July 2008/2

Following the withdrawal of Zurich Financial Services (ZFS) from the bidding process, the sale options for Royal Bank of Scotland's (RBS) insurance business look to be dwindling - along with the value the banking giant can expect to extract from the unit.

The Association of British Insurers (ABI) and the UK Government have agreed on a number of new initiatives to ensure that flood insurance remains widely available for years to come.

Recently launched SME online marketplace Coverzones has secured further funding with an investment from UK insurer MMA as it looks to expand its business, The Insurance Insider can reveal.

The US Treasury and Federal Reserve has attempted to stave off a further deepening of the credit crunch with plans for a temporary increase in a longstanding credit line for beleaguered mortgage giants Fannie Mae and Freddie Mac.

The departure of a group of senior executives from the property division of Heritage Underwriting Agency plc will be seen as a major blow to Argonaut Group International Holdings, which bought the Lloyd’s insurer earlier this year.

Investor pressure is thought to have been the key driver behind Zurich Financial Services (ZFS) sudden exit from the bidding process for the insurance business of the Royal Bank of Scotland (RBS) announced last Thursday (11 July).

A sub-committee of the US House of Representatives has approved a measure that could lead to the creation of a national insurance office to remove state laws that conflict with international agreements.

The Securities and Exchange Commission (SEC) has revealed "significant weaknesses" in ratingspractices following a 10-month investigation into rating agencies Moody's, Fitch and Standard & Poor's (S&P).

New Insurance Australia Group (IAG) CEO Michael Wilkins detailed a much anticipated restructure last week that will see the Australian insurer withdraw its investment from Lloyd's Syndicate Alba and sell some of its UK-based motor insurance operations.

Tropical windstorm Bertha - named the first Atlantic hurricane of 2008 - will skirt past Bermuda, after an unprecedented early start to the hurricane season.

Already beleaguered by depressed rates which are likely to continue to fall, European insurers could see their bottom line further eroded as economic conditions worsen and margins are sapped by the rise of direct sales, according to rating agency Standard

Lloyd's has had its A (Excellent) financial strength rating affirmed by rating agency AM Best with a stable outlook, on the basis of its expectations of stable underwriting discipline through 2008 and into 2009.

Property and casualty insurers continue to outperform other financial services companies but are more likely to be overlooked by investors who don’t understand the sector, according to Morgan Stanley.

Static premium rates for lead hull & liability during June disguised an underlying trend in following markets that will see many airline operators find their cost of insurance higher than last year, according to broker Aon.

AIM-listed broker THB Group has appointed former Euclidian chairman James Truscott as managing director of its new underwriting agency Unicorn Underwriting Ltd.

A united response from broker trade bodies to a discussion paper from the Financial Services Authority (FSA) mooting mandatory commission disclosure is likely to be published in September, according to the Lloyd's Market Insurance Broker Committee (LMBC).

PartnerRe Ltd has become the latest reinsurer to enter the newly-deregulated Brazilian reinsurance market after receiving approval from the market regulator, SUSEP.

The New York State Insurance Department is due to hold three public hearings starting today (Monday) on contingent commissions and compensation disclosure.

Insured losses from recent flooding in the US Midwest could be "as large or larger" than those recorded during the Great Flood of 1993, according to Standard & Poor's (S&P).

With the announcement by Swiss Re last week that Stefan Lippe is to become group deputy CEO and COO, replacing Andreas Beerli, the reinsurance giant appears to be refocusing its attentions on the underwriting side of the business.

PricewaterhouseCoopers (PwC) has appointed Gavin Phillips as its new head of London Market and Lloyd's insurance group.

Marsh has made an out of court settlement with United Insurance Brokers (UIB) over claims that the broker poached senior aviation staff, according to reports.

Insured losses from natural catastrophes so far this year have totalled $13bn in a period that will be remembered for years to come for its high natural catastrophe death toll, according to reinsurance giant Munich Re.

Lloyd's broker SSL is to move into the reinsurance arena with a new division headed by former Glencairn executive Jeffrey Wright.