July 2004/2

Ratings agency Standard & Poor's (S&P) has assigned an “AA” senior unsecured debt rating to approximately EURO640mn of three-year mandatory convertible securities issued by reinsurer Swiss Re.

Despite fears of declining rates, the first quarter of 2004 was a stunning year for US P&C insurers, according to data from the research firm ISO and the Property Casualty Insurers Association of America.

Lloyd’s insurer Kiln is close to topping out its £260mn Syndicate 510 property capacity for 2004, surprising the marketplace and leaving some brokers high-and-dry when it comes to placing renewal business.

Telecommunications giant AT&T has filed a lawsuit against 15 insurers over allegedly unpaid property damage and business interruption claims relating to 9/11.

Ratings agencies Moody’s and Standard and Poor’s (S&P) have taken opposing stances on Finnish financial services company Sampo’s increase in its stake in pan-Nordic insurer If to 90 percent from 38 percent in February 2004.

Germany’s Hannover Re received a boost last week with the news that ratings agency Standard & Poor’s (S&P) has upped its outlook on the reinsurer from negative to stable to reflect its improved reinsurance recoverables position.

Giant reinsurer Swiss Re kicked off the third quarter of 2004 by revealing it is further expanding its Admin Re business in the UK by sealing a £333mn cash deal for Life Assurance Company Limited, including its life insurance subsidiary Windsor Life.

Lloyd’s insurer Atrium has posted an upbeat outlook on current trading conditions in its latest AGM, with an increase in profit forecast on the 2002 year of account to 14.1 percent.

Despite their “extraordinarily strong results”, the post 9/11 insurance start-ups which flocked to Bermuda have still to prove they can maintain their performances in the long-term.

The second stage of the World Trade Center trial between WTC leaseholder Silverstein Properties and nine remaining insurers is scheduled to begin on 11 October 2004.

The UK regulator Financial Services Authority brought its new risk-based capital regime a step closer last week with publication of the rules determining how much capital insurance companies will have to hold before they can be authorised.

SCOR’s EUR180mn 4.125 percent senior unsecured “OCEANE” bond has been assigned a “BB” rating by Fitch, matching the French reinsurer’s long-term rating.