March 2007/2

Hub International became the latest sizable broker to be acquired by private equity investors when the Chicago-headquartered firm agreed to a $1.7bn deal ($1.8bn including debt) with Apax Partners and Morgan Stanley.

Aon has confirmed the arrival of Steve Redgwell as head of broking for its Commercial Insurance division.

The reporting season may have crossed the Atlantic from Hamilton to London but the pattern has remained the same as few catastrophes and low claims fuel record profits.

Berkshire Hathaway chairman Warren Buffett said that with falling rates in “super-cat” insurance as a result of the “flood of capital” post-Katrina, the company has “sharply reduced” wind exposures.

US giant American International Group (AIG) continued the capital management theme as it reported a rise in its 2007 net income and announced an $8bn share buyback scheme.

After a good 2006, Talbot raises the ‘for sale’ sign. Its timing could be perfect…

The renewed interest of insurers in obtaining UK brokers has pushed up the deal values in broker mergers and acquisitions (M&A), according to Deloitte.

A joint venture between global interdealer broker ICAP and JLT Group has once again underlined the growing co-operation between the reinsurance industry and the capital markets in trading risk.

Aon – which is involved in an acrimonious battle with Benfield over the poaching of its facultative team – has won the Lexington Insurance Co account from the reinsurance broker, The Insurance Insider can reveal.

European giants Allianz, AXA and Zurich Financial Services (ZFS) reported strident 2006 figures and increased dividends as they benefitted from clement natural catastrophe conditions.

Bermuda’s Class of 2005 – the group of (re)insurers launched in the wake of Hurricane Katrina – will face tougher conditions than their predecessors as they look to broaden scope in response to limited opportunities in the property cat market.

QBE Limit and Amalfi Underwriting Ltd, together with Markel International, are set to take broker Surety Guarantee Consultants Ltd (SGC) to the High Court alleging fraud in connection with construction bonds it issued as a coverholder.