March 2007/1

The impact on reinsurers of last month’s legislation in Florida may not be quite as severe as first feared, with the state reportedly opting to expand its hurricane catastrophe fund by $12bn, less than the $16bn increase allowed in the bill.

US giant American International Group (AIG) reported a rise in its 2007 net income and announced an $8bn share buyback scheme.

The rise in German run-off liabilities and the changing attitude to the sector will eventually see the creation of a chief liability officer at (re)insurers, according to Arndt Gossmann, director in KPMG's Advisory practice in Germany.

In a year in which "everything went right in insurance", investment conglomerate Berkshire Hathaway reported a record gain in net worth during 2006 of $16.9bn.

Despite delivering a doubling of net profits to SFr4.6bn and an unexpected announcement on capital repatriation, Swiss Re’s full-year financials were met with a cautious response by analysts.

A report into the European run-off market by PricewaterhouseCoopers (PwC) has estimated its size at in excess of EUR204bn of liabilities.

Capita Insurance Services, part of the giant UK outsourcing group Capita Group, is in talks to acquire the run-off consultants Claims Management Group Ltd (CMGL), Insider Week understands.

Rating agency Standard & Poor's (S&P) is launching a new set of ratings for the run-off sector to indicate the expectation of recovering the principal from (re)insurers.

Tawa UK, the run-off acquisition firm backed by the French billionaire François Pinault, has acquired Continental Management Services Ltd (CMS), a (re)insurer with gross assets of $285mn.

Bavarian giant Munich Re has raised its 2007 earnings guidance on the back of record 2006 profits of over EUR3.5bn – 28.5 percent up on the prior year.

Converium saw its position strengthened in its efforts to fight off a hostile takeover bid by rival SCOR as it regained its desired A- financial strength rating from Standard & Poor's (S&P).

Icap, the world's largest interdealer broker, has joined forces with JLT Group to operate in areas of increasing convergence between the capital markets and the (re)insurance industry.