June 2005/1

Reinsurance broker Benfield Group has warned that 2005 profits will be lower than last years because of an increasing cost base. Shares in the group fell by 10 percent from 276.75p to 250p in early trading on the London stock exchange, despite the firm

Amlin plc has confirmed that it is in discussions with fellow Lloyd's insurer Chaucer plc about a possible takeover.

Lloyd's insurer Chaucer Holdings plc has confirmed that it has received an indicative takeover approach "which may or may not lead to an offer being made".

Despite boosting asbestos reserves by £167mn, Lloyd's pre-1993 run-off vehicle Equitas heralded a year of progress which has left it in a stronger financial condition as it announced its financial results for the year ended 31 March 2005 today (7 June).

The European Parliament has approved the reinsurance directive which paves the way for a regulatory level playing field for companies operating in Europe.

Lloyd's reinsurer Advent Capital saw its share price rise by 7 percent on the first day of trading in the company’s stock on Friday, 3 June. Advent shares rose from their AIM debut of 35p to 37.5p, lifting the company’s market capitalisation to £82mn.

Rating agency Fitch has suggested the UK non-life market should enjoy the good times while it can, warning that the improving fortunes of the sector in the last two financial years are unlikely to be sustained.

Leading (re)insurance brokers Willis and Guy Carpenter have released reports praising recent progress at Lloyd’s in what was a challenging year for the industry.

Reinsurance giant Swiss Re announced last week that it is streamlining its reporting structures into three units in a bid to focus on "profitable growth and the efficient use of capital".

Lloyd’s investors will have a new method of underwriting at Lloyd’s from next year with news that the Treasury has approved the use of English Limited Liability Partnerships.

Alea will exit unprofitable business lines but has only seen rate reductions of 2 percent on average this year, the reinsurance group revealed last week in a trading statement that accompanied its annual general meeting.

A senior executive at Berkshire Hathaway’s reinsurance subsidiary General Re has pleaded guilty to the charge of criminal conspiracy brought in relation to the company’s transaction with American International Group (AIG).

US insurer AIG has had its long-term counterparty credit and senior debt ratings lowered to "AA" from "AA+" by Standard & Poor's (S&P).

Insurance private equity firm MMC Capital has rebranded as Stone Point Capital, following the completion of its management buy-out from MMC.

Lloyd's insurer Catlin has had its issuer credit rating on its Syndicate 2003 downgraded from "a+" to "a" by rating agency AM Best partly over fears of further deterioration on the group’s exposure to legal expenses.

Brit Insurance Holdings has replaced Collins Stewart as its joint house broker and corporate adviser, only days after the stockbroking firm’s chief executive became embroiled in a war of words with the Association of British Insurers (ABI).

Ten Lloyd’s syndicates, together with insurance companies, sued the Port Authority of New York and New Jersey last week over its claims that it is still owned $2.1bn from the WTC attacks.

The head of Xchanging’s London market sector Clive Buesnel is to pioneer the rollout of the outsourcing firm in the US.