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).

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.

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.

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.

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.

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

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.

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.

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.

The National Association of Insurance Commissioners (NAIC) voted last week to take the first steps towards scrapping the "full collateral" requirements imposed on non-US-based reinsurers.

German insurance giant Allianz has said it will announce plans for a significant restructuring later this week in a move that is likely to lead to job losses.

Shares in White Mountains Insurance Group Inc closed down 5 percent on Friday to $489 on the New York Stock Exchange after the group admitted its reinsurance losses from last year's storms would be almost fifty percent higher than previously estimated.

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.

FP Marine Risks Limited has become the first Asian-based insurance broker to achieve full accreditation at Lloyd's.

Companies have been warned that their public liability insurance does not always cover environmental risks that firms expect.

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.

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).

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

AM Best has suffered the departure of another senior executive from its international operations, Insider Week can reveal.

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

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.

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

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.

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.

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.

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

Swiss Re - now officially the world's largest reinsurer following the completion of its GE acquisition earlier this month - is replacing its retiring US head Jacques Dubois with the former Federal Reserve vice chairman Roger Ferguson.

Insurance service provider Whittington signed a conditional agreement on 15 June to sell its newly formed Lloyd's Managing Agency and specialist Asian syndicate, Alba, to Insurance Australia Group (IAG).

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-.