July 2004/2

Lloyd’s defeats Florida Marlins in controversial claims Lloyd’s insurers have successfully disputed a $7.7mn PA claim from the US baseball champions Florida Marlins following a protracted legal battle.

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.

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.

Ratings agencies responded rapidly to last Tuesday’s (29 June) news that Germany’s Gothaer Group has decided to run-off its reinsurance arm Gothaer Re, merging it with holding company and 70 percent shareholder Gothaer Finanzholding.

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.

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.

Highway Insurance Holdings has bought personal lines insurance broker A Quote Insurance Services Limited for £4.6mn.

UK reinsurer Benfield has announced the sale of its holding in Benfield Sports International (BSI), a sports marketing consultancy.

Fast growing White Mountains announced last Wednesday (30 June) that Warren Buffett’s investment giant Berkshire Hathaway had completed its previously announced exercise of warrants to buy common shares in the (re)insurance group.

US engineering group Halliburton revealed that its earnings will be impacted by a $615mn charge because of lower than expected recoveries from its insurers following its $4.2bn settlement with 400,000 asbestos claimants.

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.