July 2004/2

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.

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

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.

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.

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.

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.

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.

“Volatile” US liability reinsurance drags down Lloyd’s insurer’s financial performance Losses at the discontinued liability reinsurance, healthcare and third-party liability units of specialist insurance group SVB Holdings are continuing to hit operati

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.