September 2006/3

Omega Underwriting Holdings Plc has become the second Lloyd’s (re)insurer in a week to confirm plans to redomicile to Bermuda and the first to confirm it has received clearance from the UK authorities.

Marsh & McLennan Companies (MMC) has announced its second major restructuring in less than two years with news that it plans to shed 750 jobs as part of cost-cutting measures that it says will produce savings of $350mn a year.

CV Starr, the managing agency ultimately controlled by former American International Group chief executive Maurice "Hank" Greenberg, revealed today (12 September) that it is forming a new Lloyd’s syndicate.

Lloyd's insurer Kiln plc revealed plans to pre-empt its 2007 syndicates capacity to around £1bn in its interim results statement today (12 September).

Swiss-based reinsurer Glacier Reinsurance AG announced today (11 September) it has appointed Dr. Luzi Hitz as Senior Property Underwriter.

Lloyd’s chairman Lord Levene has added his voice to the lobby calling for a more favourable tax regime to help preserve London’s position in the face of competition from Bermuda and other tax havens.

Bermudian-headquartered (re)insurer Lancashire Holdings Ltd announced on 8 September that its UK subsidiary been granted permission to start underwriting by the Financial Services Authority (FSA).

UK motor insurer Highway Insurance Holdings plc revealed a drop in its first half profits on 6 September as the motor market remains “challenging”.

Cooper Gay Intermediaries (CGI), the US treaty arm of London-based reinsurance broker Cooper Gay, announced the appointment of Michael Joyce as executive senior vice president on 8 September.

Reinsurance broker Guy Carpenter has hired Nick Gralton from rival RK Carvill & Co to head up its US wholesale casualty business.

Confirmation of the steep rise in catastrophe exposed reinsurance came from Guy Carpenter & Co which revealed that rates have increased this year by 76 percent in the US and 129 percent in Mexico.

UK-listed Chaucer Holdings plc became the latest Lloyd’s insurer to announce a decline in profits due to the weak dollar when it released its interim results today (11 September).

Rating agency AM Best has affirmed its financial strength rating of B++ on Swiss reinsurer Converium and revised the outlook on the company to positive.

Reinsurance broker Benfield has predicted that the spate of recent regulations issued by the China Insurance Regulatory Commission covering issues including minimum capital requirements and investment regulations will only serve to encourage competition i

New York attorney general Eliot Spitzer has amended charges in the civil case against former American Insurance Group (AIG) CEO Maurice “Hank” Greenberg.

Brit Insurance Holdings plc became the latest London market insurer to report a drop in profits due to the weak US dollar, as it revealed on 5 September its interim results.

Veteran London market underwriters Peter Cottrell and Niels Aaskov have launched Insure-London, a managing general agency focussing on marine-related and professional lines which will be supported by Brit Insurance, Insider Week can reveal.

It was a tale of two markets for reinsurance specialist Benfield Group with disappointing news on its new corporate risks division being more than matched by impressive earnings growth in its US division on the back of the capacity crunch for catastrophe

Heath Lambert Group has won the prestigious Sainsbury account from current incumbent Marsh Ltd, our sister publication The Insurance Insider revealed last week.

In the September edition of The Insurance Insider, we incorrectly say that Goldman Sachs & Co worked on the recent Tokio Marine cat bond, Fhu-Jin Ltd.

Electronic trading platform RI3K announced on 11 September the launch of its upgraded trading system “V3”.

“Class of 2005” reinsurer Flagstone Reinsurance Holdings announced on 7 September that it has entered the aviation reinsurance market.

In contrast to many of its Lloyd’s competitors, the Bermuda-headquartered Catlin Group received a currency boost from the weak dollar which contributed to record net income of $147.3mn for the first half of 2006.

Fitch Ratings said the response from the market to its new capital model Prism has been positive.