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November 2005/2

  • Shares in Royal & Sun Alliance (R&SA) rose today after the firm received a welcome boost from analysts ahead of its third quarter results later this week. A note from Numis upgraded the outlook on R&SA shares from ‘HOLD’ to ‘ADD’ and increased its...
  • UK insurer Brit Insurance Holdings plc has reiterated its determination to pay a full dividend this year despite now estimating a £182.5mn bill from hurricanes Katrina, Rita and Wilma.
  • Quanta Capital Holdings – a Bermudian headquartered (re)insurer established in 2003 – is believed to have lost two senior executives to the post-Katrina start-ups that are being formed on the island.
  • Industry veteran Don Kramer has again chosen Shakespearian inspiration for the name of his $750mn+ Bermudian start-up reinsurer.
  • Hurricane hit Bermudian reinsurer PXRE Group has bought $300mnn of reinsurance protection via a catastrophe bond following the third quarter storms.
  • Willis has announced a second offering for the sale of 6.1 million shares currently held by Kohlberg Kravis Roberts (KKR) and Fisher Capital.
  • Omega Underwriting Holdings plc is the latest Lloyd's insurer to unveil a rights issue and plans to form a Bermudian platform to access short-tail catastrophe business following the trio of hurricanes that raged this autumn.
  • American International Group (AIG) is to restate its financials for the second time this year after finding an additional £500mn of income through accounting errors.
  • Berkshire Hathaway announced its third quarter net earnings were $586mn, or $381 a share, down 48.5 percent from the $1.14bn, or $739 a share, for the same period in 2004.
  • Lloyd's insurer Hiscox plc has announced a £170mn rights issue and the formation of a $500mn capitalised Bermudian (re)insurer to exploit the post-storms rating environment.
  • Talanx is reported to have trumped the aggressive US buy-out firm Cerberus Capital Management for the prize of fellow German insurer Gerling Group.
  • It was a mixed bag as the big three global brokers announced their third-quarter results last week.
  • Swiss reinsurer Converium will delay its third quarter results because it is restating its financial accounts after an internal review.
  • Three Lloyd’s insurers all expected to announce post-Katrina fund raising initiatives updated their third quarter storm loss estimates last week, in moves widely seen as “deck-clearing” exercises.
  • Lloyd’s have appointed the executive headhunter firms Russell Reynolds and Spencer Stuart to advise them on their search to replace the departing Nick Prettejohn.
  • SVB’s chief executive Matthew Fosh welcomed the sale of its UK property underwriting agency Fusion to industry consolidator Towergate Underwriting Ltd last week.
  • Former Lloyd’s underwriter Richard Brindle is to set up a new Bermudian (re)insurer to target the post hurricanes rating environment.
  • Gallagher Re has swooped for former Guy Carpenter managing director John Pagliaccio to head up its Global Analytics team in the US.
  • Stricken (re)insurer Alea Group Holdings more than doubled its hurricane Katrina loss estimates and warned shareholders that it is developing contingency plans for any businesses it cannot sell.
  • 2005 is the worst year on record for energy lines of insurance, according to Aon, but the broker says the market is strong enough to cope.
  • The run-off Lloyd’s insurer Euclidian is understood to have settled with aggrieved Names who purchased stop loss insurance from a mutual The Underwriting Members Mutual Club Limited (Integer) which it managed.
  • The world's largest reinsurer Munich Re said it was on course to meet its 12 percent return target for 2005 after reporting a third quarter profit of EUR513mn.
  • RenaissanceRe CEO and chairman James Stanard quit last week over the ongoing investigations into the troubled reinsurer’s earnings restatement – a move which triggered a wave of negative rating agency actions.
  • New Bermudian reinsurer New Castle Re has received its initial ratings, A- (Excellent) for financial strength and a- for issuer credit, from agency AM Best.