March 2004/5

Reinsurance broker Benfield last week announced results that saw a more than threefold leap in pre-tax annual profits to £31.2mn last year from £9.8mn.

In the week that it released its best ever results, UK motor insurer Cox has attempted to downplay speculation over its mooted acquisition of smaller rival Highway.

The migration of Lloyd’s Names to limited liability status took a step closer last week when the Chancellor of the Exchequer revealed in the Budget that legislation will be enacted to remove tax obstacles for conversion to English Limited Liability Partne

Although less than some estimates, the impending IPO of insurer Catlin Group Ltd will still value the firm at a premium to many of its peers.

WTC leaseholder Silverstein Properties and insurers led by reinsurance giant Swiss Re are litigating over which contractual wordings the various parties used in placing the building’s insurance cover.

Despite a forecast-beating quadrupling of profits, shares in the Lloyd’s insurer Hiscox plc remained steady today (22 March 2004).

Significant steps were taken last week on the road to creating the second largest US commercial lines insurer as the St Paul Travelers super merger moved closer to reality.

Equitas has continued its policy of dealing with its largest (re)insurance exposures to asbestos and environmental claims by reaching a $245mn comprehensive settlement of all outstanding policies with US property casualty insurer Travelers.

European reinsurer Swiss Re is set to open a branch office in Taiwan after winning regulatory approval from the Taiwan Ministry of Finance.

Ratings agency AM Best downgraded Swiss insurer Winterthur Swiss Insurance Company and its subsidiary Winterthur Life last Tuesday (16 March) over capital concerns.

Italian (re)insurer Generali looks to be well on the road to recovery as it announced EUR1,015mn 2003 net profits last week, compared to a 2002 loss of EUR754mn and ahead of the projected EUR931mn profit under its self-imposed three-year plan.

Giant German reinsurer Munich Re last week revealed its first net loss in 98 years as strong underlying underwriting performance was buried beneath deferred tax charges, goodwill writedowns for HVB, and higher than expected reserving at US subsidiary Amer