September 2005/4

Embattled UK quoted reinsurer Alea Group Holdings (Bermuda) Ltd has cancelled a rescue fund raising plan following AM Best’s decision on 23 September to downgrade the firm’s financial strength rating from A- to B++.

The world's largest insurer AIG yesterday (20 September) released its estimated catastrophe losses for the third-quarter, primarily due to Hurricane Katrina, of around $1.1bn post-tax.

Three Japanese insurers will receive large cash settlements from Deloitte & Touche LLP because of the company’s auditing role in the collapse of controversial US aviation reinsurance company Fortress Re.

Standard & Poor’s (S&P) has downgraded its rating on Lloyd’s reinsurer Advent Underwriting following news that its losses from Hurricane Katrina are equivalent to 40 percent of its total capacity.

Margins up at Equitas On 12 September, Insider Week stated that Equitas’ insolvency margin had increased. This was incorrect. The opening paragraph of the story should have read: Equitas announced its annual results for the year ended 31 March 2005...

New York attorney general Eliot Spitzer has formally charged eight former Marsh & McLennan executives after an investigation into bid rigging and price fixing. William Gilman-executive marketing director and enforcer of Marsh’s placement service...

Lloyd’s-backed electronic data transfer platform Kinnect unveiled a double whammy last week in the form of the resignation of Toby Davies and Iain Saville as CEO and executive chairman respectively.

But hurricane season far from over... Hurricane Ophelia will create insured losses of no larger than $800mn, according to the latest estimates from catastrophe modelling firm AIR.

Industry legend Maurice “Hank” Greenberg gave his strongest hint yet that he plans to return following his ousting from insurance giant American International Group Inc in March. In an interview with Reuters last week, the 80-year old said...

As the reinsurance industry converged on Monte Carlo for the annual reinsurance Rendez-Vous last week, conversations seldom strayed far from Hurricane Katrina. But amidst the champagne and conjecture, there was a general consensus that rates would...

Berkshire Hathaway looks set to acquire Sompo Japan Insurance Inc’s run-off portfolio, Insider Week can reveal. According to sources, Berkshire Hathaway has trumped UK run-off acquisition specialists Ruxley Ventures who had tabled an alternative...

Morgan Stanley analyst William Wilt has advised investors to remain selective as new capital opportunities arise with (re)insurers in the wake of Hurricane Katrina. In a research note released on 13 September Wilt warned that “trading on reinsurers...