November 2003/5

Standard & Poor’s negative stance on the reinsurance industry was confirmed last week at the ratings agency’s European Insurance Seminar, held at London’s Gibson Hall on 20 November.

The “for sale” sign hoisted above GoshawK has been taken down, as the insurer revealed it has concluded the strategic review which began in July.

AM Best has downgraded the financial strength rating of Paris-based reinsurer AXA Re and its subsidiaries from “A” (excellent) to “A-“ (excellent) with a stable outlook.

Lloyd’s insurer Wellington has expanded its US operations with the recruitment of a ten strong accident and health underwriting team from Reinsurance Management Group.

London securities house Collins Stewart Tullett has confirmed that one of its US employees was arrested by the FBI last week on suspicion of currency fraud.

There will be no significant insurance losses as a result of the terrorist attacks on the British Consulate and HSBC offices in Istanbul, Lloyd’s announced last week.

Lloyd’s insurer Amlin plc has revealed that the 9 months claims ratio is even lower for 2003 than last year – indicating a minimum of two years of strong underwriting returns.

Bermudian reinsurer Everest Re has announced dividends of nine cents per share. The dividend will be paid on or before 19 December to all shareholders of record as of November 26, 2003.

Acrimony between reinsurers and rating agencies flared again last week when embattled French reinsurer SCOR commented that its latest downgrade by Fitch Rating was “unfounded, ill-timed and causes serious damage to the Company”.

The steep rise in directors and officers insurance is forcing UK companies to seek alternative cover, according to a survey from the Association of Insurance and Risk Managers (AIRMIC).

The multibillion dollar coverage dispute between World Trade Center leaseholder Larry Silverstein and the building’s insurers is set for a 9 February 2004 trial date.

Travelers Property Casualty Corporation became the latest insurer to announce positive news regarding a section of asbestos claims relating to statutory direct actions.