July 2007/6

Shares in Lloyd’s (re)insurer Beazley Group plc rose by almost 6 percent this morning (30 July) as it reported a doubling of profits in the first half of 2007 on the back of income growth, low claims and rising investment income.

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.

Loss estimates continue to flow in as the (re)insurance industry feels the impact of UK floods that could cost carriers in excess of £3bn.

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.