October 2006/2

Benfield Group has warned that trading profits are likely to be £10mn lower in 2006 than previously expected because of the loss of senior members of its facultative team to a rival firm.

Wellington Underwriting plc is "highly likely" to join its Lloyd's rivals Amlin plc, Hiscox plc and Omega Underwriting Holdings plc by opening a Bermudian operation by the end of the year, according to Numis Securities’ analyst Nick Johnson.

After building its underwriting business in France for more than a decade, Lloyd’s insurer Beazley Group plc opened its first French office, in Paris, on 3 October.

Aon Limited’s Risk Management Solutions (ARMS) division launched a Security Insurance offering on 6 October that will allow companies to fund major business initiatives while providing long-term financial security to third parties.

Leading brokers Marsh and Aon have highlighted the rapidly softening UK public indemnity (PI) market.

A number of (re)insurers are growing significant reserve redundancies, potentially using them to support margins and returns as the market softens, according to research by analysts at Morgan Stanley.

Benign loss conditions contributed to the US property casualty industry recording an underwriting profit of $15.1bn for the first half of 2006, according to a report from rating agency AM Best.

Converium announced last week (3 October) it has agreed a collateral reduction on its letter of credit facility.

US giant American International Group (AIG) announced last week (2 October) that it had purchased Arch Insurance’s US Ocean Marine unit.

American International Group (AIG) is to turn over internal documents to Maurice “Hank” Greenberg after a judge ruled in favour of the US giant’s former chairman and CEO.

Willis Group Holdings has revealed that Don Bailey will replace Mario Vitale as CEO of Willis North America.

French insurer AXA Group announced last week (2 October) a series of managerial appointments in its Mediterranean and Japan Asia Pacific divisions as it paves the way for integration with recently acquired Winterthur.