May 2004/5

World’s largest insurer AIG announced last Wednesday (19 May) that it had raised its quarterly dividend by 15 percent from 6.5 to 7.5 cents a share, the third increase in the last year.

Lloyd’s insurer Kiln has acquired a 25 percent stake in South Africa’s International Marine Insurance Managers (International Marine).

In contrast to barnstorming Q1 results for US and Bermudian (re)insurers, European carriers enjoy a mixed first quarter with some showing a more subdued uplift from hard market conditions.

Royal & Sun Alliance’s (R&SA) proposal to change terms and conditions on a EUR500mn bond to keep it in line with qualification requirements for regulatory capital with a group solvency test will not affect the rating of the debt, said Standard & Poor’s in

Ratings agency Moody’s has withdrawn its rating on the American arm of bankrupt Bermudian reinsurer Trenwick.

Strong first quarter results at US reinsurer Odyssey Re prompted Moody’s to place its Baa1 insurance financial strength ratings on review for possible upgrade.

Broking giant Marsh has announced its first large-scale foray since 1998 with the $1.9bn acquisition of corporate security firm Kroll.

The fronting insurer of Spanish football club Atletico Madrid failed in its attempts to overturn a decision in the UK Courts which allowed London market contingency underwriters to void coverage relating to the side’s relegation in 2000.

Lloyd’s has set out the cost of setting up and running its electronic risk placing system, Kinnect.

Justin Tweedie, the former underwriter of Heritage Syndicate 1245, has joined the fast expanding Primary Group to help develop its US insurance arm.

Swiss reinsurer Converium is set to replace its expiring catastrophe bond Trinom next month with Helix, a new $100mn product that will provide broader coverage than the three-year Trinom bond.

Organisations have never faced a greater threat to their financial health from environmental risks and toxic tort liabilities, the latest market commentary from brokers Willis concludes.