May 2006/3

UK general insurer Royal & Sun Alliance (R&SA) this morning (11 May) announced first quarter pre-tax profits of £122mn, unchanged from the corresponding period of 2005.

First quarter net income dropped 16 percent to $3.2bn at American International Group (AIG), reported yesterday (10 May).

London market broker Tyser & Co has been refused leave to appeal a decision that upheld market custom that underwriters are entitled to placing and claims documentation held by broker.

London market broker Glencairn Ltd has parted company with Adam Fox, the head of its reinsurance operations.

Besieged Bermudian reinsurer PXRE Group Ltd today (10 May) reported that it has lost two-thirds of its business following its recent troubles.

Aon Ltd, the UK arm of broking giant Aon Corp, has reversed plans to move its London operations out of the City of London and to the Docklands.

German giant Munich Re has announced quarterly profits of €979mn today (9 May), up 41.7 percent from the €691 in the prior-year period.

US insurer HCC Insurance Holdings reported a significant rise in first quarter net profit of 37 percent to $78.6mn, compared to $57.3mn in the prior-year period.

English & American Insurance Company Limited (EAIC) has increased its scheme payment percentage from 30 to 35 percent with effect from 25 April 2006.

Rating agency Moody's has downgraded the insurer financial strength rating of Wellington's Syndicate 2020 from A1 to A2.

The positive first quarter for Bermudian (re)insurers continued when RenaissanceRe posted a record net operating income of $195.7mn, or $2.73 per share, up from $54.5mn, or $0.76 per share last year.

Canadian combine Fairfax Financial Holdings reported first quarter earning of $172.1mn, or $9.47 per share, up from $35.2mn, or $2.03 a share for the prior year period.