June 2003/6

Compulsory terrorism cover will begin later this week (1 July) in Australia, after The Terrorism Insurance Act received Royal Assent on 24 June.

AIG’s move to buy Japanese life and selected US p/c insurance operations from General Electric Capital (GEC) for $2.1bn has been met with a cautious affirmation from ratings agency Moody’s.

Despite growing concerns that US property & casualty rates are tailing off, Swiss Re senior economist Thomas Holzheu predicted last week that rates will continue to remain firm while profits remain hampered by poor investment returns and reserving issues.

Bermuda’s Everest Re Group has paved the way for fundraising by filing with the SEC last Friday to periodically sell up to $975mn of shares.

Groundbreaking progress but tough negotiations ahead With the clock running down on prospects for pushing through meaningful asbestos reform in this Congress, last week saw a rush for compromise and early indications suggest the tide is turning.

French reinsurer SCOR’s “back on track” recovery plan was shunted backwards last week with the early retirement of group deputy chief operating officer Pierre-Denis Champvillard.

After two weeks of heightened rumours, Insider Week understands that Marsh representatives had contact with HLF over a potential take-over bid.

White Mountains announced Friday that it has filed a shelf registration with the SEC in New York allowing it to raise up to $2bn by issuing debt or shares.

Axis Capital Holdings, the specialty (re)insurer formed in response to the post 9/11 capacity crunch, will float this week on the New York Stock Exchange valuing the firm at around $3.3bn.

Lloyd’s insurer Hardy Underwriting Group plc has denied it plans making a bid for rival insurer Atrium Underwriting plc.

Employers Re (ERC), the world’s fourth largest reinsurer, was effectively downgraded from A+ to A (Excellent) last week as AM Best revised ratings following a first time assessment of the firm as a standalone entity, separated from the influence of its ow

Major policyholders of defunct fronting insurer Legion Insurance Company can pursue their claims via Legion’s reinsurers, a Pennsylvania court ruled last week.