October 2006/3

But dollar fluctuations continue to deliver mixed results to bottom line figures

With aviation renewals in full swing recent entrants to the market have pushed available capacity up to unprecedented levels, according to Steve Doyle, the manager of Aon’s Aviation and Aerospace Global Practice Group.

Up to $500mn of retrocessional capacity will be withdrawn from the market following the completion of Swiss Re’s acquisition of GE Insurance Solutions earlier this year.

Paris-based investment bank Calyon has completed a $63mn securitisation, Pinnacle, once again demonstrating the industry’s growing enthusiasm to sell-on risk to the capital markets.

Broker announces further restructuring with 750 job cull Marsh & McLennan Inc (MMC) revealed on 19 September that it is mulling the sale of its Putnam Investments subsidiary.

Price Forbes Ltd, the London-based international wholesale operation owned by Marsh & McLennan Companies Inc, has been spun-out of the broking giant via a management buy-out, The Insurance Insider revealed on 21 September.

Lloyd’s insurers Hiscox plc and Omega Underwriting Holdings plc both revealed last month that they are to redomicile to Bermuda, sparking speculation that other players such as Wellington Underwriting plc may be preparing to make a similar move.

Energy underwriters face further pain out of last year’s devastating KRW hurricanes with at least $1bn of additional pipeline losses still to come through.

The Financial Services Authority’s (FSA) decision to look more closely at brokers’ commission disclosure has been broadly welcomed by the London 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.

London’s role as an epicentre for international (re)insurance business has been threatened by a number of jurisdictions over the years – not least the seemingly inexorable rise of Bermuda and, closer to home, the emergence of Dublin.

Provisional liquidator Grant Thornton last month announced creditor approval for its proposed UIC Insurance Company Limited scheme of arrangement that looks set to boast the rare distinction of paying out more than 100p in the £1.