July 2006/3

UK general insurer Aviva’s shares continued to slip today (13 July) after it announced that it has agreed a deal with AmerUS Group Co (AmerUs) to buy the US company for around $2.9bn (£1.6bn) in cash.

Reinsurance broker Benfield has announced that it is ready to process live risk messages with the G6 group of Lloyd’s insurers after implementing its peer-to-peer standard messaging system.

Shares in broker Jardine Lloyd Thompson Group plc (JLT) have dropped 12 percent this morning (13 July) after news that its possible takeover of rival Heath Lambert Group had fallen through.

Lloyd’s Central Fund contributions and subscriptions charges will be held steady for 2007, but the Society believes it will be in a position to cut the Central Fund levy for 2008 – a year ahead of original forecasts.

Specialist (re)insurance IT solutions provider Sequel Business Solutions has signed up Willis group Services in a significant deal that will see the world’s third largest broker use its Eclipse Broking solution.

Bermudian reinsurer Allied World Assurance Company Holdings (AWAC) announced today (12 July) that shares for its IPO will be priced at $34.

Fitch Ratings affirmed and then removed its insurer financial strength rating of CCC+ on the ACE American Reinsurance Company (AARe).

Shaun Flynn, the recently departed managing director of AM Best International, has joined consultancy Towers Perrin as senior vice president of Reinsurance.

Insurance Capital Partners – a Lloyd’s investment fund launched last year – plans to float on the London Stock Exchange’s Alternative Investment Market (AIM) later this month in a bid to raise £100mn.

Swiss Re - the world's largest reinsurer - will lose 2000 jobs following its acquisition of GE Insurance Solutions. The reinsurer said it has already reduced 250 positions, many at “management level”.

The far-reaching affects of Hurricane Katrina were felt in the UK’s financial services industry last year, where net exports dropped for the first time in a decade.

Around £800mn has been lost from UK general insurance giant Aviva plc's valuation since it confirmed last week that it is in talks with the £1.3bn US fixed-indexed annuity product producer, AmerUs.

The capacity shortages for catastrophe reinsurance meant rates were up by around 60 percent on average at the key 1 July renewals with some placements left unfulfilled, according to research by investment house, Keefe, Bruyette & Woods (KBW).

Ratings agency Fitch Ratings has followed Standard & Poor's (S&P) in downgrading Swiss Re following it acquisition of GE Insurance Solutions (GEIS).

New York-based Tower Group Inc revealed on 6 July that it will write down $5.4mn on its balance sheet after commuting its outstanding liabilities with the near-defunct Bermudian reinsurer, PXRE Group.

Colemont Insurance Brokers Ltd - the newly formed London arm of US wholesaler Colemont Corporation - and Integro Group have both appointed new heads of their aviation operations.

Jardine Lloyd Thompson Group plc - the broking group in talks to take-over UK rival Heath Lambert Group - is to appoint a new finance director.

Over 1,000 Lloyd's Names have launched a £1bn class-action style legal case against the UK government, led by seasoned campaigner Christopher Stockwell.

Former American International group (AIG) chairman, Maurice "Hank" Greenberg has called the restatement of four years of the firm's earnings was "flawed".

Think of SCOR as a P&C reinsurer? Think again. Following SCOR's announcement last week that it has agreed to buy the German life reinsurer Revios in a $775mn deal, SCOR's business mix will be 60 percent life reinsurance and only 40 percent...

Insurance broker Willis Group Holdings Ltd made an agreement to acquire Norwegian broker Link Forsikringsmegling AS (Link) on Friday (7 July).

Illinois' Lisa Madigan became the third state attorney-general to increase the pressure on industry giant Liberty Mutual Inc when it filed a lawsuit against the firm alleging unlawful behaviour in relation to undisclosed contingent commissions...

A new (re)insurer, Carbon Re, has been set up in Switzerland to provide covers to greenhouse gas emissions-related projects.

Another HIH Insurance executive is set to plead guilty to fraud charges relating to the Australian insurer's collapse five years ago.