July 2004/5

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.

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.

Rating Agency Fitch Ratings downgraded its financial strength rating on Employers Re to “AA-” last week, citing concerns over the reinsurer’s reserves.

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

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).

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.

Capital Insurance Holdings, the Berkshire Hathaway backed Lloyd’s consolidation vehicle, is on schedule to float on the Alternative Investment Market next month after raising its target funding.

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.

More details have emerged of the dispute between insurer Allianz and lap dancing venue Spearmint Rhino, which is suing the German company in the UK’s Royal Courts of Justice for non-payment of claims..