March 2006/4

Tropical Cyclone Larry slammed into north-eastern Australia early today (20 March) causing damage to buildings and crops. Larry made landfall as Category 5 storm, the maximum grading, near the town of Innisfail, Queensland, and was downgraded to a...

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...

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”...

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...

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...

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..

Inmarsat has become the first satellite operator to insure with newly launched space consortium LibSat. The company is insuring its new generation Inmarsat-4 communications satellites with the $250mn capacity consortium, which was set up at the start..

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..

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..

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..

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...