March 2008/2

A US federal appeal judge last week upheld the decision by Florida’s insurance regulators to bar Allstate Corp from writing new business in the state.

Berkshire Hathaway is under pressure from federal prosecutors to oust Joe Brandon, the CEO of its reinsurance subsidiary General Re, following criminal fraud convictions of four of his former colleagues earlier this year, according to reports.

Lloyd’s (re)insurer Advent Underwriting Ltd has been dealt a blow by the sudden resignation of the chief underwriting officer of its Syndicate 780, Lloyd Tunnicliffe.

Lloyd's has reported a profit of £3.846bn for the 2007 financial year - a 4 percent increase on its 2006 figure of £3.662bn, despite a softening market.

Lloyd’s is being urged to tackle its complicated capital structure amid a “rare” opportunity to reform the legislation which governs the marketplace.

Xchanging management are cashing in investments in the outsourcing firm ahead of changes that effectively increase capital gains tax on 6 April.

Venture capital firm 3i has acquired a £50mn stake in the UK-headquartered broking firm Hyperion Insurance Group Ltd, as first revealed by the The Insurance Insider.

Bermudian Argo Group International Holdings Ltd has agreed a 154p a share cash offer to buy Heritage Underwriting Agency plc in a deal that values the Lloyd’s insurer at £136mn on an ex-dividend basis.

Miller Insurance Services Ltd has launched a Singapore-based broker as it seeks to take advantage of the country’s rapid underwriting growth.

Venture capital firm 3i has acquired a stake in the UK-headquartered broking firm Hyperion Insurance Group Ltd, The Insurance Insider can reveal.

UK-listed run-off consolidator Tawa plc is part funding its acquisition of failed Bermudian PXRE Reinsurance Company with $14.4mn investment from a trust owned by billionaire steel magnate Lakshmi Mittal family members.

Aspen Insurance Holdings Ltd has become the latest Bermudian to establish a Lloyd’s presence with the launch of start-up Syndicate 4711.

Aon Limited deputy chairman Jonathan Palmer-Brown has been elected as chairman of the London Market Insurance Brokers’ Committee (LMBC).

Fitch Ratings move to downgrade ratings on Security Capital Assurance Ltd (SCA) and its bond and financial guarantee (re)insurance subsidiaries to junk bond status may weigh on affiliated Bermudian (re)insurer XL Capital, according to analysts.

American International Group (AIG) has filed a lawsuit against its former CEO and chairman Maurice “Hank” Greenberg as part of its long-running legal battle over ownership of shares in the US giant.

US broker Arthur J Gallagher & Co has completed the $40mn divestment of its reinsurance arm to Aon Corp.

French insurance giant AXA’s UK subsidiary has taken formal control of broker SBJ Group after getting the green light from shareholders and UK regulator the Financial Services Authority.

Mandatory disclosure of commissions for brokers has been highlighted as a possible solution to the issue of transparency, the Financial Services Authority (FSA) has revealed in its latest discussion paper on insurance intermediaries.

Chubb insures the primary layer of the Marsh-placed $75mn directors’ and officers’ (D&O) programme for beleaguered investment bank Bear Stearns, The Insurance Insider can reveal.

Newly-redomiciled Lloyd’s (re)insurer Hardy Underwriting Bermuda Ltd reported record 2007 pre-tax profits of £18.3mn.

Troubled Bermudian giant XL Capital has gone outside the firm to name Michael McGavick as CEO in place of Brian O’Hara.

Arch Capital Group Ltd is to form Gulf Re, a Dubai-based $400mn capitalised reinsurer, in a joint venture with the Gulf Investment Corporation.

The future of Bear Stearns hangs in the balance after JP Morgan and the Federal Reserve Bank of New York stepped in with an emergency funding package to bail out the beleaguered investment bank.

Montpelier Re Holdings Ltd has appointed Christopher Harris to succeed founding CEO Tony Taylor who is stepping down this summer.