May 2007/2

Shareholders in Alea Group Holdings (Bermuda) Ltd will vote on an increased offer from Fortress Investment Group (FIN) next Monday (21 May) of 96.5p a share as the reinsurer's suitor attempts to fend off a rival bid.

The industry’s thirst for alternative reinsurance capacity continues to grow with the $120mn issue of notes under a $500mn shelf programme providing Swiss Re with retrocession cover for Japanese typhoons.

Smaller shareholders in Alea Group Holdings (Bermuda) Ltd may have got their wish with the news that the failed reinsurer has received an approach that might lead to a higher offer than the 93p a share offered by Fortress Investment Group (FIN).

Bermudian start-up Ironshore Insurance Ltd has taken its first step to a US presence after being approved to write property and catastrophe insurance on an excess and surplus basis in South Carolina.

Bermudian (re)insurer Validus Holdings Ltd has agreed terms for its acquisition of Lloyd’s based Talbot Underwriting Holdings, as predicted by The Insurance Insider.

RenaissanceRe is set to launch a second Starbound Florida-dedicated sidecar as evidence emerges that the impact of the state's hurricane catastrophe fund expansion earlier this year may be less severe than first feared.

Our monthly column keeping check on US and EU legal and regulatory developments, in association with Sidley Austin LLP

Faced with falling rates, insurers are increasingly looking to capture control of their distribution by buying brokers and agencies. But, with competition from other acquisitive brokers and hungry private equity investors, all this is doing is chasing up

Munich Re continued the trend for (re)insurers to buy brokers and agents to increase control over distribution with its acquisition of UK intermediary Bell & Clements Group this month.

US-based brokers Arthur J Gallagher & Co (AJG) and Hilb Rogal & Hobbs (HRH) disappointed analysts with first quarter profits down on expectations last month as the top line suffered from the impact of declining insurance rates.

First quarter results from the big three brokers met with a mixed response, as Aon and Willis found favour for growing revenues and profits, while Marsh & McLennan Companies, Inc (MMC) traded down on sluggish results.

It was a long time coming, but Brit Insurance finally confirmed the sale of a controlling stake in its electronic trading platform RI3K to a consortium including ICAP founder Michael Spencer, and hedge fund giant Eton Park LLP.