May 2007/2

RITC Syndicate Management, the Lloyd’s start-up syndicate headed by former Markel Intl chief executive Nigel Rogers, has yet to do its first transaction but has nevertheless brought fresh capacity to the sector.

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

Ever since 14 October 2004 – the date New York attorney general Eliot Spitzer stunned the industry with his complaint against MMC - Willis Corp has attempted to distancing itself from the furore over contingent commissions.

Reinsurers were given cheer – and some guidance – in the UK High Court regarding “follow the settlement” clauses.

Benfield Group’s expansion into primary lines is continuing to provoke concerns about the reinsurance broker’s prospects.

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.

Lloyd’s insurer Managing Agency Partners Ltd (MAP) announced last month that its founder David Shipley would be stepping down from Syndicate 2791 at the end of the year with his colleagues Richard Trubshaw and Aidan Kong becoming the named and deputy unde

Strong earnings but falling top-line figures were the dominant features of first quarter results from Bermuda’s public (re)insurers as pipeline profits from the end of the hard market were countered by growing signs of softening underwriting conditions.

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.

The (re)insurance industry is set for a surge in mergers and acquisition (M&A) activity as cash-rich companies look for scale and diversification in the face of a softening market and rating agency pressures.