September 2006/5

Giant European reinsurer Swiss Re has today (25 September) begun the process of informing its employees of the 2,000 job cuts expected as a result of its merger with GE Insurance Solutions earlier this year.

UK insurer Brit Insurance Holdings plc today (25 September) announced it has promoted Janet Henderson to head its North American professional liability team, as it targets growth in the business over the next few years.

US insurer Allstate has announced the timetable for the appointment of Thomas Wilson, who succeeds Edward Liddy as its CEO at the end of the year.

US prosecutors have charged three former executives from Berkshire Hathaway’s General Re and one from American International Group (AIG) over fraudulent reinsurance transactions alleged to have been used to massage AIG’s accounts.

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

UK regulator, the Financial Services Authority (FSA), has fined Paul Harrison, former CEO of insurance broker Berry Birch & Noble Insurance Brokers (BBNIB), £17,500 for failing to implement proper systems and controls to ensure that customers’ money held

AIM-listed Heritage Underwriting Agency plc’s premium income has almost doubled in the first half of 2006 as the company revealed in its interim results last week (21 September) that it is enjoying the best underwriting conditions since it was formed.

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

Bermuda-headquartered Catlin Group announced today (25 September) that its US subsidiary Catlin US has launched a primary and excess casualty underwriting unit in Atlanta.

Quoted Lloyd’s insurers Hardy Underwriting Group plc and Advent Capital Holdings plc are taking the final steps towards achieving the buy-out of remaining Names’ capital.

Marsh & McLennan Inc (MMC) revealed last week (19 September) that it is mulling the sale of its Putnam Investments subsidiary.

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 revealed last week (21 September).