November 2004/6

Despite heavy losses from the devastating round of North Atlantic hurricanes and Japanese windstorms that swept through the third quarter this year, European and Bermudian reinsurers stood firm with balance sheets surviving largely unscathed, according to

Controversy refuses to die down as policyholders lobby for $4bn settlement Almost a year after Insider Week’s sister publication The Insurance Insider first reported an initial settlement (see December 2003), the interminable dispute over the 1991 tak

Questions have again been asked about the long-term viability of Canadian holding company Fairfax Holdings, this time in relation to its finite reinsurance arrangements.

AIG announced last week (23 November) that it has reached an $80mn preliminary settlement with the US Department of Justice (DOJ), and submitted a settlement offer to the Securities and Exchange Commission (SEC) that will see it pay $46mn into a disgorgem

Lloyd’s insurer Kiln has announced increased capacity for 2005 and stable or improving forecasts for open years for all four of its managed syndicates.

Lloyd’s insurer SVB announced updated forecasts for its Syndicates today (29 November) revealing further deterioration on the troubled 2002 year, which soaked up £8.1mn of the £103.6mn loss provision it set up at 30 June 2004 to contend with its discontin

The National Association of Insurance Commissioners will host a public hearing later this week to consider comments on its proposals to toughen up brokers’ disclosure requirements on commissions.

Willis plays aggressive independence card Willis Group, the global insurance broker tipped by many to benefit from the Spitzer fall-out, has been aggressively marketing itself as a non-conflicted alternative to the mega-brokers Marsh and Aon.

Lloyd’s insurer Amlin announced last Wednesday (24 November) that it has restructured its debt, raising $50mn in subordinated debt and signing a new £30mn ($57mn) 12-month term loan facility with Lloyd’s TSB, replacing its existing $90mn Letter of Credit

We document the latest developments in the regulatory investigations into broker remuneration practices, sparked by the New York attorney general’s 14 October complaint against MMC

World number two broker Aon predicts a cautious approach from P&I clubs to 2005 renewals as ongoing concerns over increased claims levels and indifferent investment returns impact negotiations.

Lloyd’s insurer Chaucer announced today (29 November) it had hired a new international binders underwriting team for the property division of its Syndicate 1084, with William Alderton at the helm.

The UK Financial Services Authority (FSA) has censured The Underwriter insurance company and fined its former CEO Keith Rutter £20,000 for circumventing FSA regulations in 2001 and 2002.

Jury deliberations into the second round of WTC insurance litigation will continue from Tuesday after the jury was unable to reach a verdict last week.

Mutual Risk Management, the Bermudian programme manager that blamed John Hancock Life Insurance Co for its downfall in 2002, can proceed in its action against the US life insurer.

The management of medium sized insurance broker SBJ Group Ltd has ended the group’s five years of independence by selling a majority stake in the company to the private equity firm Capital Z.

The removal of Jardine Lloyd Thompson Group’s chief executive Steve McGill following last Friday’s profits warning (26 November) will again focus attention on the insurance broker’s US expansion strategy.

Rating agency AM Best has assigned an initial financial strength rating of “A- (Excellent)” and an issuer credit rating of "a-" to Wellington Specialty Insurance Company, a newly formed US insurer that is part of the Wellington Group.