July 2004/4

Aioi Insurance, Sompo Insurance and Taisei Reinsurance announced last week that they had settled claims against US reinsurance agent Fortress Re over losses related to the 9/11 terrorist attacks.

US financial services behemoth Citigroup revealed the full impact of its previously announced $4.95bn second quarter charge to settle litigation springing from corporate scandal cases such as WorldCom and Enron as it unveiled its worse quarterly figures i

The aviation market in the second quarter of 2004 is showing signs of slight hardening, according the latest research from brokers Aon.

Equity analysts from Morgan Stanley have reinforced concerns over insurers’ exposure to environmental liabilities, suggesting current reserves are “priced for perfection”, and warning that claims for Natural Resource Damages (NRDs) should be looming large

Lloyd’s announced Friday (16 July) that all slips placed under binding authority agreements will have to meet London Market Principles (LMP) standards from the start of 2005.

Lloyd’s underwriting members will provide a compulsory loan from next year as part of a scheme to grow the Society’s central assets and improve its financial strength ratings.

According to reports, world’s fourth largest reinsurer and third largest life reinsurer Hannover Re is carrying out due diligence on the US life reinsurance business of Dutch financial services outfit ING.

World Trade Center leaseholder Larry Silverstein succeeded in persuading US district court judge Michael Mukasey to issue a “confidentiality order” over mediation discussions between the remaining ten insurers.

According to reports last week, Zurich Financial Services (ZFS) faces more than $500mn in debts after a Texas bankruptcy ruling that the Swiss company had part ownership in failed nursing-home operator Senior Living Properties.

The defunct Australian insurer HIH Casualty & General will be able to allege fraud against its broker JLT Risk Solutions over controversial film finance losses written in 1997.

Anglo-American scheme increase The joint scheme administrators of Anglo American Insurance Company, KPMG partners Tony McMahon and John Wardrop, revealed that the payout percentage has climbed yet further from 85 percent to 90 percent.

Dutch retail giant Royal Ahold announced on Friday (16 July) that it had reached a settlement with AIG of all outstanding litigation relating to $100mn D&O coverage of its US Foodservice subsidiary.