March 2006/4

Michael Bright, the colourful founder of collapsed UK insurer Independent Insurance, will face trial on charges of conspiracy to defraud at a trial starting after Easter 2007, a preliminary hearing at Southwark Crown Court heard today (24 March).

A EUR1bn bill from last year’s natural catastrophes – including almost EUR800mn from Hurricanes Katrina, Rita and Wilma (KRW) – dragged Hannover Re’s net income down from 2004’s 279.9mn to EUR49.3mn.

Lloyd's insurer Hardy bucked the trend of underwriting losses when it reported profits of £7.5mn for 2005 on 22 March, underpinned by a positive underwriting result of £6.3mn.

Shares in Canadian combine Fairfax Financial Holdings have dropped almost 15 percent percent on the New York Stock Exchange (NYSE) today (22 March).

Strong investment income helped French reinsurer SCOR continue its recovery as it recorded a 22 percent increase in 2005 operating profits to EUR242mn, along with a 75 percent increase in net profit to EUR131mn.

Wellington Underwriting plc says its reinsurance costs have risen substantially after restructuring its programme following Hurricane Katrina last year. The Lloyd's insurer posted a full-year pre-tax loss of £26.2mn for 2005 as the devastating storm...

Defunct Australian insurer HIH’s film finance action against its broker JLT Risk Solutions has ended with its claim being dismissed on 15 March. Despite Mr Justice Langley finding that JLT was in breach of its duty as a broker, he concluded...

Bermudian start-up reinsurer Validus has announced it is entering into a $300mn syndicated credit agreement. The transaction consists of a $100mn Senior Unsecured 364-Day Revolving Credit Facility and a $200mn Senior Secured Three-Year Letter of...

German insurer Allianz AG almost doubled profits last year, it announced on 16 March. Net income for 2005 was up to EUR4.38bn, a 93 percent rise from the previous year’s EUR2.66bn. Total revenues rose by 4.2 percent from EUR96.9bn in 2004 to...

Swiss reinsurer Converium announced on 15 March net income of $68.7mn for 2005, with $34.2mn added to the total during the final quarter. The fourth quarter figure beat some analyst’s forecasts by close to $30mn, and provided a solid start for the...

Strong investment performance enabled German giant Munich Re to shrug off its hurricane losses and post record profits of EUR2.7bn for 2005, increasing its dividend 55 percent to EUR3.10 as it raised the prospect of an “active capital management”...

A preliminary hearing at Southwark Crown Court on Friday 24 March is expected to set the trial date for three former directors Independent Insurance who are charged with conspiracy to defraud. As stated by the Serious Fraud Office, former chairman...

Aon has lost its $80mn court case with oil company BP in a judgment that could have wider implications for sub-broking arrangements. Mr Justice Colman ruled in the case of BP v Aon and another that Aon had breached its duty of care to the oil company..

Despite raising earnings expectations on improved prospects at UK insurer Royal & Sun Alliance (R&SA), analysts at Morgan Stanley believe the company’s stock is overvalued. Equity analysts Jon Hockling and Kathy Fear increased 2006 earnings forecasts..

Chaucer became the latest Lloyd’s insurer to make an underwriting loss because of last year’s storms, but post a profit thanks to its investments when it reported its 2005 results on 17 March. Hurricane losses of £68.5mn caused the insurer to fall to..

UK Insurer Brit Insurance Holdings plc has replaced house broker Cenkos Securities Ltd with Citigroup while unveiling a 2005 profit created by an unexpectedly high release from prior-year reserves. In an eventful 15 March announcement, the insurer...

An unusually high currency boost and a release from reserves enabled expanding Lloyd’s insurer Hiscox plc to transform a narrow 2005 underwriting gain into a healthy £70mn pre-tax profit. An increase in the group’s US storms exposures – up from...

The weight of over $2bn in two major fourth quarter charges sent American International Group’s (AIG) net income plummeting by 72 percent, it reported on 16 March. AIG reported net income of $444mn for the quarter after it settled with regulators for..

US insurer St Paul Travelers has denied reports that it’s been in merger discussions with Zurich Financial Services Group, that were first reported in the Wall Street Journal on 17 March. The possible creation of an insurance leviathan to match...

Castlepoint Holdings Ltd, the latest insurer hoping to land on Bermuda’s shores, has been told by AM Best that it can expect an A- rating if its advisers raise the $220mn needed to capitalise the start-up. As revealed by The Insurance Insider...

UK regulator the Financial Services Authority (FSA) has recognised progress in pursuit of contract certainty by putting on hold work to develop rules it threatened to impose if the London market failed to meet the deadline set for the end of the 2006.

As predicted in the January issue of our sister title The Insurance Insider, Allied World Assurance Holdings Ltd (AWAC) is set to become the last of the so-called “Class of 2001” to go public after filing for an initial public offering (IPO) of up to...

Lloyd’s insurer Beazley reported a 44.5 percent drop in pre-tax profits on 14 March after absorbing a £60mn net loss from hurricanes Katrina, Rita and Wilma (KRW). Pre-tax profits fell to £16.1mn last year from £35.4mn in 2004, although gross written..

Willis has signed an agreement with the China Development Bank (CDB) that will see it become the bank’s global risk management and insurance consultant. The move is another big step for Willis as it moves into the Chinese insurance market. The firm...