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).

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

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.

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.

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.

Willis Group Holdings Ltd reported on the 3 May net income of $140mn, or $0.89 per share, for the first quarter of 2006, more than double the $67mn, or $0.41 per share, recorded in the prior-year period.

Despite unveiling hurricane losses of $3.4bn for last year, Berkshire Hathaway Inc said it remains committed to writing catastrophe (re)insurance.

Beazley Group plc's head of property Jonathan Gray has called for a back to basics approach to catastrophe underwriting last week, advising underwriters to rely more on their common sense and not to become slavishly dependent upon catastrophe models.

Despite the capital market's growing appetite to assume risk, traditional reinsurance cannot be beaten for speed of access, according to speakers at an Insurance Insider event last week.

The Armenian Airbus that crashed into the Black Sea on 3 May was insured in the London Market by Lloyd's MSF Pritchard Syndicate 318.

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

Arab Insurance Group (Arig) increased first quarter net profits by 31 percent to $8mn, up from $6.1mn from the prior-year period. The quarterly result represents an annualised return of 11.8 percent on average shareholders' equity.

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.

Bermudian (re)insurer AXIS Capital reported first quarter net income of $195.2mn, or $1.19 a share, up from $151.8mn, or $0.95 per share for the prior year period.

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.

MMC chief executive Michael Cherkasky pointed to the green shoots of recovery in his company's first quarter results on 3 May, but it was also apparent that the global brokers are still operating in a brutally tough trading environment.

Defunct Australian insurer HIH's has been ordered to pay indemnity costs to broker JLT Risk Solutions after its film finance action ended with its claim being dismissed.

AXIS Capital Holdings announced that David Greenfield will join the company as chief financial officer later this year.

Brit Insurance Holdings plc has announced a record-breaking five-year sponsorship deal with Surrey County Cricket Club and the Brit Insurance Oval.

Steve McGill, the head of Aon Corp's Global Large Corporate unit, has recruited a team of senior ex-Jardine Lloyd Thompson Group plc colleagues to join the broking giant, Insider Week can reveal.

Boston-based insurance giant Liberty Mutual Group engaged in kickbacks and bid-rigging to boost sales, according to lawsuits filed by the New York and Connecticut attorney generals last week.