October 2006/5

Max Re announced today (30 October) that its founding chief executive Bob Cooney has resigned from the Bermudian (re)insurer after the company revealed it had reopened investigations into two finite reinsurance deals.

The largest Lloyd’s insurer is set to be created following the agreed takeover terms of Wellington Underwriting plc by Catlin Group Ltd, The Insurance Insider can reveal.

Lloyd’s CEO Richard Ward has told the market he wants to see all claims transacted electronically by the end of next year.

Willis became the latest of the international brokers to announce job losses as part of an efficiency drive with confirmation by the company yesterday that it would cut 400 positions.

World number three broker Willis Group Holdings Limited reported last night (25 October) net income of $89mn or $0.56 a share for the third quarter 2006, doubling the $45mn or $0.28 a share booked in the prior-year period.

Bermudian-headquartered (re)insurer Aspen Insurance Holdings Ltd reported net third quarter profit of $95mn, or $0.94 per share, on 25 October.

IPC Holdings joined its fellow Bermudian reinsurers by bouncing back from last year’s record third quarter losses and posting a profit this year, it reported on 24 October.

Despite both comfortably outpacing earnings projections, Bermudian rivals ACE Limited and XL Capital met with very different responses from analysts at Morgan Stanley as they released third quarter results overnight.

Canopius has bought fellow Lloyd’s insurer Creechurch Underwriting Ltd in a deal that will create a £450mn capacity syndicate next year, The Insurance Insider can reveal.

Lloyd’s insurer Wellington plc has confirmed it is in takeover talks with rival Catlin Group Ltd.

The UK run-off company Axiom Consulting has put itself up for sale, our sister title The Insurance Insider revealed last week (19 October).

Broker Howden has today (23 October) announced the launch of a special risks global wholesale broking arm for small and medium sized brokers.

Fairfax Financial Holdings controlled reinsurer Odyssey Re restated its results for the past five years on 16 October, correcting accounting errors relating to its investments.

Specialist insurer Hardy Underwriting Group plc received approval from Lloyd’s for its new Syndicate 3820 on 19 October.

Listed broker Jardine Lloyd Thompson Group plc has beaten off fierce competition to win the contract as insurance construction partner for the London Olympics in 2012.

Rating agency Fitch last week provided an update to its unsolicited Q-IFS ratings for German insurers that sparked controversy ahead of their launch last year.

Few of the 34,000 Lloyd’s Names who reinsured themselves into Equitas in 1996 probably thought it would happen, but it is now possible they will receive a small windfall following Friday’s (20 October) transaction with Berkshire Hathaway.

Ratings agencies have responded positively to Converium’s $295mn sale of its US operations to National Indemnity on 17 October.

Recently, AM Best appears to be singing from a different song sheet to that of the other rating agencies.

The London market’s pool of (re)insurance talent is unmatched anywhere in the world according to Jacques Aigrain, CEO of Swiss Re.

Standard & Poor’s (S&P) was the first rating agency to respond to news of the proposed reinsurance deal between Equitas and Berkshire Hathaway by signaling the possibility of an upgrade in Lloyd’s financial strength rating.

Friday’s (20 October) landmark $7bn deal between Equitas and Berkshire Hathaway lays a framework for reinsured Names and Lloyd’s to achieve finality for pre-1993 liabilities and, if completed, nearly doubles the assets available to the run-off vehicle.

US-headquartered Arthur J Gallagher & Co announced last week (19 October) that Patrick Gallagher Jr will add the post of chairman of the board to his current responsibilities as president and CEO of the broker.

The insurance industry must make attracting and retaining young talent one of its highest priorities, according to Marsh.

Mike Walker has replaced Tony McMahon as head of KPMG’s Restructuring Insurance Solutions Practice.

Novae Group plc’s Lloyd’s platform today announced it will merge its Syndicates 1007 and 2147 for the 2007 year of account.

Reliance National Insurance received High Court approval for its solvent scheme of arrangement last Friday (20 October) as the proposal passed unopposed.

Colemont Insurance Brokers Ltd - the recently formed London arm of US wholesaler Colemont Corporation – announced on 17 October that it had appointed Andrew Hinds as managing director of its treaty reinsurance division.

Elliot Richardson, the new head of Aon’s facultative reinsurance division, was tempted away from rival Benfield Group by a bumper remuneration package of up to £1mn, according to market sources.

The decision of the US Court of Appeals on 18 October to deem the 9/11 terrorist attacks on the Twin Towers as one event has left both sides claiming victory.

Chaucer Insurance Holdings plc is in talks to launch a new Lloyd’s syndicate with the former QBE Limit underwriter, Mark Harrington.

Bermudian-headquartered Endurance Specialty Holdings is pulling out of the offshore energy market and parting company with Paul Upton, who ran the business out of its London subsidiary, our sister title The Insurance Insider revealed last week (17 October

The first senior Lloyd’s executive to leave under the new regime of Richard Ward is Steve Quiddington, the Corporation’s former director of Operations.

Listed insurer Hiscox is awaiting Lloyd’s approval for its planned Bermudian sidecar, which, Insider Week can reveal, will be called Panther Re.

Independent broker BMS Group has appointed ex-banker Alexander Johnston as its non-executive chairman.