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.

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.

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

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

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.

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 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.

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.

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.

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).

Insurance giant Zurich Financial Services (ZFS) has poached Mario Vitale from broker Willis to head up its Global Corporate North America Operations.

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.

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).

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.

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.

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

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

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

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.

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).

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

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.

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.