July 2006/6

“Class of 2005” start-up Lancashire Holdings Ltd has benefited from low claims during a benign first-half of 2006 to report net income of $39.3mn today (7 August).

German giant Allianz has upped its 2006 earnings forecasts following a set of strident second quarter figures that include a 64 percent rise in net profit to EUR2.3bn against analysts’ consensus of EUR2bn.

US insurer HCC Insurance Holdings reported "record" results yesterday (3 August) at the same time announcing its latest acquisition, the medical insurance division of Allianz Life.

An improved performance in the property and casualty division fuelled a 16 percent rise in net income at Swiss Re, when it announced its half-year profits of SFr1.6bn today (4 August).

Aon Corp was the last of the three global brokers to report its second quarter results this week and they were perhaps the least remarkable.

Strong growth from reinsurance was again a key positive from MMC’s second quarter results, but overall broking revenues were down on falling insurance rates and loss of clients in its European operations.

German reinsurer Munich Re announced half-year profits of EUR2.1bn today (3 August), a leap of 143 percent from last year, driven by both strong underwriting and investment returns.

Willis Group Holdings threw down the gauntlet to rivals MMC and Aon Corp with a solid quarter that included a ten percent organic growth in revenues and details of a new $1bn share buyback programme.

John Charman, the former Lloyd’s deputy chairman and founding president of AXIS Capital, has been ordered to pay his ex-wife £48mn in their divorce settlement.

The continuing popularity of reinsurance securitisations was reflected this week with news that Bermudian (re)insurer Endurance Specialty Insurance has acquired $235mn of multi-year, collateralised US natural catastrophe reinsurance cover from...

Jardine Lloyd Thompson Group plc (JLT) plans to overhaul its staff pension scheme in a bid to reduce the £146mn deficit which hangs over the company.

Bermudian life reinsurer Scottish Re was hit by a slew of downgrades following yesterday’s shock profits warning, collapse in its share price and the sudden departure of chief executive Scott E Willkomm.

Heritage Underwriting Agency plc has become the latest specialist Lloyd’s insurer to list on London Stock Exchange’s Alternative Investment Market (AIM) after trading in its shares began today.

Swiss reinsurer Converium took another welcome step on the road to recovering its crucial A- rating today when Standard & Poor's (S&P) moved its ratings onto positive watch.

Michael Bright, the colourful founder of collapsed UK insurer Independent Insurance, returned to Southwark Crown Court on 25 July for a preliminary hearing in the conspiracy to defraud trial relating to the collapse of the company.

US insurer CNA Financial Corp has scaled back its London Market operations further as its Global Resource Managers operation has stopped offering third-party services with the departure of its audit & consultancy team.

Matthew Fosh, the chief executive of the recently rebranded UK insurer Novae Group plc, has described his company's updated Lloyd's syndicate forecasts as a "quiet delivery" of the group's objectives.

US insurer Chubb Corp reported an "outstanding" second quarter of 2006 with net income rising to $598mn, compared to $495mn for the prior-year period.

US insurer St Paul Travelers on 27 July reported a dip in net income which fell to $970mn, or $1.40 per basic share, for the second quarter compared to $1.069bn, or $1.59 per basic share in the prior-year period.

US retail broker Arthur J Gallagher announced on 26 July that its total brokerage for the quarter had risen to $47.7mn from $43.5mn in the prior-year period.

Florida Governor Jeb Bush is pushing for a resurrection of the state-run insurance pool in order to provide hurricane cover in the state which is desperately in short supply following the 2004-2005 storms.

Quarterly profits were up to $137.8mn, compared to $126mn in the prior-year period, at Bermudian (re)insurer Arch Capital when it announced its results on 27 July.

Privately owned UK broker Heath Lambert Group has announced a 19 percent rise in profit in its half-year trading statement today (31 July) - a day before its larger rival Jardine Lloyd Thompson Group plc unveils its own figures.

Everest Re Group Ltd opened the mid-year reporting season for the Bermudian (re)insurers on the 24 July and set an upbeat tone with a strong set of figures.