July 2007/2

Bermudian (re)insurer Validus Holdings said last week it expects to raise around $311mn in net proceeds assuming an offer price of $25 in its forthcoming initial public offering (IPO).

Lloyd’s members’ agent Hampden Agencies Ltd is set to derail the proposed merger of AIM-listed insurer Heritage Underwriting Agency plc’s syndicates, after it recommended that Names reject the plan.

Lloyd’s insurers Hiscox plc and Kiln plc have confirmed they intend to reduce their capacity limits next year reflecting the declining market rates.

Liechtenstein-based liability insurer Gable Insurance had its shares suspended from the AIM stock exchange at 16p after missing the deadline to post its audited results for 2006.

Bermudian firm Aspen Insurance Holdings is to enter the Professional Liability Insurance market later this year through its UK operation.

Lloyd’s listed company Amlin plc became the latest insurer to obtain greater control of its distribution networks when it acquired the underwriting agency Allied Cedar Insurance Group last week.

UK motor insurer Highway Insurance Holdings plc said last week that its broking subsidiary has agreed to spend £2mn on a book of 32,000 private car policies from Budget Group-owned intermediary Local Broker.

Insurers are electing to retain more risk, which is fuelling greater competition among reinsurers, according to Willis Re’s review of the mid-year renewals published last week.

Accountancy firm Price Waterhouse Coopers (PwC) has settled a lawsuit for $225mn with fraud-riddled manufacturing conglomerate Tyco International, over claims that it ignored fraud committed by top executives at the firm.

Hannover Re is to open a branch office in Bahrain to support the (re)takaful business it opened in the kingdom last year.

Companies who think more astutely about managing their risk exposures will reduce the volatility in the cost of financing risk, according to a report by broker Marsh.

US insurer The Travelers Cos announced last week it has settled one its largest asbestos cases for a total of $449mn.