June 2006/5

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

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.

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.

Insurers were dealt a blow last week as government ministers said they will amend UK compensation laws in response to a House of Lords ruling that could potentially have reduced payouts to asbestos-related claimants.

European reinsurers enjoyed a "solid start" in the first quarter of 2006, underlined by underwriting profits, stronger capitalisation and stable ratings, according to a report from reinsurance broker Benfield.

US investment firm River Capital has announced the licensing in Barbados of its subsidiary River Reinsurance Ltd.

"Class of 2005" Bermudian reinsurer Validus Re announced last week that it has raised $150mn through a private sale of Junior Subordinated Deferrable Interest Debentures as part of a pooled transaction.

The Financial Services Authority (FSA) has begun its consultation on new rules for Insurance Special Purpose Vehicles (SPV) in the UK.

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 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.

Analysts have reacted positively to last week's news that 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.

UK-listed Jardine Lloyd Thompson Group plc (JLT) announced last week that it has successfully completed the first stage of its peer-to-peer electronic trading with the G6 group of insurers.