June 2006/5

Shares in UK broker Jardine Lloyd Thompson Group plc (JLT) have leapt almost ten percent this morning in the light of its expected acquisition of rival Heath Lambert Group plc.

Failed (re)insurer GoshawK today (29 June) released its 2005 preliminary results, revealing an after-tax loss of $140mn and warning that further deterioration in Hurricane Wilma losses would not be covered by its reinsurance protection.

Jardine Lloyd Thompson Group plc is close to securing its rival Heath Lambert Group plc in a £130mn deal which promises to create a dominant UK regional player, The Insurance Insider can reveal.

Bavarian giant Munich Re moved a step closer to restoring its once cherished double A rating today, with the news that Standard & Poor’s (S&P) had revised its outlook on the company’s A+ rating from stable to positive.

Bermuda-headquartered Catlin Group has announced that it will form a crisis management underwriting team in London to write product recall and kidnap and ransom (K&R) business.

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.

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.

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.

Berkshire Hathaway chairman and chief executive Warren Buffett has revealed his plans to give away a large part of his personal wealth to charity.

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

UK-listed (re)insurer Chaucer Holdings plc has announced a £40mn increase in capacity for next year.

The Lloyd's Market Association (LMA) has appointed David Powell as motor manager, replacing the retiring Roger Jones.

Electronic reinsurance trading platform RI3K has cut its prices by 80 percent in a move it described as "effectively sponsored" by Aon.

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.

"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.

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.

World Trade Center (WTC) developer Larry Silverstein and site owner the Port Authority of New York and Jersey today (26 June) sued Swiss Re-led insurers...

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.

UK-quoted insurer Hiscox said last week that plans to redomicile to Bermuda are on track.

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.

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.