June 2004/2

Canadian (re)insurance group Fairfax Financial Holdings announced last Thursday (27 May) that it has negotiated an increase in a revolving letter of credit facility from $300mn to $450mn for its reinsurance subsidiary nSpire Re.

Environmental insurers could be set to benefit from the EU’s new environmental liability directive, according to Valerie Fogleman, partner and head of Environment Group at lawyers Barlow Lyde & Gilbert.

Moody’s announced last week that it had downgraded giant reinsurer Swiss Re’s insurer financial strength and senior debt ratings from Aa1 to Aa2 and its subordinated debt rating to A1 over concerns of the sector’s earnings prospects and Swiss Re’s ability

Broker Aon marked a step towards an industry standard for integrated claims documentation last week with the news that 28 insurers and reinsurers from the London, European, Bermudian and North American insurance markets had signed up for the Aon Document

Asbestos settlements continue apace – this time with the news that mega mergees St. Paul Travelers had agreed a $90mn sum to settle common law asbestos-related suits.

Following his targeting of uber broker Marsh for its use of PSAs (see Insider Week passim), New York attorney-general Eliot Spitzer has now set his sights on another Marsh & McLennan (MMC) subsidiary, namely Mercer Human Resource Consulting.

Bermudian (re)insurer XL will be praying for good weather this summer after revealing its subsidiary XL Trading Partners has tied up a derivative deal with Corney and Barrow Wine Bars in London to pay out if there’s a shortage of hot days.

KKR-backed Bermudian Alea received a strong endorsement from AM Best and Standard & Poor’s (S&P) last week as the rating agencies affirmed their A- stable outlook financial strength ratings on the (re)insurer.

Bermuda-based (re)insurer XL Capital focussed on its forward strategy of improving credit ratings, leveraging its global position, and expanding product lines at its annual investor meeting held in New York last week.

Last week was another hive of activity at fast growing (re)insurance group White Mountains as it was revealed that investment giant Berkshire Hathaway had taken a 16 percent stake, while subsidiaries Folksamerica and recently acquired Sirius were subject

Post 9/11 Bermudian start-ups Endurance and Montpelier Re both announced share repurchase plans last week amid signs that the fast growing sector may be slowing, leaving surplus capital to be carved up among investors wishing to cash in stakes at the top

The British outsourcing company Xchanging is on the way to becoming a “global phenomenon” following its €40mn deal with Deutsche Bank, claims company founder David Andrews.