May 2007/4

Bermudian giant ACE Ltd has made a $9mn settlement in Pennsylvania over its underwriting practices and contingent commissions.

As The Hartford Financial Services Group (Hartford) celebrated "the best year in The Hartford’s history" in 2006, CEO Ramani Ayer was in bullish mood about prospects for 2007, predicting opportunities to grow its businesses.

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

BP Marsh & Partners plc, the London-based investor in specialist insurance and other financial services, has taken part in a £5.5mn rights issue of Hyperion Insurance Group Limited.

Rating agency Moody’s Investors Service reacted positively to Dutch bancassurer ING Group’s announcement of a proposed EUR5bn share buyback, affirming all the ratings of the group last week.

Terrorism is still at the top of the agenda for many global business leaders, who cite conflict and instability as issues which stop them from investing overseas.

Reinsurance broker, Aon Re Global (Aon Re) has predicted a slight oversupply of worldwide property reinsurance capacity ahead of the 1 June and 1 July renewal season.

Bank of America Corp has said it is considering the sale of its brokerage business, Banc of America Corporate Insurance Agency LLC.

Catastrophe modelling firm Risk Management Solutions (RMS) has withdrawn its short-term, five-year Florida hurricane model after state officials said it did not meet the necessary standards.

Fast growing broker Lockton is launching a Bermudian office as it continues to build its global presence.

Validus Holdings Ltd agreed terms for its acquisition of Talbot Underwriting Holdings last week, a move that could trigger a wave of mergers and acquisition (M&A) activity between Bermudian (re)insurers and their Lloyd's counterparts.

Shares in Aon Corporation were up last week amid rumours the broking giant may be the target for a leveraged buyout as private equity interest in the sector continues to grow.