July 2006/6

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.

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.

The "long reach" of US law in extraditing the "NatWest Three" bankers from the UK has highlighted the wordings requirements needed from directors' and officers' (D&O) liability insurance, according to Marsh Ltd.

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.

In the week that MMC Inc's share price rose 5 percent on vague buy-out rumours, came a reminder that the spectre of Spitzer continues to haunt 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.

Boardroom changes at motor insurer Highway Insurance Holdings Plc have been backed by analyst Eamonn Flanagan of Shore Capital.

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.

As exclusively revealed by Insider Week on 24 July, Aeolus Re will become the latest reinsurer to begin operations on Bermuda following the raising of $500mn of capital.

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.