May 2009/3

Paris Re has given a cautious welcome to price hardening in some of its core short-tail lines of business, but has again struck a notably less excitable tone than many in its global P&C (re)insurance peer group...

Insurance giant Allianz saw its net income for the first quarter of 2009 drop by EUR1.12bn to EUR29mn compared to Q1 2008, as write-downs almost doubled to EUR708mn and its property and casualty (P&C) business produced sluggish figures.

Laura Pendergest-Holt, the chief investment officer for Stanford Financial Group, has been indicted by a Houston federal grand jury on charges of obstruction of justice and conspiracy to obstruct justice.

Dermot O'Donohoe is set to join Torus on 1 September after resigning as chief underwriting officer of XL Insurance’s global specialty operations and CEO of its London market operations, The Insurance Insider can reveal.

Everest Re Group Ltd has become the latest Bermudian to establish a full European underwriting platform with the launch of a EUR200mn Irish subsidiary.

Guy Carpenter chairman Britt Newhouse is relocating to London as the reinsurance broker looks to bolster the management structure of its European operations, The Insurance Insider can reveal.

Florida's state-backed insurer Citizens Property Insurance Corporation has pulled its reinsurance spend from the private market for 2009 because of the increased cost of cover.

UK insurer RSA has raised £500mn of subordinated debt to bolster its financial flexibility ahead of any call on its existing EUR500mn subordinated guaranteed bonds.

Troubled US insurer The Hartford Financial Serviced Group has been given a much needed fillip with preliminary approval for a $3.4bn participation in the US Treasury's Capital Purchase Program (CPP).

Bahrain-based reinsurer Arig posted a first quarter net profit of $1.48mn, half the $2.96mn it posted for the first three months of 2008 but nevertheless a return to profit after it booked a full-year loss of $28.57mn last year.

With investor calls for peril diversification in insurance-linked securities (ILS), Munich Re's EUR100mn European windstorm and Turkish earthquake cat bond - Ianus - will be seen as a welcome move.

Lloyd's (re)insurers Brit and Amlin impressed with strong figures in interim management statements last week, supporting strong top line growth with bullish comments on pricing.

After a delayed entry to the power station insurance market, Sciemus had an active Q1 which saw it begin incepting risks through its managing general agency (MGA) on Inter Hannover paper.

Former Marsh & McLennan (MMC) president and CEO Michael Cherkasky has been named chairman of the New York State Commission of Public Integrity.

Validus Holdings has raised the stakes in its battle with Max Capital to acquire fellow Bermudian IPC Holdings by introducing a modest cash component of $3 a share to its offer.

Mark Butterworth, managing director of Ironshore-owned Lloyd's reinsurer Pembroke, has resigned from the company and is working his notice, a spokesperson for Syndicate 4000 confirmed.

Lloyd's has censured three members of Ark Syndicate Management's Accident and Health (A&H) underwriting team for "discreditable and detrimental conduct" following their move to Ark from Travelers' Lloyd's platform in 2007.

Montpelier Re Holdings Ltd will begin writing marine insurance business through its Lloyd's platform in August after hiring Mike Southgate from Swiss Re to spearhead the launch.

American International Group (AIG) is speeding up plans to reposition its Asian life insurance operations as an independent company that will include a multi-billion dollar initial public offering (IPO).

Following private equity firm Pamplona Capital Management's announcement last week that it would like to acquire a 29.9 percent stake in Lloyd’s insurer Chaucer Holdings, all eyes are on Brit Insurance...

XL boosts aviation team with Catlin hires; Arch CEO Iordanou takes on chairman role; Allianz Global in UK PI push; XL Insurance energy promotion; Cooper Gay bolsters EE energy business

The joint venture that acts as the clearing house for the London market, Xchanging Ins-sure Services (XIS), has appointed Richard Bucknall to succeed its current chairman, Sir Laurie Magnus.

Adrian Fox, the financial institutions (FI) specialist who resigned from Aspen Insurance Holdings in March, has re-emerged at HSBC Insurance Brokers.

Lancashire Holdings saw its first quarter revenues fall sharply as it said it was holding back capacity to take advantage of "improving opportunities".

A second Lehman Brothers-backed catastrophe bond is in default after issuer Ajax Re failed to repay principal at the 8 May redemption date, according to AM Best, which downgraded and withdrew its debt rating on the $100mn earthquake cat bond.

Bermuda was dealt a reprieve last week as US President Barack Obama left out of his $210bn tax revenue package proposals that would curb the ability of non-US insurers to cut tax bills by ceding US premiums to affiliated offshore reinsurers.

Newly founded Zurich-based Perils AG estimates the property insurance market loss for windstorm Klaus at EUR1.55bn.

Legacy UK (re)insurer Scottish Lion has applied to the Scottish Court of Session to sanction its proposed solvent scheme of arrangement after receiving "overwhelming support" from its creditors for the proposal...

After a recent surge, shares in Swiss Re took a volatile path last week as reports that the reinsurance giant was looking to undertake an equity issue at SFr32 compounded a stockbroker downgrade.

Great American Insurance has asked for a judge to decide the outcome of a $15mn claim from a directors' and officers' (D&O) insurance policy that relates to an ongoing dispute with American International Group...

Airmic (the association of insurance and risk managers) has published its own guidelines for commercial insurance buyers in their dealings with brokers, calling for automatic, mandatory disclosure...

UK-based engineering support services firm Babcock International Group plc is pioneering a £500mn longevity swap with Credit Suisse - the first in a series of transactions designed to hedge 45 percent of its £1.7bn defined pension liabilities.