November 2005/3

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...

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...

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.

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...

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...

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...

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...

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...

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...

Broking group Integro has appointed Frank Kinnett to head its new office in Atlanta. The new office will concentrate on building new business in the southeastern US with Kinnett being joined by Quill Healey as senior advisor.

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...