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16–29 October 2001
Late reports
12.10, mine collapse, fatalities
India: up to 150 people mining illegally were buried when an abandoned coal mine in West Bengal collapsed. Specialist workers with earth-moving equipment were at the scene of the cave-in in Asansol, 185..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Reinsurers bolster reserves to counter the underpricing of the past
The figures in the Reinsurance Association of America’s (RAA) underwriting report for the six months to 30 June 2001 emphasise the intense financial pressure on US reinsurers prior to the trauma of the terrorist attack on the World Trade..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Arab World
Market grinds to halt after decade of strong growth
The Arab insurance market had a disappointing year in 1999, according to the most recent survey of the region by Arab Insurance Group (Arig). Arig is the biggest and most influential indigenous..
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09 November 2001
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675 - 09 November 2001
Computer viruses and cybercrime: the new catastrophes for insurers
Financial losses caused by cybercrime were estimated to have cost businesses worldwide more than US$1.4trn last year, according to the PricewaterhouseCoopers (PwC) European Economic Crime Survey 2001.
According to the survey, 43% of companies in..
Online Published Date:
09 November 2001
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675 - 09 November 2001
E-procurement: making the move to a customer-oriented industry
M
arket conditions have been tough for the UK retail insurance industry for some years. But the additional pressure of the current economic downturn now means the cost to an insurer of its existing purchasing systems and processes – something..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Hartford downsizes
US financial services group Hartford has decided to reduce its international reinsurance operations, which currently generate around US$150mn in premiums, and instead focus its resources on the North American market.
The group will close its offices..
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09 November 2001
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675 - 09 November 2001
Liberty Mutual grows
Liberty Mutual Group has acquired US$1.5bn of commercial and personal lines business from OneBeacon, a wholly owned subsidiary of Bermuda-based White Mountains, which acquired OneBeacon from CGU of the UK.
Liberty Mutual’s Regional Agency..
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09 November 2001
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675 - 09 November 2001
XL Capital takes over control at Le Mans Ré
XL Capital has confirmed plans to increase its stake in Le Mans Ré to 67% and improve the French reinsurer’s share capital by FF400mn (US$54.7mn). XL is in discussion with Le Mans Ré’s other shareholder, Mutuelles du Mans..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Reinsurers criticise proposal for French liability legislation
French doctors could find it very difficult to obtain third-party liability insurance next year as a result of new legislation proposed by the government to provide privately funded care for the victims of clinical accidents.
French junior health..
Online Published Date:
09 November 2001
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675 - 09 November 2001
JLT correction
In a news item in WIR
674/3 headlined ‘State carrier in reinsurance premium scandal’, we incorrectly reported that reinsurance broker Jardine Lloyd Thompson (JLT) had not provided documentation to Philippines National Power Corporation..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Willis reports rise in third-quarter revenue
In its second set of quarterly results since listing on the New York stock exchange, Willis Group revealed an 11% increase in revenues to US$325mn for the third quarter of the year.
This stimulated revenue growth of 8% to $1.03bn for the nine months..
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09 November 2001
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675 - 09 November 2001
Philippines limits number of foreign players
The Philippines Insurance Commission will soon impose a two to three-year moratorium on the entry of new foreign life insurance companies into the local market. The department order is expected to be released in the middle of this month.
The purpose..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Watching the words
When a major insurance claim arises it is often the case that the wording has not yet been prepared or agreed. And if it has been agreed, it may contain clauses that are ambiguous, inappropriate or even unintelligible.
Michael Dobias
and
Robert..
Online Published Date:
09 November 2001
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675 - 09 November 2001
World insurance stock prices
Company/group
Currency
2000 year-end
18/10/01
1/11/01
Change from
18/10/01 %
Capitalisation US$ mn
© iiudata
Ace
US$
42.44
36.86
37.47
1.7
8,695
AIG
US$
98.56
83.00
80.35
(3.2)..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Company profile: National Re, Philippines
National Reinsurance Corporation of the Philippines recorded a pretax profit of P109mn (US$2.2mn) in 2000, almost unchanged on the previous year. Established in 1979, National Re is the leading domestic professional reinsurer in the..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Company profile: Russian Re
Russian Re had a good year in 2000, achieving its first-ever combined ratio of less than 100%. The company, which was founded by the Russian Union of Insurers in December 1992, also achieved strong growth in its premium income.
Russian Re’s..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Company profile: Universe Re
Nigerian nonlife reinsurer Universe Re was incorporated as a private limited liability company in 1983.
The company’s largest shareholder is Nigeria Pension Management with a 28.8% stake. Other major shareholders include Nigeria Life &..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Cologne Re
Cologne Re, acquired by General Re in 1994, accounts for about 71% of the international property/casualty premiums written by GeneralCologne Re group, the common brand name adopted by General Re Corp and its subsidiaries last year.
Cologne..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Small Bolivian market demonstrates strong and consistent growth
The land mass of Bolivia might be twice that of Spain, but with a GDP of less than US$9bn in 2000 and a population of 8.3mn, according to a census carried out earlier this year, it is one of the poorer economies in South America.
Following a period..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Bancassurance becomes significant growth area in Latin America
There is strong growth in bancassurance in Latin America, especially in Argentina, Brazil, Chile, Colombia and Mexico, according to a recent report on the region by insurance consultancy Tillinghast – Towers Perrin.
Improvements in economic,..
Online Published Date:
09 November 2001
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675 - 09 November 2001
NZ private care grows
Pressure on the state health services and increasing provision of health insurance as part of an executive package deal have fuelled a growing demand for private health insurance in New Zealand. More than one in three New Zealanders now has private..
Online Published Date:
09 November 2001
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675 - 09 November 2001
New insurers for India
Two Indian organisations are working on plans to launch nonlife insurance companies. They are the Murugappa industrial group and a voluntary organisation, the Self-Employed Women’s Association (SEWA), which is based in western India and has..
Online Published Date:
09 November 2001
Appeared in issue:
675 - 09 November 2001
New Zealand pension scheme passes into law
The New Zealand Labour government’s Superannuation Fund has become law despite strong resistance from three of the four opposition parties in parliament and severe criticism from many observers.
This has come particularly from banking..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Indian corporates search for insurance cover
Indian companies are finding it difficult to obtain terrorism and war reinsurance cover for their properties.
The giant Indian Petrochemical Corporation (IPCL) recently gave up its efforts to obtain terrorism cover for its plants in the towns of..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Government infighting delays progress of US federal terrorism fund
Attempts by the US insurance industry and the White House to agree on a state-supported programme to meet future terrorist claims have been delayed by political infighting and criticisms from insurance executives that the proposed plans are just a..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Hungarian insurers feel slump in life income
Hungary’s insurance sector suffered a drop in combined premium income in real terms in the first half of this year, ending the earlier trend of brisk growth led by unit-linked life insurance instruments.
According to a report released in..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Romanian regulator halves number of insurers
The number of insurers operating in Romania has halved, with the Romanian insurance regulator CSA renewing the licences of only 37 companies. Previously there were 73 insurance companies. This cleanup has been anticipated for some time as several..
Online Published Date:
09 November 2001
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675 - 09 November 2001
EU e-commerce clash looms
A confrontation is looming between the European Parliament and the 15 EU governments on the issue of online financial services. Europe’s E-Commerce Directive, adopted last year, allows governments to take powers to control..
Online Published Date:
09 November 2001
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675 - 09 November 2001
EU Parliament clears the way for revision of investment legislation
The European Parliament has cleared the way for long-overdue revision of EU investment funds legislation.
Strasbourg has agreed to clear the second reading of legislation updating 1985 directives on UCITS (undertakings for collective investments in..
Online Published Date:
09 November 2001
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675 - 09 November 2001
Caribbean insurers to focus on underwriting
The rising cost of excess-of-loss reinsurance cover following the events of 11 September in the US will force Caribbean insurers, which depend extensively on the international reinsurance market, to tighten up their underwriting practices.
For..
Online Published Date:
09 November 2001
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675 - 09 November 2001
World insurance stock prices
Company/group
Currency
2000 year-end
1/11/01
15/11/01
Change from 1/11/01 %
Capitalisation US$ mn
© iiudata
Ace
US$
42.44
37.47
36.40
(2.9)
8,447
AIG
US$
98.56
80.35
81.95
2.0
214,806
Allianz..
Online Published Date:
23 November 2001
Appeared in issue:
676 - 23 November 2001
Company profile: Swiss Re Southern Africa
Swiss Re Southern Africa recorded a pretax profit of R155mn (US$15.9mn) in 2000, its 50th year of operation. This compared with a deficit of R18mn in 1999, when the company incurred its largest-ever individual loss – a claim for the loss of..
Online Published Date:
23 November 2001
Appeared in issue:
676 - 23 November 2001
Toa Re
Toa Re, the biggest reinsurer in Japan, saw its consolidated pretax profit rise by 48% to ¥5.5bn (US$37.4mn) for the year ending 31 March 2001 as increased underwriting income offset a fall in investment earnings.
After accounting for..
Online Published Date:
23 November 2001
Appeared in issue:
676 - 23 November 2001
Compulsory earthquake cover drives expansion of insurance market
Turkish insurers have long experience of coping with the challenges of a volatile economy and an ever-depreciating currency.
Domestic direct written premiums (including life) amounted to TL1,775trn in 2000, according to the latest annual market..
Online Published Date:
23 November 2001
Appeared in issue:
676 - 23 November 2001
Growth in Chilean pension fund earnings slows down in third quarter
The latest data from Chile’s Superintendency of Securities & Insurance suggests there was a slowdown in the growth in earnings of the country’s seven pension funds during the third quarter of this year.
The funds still posted a..
Online Published Date:
23 November 2001
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676 - 23 November 2001
European companies set sights on Mexico’s life and pensions market
The Mexican insurance market generated a premium income of Mex$78.5bn (US$8.3bn) for the third quarter to September 2001, according to a report by the National Insurance & Surety Committee (CNSF).
This is a 12.6% increase in real terms compared..
Online Published Date:
23 November 2001
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676 - 23 November 2001
Reinsurance market gets tough on Korea
Several international reinsurers, including Hartford Re of the US, have notified South Korean general insurers that they are not accepting new business.
Some reinsurers have refused to renew existing contracts. Other reinsurers have significantly..
Online Published Date:
23 November 2001
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676 - 23 November 2001
Axa reorganises units
Axa has announced plans to reorganise its activities in France. The existing Axa Assurances, Axa France, Axa Courtage and Axa Conseil will be merged into a single unit next year.
The new entity should benefit from its size and obtain operational..
Online Published Date:
23 November 2001
Appeared in issue:
676 - 23 November 2001
If and Sampo property/casualty division merge
Pan-Nordic nonlife insurer If is merging with the property/casualty division of Finnish insurer Sampo.
The new company will have a pro-forma premium income equivalent to SKr27.5bn (US$2.6bn) and a 24% share of the Nordic nonlife market, with 3.7mn..
Online Published Date:
23 November 2001
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676 - 23 November 2001
French insurers wait for terror cover support
The French finance ministry has been notably slow to respond to insurers’ demands for government guarantees against claims arising from terrorist acts.
The government has just offered similar guarantees to airlines.
Under existing French law,..
Online Published Date:
23 November 2001
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676 - 23 November 2001
Rising WTC exposure drives Allianz into red
Escalating estimates of its exposure to the 11 September attack on the World Trade Center have put Allianz into the red for the third quarter. The German insurance group announced a net loss of €46.3mn (US$40.9mn) for the July-to-September..
Online Published Date:
23 November 2001
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676 - 23 November 2001
S&P forecasts surge of capital into market
Standard & Poor’s (S&P) predicts the insurance market worldwide will receive between US$10bn and $20bn in new capital over the next six months, with the bulk of this flowing into the reinsurance industry.
More than half of the..
Online Published Date:
23 November 2001
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676 - 23 November 2001
Warren Buffett admits to insurance mistakes after Berkshire’s $679mn third-quarter loss
Berkshire Hathaway chairman Warren Buffett has apologised to shareholders for the performance of Berkshire’s insurance operations, which were largely responsible for the group’s net loss of US$679mn for the third quarter.
Ordinarily, Mr..
Online Published Date:
23 November 2001
Appeared in issue:
676 - 23 November 2001
Hannover Re launches protest against Moody’s financial security rating
Hannover Re has strongly objected to a public information financial security assessment of its business by Moody’s. The rating agency downgraded Hannover Re and its subsidiary E+S Rück from Aa3 to A2.
Hannover Re complained the rating..
Online Published Date:
23 November 2001
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676 - 23 November 2001
The strength of standards
WISe, the London insurance market body established in 1999 to develop e-commerce standards and support services for the market, transferred its standards activities to Acord, the US-based nonprofit industry standards body, earlier this year.
In..
Online Published Date:
23 November 2001
Appeared in issue:
676 - 23 November 2001
30 October – 12 November
Late reports
29.10, explosion, fatalities
China: an explosion at a fireworks plant registered to a school killed eight workers. The Woniushi Primary School Fireworks Factory was located at a safe distance from the school and no students were..
Online Published Date:
23 November 2001
Appeared in issue:
676 - 23 November 2001
Company profile: Bao Viet
State-run Vietnam Insurance Corporation, better known as Bao Viet, recorded a pretax profit of D113.2bn (US$7.8mn) last year, up 5% on 1999. Bao Viet is the leading insurer in Vietnam, with an overall market share of 60%. This breaks down into a..
Online Published Date:
23 November 2001
Appeared in issue:
676 - 23 November 2001
Company profile: Central Re
Central Re, Taiwan’s only domestic reinsurer, took its first step towards becoming a fully privatised entity last year when it gained a listing on the Taiwan stock exchange.
The Taiwan government’s stake in the company fell from 87% to..
Online Published Date:
23 November 2001
Appeared in issue:
676 - 23 November 2001
Fall in US loss figures points the way for world fire safety strategy
The London-based World Fire Statistics Centre has presented its annual report on the human and economic costs of fire damage to the UN Committee on Human Settlements for the last 20 years now.
But it never ceases to amaze the centre’s..
Online Published Date:
23 November 2001
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676 - 23 November 2001
Hong Kong insurers object to splitting of fund
Hong Kong’s General Insurance Council (GIC), which operates under the auspices of the Federation of Insurers, has expressed its objection to a government move to separate the Employees Compensation Assistance Fund (ECAF) from the insolvency..
Online Published Date:
23 November 2001
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676 - 23 November 2001
Insurers set to benefit from China’s WTO entry
The recent entry of China into the World Trade Organisation (WTO) is expected to attract huge capital flows into the country and present great opportunities for general insurance companies operating in the Beijing and Shanghai areas.
DBS Bank, the..
Online Published Date:
23 November 2001
Appeared in issue:
676 - 23 November 2001
French life grows 2%
The French life insurance market has staged something of a recovery during the third quarter of this year.
After the market expanded by 20% during 2000, the industry’s premium income contracted by 12% during the first quarter of this year, and..
Online Published Date:
23 November 2001
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676 - 23 November 2001
Concern mounts over lack of insurance cover in Caribbean
The total value of insured property risk in the Caribbean is about US$30bn but the uninsured risk, including public sector assets, is much higher, according to Jeffrey Montano, director of insurance operations for the region’s largest general..
Online Published Date:
23 November 2001
Appeared in issue:
676 - 23 November 2001
Indian state general insurers plan to make staff redundant
India’s four state-run general insurers are seriously considering making a large number of their marketing staff redundant and transferring their functions to independent intermediaries.
The idea is to bring down the companies’ overheads..
Online Published Date:
23 November 2001
Appeared in issue:
676 - 23 November 2001
MetLife enters Chile by buying Santander Vida
In the biggest transaction to date in the history of the Chilean insurance industry, MetLife of the US entered the local market by purchasing the life insurance operations of Spain’s Santander group for US$250mn.
Once regulatory formalities..
Online Published Date:
23 November 2001
Appeared in issue:
676 - 23 November 2001
EU moves on broker barriers
Further proposals from the European Commission aimed at freeing up cross-border insurance business were expected to clear first reading in the European Parliament as WIR
went to press.
Brussels wants to dismantle barriers that face insurance agents..
Online Published Date:
23 November 2001
Appeared in issue:
676 - 23 November 2001