July 2004/5

The UK insurance industry must become tougher on spurious claims if it is avoid a reputation of being a “soft touch”, Aon warned today (26 July, 2004).

Northbrook-based insurer Allstate has said net income for the second quarter of 2004 surged 76 percent, helped by increases in property-liability underwriting income and lower catastrophe losses.

Lloyd’s wait for a replacement for former finance director Andrew Moss has come to an end, with the corporation announcing last week that it had appointed former investment banker Luke Savage to the role.

Recently merged commercial insurance giant St Paul Travelers confounded observers last Friday (23 July) with a supercharge, announcing a $1.625bn reserve boost ahead of second quarter results.

Lloyd’s managing agent Creechurch has revealed more details of its takeover by The Logan Trust, a charitable organisation based in Gibraltar.

Bermuda based (re)insurer Alea Group has published a mid-year trading statement in which it reaffirms its positive outlook for 2004.

Post-9/11 Bermudian start-up Allied World Assurance Holdings (AWAC) confirmed last Thursday (22 July) that veteran market figure and vice-chairman Michael Morrison will retire with effect from 1 October after half a century in the industry.

Environmental services company EnPro Industries has announced a $118mn “comprehensive agreement” with Lloyd’s reinsurer-of-last-resort Equitas in relation to its asbestos exposures.

US insurer Safeco has reported an increase in Q2 earnings to $247.5mn, or $1.77 per share, from $111.9mn, or 81 cents per share for the same period in 2003.

Bermudian (re)insurer IPC Re announced another set of strident results last Tuesday (20 July) as it booked net income of $72.1mn, or $1.49 a share for the second quarter, up from $63.2mn, or $1.31 a share in the same period last year.

World’s largest insurer AIG reported strong second quarter results last Thursday (23 July) as it booked net income up 26 percent on the same period last year on the back of its general insurance and foreign life and pensions operations.

Despite declining rates, the insurance broker Willis continued its remarkable renaissance by unveiling its eighteenth consecutive quarter of record results with second quarter net income up $16mn from last year to $96mn.