September 2006/5

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

The prospect of mandatory disclosure of broker commissions in the UK took a step closer today following a speech by the Financial Services Authority chief executive John Tiner.

The Conservative Party treasurer and former Jardine Lloyd Thompson Group plc director Jonathan Marland has led an investor group of City grandees that has acquired the Lloyd’s investment fund manager, Insurance Capital Partners LP (ICP).

Market information and analysis firm Advisen Ltd has teamed up with XML messaging specialist Web Connectivity Ltd in a combined offering it says will increase transparency and efficiency in the London market.

RenaissanceRe founder and former chairman and CEO Jim Stanard and two other ex-employees of the Bermudian reinsurer have been charged with securities fraud by the Securities and Exchange Commission (SEC) over a finite reinsurance transaction.

Insurer claims ‘finality’ for US exposures in sale to management vehicle

Bermuda-based Catlin Group confirmed today (27 September) that it is to enter into a catastrophe swap agreement that would provide it with coverage of up to $200.25mn for global natural catastrophes.

Lloyd’s insurer Atrium reported a fall in pre-tax profits today (27 September) with foreign exchange fluctuations blamed for the drop to £7.9mn for the first half of 2006, against £13.7mn in the prior-year period.

Aon Re Global revealed today (26 September) that it has recruited Elliot Richardson, currently head of facultative reinsurance at rival Benfield Group, to head its global fac reinsurance team.

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.

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).

Catlin Group Ltd looks set to become one of the first Lloyd’s (re)insurers to issue a catastrophe bond as the industry’s interest in securitising reinsurance risk continues at a pace, Insider Week can reveal.

Swiss reinsurer Glacier Re announced on 22 September that it has appointed María Arana Antelo as energy underwriter.

Reinsurance giant Munich Re announced last week (20 September) the launch of a new IT infrastructure to support its international reinsurance business.

Process reform in the London Market took a major step forward last week (19 September) with the launch of a repository for Electronic Claims Files (ECF).

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.

Fast-growing broker Integro Ltd announced on 18 September that Andrew Starnes would be joining its San Francisco office as principal in its property practice.

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 giant American International Group (AIG) unveiled Robert Willumstad as its new chairman on 20 September.

US insurer St Paul Travelers Companies last week (21 September) made its second public denial this year that it had plans to merge with Swiss giant Zurich Financial Services.

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.

Rating agency Standard & Poor’s (S&P) downgraded the ratings on 11 hurricane-linked cat bonds last week (20 September).

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.

Catastrophe modelling agency Risk Management Services (RMS) has said that the formation of an El Niño in the eastern Pacific will not alter its medium-term hurricane forecasts.