September 2006/5

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.

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.

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

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.

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.

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.

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

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 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.

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

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.

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