May 2005/4

A Los Angeles federal court cleared French billionaire Francois Pinault but found his holding company Artemis guilty of conspiracy in the controversial sale of Californian insurer Executive Life, last week.

Ratings agency Standard & Poor’s (S&P) announced last week (11 May) that it was leaving its A+ rating for world’s largest reinsurer Munich Re unchanged following its recent strong first quarter results (see Insider Week No 172).

Mammoth financial services company Allianz confirmed last week (13 May) that it is well on track to meet its 2005 earnings target, after reporting a 33 percent increase in net income to almost EUR1.2bn for the first quarter of the year.

A Marsh Ltd spokesman has offered a blanket rejection that the firm is set to reshuffle its senior management following the promotion of its chief executive Bruce Carnegie-Brown earlier this year.

The High Court refused applications by a group of aggrieved former Lloyd’s Names to bring actions of “misfeasance in public office” against Lloyd’s, last week.

Germany's Hannover Re showed its strength across the board, with operating profit up 16.2 percent to EUR179.5mn, net income increasing 11.1 percent to EUR107.7mn and gross written premiums growing 6.2 percent to EUR2.6bn against the first quarter of 2004.

Swiss reinsurance newcomer Glacier Re has increased its capital base with the release of two tranches of subordinated notes.

Hiscox plc has appointed XL D&O underwriter Marc van der Veer as managing director of the group’s retail operations in continental Europe.

Slimmed down Swiss reinsurer Converium reported a higher than expected first quarter loss last week (10 May) as Erwin, commutations, reserve strengthening and restructuring costs hit the bottom line.

Under-the-cosh insurance giant AIG was facing more fallout from its errant accounting practices today when it was reported in the Wall Street Journal that a further “six or more” senior executives will be forced to leave the company in the next two weeks.

Lloyd’s insurer Wellington Underwriting plc has announced the appointment of Heather Thomas as general counsel and company secretary.

UK insurer R&SA offered a ray of sunshine to its long-suffering shareholders with a consensus beating first quarter operating profit of £160mn, way ahead of the £106mn-£134mn forecasts.