July 2007/6

Lloyd’s insurer Novae issued an upbeat trading statement with improvements to its syndicate forecasts, a decrease in run-off expenditure and a better-than-expected assessment of the rating environment.

The UK-based run-off acquisition firm Tawa plc began trading on the London Alternative Investment Market (AIM) last week in a £127mn Initial Public Offering (IPO).

Senior run-off figure Oliver Horbelt has left insurance giant Zurich Financial Services, Insider Week can reveal.

Shares in IPC Holdings fell sharply last week as the Bermudian cat reinsurer followed a profits warning earlier this month with confirmation last week of a second quarter net hits of $62.6mn and $50.1mn respectively from UK and Australian storms and flood

Contrasting performance on organic growth was highlighted by analysts as Arthur J Gallagher & Co (AJG) and Hilb, Rogal & Hobbs (HRH) reported total revenues up for the second quarter.

Bermudian (re)insurer Arch Capital Group reported a healthy 44 percent rise in its net income of $199.4mn, or $2.65 per share, for the second quarter of this year.

Insurers Chubb Corp and WR Berkley began the second period US results season by reporting rising profits in an “outstanding quarter”.

The final cost of this summer’s UK floods on the reinsurance industry is still unknown but there is little doubt that they will be treated as at least two distinct losses.

Despite a liberal sprinkling of “record” results in last week’s interims, it was a bruising week for (re)insurers on both sides of the Atlantic as equities slumped on the back of continuing fears in the global credit markets.

QBE has demanded major reform at Lloyd’s after complaining that the Society’s members’ agents refused to recommend an increased bid to buy out Names’ capacity on its flagship Syndicate 386.

Max Capital Group Ltd reported a strong second quarter, with net income increasing 477 percent over the prior-year period, to $94.1mn, or $1.45 per diluted share, despite gross premium income falling to $241.5mn from $284mn for the second quarter 2006.

Bermudian giants ACE Ltd and XL Capital announced catastrophe charges of $88mn and $30mn respectively for the UK, US and Australian floods in their second quarter results last week.