November 2003/2

MMC Group’s embattled fund company Putnam Investments saw the desertion of more of its clients last week following allegations of irregular trading.

Former Morgan Stanley analyst Alice Schroeder has called for underwriters to take more responsibility for their actions and for a return to sound principles of underwriting to mitigate the effects of the cyclical market.

Insurer St Paul Companies Inc reported Q3 earnings per share of 95 cents up on 52 cents for the same period in 2002.

Bermudian insurer Allied World Assurance Holdings revealed its annual gross written premiums have breached the $1bn barrier in its second year of trading.

The share price of Lloyd’s insurer Wellington Underwriting is undervalued by at least 20 percent because it fails to take account of the imminent Aspen IPO, claims London stockbrokers Altium Capital.

Despite the clement underwriting conditions, Canadian insurance combine Fairfax Financial Holdings returned to loss in the third quarter after failing to realise any meaningful investment gains.

Bermudian (re)insurer XL Capital announced stronger than expected operating earnings on the back of underwriting results that beat previous projections.

Chubb Corp posted a Q3 profit last week, reversing last year’s loss for the same quarter driven by asbestos reserve strengthening.

Bermudian giant ACE has announced a solid set of third quarter results, returning earnings per share (EPS) of $1.04, almost double the same period last year and topping analysts’ projections by 2 cents.

Catlin looks set to continue the trend for preferring London to New York for insurance IPOs, according to sources.

PICC raises $693mn in IPO PICC Property and Casualty Co Ltd, China’s largest property insurer, successfully raised $693mn in a Hong Kong IPO last week.

Montpelier Re unveiled more impressive results last week – its combined ratio for the first nine months of 2003 is averaging below 50 percent – but revealed that it has seen a slowdown in writing Lloyd’s qualifying quota share reinsurance.