October 2003/3

It seems that legislation to bring in an asbestos trust fund to compensate victims and end expensive lawsuits will stay log-jammed in the Senate after insurers refused to compromise on the contributions they would have to make.

Ratings agency Standard & Poor’s has responded to criticism of its recent reinsurer downgrades, explaining that poor long-term profitability, and not just a lack of capital adequacy, was the catalyst for its actions.

Benfield announced this week the creation of a terrorism reinsurance facility for all private insurers of property risks within the Swiss insurance market.

$550mn start-up hit by breach of contract ruling The Quanta start-up story took a new turn last month when it emerged that Thomas F. Taylor, a former CNA executive vice president of property and liability, who was to head up the E&O operation at Quant

Despite disapproval from the South African government, US class action lawyer Ed Fagan is threatening a $100bn suit against Alexander Forbes and a host of other companies because of their alleged mistreatment of over 10,000 employees during the apartheid

US giant Hartford Financial Services Group said this week that it would miss analysts’ earnings forecasts because of higher than expected exposures to Hurricane Isabel and high litigation costs.

California Insurance Commissioner John Garamendi wasted no time last week in getting Governor-Elect Arnold Schwarzenegger on side in his quest for workers’ compensation reform.

As another Republican stepped in to try and rescue stalling asbestos reform, ratings agency AM Best released a report estimating that US property/casualty reserves still fall short by nearly 40 percent.

Beleaguered Lloyd’s insurer GoshawK was dealt another blow last week as ratings agency Standard & Poor’s followed Moody’s and downgraded Syndicate 102 by another notch, questioning its ability to trade forward into 2004.

Financial Institutions professional liability, a sector that has been decimated with higher than expected claims and coverage disputes in recent years, is to receive a new policy wordings form, courtesy of the Lloyd’s Market Association (LMA).

CNA Financial Corporation became the latest insurance Group to exit reinsurance last week when revealing that it has sold the renewal rights, together with much of its under-performing reinsurance book, to Folksamerica Reinsurance Company, a unit of Bermu

Another spat between France and the US hit the headlines last week when it emerged that the French Justice Ministry had denied requests to extradite four Crédit Lyonnais executives in connection with the long running Executive Life dispute.

As the multi billion dollar one-event-or-two 9/11 dispute rumbles on, the clamour for an out-of-court settlement grew last week, with World Trade Center (WTC) leaseholder Larry Silverstein admitting he may be prepared to reopen talks with insurers.

Things went from bad to worse for GoshawK last week when ratings agency Moody’s downgraded Syndicate 102’s performance rating and delivered a downbeat assessment of its future prospects.

Credit Lyonnais chairman resigns over Executive Life scandal Jean Peyrelevade, the chairman of French banking Group Credit Lyonnais, has resigned following the Executive Life Insurance Company scandal.

Claims management and outsourcing firm Xchanging unveiled a new way of dealing with claims last week when it opened its Claims Office of the Future on the sixth floor of the Lloyds building.

The expansive insurance group Brit announced this week that it has acquired renewal rights to the property insurance portfolio of Creechurch Underwriting, the small Lloyd’s insurer.

In the week that CNA announced the exit of its under-performing reinsurance business CNA Re, its former head Bill Adamson is promoted to replace Peter Scanlan as the head of RK Carvill’s US arm, Carvill America Inc.

Reinsurance spin-off Aspen Re has appointed bankers Credit Suisse First Boston and Goldman Sachs to advise on a possible $1bn+ US listing, according to sources.

German insurance companies are set to enjoy substantial tax breaks, the German finance ministry has confirmed.

Californian firm Risk Management Solutions (RMS) announced that it has undertaken risk analysis for a bond covering football’s global governing body FIFA for cancellation of its 2006 World Cup in Germany.

White Mountains is reportedly preparing to scale up its presence in Bermuda, with plans to shift as many as four of its subsidiaries to the island.

Connecticut based insurer WR Berkley filed last Friday to sell up to $750mn in debt securities, common and preferred stock and other securities.

As toxic mold, leaded paint and other liability nasties vie for the crown of “the next asbestos”, a new challenger has entered the fray – toxic-chemical exposure in the high tech electronics industry.

MBIA, RenaissanceRe, Koch Financial and PartnerRe announced last week that they were preparing to create a new Bermuda-based financial guaranty reinsurance company.

European multinationals could access more favourable terms and conditions on their property insurance if they shopped beyond their domestic market, according to a report published last week by broker Aon.

Swiss reinsurer Converium has unveiled a new organisational and financial reporting structure, together with a management shake-up.

Royal & Sun Alliance will be hoping for a quiet few days after last week’s double whammy of PR hits.

American International Group (AIG) announced last week that it had agreed to buy a 9.9 percent stake of Chinese insurer PICC Property & Casualty for between $200mn and $300mn.

Embattled insurer Royal & Sun Alliance (R&SA) is to withdraw from writing offshore energy business Insider Week can reveal.