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 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.

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.

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.

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.

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.

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.

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