July 2003/5

US giant insurer AIG has announced sturdy second quarter 2003 figures with profits up 26.4 percent to $2.28bn, against $1.80bn for the same period last year. The six monthly showing saw net income totalling $4.23bn, up from $3.78bn last year.

Bermudian (re)insurer Everest Re reported a striking increase in net income last Tuesday, the second quarter up 105.1 percent to $109.6mn from $53.4mn last year.

Shares in US casualty specialist WR Berkley are again close to its 3 July 52 week high of $54.02 after the insurer unveiled consensus beating half yearlies.

US insurer St Paul announced last Friday the second quarter earnings impact of a previously disclosed surety exposure. The charge will amount to $86mn pretax and $56mn after tax, equivalent to $0.23 per diluted share.

The Financial Services Authority has responded to fears that companies and individuals are insuring themselves against fines for misconduct by proposing to ban the provision of such cover.

Embattled Bermudian captive and fronting manager Mutual Risk Management Ltd has ratified its scheme of arrangement with creditors.

Last week saw increased speculation that slimmed down UK general insurer Royal & Sun Alliance (R&SA) is hawking its US property and casualty business to potential buyers.

Last week’s first round of half year results from Bermudian post 9/11 start-ups signalled an even stronger performance than last quarter. However, there were signs that increased competition is starting to drive down rates in some specialty reinsurance li

Marsh has missed key deadlines in its acquisition talks with HLF Group Plc, leading to speculation that the world’s largest insurance broker may withdraw from the proposed £350mn takeover.

Ernst & Young, the big four accountant facing a £2.6bn claim from Equitable Life, has only limited professional indemnity protection from Swiss Re, one of the world’s largest reinsurance companies.

Marsh, Willis and JLT continue to grow healthy brokerage revenues… Despite growing evidence that non-casualty pricing levels have plateaued, strong half-year results from Marsh, Willis and JLT show brokerage revenues continuing to grow.

Lloyd’s insurer Cathedral Underwriting Ltd has signed an agreement with CATEX, the technology and software company.

Giant European reinsurer Swiss Re was today (28 July) downgraded by rating agency Standard & Poor’s (S&P), lowering its financial strength and long-term counterparty credit ratings from AA+ to AA. The outlook remains stable.

Reinsurance brokers RK Carvill look set to lose a prime $30mn brokerage account after their clients XL Capital put the contract out to tender to three rival firms.

Canadian broker Hub International Ltd has stepped in to purchase Near North National Group weeks after Near North’s management agreed the sale to private equity firm Frontenac.