September 2006/4

The $35mn third-quarter hedge fund investment reverse revealed by Bermudian reinsurer Max Re Capital yesterday (20 September) has been linked to heavy energy losses at Amaranth Advisors.

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 can reveal.

Failed (re)insurer Alea Group Holdings Ltd announced a post-tax loss of $10.7mn for the first half of 2006 today (20 September) as it continues its transition to run-off.

First half pre-tax profits at quoted Lloyd’s insurer Hardy Underwriting Group plc slipped to £6.1mn the company announced today (20 September), against £7.7mn in the prior-year period.

Max Re Capital Ltd is the latest new market in the aviation sector with the arrival of former La Réunion Aérienne underwriter Olivier Marre.

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.

With the 2006 Monte Carlo Rendez-Vous offering relatively benign conditions for networking and negotiations after the travails of 2004 and 2005, discourse last week focussed on the underlying issues facing the industry in a two-paced market.

Lloyd’s Names are being asked to support the new sports Syndicate 3334 which was formed in July 2006.

Lloyd’s insurer Kiln plc revealed plans to pre-empt its 2007 syndicate capacity to around £1bn in its interim results statement on 12 September.

Alongside diversification, the leading rating agencies were intent on raising the profile of Enterprise Risk Management (ERM) for (re)insurers at the 2006 Monte Carlo Rendez-Vous last week.

Giant reinsurer Swiss Re revealed last Friday (15 September) that it is looking for potential buyers for its iconic London office building the Swiss Re Tower - better known as the Gherkin.

Scientists have identified the return of the Pacific weather phenomenon known as El Nino as one of the reasons for the benign hurricane season so far this year.

Up to $500mn of retrocessional capacity will be withdrawn from the market following the completion of Swiss Re’s acquisition of GE Insurance Solutions earlier this year.

There are many in the US insurance industry who have mixed feelings over Eliot Spitzer’s political aspirations.

Quanta Capital Holdings announced today (18 September) that it has sold its Environmental Strategies Consulting (ESC) subsidiary, an environmental consulting company.

Novae Group plc announced on 15 September that its pre-tax profits fell to £16mn for the half year, compared to £27.7mn in the prior-year period.

HSBC Insurance Brokers announced last week that it has set up a new US wholesale broker and managing general agency, which will trade as Intermediary Solutions, in New York.

Lloyd’s broker RFIB Group announced two new appointments on 11 September as it continues to expand its non-marine division internationally.

Aon Captive Services has formed White Rock Insurance (Guernsey) ICC Limited, the first incorporated cell company (ICC).

US insurers have received a second boost from the courts as they battle the “wind versus water” claims related to Hurricane Katrina.

Chaucer Syndicates Limited, the managing agency arm of Chaucer Holdings PLC, announced today (18 September) that it has recruited an engineering team.

The (re)insurance industry’s growing interest in the Middle East was confirmed over the weekend with American International Group (AIG) opening regional headquarters in the Dubai International Financial Centre (DIFC).

Bermudian-headquartered (re)insurer Aspen Insurance Holdings Ltd confirmed last week (11 September) the loss of Nick Bonnar and Ian Beaton.

London-based broking proposition Oxygen Holdings plc launched its reinsurance arm, Oxygen Re, last week. Oxygen Re will cater for all types of non-marine, marine and aviation treaty reinsurance and retrocession covers on a

UK general insurer Royal & SunAlliance (RSA) announced that its Danish subsidiary Codan acquired two Norwegian insurers on 12 September.

All four independent directors have resigned from Converium’s UK partner, the Medical Defence Union (MDU), following a dispute over salary disclosure.

UK-listed broker Jardine Lloyd Thompson Group plc (JLT) has parted company with John Hastings-Bass, the chairman of its international retail broking operations.

Marsh & McLennan Companies (MMC) announced on 15 September 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.

Bob Clements, the man who has launched a host of (re)insurers throughout a long career in the insurance industry, is looking to raise up to $1bn for Ironshore Ltd, a newly capitalised Bermudian-domiciled (re)insurance company that will specialise in provi

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

Aon Corp became the last of the big three brokers to announce that US insurance regulators have eased restrictions on them charging contingent commissions, or Placement Service Agreements (PSAs) on 8 September.

Gallagher Re announced the appointment of Kenneth King as a senior vice president on 12 September.