March 2008/4

The acquisitions of Revios and Converium have pushed French reinsurer SCOR’s 2007 profits up 62 percent to a record EUR407mn, the company reported today (19 March).

Benfield Group CEO Grahame Chilton said he remains confident that the reinsurance market will turn even as the enervating effects of the weak US dollar took its toll on the firm’s 2007 results.

US giant American International Group (AIG) is urging regulators to change accounting rules on asset valuations to staunch the flow of writedowns from banks and (re)insurers.

Despite a heavier burden from natural catastrophes, Hannover Re saw operating profits rise 14 percent to EUR940mn, boosted by strong performance in its life and health division.

The current plight of some municipal bonds is just the "tip of the iceberg" and will continue to rise, according to Berkshire Hathaway’s reinsurance chief Ajit Jain.

Heritage Underwriting Agency has returned strong profits for 2007 resulting from a second benign catastrophe year as well as diversification.

Bear Stearns has become the latest casualty in a dramatic escalation of the US sub-prime triggered credit crisis that has led to heavy falls on the European and Asian stock markets today.

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

After more than doubling net written premium and more than trebling after-tax profits in 2007, Bermuda-based Omega Insurance Holdings Ltd expects further profitable growth in 2008.

Richard Scruggs, the lawyer who successfully fought the tobacco companies in a series of class actions, has pleaded guilty to bribing a judge.

David Paterson today (17 March) took over as New York Governor replacing disgraced former "Sheriff of Wall Street" Eliot Spitzer.

Joe Plumeri, chairman and CEO of Willis Group Holdings has warned that brokers face a "war for distribution".

Lexington Insurance Company's move to treble its available capacity for high limit US commercial property sees the American International Group (AIG) subsidiary take on a market traditionally dominated by FM Global.

Travelers Syndicate Management Ltd has confirmed the successful closure of the 2000 and prior and 2001 open years of account on its Syndicate 227 into RITC Syndicate Management Ltd's (RSM) Syndicate 5678.

Independently-owned UK broker Heath Lambert Ltd has pledged to diversify regionally through new hires and office openings.

"Class of 2005" firm Flagstone Reinsurance Holdings has agreed to take a 65 percent stake in South African company Imperial Reinsurance for an undisclosed amount.

German financial services giant Allianz AG's expects to take a pre-tax hit of EUR200mn following European Windstorm Emma.

(Re)insurance broker RFIB Group Limited has appointed ex-Carvill executive Jonathan Turnbull as group chief financial officer.

Max Capital has continued the expansion of its US platform with a deal to buy an admitted lines insurance company.

Berkshire Hathaway Inc has exited its 16.3 percent stake in White Mountains Insurance Group Ltd in a deal that sees the Bermudian insurer pay $751mn in cash and transfer two of its run-off units to the investment giant.

Beleaguered life reinsurer Scottish Re had its stock suspended by the New York Stock Exchange (NYSE) last week, and has an application pending with the Securities and Exchange Commission to delist the firm.

French reinsurer SCOR will join a host of other foreign reinsurers taking advantage of the newly deregulated Brazilian market, according to news reports.

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

Gallagher Global Risks is set to bolster its international property team with the addition of Benfield broker Brian Fuller. Fuller will join Gallagher as director of international property and will be based in London.