July 2008/4

(Re)insurance stocks on both sides of the Atlantic have plunged in trading as fears continue to linger over damage to the financial services sector from the fallout of the sub-prime and credit related crisis.

Two of the founders of Towergate subsidiary Fusion Insurance Services, Kevin Pallett and Geoff Crisp have stepped down from the company.

Swiss Re has emerged as one of the possible bidders for the life assurance arm of Barclays Bank, according to reports.

Shares in US giant American International Group Inc (AIG) made a gentle recovery last week buoyed by a Banc of America Securities (BOA) upgrade.

Amlin plc has become the latest Lloyd's insurer to enter the US market after announcing the establishment of a representative office in Illinois taking advantage of Lloyd's admitted licence to operate in the state.

Rating agency AM Best has downgraded the financial strength rating of Scottish Re Group Ltd, plunging the embattled reinsurer further into junk territory.

US national carriers and Florida-only insurers created a surge in demand for Industry Loss Warranties (ILWs) last month, according to Jim Bryce, president and CEO of Bermudian cat specialist IPCRe.

Spanish (re)insurer Mapfre has reported a 57.7 percent rise in first-half net profit year-on-year to EUR529.4mn.

Andrew Horton was upbeat in his first public appearance as the new Beazley CEO, as the Lloyd's (re)insurer became the first listed London Market player to announce its interim results last week which saw a 25 percent fall in profits and a slump in investm

A second consecutive quarter of heavy catastrophe losses took its toll on early reporting US insurers as profits slipped at Allstate Corp, Travelers, Liberty Mutual, WR Berkley and Chubb and Transatlantic Holdings.

The New York attorney general's office could be close to reaching a settlement with former American International Group (AIG) CEO Maurice "Hank" Greenberg, according to reports.

Flood damage and business interruption losses are likely to make up the largest proportion of insured losses after the first hurricane of the 2008 season hit the North American mainland.