June 2008/1

Florida’s cat fund has turned to Berkshire Hathaway to buy a $4bn put option bond as a hedge against an active hurricane season after concluding the cost of traditional reinsurance was too high.

Ariel Reinsurance Company Ltd has announced that George Rivaz will take over as chairman as part of a wider restructure of the board.

American International Group (AIG) has confirmed reports that former CEO Martin Sullivan will receive a $47mn severance package after officially stepping down from his post.

In a bleak day for international equity markets, Brit Insurance Holdings Plc led UK insurers’ stocks south after closing down almost 7.5 percent on the London Stock Exchange.

Lloyd’s insurer Chaucer Holdings plc has confirmed the sale of its shareholding in Pembroke to Ironshore Inc in a deal worth £14.9mn, as first revealed by The Insurance Insider.

Marsh is dusting off the venerable Bowring name with the formation of a new international division, Bowring Marsh, which will bring together its international placement capabilities for property, terrorism and casualty risks.

Lloyd's insurer Hiscox Ltd has revealed plans to create a new Lloyd's Syndicate backed 100 percent by its own capital.

Bermuda’s Allied World Assurance Company Holdings Ltd (AWAC) is expanding its US presence with the $550mn cash acquisition of Darwin Professional Underwriters Inc.

AXIS Capital Holdings Limited has poached Michael Steel, Benfield Group's global head of capital markets and appointed him in the newly created role of chief risk officer, the Bermuda-held company has announced.

Bermudian Ironshore Inc is close to announcing a deal with Chaucer plc to buy the Lloyd’s insurer’s Pembroke division, a move first revealed by The Insurance Insider.

Acquisitive run-off specialist Enstar Group Ltd has announced plans to raise around $105mn with a new public share issue.

Capita Group Ltd and Marsh UK have finalised a 10-year outsourcing deal, worth £187mn, that will see around 600 staff transfer to the outsourcing giant, as predicted earlier this week by The Insurance Insider.

Hawaiian governor Linda Lingle has signed a new law making the transfer of insurance-linked securities to the capital markets more efficient for captives.

The auditors of failed insurer Independent Insurance have been fined £500,000 and ordered to pay costs of £1.15mn by the UK accountancy watchdog after a tribunal found the firm's conduct "seriously below the appropriate standard".

Paul Jardine, COO of Catlin Group, has been returned as chairman of the Lloyd's Market Association (LMA).

Bermudian run-off specialist Enstar Group Ltd has agreed to purchase the failed UK listed (re)insurer GoshawK for £45.7mn ($90.3mn).

With $720mn backing from energy sector specialist private equity firm First Reserve Corporation, Torus Insurance Holdings Limited (Bermuda) has formally launched in time for a 1 July start, as predicted by The Insurance Insider.

German reinsurer Hannover Re has reached an "exclusive agreement" with Indian reinsurer GIC Re to develop and underwrite life reinsurance business in India, the group has announced.

French reinsurer SCOR has revealed that it will be launching its Americas "hub" in New York to help increase its presence in the market.

Rating agency AM Best has downgraded the issuer credit ratings of American International Group (AIG) just days after the insurance giant announced CEO Martin Sullivan's resignation.

Jardine Lloyd Thompson Group Plc (JLT) has acquired HWS Holdings Limited (HWS) with its two Lloyd’s broker subsidiaries for up to £8.75mn, as predicted by The Insurance Insider.

Martin Sullivan has resigned as chief executive of American International Group (AIG) after bowing to mounting shareholder pressure over the company’s performance that has slumped on heavy credit losses.

Space insurance underwriters are facing the prospect of yet another loss with the failure of a Kazakhstan communications satellite in orbit, The Insurance Insider can reveal.

Lloyd’s listed (re)insurer Beazley Group plc has promoted group finance director Andrew Horton to take over from Andrew Beazley as its chief executive.

Arthur J Gallagher International has acquired the Global Business Solutions (GBS) wholesale business from Heath Lambert, The Insurance Insider can reveal.

Beleaguered bond insurer Security Capital Assurance (SCA) has lost a legal battle with investment banking giant Merrill Lynch & Co over its obligations of up to $3.1bn on credit default swaps (CDS).

Willis Group Holdings Ltd is to buy the US retail broker Hilb Rogal & Hobbs Company (HRH) in a $2.1bn deal.

Amlin Plc's star head of underwriting, Tony Holt has resumed work at the Lloyd's insurer following a temporary leave of absence for medical treatment, the group has announced.

Run-off veteran Jerry McArthur will join Randall & Quilter Investment Holdings Plc (R&Q) as CEO USA and Bermuda after stepping down as chairman of Capita Commercial Insurance Services (CCIS).

American International Group Inc (AIG) is being investigated by the Securities and Exchange Commission (SEC) over its valuation of contracts linked to sub-prime mortgages, according to reports.

Well-known energy broker Guy Bessis is moving to Marsh Ltd less than eight months after joining (re)insurance intermediary Integro, The Insurance Insider understands.

Run-off veteran Jerry McArthur is to join Randall & Quilter Investment Holdings Plc (R&Q) as CEO USA and Bermuda after stepping down as chairman of Capita Commercial Insurance Services (CCIS), The Insurance Insider understands.

The ongoing legal dispute between Randall & Quilter (R&Q) affiliate Cavell USA and private equity owned run-off insurers Seaton Insurance Co and Stonewall Insurance Co is set for an airing in the English courts this autumn.

Markel International and QBE have emerged victorious from a UK High Court hearing after a judge ruled executives of Surety Guarantee Consultants Ltd (SGC) and a former Templeton Insurance director had conspired to defraud the insurers, obtaining...

Class action pioneer Mel Weiss has been sentenced to 30 months in prison, after pleading guilty to illegally paying clients to file claims.

Markel International and QBE have emerged victorious from a UK High Court hearing after a judge ruled executives of Surety Guarantee Consultants Ltd (SGC) and a former Templeton Insurance director had conspired to...

Jerry McArthur is stepping down as chairman of Capita Commercial Insurance Services (CCIS), The Insurance Insider can reveal.

Energy and property start-up Torus Insurance is set for a 1 July launch with an A- (Excellent) AM Best rating and backing from First Reserve Corporation, The Insurance Insider understands.

The Royal Bank of Scotland's (RBS) share price plummeted as Ping An became the latest potential bidder to drop out of the auction for the bank's insurance operation.

Failed Bermudian (re)insurer Quanta Capital Holdings is to be sold in a $197mn deal to Catalina Holdings (Bermuda), the run-off acquisition company headed by former GoshawK chief executive Chris Fagan.

Towergate Partnership's pre-tax profits increased by 14.9 percent to more than £100mn in 2007 compared to the previous year, while deputy chairman Patrick Snowball has resigned from its board, the company announced.

The Association of Run-off Companies (ARC) has called upon expertise from across the industry to judge its Awards for Excellence in Legacy Management this year.

Guy Carp appoints new Americas chief; Quake to cost Chinese insurers $43mn; Aon receives Saudi approval; EC welcomes subscription market response; Munich Re receives Brazil approval; Swiss Re warns on reserves; Monolines' further losses

Allianz Group's burdensome relationship with subsidiary Dresdner Bank continued with first quarter results hit by a EUR845mn write-down at the banking arm in "difficult market conditions".

Brit Insurance Holdings Plc has signed an agreement with Jardine Lloyd Thompson (JLT) to provide capacity for the broker's new "micro-SME" facility.

The solvent scheme of arrangement for Australian insurer Suncorp Metway Insurance Company is unlikely to proceed after gaining insufficient support.

Arthur J Gallagher International has welcomed aboard Simon Matson, who was due to join the firm’s new joint venture onshore/offshore "boutique" energy subsidiary on 2 June, The Insurance Insider can reveal.

Despite US Treasury Secretary Henry Paulson’s recent comments that "we are seeing signs of progress as capital and credit markets stabilise", the (re)insurance market will "feel the effects for some time to come", according to experts.