July 2004/4

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.

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.

New market opportunities are creating a more positive business outlook than at any time in the past three years, the most recent International Insurance Society (IIS) survey of insurance executives has revealed.

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

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.

Specialist property and casualty insurer Markel International has welcomed the confirmation of its "A-" (Excellent) rating, with a stable outlook, by ratings agency AM Best.

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.

UK insurance group Royal & Sun Alliance (R&SA) has announced the sale of its Pakistan based business to the International General Insurance Company of Pakistan Limited for a consideration of around £700,000 to be paid in cash.

Despite UK insurance analysts’ collective scepticism over Berkshire Hathaway plans to back a Lloyd’s consolidation vehicle, sources suggest Capital Insurance Holdings remains on target to float on the Alternative Investment Market by the end of the month.

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.

French reinsurer SCOR has announced the completion of a platform for electronic data exchange with reinsurance broker Benfield.