June 2005/2

A week after publishing a relatively upbeat trading statement, London-listed Bermudian Alea had its "A-" AM Best financial strength rating and "a-" credit rating put under review with negative implications on Friday (10 June).

A positive trading update from Lloyd’s (re)insurer Wellington was enough to give the company’s share price a small fillip to close up 4.61 percent at 107.75p Wednesday last week.

Reinsurance broker Benfield Group has warned that 2005 profits will be lower than last year because of an increasing cost base.

The Association of Lloyd’s Members welcomed the possible arrival of English Limited Liability Partnerships as an alternative investment vehicle for private Lloyd’s investors at its national conference last week.

Lloyd’s members’ agency CBSPC has launched a new investment fund for private capital.

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).

Amlin plc confirmed last week that it is in discussions with fellow Lloyd’s insurer Chaucer plc about a possible takeover.

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

After approving competition directorate proposals, the European Commission (EC) has today (13 June) announced the launch of a competition investigation into the commercial insurance sector.