July 2007/5

London market professional risks insurers have continued to suffer falling rates during the second quarter of 2007, with reductions of up to 20 percent in the period for directors and officers (D&O) risks, according to broker Willis.

Insurance giant American International Group (AIG) is facing lawsuits from two Minnesota workers compensation insurance associations seeking $100mn in damages for alleged fraudulent business practices, according to reports.

Broking network Unitas Alliance has confirmed the appointment of former Endurance Worldwide Insurance Ltd CEO Mark Boucher as non-executive chairman of its new underwriting agency, as revealed in the July issue of The Insurance Insider.

Lloyd's insurer Hiscox plc has acquired a portfolio of kidnap and ransom business from the broker Aon Ltd.

Shares in Bermudian reinsurer Everest Re Group Ltd slipped after a Bear Stearns analyst downgraded the company on "limited growth opportunities and declining profitability".

Loss estimates from the recent earthquakes and typhoon that have hit Japan continue to spread as insurers count the cost.

The value of Names’ right to participate on Lloyd’s syndicates could be put to the test after the £193.2mn deal between Bermudian firm Ariel Re and Atrium Underwriting plc (see article 2).

UK-listed broker Jardine Lloyd Thompson (JLT) has expanded its Bermudian operations with the acquisition of Park (Bermuda) Ltd (Park) for up to $11.8mn cash.

Further widespread flooding over the weekend will push the combined cost of the summer floods in the UK to well in excess of £2bn, according to Geoff Bromley, non-Americas chairman of reinsurance broker Guy Carpenter.

The Association of Run-Off Companies (ARC) has announced a number of changes to its board adding three new appointments while its deputy chairman, Peter Abbott, has stepped down.

A solvent scheme of arrangement for the reinsurance business written through the GLM Pool was sanctioned by the UK High Court in London earlier this month.

"Class of 2005" insurer Lancashire Holdings Ltd has taken advantage of a favourable credit environment to refinance an existing $350mn letter of credit facility.