March 2008/3

The introduction of the European Union (EU) Solvency II directive in 2010 will have little immediate impact on credit ratings of European insurers but many fuel merger and acquisition (M&A) activity, according to a report by Fitch Ratings.

Today (10 March) is the last day of dealing in Lloyd’s (re)insurer Kiln shares ahead of the company's acquisition by Tokio Marine.

Aspen Re has become the first Bermudian reinsurer to implement electronic accounting and settlement (A&S).

Federal excise taxes (FET) imposed on insurance and reinsurance purchased from foreign insurers and reinsurers will be applied each time the risk is ceded, US tax authority the Internal Revenue Service (IRS) ruled last week.

American International Group Inc (AIG) has been admitted on the Irish Stock Exchange with a par value of $2.50 per share.

Liechtenstein-based liability insurer Gable Insurance has appointed Lance Ranger as its new chairman.

US property and casualty (P&C) insurance rates were down 14 percent on a composite basis in February, with rates in the worst-hit sector, commercial property, falling 17 percent in the period, according to US insurance aggregator MarketScout.

Mirroring the aviation sector, an excess of capacity together with low losses are driving premium rates downwards, according to Aon's Aerospace Insurance Market Review.

Bermudian-headquartered run-off company Alea Group Holdings' outstanding liabilities now stand at around $1.5bn after a series of major commutations, the company announced in its 2007 results.

Lloyd's has approved Syndicate 2008 to write reinsurance to close (RITC) business, with the Shelbourne Syndicate Services Ltd (SSSL) managed vehicle already closing four open year syndicates with gross insurance reserves of around $455mn.

Ironshore Inc is carrying out due diligence on Lloyd's insurer Heritage Underwriting Agency after signing a non-disclosure agreement (NDA), our sister publication The Insurance Insider revealed today.

Lloyd's insurers will be able to accept business from brokers around the world, but the market's unique - and sometimes criticised - capital structure will not be overhauled, according to proposals that were published last week.