May 2008/2

Profits at specialty insurance group Markel Corporation shrank by 66 percent after the firm was hit by a $56.3mn loss in its investment portfolio.

Standard & Poor's (S&P) has improved the outlook on Montpelier Re Holdings Ltd (MRH) and its core operating subsidiary Montpelier Reinsurance Ltd (MRE) from negative to stable citing "meaningful" improvements in enterprise risk management (ERM).

First quarter profits fell at US insurer HCC Insurance Holdings Inc following losses in its investment portfolio.

Max Capital Group Ltd revealed net income slumped $72.3mn compared to the prior-year period, which has been attributed to losses on investments.

Rating agency AM Best has downgraded Lehman Brothers subsidiary Lehman Re because it has been under-utilised.

Monoline bond insurer MBIA Inc is suing two insurers over a $75mn settlement it made with US regulators last year.

The continuing saga of QBE Insurance's merger approaches to Insurance Australia Group (IAG) is beginning to take on the appearance of an Australian soap opera as twists and plot developments play out through the Australian Stock Exchange.

Embattled bond insurer FGIC Corp said it has received a "significant number of indications of interest" since revealing that it was looking for a fresh capital injection.

Monoline bond insurers Security Capital Assurance (SCA) and Assured Guaranty Ltd (AGL) both reported further losses in the first quarter of 2008.

As RSA announced a 15 percent rise in group net written premiums to £1.7bn in the first quarter of 2008, compared to the prior-year period, one analyst believes it is "likely" the group will be broken up.

Allianz Group's first quarter results have been hit by a EUR845mn writedown at subsidiary Dresdner Bank following "difficult market conditions".

French reinsurer SCOR saw Q1 profits rise by almost two-thirds to EUR124mn, compared to the prior-year period, after solid growth in Asia and the US.