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).

The US tax authority the Internal Revenue Service has reiterated its position on the cascading federal excise taxes (FET) that will apply to foreign (re)insurers on when the deal involves an underlying US risk.

Market analysts have responded positively to Lloyd's insurer Chaucer Holdings 2007 results and its recent strategy.

Novae Group plc has continued its resurgence with a second consecutive year of record profits with its result bolstered by reserve releases and investment income.

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.

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.

Catastrophe-related economic losses from natural and man-made catastrophes around the world exceeded $70bn last year, according to Swiss Re.

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

Broker Marsh Inc has appointed Jeremy Cooke to the new position of global head of market relationship management (MRM).

German insurer Allianz AG is to break up its Dresdner Bank division in a move that will enable it to divest its underperforming investment banking unit Dresdner Kleinwort.

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

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.

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.

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.

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

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

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

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

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.

Brit Insurance Holdings plc's Gibraltar based protected cell reinsurer, Rockhampton Insurance PCC Limited, which will provide reinsurance to the UK insurance group, has begun trading.

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.

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

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

AXA Re spin-off reinsurer PARIS RE has reported "limited" exposure to sub-prime US mortgages, of less than 0.3 percent of total invested assets, as it reported an increase in shareholders' equity of 18.3 percent in its 2007 financial year results.

The opportunities afforded to French reinsurer SCOR from its acquisition of Converium still outweigh 'integration risks', according to analysts.

Japanese company Tokio Marine & Nichido Fire Insurance Co has completed its takeover of Lloyd's insurer Kiln Ltd.

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.

Former Heath Lambert executive Tom Ernoult has joined independent London-based intermediary Oxygen Holdings plc as managing director.

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.

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

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.

The head of Aon Market Services for Asia has left the company, Insider Week has learnt.

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.

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.