June 2004/6

In its latest Sigma study, reinsurance giant Swiss Re notes that the direct insurance industry – now worth $2.94tn – is well on the road to recovery, and will continue to show improvement this year.

Lloyd's has undergone an impressive turnaround since September 11 and results are likely to remain strong through 2004, Marsh-owned reinsurance broker Guy Carpenter has concluded in its latest overview of the London insurance market.

The insurance and reinsurance sectors are the most exposed industries in the short term to increases in the prevalence of obesity, a new report from Dresdner Kleinwort Wassertein Research (DrKW) has concluded.

June has become a fertile month for catastrophe bonds with at least three $100mn+ contracts either signed or close to fruition.

Rising interest rates may cause up to a 3 percent reduction in the average US (re)insurer’s book value by the first half of the year, analysts at Morgan Stanley have warned.

Despite operating momentum building from last year into first quarter 2004 results, the property/casualty industry faces its biggest challenge in its ability to maintain underwriting discipline as premiums fall off and surplus levels rise, according to AM

Investment analysts at Morgan Stanley have cut their rating on recently merged St Paul Travelers, after revealing concerns that the group’s environmental exposures will lead to a $650mn fourth quarter 2004 pre-tax reserve charge.

Lap dancing group Spearmint Rhino is in dispute with German insurer Allianz for non payment of claims, Insider Week has learned, with legal teams representing both companies appearing in London’s Royal Courts of Justice last week to agree a timetable for

UK BPO specialist Xchanging has announced that it will move all its operations to 34 Leadenhall Street, replacing its current three office locations.

Global Aerospace Underwriting Managers (GAUM) CEO Tony Medniuk has started his reign as chairman of the International Underwriting Association (IUA) with a pledge to keep technology in the London Market at the top of the agenda.

Figures point to lower than expected softening on rates An upbeat trading statement from Lloyd's specialist insurer Kiln provided the impetus to a more than 7 percent share price rise last week after the company said premium rates were holding up bett

Shares in UK brokerage Jardine Lloyd Thompson (JLT) hit a three-year low last week on fears that the company’s profits would be hit by weaker than expected reinsurance volumes.

World’s third largest broker Willis announced last Wednesday (23 June) that it has reached an agreement in principle to buy a majority shareholding in Irish broker Coyle Hamilton, and to buy the outstanding interest over the next few years.

Serial disposer Royal & SunAlliance (R&SA) has announced the sale of the life and pensions divisions of its subsidiary Codan. R&SA, which owns 71.7 percent of Codan, said the sale would be to Danish life insurer SEB Trygg Liv and would net an estimate

Despite previously describing the Californian workers’ compensation sector as “crazy”, Berkshire Hathaway has agreed to replace Everest Re as the carrier on Acacia Pacific Holdings’ California Workers Compensation Program.

Oil giant Royal Dutch/Shell looks set for a courtroom clash with angry shareholders after 27 directors and officers of the company were named in a lawsuit filed in the US by law firm Lerach Coughlin Stoia and Robbins LLP in relation to the recent oil rese

Lloyd’s liability start-up Illium Syndicate 4040 announced last week (25 June) that it had added the experience of former BR Smith Syndicate 45 claims manager John Craig to its stable.

Michael Segal, the colourful founder of Chicago based Near North Insurance Brokerage Inc, was imprisoned last week following his conviction on multiple counts of mail fraud, wire fraud, tax conspiracy and racketeering.

Bermudian reinsurer RenaissanceRe revealed last Wednesday (23 June) that stalwart and chief underwriting officer David Eklund has resigned from the group “to pursue personal interests”.

Recently floated Bermudian (re)insurer Alea revealed last week that CEO Dennis Purkiss will step down from the executive board at the end of June, with group president and COO Mark Ricciardelli taking the reins.