June 2007/4

New York based hedge fund Fortress Investment Group said last week its offer to buy defunct run-off insurer Alea Group Holdings Ltd had gone unconditional after receiving irrevocable undertakings from 61 percent of shareholders.

Lloyd’s has appointed Jose Ribeiro as its new director of International Markets and Business Development following the departure of Julian James earlier this year.

Expanding Australian sports underwriter Sportscover has announced the extension of its network into Ireland after teaming up with broker and sports specialist O’Driscoll O’Neil.

Insurance claims are continuing to rise following severe storms on its East Coast over 9-10 June. The Insurance Council of Australia said the estimated cost of claims from the storm is now A$270mn.

Lloyd’s set the terms for the public issue of £500mn of tier 1 subordinated debt last week. Following a three-day investment road show, the Corporation saw its debt issue several times oversubscribed by institutional investors.

The reserving practices of Independent Insurance came under scrutiny as several of the company’s former claims staff testified in court last week.

Swiss reinsurer Glacier Re joined the list of carriers accessing the capital markets with a $75mn offering under a shelf programme providing it with retrocession cover from windstorm and earthquakes.

“Class of 2005” insurer Lancashire Holdings Ltd is likely to be the first of a number of insurers structuring contingent capital deals after it co-operated with investment bank JP Morgan to launch a financing deal last week that would allow it to tap the

Brit Insurance chief executive Dane Douetil joined a select club at the weekend – he became one of a limited number of insurance figures ever to be honoured following the publication of the Queen’s birthday honours list.

Aspen Re, a subsidiary of UK (re)insurer Aspen Insurance Holdings Ltd, has announced plans to open a major office in Zurich, to act as the hub for Aspen’s European reinsurance activity.

US insurer State Farm is set to place a giant $4bn cat programme, consisting of both bonds and loans, to provide retrocessional protection for one of its subsidiaries. The company has formed a special purpose vehicle, called Merna Re, which will provide

Giant Bermuda-based investment hedge fund DE Shaw Group agreed a $575mn deal for US property/casualty insurer James River Group last week.