May 2007/2

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

European giant Allianz has launched a UK High Court counterclaim against the North Korean state insurer over a controversial EUR45mn reinsurance dispute.

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.

AXIS Capital Holdings Ltd (AXIS) announced strong results for the first quarter 2007, citing new reinsurance business in the US and Europe as the main driver.

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.

Following a difficult courtship, SCOR has finally agreed takeover terms with Converium after increasing its offer for its Swiss rival in a SFr3.4bn ($2.8bn) transaction that will create a top five global reinsurer.

The latest developments in the international (re)insurance market

In a further sign of dramatically changed supply conditions in the retro market, rates for Industry Loss Warranties (ILWs) have slumped 30 percent since 1 January 2007, according to Montpelier Re chairman and CEO Tony Taylor.

American Wholesale Insurance Group (AmWINS) is in advanced talks to take control of London market broker Besso Group and become the latest US broker to acquire a foothold in London, The Insurance Insider understands.

Former Endurance Specialty Holdings Ltd executive David Cabral has teamed up with US excess and surplus (E&S) lines insurer Rockhill Holding Company in seeking approval to launch a Lloyd’s casualty syndicate, The Insurance Insider can reveal.