November 2004/5

The mooted takeover of GoshawK, the UK listed owner of Rosemont Re, has been ruled out by Nikko, the Japanese private equity firm which was given a deadline of 23 November to make firm its declaration of interest.

The beleaguered broking giant MMC took further steps to improve its corporate governance rating by firing five senior executives from its board of directors last week.

A heady cocktail of collusion, doctored documents and “implausible” testimony has come to light after judgement was handed down last week in a fraud dispute between German reinsurer R+V and former Lloyd’s managing agency Risk.

Although the New York attorney general set the wheels in motion, last week provided ample evidence that many other US regulators are proving equally zealous in probing the insurance industry for apparent defects.

Leading brokers could see up to a quarter of their bottom line earnings eroded as a result of abandoning contingency commissions, according to a survey by investment banking and financial consulting outfit WFG Capital Advisors.

Companies subpoenaed but ratings agencies and observers divided over impact of latest regulatory probe

Hurricanes, unresolved WTC losses, unreliable catastrophe modelling, PSAs: these are just some of the challenges faced by the global insurance industry for 2005 according to XL chief executive of Insurance Operations Clive Tobin.

Zurich Financial Services (ZFS) shrugged off the impact of the most severe hurricane season in memory to post net income of $1.902bn for the first nine months of 2004 – a 35 percent increase over the same period last year.

Run-off specialist Helix UK Ltd has been appointed to administer the London Market portfolio of Legion Insurance Company, the programme manager and insurer which collapsed last year following the demise of its parent Mutual Risk Management.

The verdict on the latest round of WTC insurance litigation is still hanging in the balance, as Insider Week goes to press.

PXRE’s Bermudian reinsurance arm PXRE Reinsurance Ltd will have an additional $83mn of capital to support its 2005 underwriting following the group’s successful fund raising.

US property casualty giant The Hartford announced last Thursday (18 November) that it has bought a $247.5mn cat bond from Cayman Island reinsurance company Foundation Re “to enhance its ability to manage risk related to large natural catastrophes”.