November 2007/2

Non-life insurers should escape the global credit crunch but not contagion from economic stagnation or recession, according to the latest research from Morgan Stanley.

Swiss Re shares were trading down this morning after the reinsurer announced a SFr1.2bn (£524mn) hit - SFr981mn after tax - on two credit default swaps linked to mortgage backed securities.

Former QBE Limit underwriter Mark Harrington is to head a new Lloyd’s composite syndicate with an expected capacity of £75mn for the 2008 year, The Insurance Insider can reveal.

Steve Taylor, business development officer for Gallagher Re, is leaving the reinsurance broker to join one of its clients, WR Berkley Corporation.

Aon Natural Resources London chairman Tim Fillingham and ex-Navigators UK and Europe CEO David Hope are to set up a new insurance company focusing on energy and commercial property lines.

Lloyd’s managing agent Beazley is to continue the market trend for share buybacks after announcing the repurchase of £30mn, representing around 5 percent of the company’s issued share capital.

Bermudian reinsurer XL Capital is set to renew a slimmed down version of its Cyrus Re sidecar with $105mn in capital from three tranches of loans.

Growth in its life business was the driving force behind a 25 percent rise in profits at Swiss insurance giant, Zurich Financial Services Group (ZFS), it reported today (15 November).

SCOR has booked net profits of EUR299mn for the year-to-date, up 93 percent on the prior-year period, along with top line growth boosted by the acquisition of Converium and Revios.

Lloyd's insurer Amlin plc will return £120mn of capital to its shareholders due to its “financially robust position following a number of years of strong financial performance”.

American Financial Group, Inc. (AFG) is to become a significant capital provider to the Lloyd’s insurer Marketform Group Ltd, and its Syndicate 2468 in 2008, The Insurance Insider can reveal.

Run-off insurer Highlands Insurance Company (UK) Ltd went into insolvent administration at the High Court on 1 November.