November 2005/3

Shares have been suspended in Swiss Re this morning (18 November) ahead of an 11am GMT press conference where it is expected the reinsurance giant will announce its intention to buy the (re)insurance operations of US conglomerate General Electric (GE).

As predicted by The Insurance Insider this morning, US conglomerate General Electric (GE) has reached an agreement to sell the majority of its (re)insurance operations to Swiss Re in a deal worth $8.5bn in securities, cash and the assumption of debt.

US conglomerate General Electric is close to finalising a deal to cut loose its (re)insurance operations, according to sources. Although the company declined to comment, The Insurance Insider understands GE is preparing an imminent announcement of...

US politicians offered some succour to the (re)insurance industry yesterday (15 November) with the news that an agreement had been reached on a bill to extend the Terrorism Risk Insurance Act (TRIA) for a further two years – albeit under less favourable..

Greenlight Re will become the twelfth new reinsurance start-up since Hurricane Katrina after being announced by Greenlight Capital boss, David Einhorn, at a New York conference on Tuesday (15 November). The new company has already received a license...

As revealed in Insider Week this Monday (14 November), Bermudian start-up Flagstone Re will be headed up by former Centre Re CEO David Brown, who will be chief executive of the new operation.

The burden from this year's US storms will push quoted Lloyd's insurer Wellington Underwriting plc into a underwriting loss for the year, the company revealed this morning.

Dublin-headquartered Cologne Reinsurance Ltd had its financial strength rating downgraded to A- from A++ by AM Best on 7 November. The ratings agency also downgraded the reinsurers credit rating to a- from aa+ and the firm remains under review with...

Lloyd’s and Willis both received the go-ahead last week to extend their business interests in China. On 9 November Lloyd’s was granted a licence for onshore reinsurance. Chinese President Hu Jinta made the announcement while on last week’s state...

Run-off vehicle Equitas could face a worst-case scenario where it was under-capitalised by £500mn warned rating agency Standard & Poor’s (S&P). And the fear of that possibility remains one of the biggest threats to Lloyd’s A rating, which is...

Profits for the first nine months of 2005 were up to £378mn at Royal & Sun Alliance (R&SA), a rise of £370mn from the same period last year. The figures included a boost of £126mn from changes to a UK pension scheme and were backed up by an...

Despite announcing third quarter net profits up 69.7 percent to EUR794mn on the prior-year period, German insurance giant Allianz is reportedly still preparing to slash thousands of jobs, as the company continues to restructure its operations.

Hurricane hit Bermudian reinsurer PXRE Group has bought $300mnn of reinsurance protection via a catastrophe bond following the third quarter storms. The cover will protect the reinsurer from extreme catastrophe losses arising from hurricanes in the...

Ratings agency Fitch has joined rival AM Best in downgrading Bermudian reinsurers Montpelier Re and PXRE as a result of the recent US hurricanes. Montpelier Re’s financial strength rating was downgraded by two notches from A- to BBB on 3 November...

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. There was concern among some investors that Brit might reduce...

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. Earnings were hit by current loss estimates of $2.99bn from hurricanes...

Omega Underwriting Holdings plc is the latest Lloyd’s insurer to both raise money through a placing and unveil plans to form a Bermudian platform following the trio of hurricanes that raged this autumn. As predicted by Insider Week last Monday...

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. As first revealed by Insider Week last Monday, Hiscox will become the...

Capital raising would appear to have been the easy part for Bermuda’s Class of 2005, as the island’s newest entrants are confronted with the dual challenges of staffing and housing start-up operations. However, despite Bermuda’s incumbent players...

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. The company explained that the discovery would delay the filing of its Form 10-Q...

Risk management company Insurance Services Office’s Property Claims Service has announced that insurers have paid an all-time record of $40.bn on property claims during the third quarter of 2005 after seven natural catastrophes.

The former finance director of collapsed Australian insurer HIH was charged last month with the criminal offence of falsely authorising a prospectus with a material omission. Dominic Fodera – who faces six criminal charges under the Corporation Act...

Broker Benfield announced last week (8 November) the recruitment of an eight-strong energy casualty team to its recently established primary brokerage operation Benfield Corporate Risk, putting it in a position to respond to likely increased demand in...

Talanx is reported to have trumped the aggressive US buy-out firm Cerberus Capital Management for the prize of fellow German insurer Gerling Group. Talanx – which is reducing its majority stake in reinsurer Hannover Re – has not revealed terms of...