March 2007/4

According to reports in the Financial Times Deutschland last week, German giant Munich Re will record a 2006 loss in its North American business primarily as a result of legacy charges from asbestos claims.

Willis Group Holdings Limited has extended the employment agreement with its chairman and CEO Joseph Plumeri for another year.

Amlin Bermuda has picked up underwriter Richard Holden from Wellington Underwriting plc following the Lloyd’s insurer’s merger with rival Catlin.

“Class of 2005” Bermudian reinsurer Validus Holdings Ltd has bolstered funds as it announced it has entered into credit agreements totalling $700mn with a syndicate of lenders.

Reinsurance giant Swiss Re expects to save up to SFr500mn ($413.2mn) in capital following the planned centralisation of its European legal entities to Luxembourg.

Guy Carpenter has become the latest reinsurance broker to launch an index-based property catastrophe reinsurance product as an alternative to traditional risk transfer.

After moves by Florida lawmakers to effectively nationalise the state’s hurricane catastrophe fund in January, political momentum appears to be growing behind proposals to establish a nationwide catastrophe reinsurance programme in the US tied to cuts in

Guy Carpenter, which last week launched a CDO-style property cat product (see story 7), has further committed itself to the development of alternative capital markets solutions with the hire of Laurent Digna from Société Générale.

Lloyd's received the long-awaited approval for its new Chinese onshore reinsurance operation from regulators on Wednesday (14 March).

Kiln plc last week became the latest Lloyd's company to announce plans to redomicile in Bermuda and launch an insurer on the island.

After announcing record 2006 profits, Hannover Re is planning growth in its US property catastrophe business as it redeploys capital following the $800mn sale of its Praetorian subsidiary to QBE Insurance Group Ltd.

Shares in Chaucer Holdings plc were up almost 6 percent to 99p in trading this morning (19 March) as the Lloyd’s insurer impressed analysts with record pre-tax profits of £86mn and return of equity (ROE) of 37.7 percent.