i-law.com - Newsletter (World Insurance Report)

Data Update

Stock name Number of shares Closing price US$ Market capitalisation % weighting XL 124487000 53.75 6691176250 38.35839% Ace 217447000 21 4566387000 26.17765% Partner..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Natural Catastrophes

28.3, tornado, fatalities US: 2 people died in building collapses and 2 in drowning accidents as a tornado hit Fort Worth, Texas. Windows were blown out in high-rise office buildings and people were arrested for looting. 4 dead. 29.3, volcanic..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Liability, Awards, Settlements

23.3, car accident, settlement Hong Kong: an 11-year-old boy left brain damaged, unable to walk or write and nearly blind after falling behind a reversing car, jamming his head between it another parked one for around 30 seconds has reportedly..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Aviation

27.3, helicopter crash, fatality Canada: a helicopter crashed just 500 metres from Innisfall airport, Alberta. The pilot was the only person on board. 1 dead. 28.3,crash, fatalities NZ: a chartered helicopter carrying 4 American tourists, crashed in..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Road/Rail

29.3, bus collision, fatalities Kenya: more than 100 passengers were killed when 2 busses crashed in Kapkatunga, western Kenya. 101+dead. 3.4, derailing, crash Canada: a train crashed into a low-hanging bridge at St Catherine’s, Quebec,..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Marine

24.3, sinking, fatalities Canada: Panamanian-registered cargo boat Leader L. sank off The southeast coast of Nova Scotia. It was insured for both hull and P&l cover for $6mn with J L Jones Syndicate 329. Speculation is that the damage was..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Property and Business Interruption

27.3, explosion, fatalities US: an explosion at the Phillips Petroleum plant in Houston Texas left 1 dead and scores injured. The company, which has a history of fatal accidents at the plant, said that most of the injured were contract workers. 1..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Company Profile: American Re Corporation

It is 83 years since American Re Corporation (ARC) began writing business in the US and the company has retained a strong domestic focus. The group’s US business is handled by American Re-Insurance Company (Am Re). But with 34 offices..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Commercial Partners

Commercial Partners, the Bermuda-based subsidiary of French reinsurer Scor, has announced a profit of US$29mn for its principal operating arm Commercial Risk Re in 1999. The result is a 12% increase on the 1998 figure. Gross premiums increased..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Munich Re

Munich Re Group has declared a pre-tax profit of €1.8bn (US1.7bn) for 1999, a fall from the previous year’s €2.3bn. The company cited a heightened reinsurance loss experience for the fall. Specifically, the company said that the..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

ReAC

The fund and investment group Hunter Hall has again increased its holding in embattled Reinsurance Australia Corp (ReAC), stoking speculation that it is preparing to move a spill of board positions in the embattled company. Hunter Hall Investment..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Singapore Re

Singapore Re increased its after tax profits by 53% to S$11.4mn (US$6.6mn) in 1999 from its S$7.2mn profit of the year before. The after tax profit was achieved despite an underwriting loss of S$2.1mn. The company made an..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Max Re

Maximus Capital, the holding company for Max Re, has completed the second tranche of its private equity financing by raising $178mn. This brings to $509mn the total raised since the launch of the company was first announced by ex-XL chief..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

News in Brief

The South African government has announced its intention to privatise the South African Special Risks Insurance Association (Sasria) and has invited tenders for advisors for the transaction. Sasria was established during the Apartheid era to cover..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Hamnia

Hamnia has announced plans to sell insurance policies to small companies in Sweden via a website that is due to open in April. The insurer is targeting service companies in industries such as IT and advertising. The service will typically offer..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Tapiola

Being mutual was a distinct advantage in Finland last year at a time when the reputations of joint-stock insurers were suffering from the wrangling over shareholder value at Pohjola. The mutual Tapiola Group saw both its non-life and the pension..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

MLC

The cash-rich National Australia Bank (NAB) has confirmed that it is to buy the Australian insurer MLC from its parent company Lend Lease for A$4.5bn (US$2.76bn). The acquisition is a good fit for NAB following the Commonwealth Bank’s..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

State Insurance

State Insurance (SI), New Zealand’s largest motor insurer, has set up a 24-hour roadside emergency break down service to rival the powerful Automobile Association (AA). Initially the scheme will be free to Si’s half-million vehicle..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Baloise

Baloise is fighting for its independence, amid growing signs that a battle for the Swiss insurer is about to commence. Last year, Zurich Financial Services Group (ZFS) acquired 19.9% of Baloise, bringing its stake in the company to 23%. ZFS..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Chubb

US non-life insurer Chubb has decided to focus on its core competencies in India by providing covers for industrial projects and high-tech risks such as software insurance. “Our expertise lies in providing insurance for projects and..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

GIC

India’s state-owned non-life player General Insurance Corporation (GIC) has proposed that the government should dispose 51% of its holding in the company’s equity so as to enable GIC to function with greater autonomy. GIC suggested this..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Mapfre

Spain’s Corporacion Mapfre and savings bank Caja Madrid have deepened their business relationship with the establishments of a mutually owned holding company. Following approval from both companies’ boards, Mapfre will take a controling..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Unipol

Italian insurer Unipol has won out over a number of competitors to acquire Milan-based MEIE and MEIE Vita from Telecom Italia. Unipol has paid approximately L67bn (US$33mn) for a 51% share of MEIE Vita and 51.2% of MEIE (which itself owns the..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

QBE

Leading Australian general insurance company QBE has made another foray into Eastern Europe, successfully gaining a 60% share of Macedonia’s largest insurer, ADOR Makedonija (AM), for A$23mn (US$14mn). This acquisition is the latest in..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

AMP

Ian Burgess, chairman of Australian composite insurer AMP, has resigned and taken four fellow directors with him. The resignations followed continued criticism of the 1999 takeover of GIO and the large payout to former chief executive George..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Zurich

An improved performance in the US and UK saw Zurich Financial Services (ZFS) post a record 1999 profit, but chairman Rolf Hüppi has ruled out a ZFS bid for the non-life units of UK composite CGU. ZFS saw its net income rise almost 16% to..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Copenhagen Re launches syndicate

Copenhagen Re (CR) is preparing to launch a Lloyd’s syndicate as part of its strategic drive to get closer to its key markets. The new syndicate will take over the book of facultative business currently written at the London Underwriting..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Names rumble but don’t roar

Any underwriters present at the Association of Lloyd’s Members (ALM) Spring conference on 6 April were wise to maintain a low profile. Faced by deepening losses for the years from 1997, attendees and speakers alike piled considerable blame..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Goshawk enters consolidation stakes

Hot on the heels of merger talks between Limit and Wellington, Lloyd’s insurer Goshawk has thrown its hat into the ring by announcing that it is looking for opportunities to take part in consolidation. “We can see that the market is..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Lloyd’s Limit slips further on merger talks

The decision of Limit and Wellington Underwriting to enter into preliminary merger talks has provoked some positive response in the London market despite being greeted with near derision by some investment analysts. Limit and Wellington revealed few..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

EU Pyrrhic victory

Janusz Baranowski, the Polish businessman who gave his fellow countryman an early experience of the pitfalls of capitalism when his Westa insurance company collapsed in 1993, has won a Pyrrhic victory at the European Court of Human Rights. The Court..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

US New report on auto parts

A new report has provided support for insurers hoping to use after market auto parts to repair automobiles in a bid to reduce claims costs and auto insurance premiums. Auto insurers are still reeling from a multi-billion-dollar court decision last..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

US Paint bill seen as ‘disaster’

The American Insurance Association (AIA) is opposing a bill recently submitted to the Massachusetts legislature that would, according to the Association, “rewrite the rules of tort liability.” The AIA says that the bill, which has been..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

US Ergonomics rules still cause concern

William Hofmann, president-elect of the Independent Insurance Agents of America, has called upon the Occupational Safety and Health Administration (OSHA) to halt consideration of proposed rules regarding ergonomic hazards in the workplace until..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Law & Supervision Japan US wins concessions

Negotiations between Japan and US trade representatives will result in a further liberalisation of the country’s insurance market. One issue, though, could remain outstanding. US trade negotiators visited Japan in the wake of heavy lobbying by..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Aviation Aviation market remains grounded

Aviation insurers will take little cheer from a forecast by the Aviation Insurance Offices’ Association (AIOA) that the industry is set to remain in the doldrums for some time to come. Industry analysts say overcapacity is the dead weight..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Marine Grim prospects for marine market

Norway’s Central Union of Marine Underwriters (Cefor) has offered the grim forecast that loss ratio’s in the global marine market could exceed 200% for 1999, producing marine insurance losses of US$3bn. Managing director Tore Forsmo..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Ergo

Ergo, the German primary insurance group controlled by Munich Re, has achieved a breakthrough in electronic commerce by signing a joint-venture deal with Deutsche Telekom, the country’s leading tele-communications and internet company. The..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Pohjola’s commitment weakens

Finland’s Pohjola Group is questioning its ongoing commitment to If, the pan-Nordic insurance company launched with much fanfare last year. Pohjola’s hesitation has prompted Skandia and Storebrand to insist that Pohjola’s agreement..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

INA chief quits

INA chief executive Lino Benassi and chairman Sergio Siglienti have both decided to step down from their posts this month. Market commentators said the decision of the INA executives would leave Generali greater freedom as it seeks to integrate the..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

ING seeks US purchase

Cees Maas, chief financial officer of Dutch insurer ING Group, has reiterated his company’s desire to acquire a US insurer as it drives to become one of the top 10 players in the US market. However, following its failure to acquire French bank..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

London plans for efficiency

Lloyd’s and London’s International Underwriting Association have prepared a plan to streamline the way business is conducted in the London market. The plan envisages a single lead underwriter for each risk, to clarify administrative..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Shareholders approve CGNU

Shareholders of insurers CGU and Norwich Union (NU) have voted to accept the no-premium merger plan proposed by their boards in February (WIR632/01 ). Despite the initial hesitancy of market analysts, more than 90% of NU shareholders approved the..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Ace protests US tax reform

A bill has been introduced into the US congress which aims to close off a tax loophole that has enabled US insurance companies with offshore parents to effectively park part of their Investments offshore. The new legislation was provoked by recent..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Arbitrate to accumulate

Geoffrey Engert, Director of Business Development for the US-based Arbitration Forums, argues the case for inter-insurer dispute resolution. Saving time and money are essential in today’s competitive insurance environment. Claims and..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Lloyd’s losses mount

Lloyd’s has reported a loss of £176mn (US$282mn) for the 1997 year of account, with worse expected for 1998. The announcement did little to inspire confidence in the forecasting skills of Lloyd’s syndicates. It was only last..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000

Allianz deal collapses

Germany’s Allianz is considering selling its 21.7% stake in Dresdner Bank following the failure of the proposed merger between Dresdner Bank and Deutsche Bank. The insurer also says that it is hoping to rescue some parts of the deal. Allianz..

Online Published Date: 14 April 2000

Appeared in issue: 635 - 14 April 2000