July 2008/1

Two former directors of failed Lloyd’s insurer Euclidian Underwriting Ltd have been fined, ordered to pay costs and agreed not to transact business at or set foot in Lloyd’s without prior permission after being found to have failed to deal “in a transpare

Jardine Lloyd Thompson Group plc (JLT) has booked a 9 percent increase in top-line revenues and underlying profits in its half-year results, despite a drop-off in its reinsurance business.

Broking giant Aon Corporation has booked a 6 percent rise in Q2 revenues to $2bn, driven by organic growth of 2 percent and a trend-bucking increase in business in its reinsurance operations.

Willis Group Holdings Ltd saw its profits fall 50 percent for the second quarter after a "significant impact" from its cost-cutting programme.

Lloyd's (re)insurer Novae Group plc has announced pre-tax profits of £16.8mn after reporting an increase in net earned premiums and a strong investment result.

Outsourcing firm Xchanging is set to announce a deal with the expansive (re)insurance broker Cooper Gay & Co Ltd to run the firm's back office, as predicted by The Insurance Insider.

ACE Limited piled more pressure on its old rival XL Capital with strong second quarter results as it booked a 15 percent rise in net income to $746mn.

Lloyd's (re)insurer Advent Capital Holdings plc has seen its share price leap by six percent after confirming it has received a takeover bid from its largest shareholder, the Canadian combine Fairfax Financial Holdings Ltd.

John Doucette has joined Everest Re Group Ltd as executive vice president, after leaving his position at Max Capital earlier this month.

Bermudian reinsurer PartnerRe Ltd has revealed a $26mn loss for the second quarter of 2008 as it announced almost $220mn in investment losses as it became the latest victim of capital market turmoil.

XL Capital has entered into a $1.775bn agreement with Security Capital Assurance (SCA) that commutes its pre-IPO guarantees and reinsurance of the troubled bond insurer.

Deutsche Bank and Guy Carpenter have formally closed the innovative cat bond Blue Coast Ltd, which sees Allianz securitise $120mn of US wind exposures in a new structure designed to minimise basis risk.

Investors and rating agencies were bearish on XL Capital's plans to free itself from the shackles of its bond liabilities by raising $2.5bn in equity and other securities.

Asked about the effect of sub-prime on XL Capital last year, Henry Keeling described the fall-out from the crisis as presenting an "attractive opportunity" for the Bermudian (re)insurer.

Lloyd's (re)insurer Advent Capital Holdings plc share price fell by over 5 percent in early trading after revealing the extent of the year's heavy catastrophe claims.

Andrew Horton has made his first public appearance as the new Beazley CEO Lloyd's insurer became the first to report its 2008 interims.

Munich Re shares have fallen more than 11 percent this morning after the company issued a profits warning for the second quarter and full-year 2008 as its investment performance suffers amid capital markets turmoil.

Beazley Group posted credible half-year results this morning (25 July) as it became the first Lloyd’s insurer to report its 2008 interims.

Max Capital Group has become the latest Bermudian (re)insurer to acquire a Lloyd's platform after buying Imagine Group (UK) Ltd.

The erratic pattern of Hurricane Dolly has provoked a debate amongst rival risk modelling firms over the extent of US insured losses after the storm made landfall in Texas yesterday (23 July).

Lloyd's insurer Amlin plc is poised to enter the US market with a representative office in Illinois taking advantage of Lloyd's admitted licence to operate in the state.

US insurer Allstate appears to be emerging as the only serious contender in the auction of Royal Bank of Scotland’s (RBS) insurance operations as Friday’s bid deadline draws close.

Bermudian reinsurers Montpelier Re Holdings Ltd and Platinum Underwriters Holdings Ltd revealed mixed results for the second quarter as favourable reserve development helped mitigate the impact of softening market conditions on the bottom line.

Japanese insurer Tokio Marine Holdings is set to continue on its expansionary path with a $4.7bn deal to buy non-life insurer Philadelphia Consolidated Holding Corp (PCHC) in what would be the largest US acquisition by a Japanese financial firm.

Dutch insurance giant AEGON has closed a £250mn value in-force (VIF) life insurance securitisation with Barclays Capital that unlocks cash tied up in its primary UK subsidiary, Scottish Equitable.

Imagine Group Holdings Ltd's chief underwriting officer Robert Forness is set to leave the (re)insurer to head up Hiscox Bermuda, The Insurance Insider can reveal.

Hannover Re has received its second ratings boost this year as AM Best upgraded its issue credit rating from A to A+ and affirmed its A financial strength ratings with a positive outlook.

American International Group (AIG) was among a number of financial companies in the US to be hit by fresh concerns over financial health, in a tough day of trading for the international equity markets.

UK motor underwriters were buoyed by the news that average premiums increased in the second quarter after reporting falling rates for the first quarter, according to the AA's Insurance Index.

Swiss Re shares fell to a 52-week low of SFr56.50 on the announcement of a $9.6bn exposure to the debt of US mortgage financiers Freddie Mac and Fannie Mae today (16 July).

Willis Group Holdings has announced the appointment of Gary Schmalzriedt as the chairman of its reinsurance brokerage, Willis Re.

London market independent (re)insurance broker Cooper Gay & Co Ltd is in talks with Xchanging over a deal to outsource a number of business back office functions, The Insurance Insider can reveal.

Broking giant Marsh has parted company with Artur Niemczewski, CEO of its UK multinational division, The Insurance Insider can reveal.

American International Group (AIG) has bought out management and staff in Ascot Underwriting Holdings Ltd as its Lloyd’s arm becomes a 100 percent owned subsidiary.

Frontrunner Zurich Financial Services Group (ZFS) has pulled out of the bidding process for the insurance business of the Royal Bank of Scotland (RBS).

Stefan Lippe is to become Swiss Re's deputy CEO and COO, replacing Andreas Beerli, the reinsurance giant has announced.

Insurance Australia Group (IAG) has announced plans to withdraw its investment from Lloyd's Syndicate Alba and to sell some of its UK-based motor insurance operations.

Travelers' Lloyd's operation has been hit by the sudden departure of its head of global property Martin Pope, along with a team of underwriters, The Insurance Insider can reveal.

Rapprochement for AIG and Greenberg; Sullivan nets $47mn pay-off; Marsh receives Qatari licence; Enstar shares fall; Paris Re RISC ratings affirmed; AWAC deal could net Darwin chief $9mn; Ariel Re appoints new chairman

Lloyd's close to appointing China chief; RBSI deadline extended; Hiscox mulls plans for new syndicate; RSA fires Fusion; AIRMIC delays claims index plans

Around 30 Lloyd's Names face bankruptcy after losing a key court case last month over claims that they had been misled over reinsurance to close (RITC) which means Lloyd's syndicates take up business from prior years.

Former RenaissanceRe president Bill Riker will join Benfield Group Ltd as a non-executive director on 1 September 2008.

Speculation over a tie-up between Chicago neighbours Aon Corp and Arthur J. Gallagher & Co has been rife since Willis threw down the M&A gauntlet with its proposed $2.1bn acquisition of US retail broker Hilb Rogal & Hobbs.

Pricing and trading in the industry loss warranty (ILW) market has boomed with the start of the US wind season in June.

A two tier market continues among space insurers as underwriters demand significant rate increases on launch cover while in-orbit cover remains competitive.

Broking giant Aon Corp is marketing a dedicated insurance linked securities (ILS) fund, following Amlin and Benfield into the $8-10bn ILS fund management sector, our sister publication Trading Risk revealed.

In the latest insurance linked securities (ILS) structuring innovation, Deutsche Bank is marketing a new trigger mechanism, which aims to streamline ILS issuance and open up the market to smaller sponsors, The Insurance Insider can reveal.

Plummet is often an overused term but it fairly describes the share prices of many of the Lloyd's insurers which are continuing to endure a torrid time on the back of the weakening economic outlook...

Amid the threat of large losses, the hurricane season is not traditionally seen as a time for non-life M&A activity - especially on Lime Street.

The energy market, which saw the arrival of new capacity in the form of Ironshore-backed Anemos in May and First Reserve-backed Torus last month, is reeling following a depressing second quarter claims experience.

Fears that the well of legacy transactions would run dry as tight credit conditions took hold appear unfounded, as the first half of 2008 yielded eight significant deals - maintaining the run-rate of the last two years.

Energy start up Torus Insurance Holdings has poached Munich Re's London-based construction team, The Insurance Insider understands.

The commitment by Willis Group to phase out Hilb Rogal & Hobbs (HRH)'s contingent commissions could mean the expanding broker firing up last year’s announced Managing General Agency (MGA) programme in a bid to shore up earnings from its new acquisition.

Shares in XL Capital slumped to below $20 in early July as three of the four major rating agencies warned they may downgrade the Bermudian (re)insurer as a result of exposure to doomed bond insurer Security Capital Assurance (SCA).

Insurance Australia Group (IAG) will announce a major restructure on 9 July that is likely to see large chunks of its UK operations put up for sale.

Our monthly column keeping a check on recent US and EU legislative and regulatory developments, in association with Sidley Austin LLP

Insurance specialists Kennedys and Davies Lavery have announced that the two firms will merge from 1 September 2008.

Mr Justice Aikens has called for more feedback on current changes to procedures in the Commercial Court as part of an ongoing review.

Lloyd's is considering charging North American property & casualty underwriters a levy to retain four loss adjusters throughout the hurricane season, The Insurance Insider has learnt.

Atlanta-based Troutman Sanders is planning a move into the London insurance market following the firm's merger with US insurance boutique Ross Dixon & Bell.

After record first quarter large-risk losses of over $6bn, (re)insurers have been hit with second quarter catastrophe losses of at least $6.25bn, the worst for 20 years, The Insurance Insider has learnt...

Novae Group is in talks with the Bermudian run-off firm Catalina Holdings and the Soros-backed Lloyd's reinsurer RITC Syndicate Management about acquiring the firm's legacy liabilities.

As predicted by The Insurance Insider, Capita Group plc and Marsh UK finalised their 10-year outsourcing deal, worth £187mn, that will see around 600 staff transfer to the outsourcing firm.

Stone Point Capital and the former chief executive of Marsh Americas are poised to launch a new vehicle dedicated to funnelling the enormous insurance spend of the private equity industry.

Warren Buffett's Berkshire Hathaway is well known for stepping in to provide capacity for mega catastrophe perils that is either unavailable or too expensive elsewhere.

Heritage Underwriting Agency plc - bought by Argonaut Group International Holdings earlier this year - has been hit by the sudden departure of a group of senior executives led by Nick Jones, who heads up its...

As the M&A winds continue to bluster through EC3, Bermudian-headquartered reinsurer Imagine Group Holdings Ltd's syndicates have emerged as the latest target for international (re)insurers interested in acquiring a Lloyd's platform.

Mining wordings are being re-written in the most comprehensive fashion for 20 years as the industry seeks to recover from disastrous first-half losses, The Insurance Insider has learnt.

The "naming and shaming" of London brokers by the Market Reform Group (MRG) over their failure to adopt a key electronic initiative that could speed up the payment of premiums from brokers to (re)insurers appears to be working.

The bond fraud case successfully brought by Markel International and QBE against executives of Surety Guarantee Consultants Ltd (SGC) and a former Templeton Insurance director has been referred to the City of London fraud squad.

Marsh is bringing back the Bowring name for a new division to put together its international placement capabilities for property, terrorism and casualty risks.

An investigation into two former Aon Corp energy brokers is ongoing as the firm says no decision has been made over whether it will continue its involvement with two lucrative energy contracts in Indonesia.