July 2004/5

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.

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

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

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.

The market’s negative response to last Tuesday’s (20 July) shock profit warning and announced reserve boosting by Swiss reinsurer Converium shows no sign of abating, as the company’s share price continues its slide to less than half its value one week ago

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.

Barbados-based (re)insurer Everest Re unveiled strong second quarter results last Monday (19 July), but listeners to the company’s conference call were treated to candid comments on rates and the state of the market, with softening across most lines of pr

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.

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.