March 2002/1

Dramatic testimony at the Royal Commission hearing into the collapse of Australian insurance company HIH has exposed the "accounting shortcomings" of HIH surrounding its 1998 acquisition of FAI Insurance.

Canada Life, one of the leading Canadian life insurers, has taken a provision of $70mn, net of tax, related to expected claims arising from the September 11 terror attacks. The company's gross exposure to Sept. 11 claims are estimated at $606mn. This prov

Rating agency Standard and Poor's has placed the triple-A ratings of all State Farm operating entities on CreditWatch with negative implications.

Embattled programme and captive manager Mutual Risk Management Ltd has raised $100mn in its fight for survival. The Bermuda based company's share price has collapsed from $5.42 to stand at 96 cents (7 March) after first delaying its 2001 results "to compl

AIG's legendary leader Hank Greenberg reassured shareholders that the company's recent announcements over directors and officers exposures related to the need for higher rates, rather than an indication of a problem.

A further sign that rate increases is not a universal panacea for the industry's ills occurred with the announcement that German industrial insurer and reinsurer has been put up for sale by its owners Deutsche Bank and Rolf Gerling. The move followed two

AIG has lashed out at one of its reinsurers in a strongly worded complaint filed in the US District Court of the Southern District of New York.

If one was to produce a table of those Lloyd’s insurers “doing well” after the misery of the 11 September attacks and appalling drain of Lloyd’s losses it would be a short one, but Amlin would be up there along with the likes of Kiln and perhaps Hiscox.

Markel International was downgraded by rating agency Fitch after its parent posted a $70mn charge. Fitch Ratings commented, "Markel International's operating performance and capitalization do not support the current ratings." The agency subsequently lower

Lloyd's chairmen to leave early? With the Lloyd’s chairman taking a month-long honeymoon in New Zealand, there are plans at foot to replace him by the Summer.

Wellington plans to offer Lloyd's Names shares in the insurer to persuade them to agree to the formation of a new FSA regulated insurance company.

A legal dispute between Westfield, owners of the retail area of the World Trade Centre, and Zurich Insurance over supplementary cover has been voluntarily dismissed with both sides agreeing to resolve their differences in a mandatory arbitration hearing.