL Capital’s share price fell 12 percent after the insurer announced an unexpected $200 mn charge for additions to its 11 September reserves and a $120 million charge for bond writedowns for WorldCom, Adelphia and other telecommunications companies.

Bermudian insurer plans to reduce its Lloyd’s capacity by almost a third to £652mn. ACE, one of the largest capital providers in Lloyd’s, is considering reducing its 2003 capacity by almost £300mn to £652mn.