October 2006/4

Berkshire Hathaway chairman Warren Buffett has warned his senior managers against using “accounting gimmicks” to manipulate stock options in a memo.

Rating agency AM Best is to assess the “tail risk” attached to sidecar operations that are inadequately capitalised.

Benfield Group’s unexpected profits warning today (16 October) is likely to focus attention on the firm’s new Corporate Risk division which has found the going tougher than expected.

Giant reinsurer Swiss Re has agreed to acquire General Electric’s GE Life businesses for £465mn, it announced on 13 October. Swiss Re said the transaction would provide further scale and infrastructure for Swiss Re’s Admin Re business in the United Kingd

Swiss reinsurer Converium received approval from the Malaysian regulator on 10 October to write retakaful reinsurance through its local office.

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.

The Salvage Arbitration branch of Lloyd’s Agency Department has appointed John Reeder QC as its appeal arbitrator.

AXA Group announced today (16 October) that it had agreed to acquire Greek insurer Alpha Insurance for EUR225mn.

Royal & Sun Alliance Insurance Group plc revealed a group restructuring last week to reflect the focus of the company into its UK, International and emerging markets.

Moody’s Investors Service became the latest rating agency to upgrade French (re)insurer SCOR to the all-important “A” territory on 13 October.

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.

South African financial services company Alexander Forbes said it expects earnings per share for the first half of the year to be down by 25-35 percent because of a number of exceptional costs...