June 2006/4

Lloyd’s insurer Kiln plc is planning to expand its 2007 capacity to over £1bn – making it one of the largest Lloyd’s insurers by stamp.

Swiss reinsurer Glacier Re has had its ratings placed under review with negative implications by AM Best yesterday (22 June).

German insurance giant Allianz Group is to cut 7,500 jobs as part of what the company termed a “restructuring and modernising” of its business processes.

Aon UK announced today (22 June) that it will soon have the ability to trade electronically across all its London market lines of business.

UK-listed (re)insurer Chaucer Holdings plc has announced a £40mn increase in capacity for next year. The company submitted its 2007 business forecasts to Lloyd's today (22 June), which include plans to increase capacity on two syndicates.

Bermudian (re)insurer Allied World Assurance Company (AWAC) has revealed that it is under investigation by the Texas attorney general for restraint of trade and other business practices.

Quoted Lloyd’s insurer Hardy has announced that it will form a new non-marine syndicate for 2007, which will be led by Clal Insurance Syndicate 1301 underwriter Patrick Gage.

Analysts at Numis Securities reacted positively to the AGM trading statement of UK-quoted insurer Hiscox plc, which reported 30 percent premium growth across the group.

Carriers will not just be tested on their ability to pay claims but will also be ranked according to their client service levels, following a new initiative launched by broker Willis Group Holdings Ltd.

US domiciled reinsurer OdysseyRe has launched a new £25mn capitalised UK insurance company that will focus on writing casualty lines.

US insurer Chubb has agreed to provide hull and liability cover to general aviation clients of Starr Aviation - the managing agency ultimately controlled by former American International Group chief executive Maurice “Hank” Greenberg.

French giant AXA announced on 14 June that it has entered into a definitive agreement with Credit Suisse Group to buy the Zurich-based company's insurance operation Winterthur for SFr12.3bn, or EUR7.9bn in cash.

Rating agency Standard & Poor's (S&P) confirmed on 12 June that Swiss Re's acquisition of GE Insurance Solutions (GEIS) has cost the reinsurer its AA rating, which has been downgraded a notch to AA-.

Equitas announced on 15 June that it had reached a comprehensive settlement with US insurer The Hartford Financial Services Group.

Bermudian giant XL Capital announced the restructure of its management team on 15 June with Henry Keeling taking over as chief operating officer.

Jardine Lloyd Thompson Group plc, the UK broker thought to be conducting due diligence on rival Heath Lambert Group, issued a statement to the Stock Exchange last week saying it had no explanation for the recent volatility in its share price.

Insurance buyers at the Association of Insurance & Risk Managers (AIRMIC) conference were urged to use their power to improve market transparency and drive through contract certainty by the Financial Services Authority (FSA).

UK general insurer Royal & Sun Alliance has unveiled plans to cut over 1500 jobs in an efficiency drive that will save the group £130mn in annual costs.

Brit Insurance Holdings PLC announced today (19 June) the appointment of Graham Taylor to its business development unit, which is headed by Richard Webster, business development director.

The schemes of arrangement for four HIH companies were approved in the UK High Court on 12 June. The schemes became effective on 13 June 2006 when the Court Orders were lodged with Companies House.

Ratings agency Moody's has said it does not expect the introduction of the EU's Solvency II regulation to cause widespread ratings actions.

Omega Underwriting Holdings plc was the latest Lloyd's based insurer to paint a bright picture of its trading prospects at the company's annual general meeting today.

Guy Carpenter & Co confirmed last week the appointment of David Spiller as its group chief executive, replacing the long-serving Salvatore Zaffino.

The new chairman of The Association of Insurance and Risk Managers (AIRMIC), Geoff Taylor, has pledged to make small and medium (SMEs) firms a priority during his tenure.