June 2007/2

Guy Carpenter has swooped for Chris Klein, the head of rival Benfield Group's counterparty risk unit.

Swiss Re, an increasingly dominant force in insurance linked securities, is the counterparty in the first transaction to reference an existing cat bond as a trigger with the launch of $140mn Fusion 2007 Ltd.

Hiscox plc has acquired the Illinois based livestock insurer American Live Stock in a deal that will provide the group with further US growth opportunities.

UK insurer Brit Insurance Holdings plc has launched a pioneering $200mn cat bond structure that will pay out fixed amounts in the event of four to nine qualifying natural catastrophes over the next three years.

The Act of Parliament that governs Lloyd’s is to be changed to enable the Society to reform its structure and processes, it was announced today.

Reinsurance broker Guy Carpenter has said it will mandate the use of Electronic Claims File (ECF) for all in-scope claims from the Lloyd’s markets as of 1 January 2008.

The alleged poaching dispute between Gen Re and Arch took a new turn yesterday, when the temporary restraining order granted against Arch Capital and four former Gen Re executives in May was lifted and replaced by an agreed-upon order between the parties.

Bermudian firm Montpelier Re has announced the formation of a new £47mn Lloyd’s syndicate which will write non-marine property and engineering business, as predicted by The Insurance Insider in May.

Standard & Poor’s (S&P) has raised its counterparty credit and insurer financial strength ratings on Zurich Financial Services (ZFS) from A+ to AA- citing the group’s “major and sustained improvements” in its operating performance.

Lancashire Holdings Ltd has entered into a contingent equity arrangement which gives the Bermudian-headquartered insurer the right to raise a minimum of $49mn any time throughout this year’s hurricane season.

Swiss reinsurer Glacier Re has become the latest carrier to go to the capital markets sponsoring $75mn in notes under a shelf programme providing it with retrocession cover from windstorm and earthquakes.

Standard & Poor’s (S&P) has upgraded the insurer financial strength rating of AXA’s core subsidiaries to AA from AA- citing the company’s successful integration of Winterthur.