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

World Loss Log 6 April – 17 April

Natural Catastrophe 7.4, hailstorm, loss update Australia: the Insurance Council of Australia has reported that the final insured loss for the 45-minute Sydney hailstorm last April was A$1.7bn ($1bn), a sum A$200mn higher than the previous..

Online Published Date: 01 April 2000

Appeared in issue: 636 - 28 April 2000

Data Update

Stock name Number of shares Closing price US$ Market capitalisation % weighting XL 124487000 48.1875 5998717313 34.70155% Ace 217447000 25.25 5490536750 31.76181% Partner Re 50523000 ..

Online Published Date: 01 April 2000

Appeared in issue: 636 - 28 April 2000

Employers Reinsurance Corporation Group

Employers Re is one of the fastest growing large reinsurance companies in the world. Its success has no doubt contributed to the rating of its parent, General Electric (GE), as the most admired company in the world according to Fortune magazine. At..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Marsh & McLennan

The leading global insurance broker has posted a higher-than-expected 21% rise in first-quarter earnings helped by strong growth of its Putnam Investments money managing operation. The consolidated group income of Marsh & McLennan rose to..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Aon

Global broker Aon has launched an underwriting agency for credit and political risk insurance which is to transact 95% of its business over the internet. The new Credit Indemnity and Financial Services (CIFS) will operate as a subsidiary of..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

JLT

UK-based broker Jardine Lloyd Thompson Group (JLT) it to combine its UK retail insurance and employee benefit operations with Burke Ford (Holdings) and its subsidiaries. The Burke Ford Group is made up of a number of businesses covering UK retail..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Copenhagen Re

Copenhagen Re (CR) and Lloyd’s underwriter Euclidian are joining forces to offer finite risk reinsurance. CR will write the covers on a global basis while Euclidian will provide consultancy support. CR chief executive Jan Hornsberg said the..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Gerling

For the German Gerling group, the latest news of high underwriting losses, personality clashes and restructuring at its main property and casualty company Gerling Konzern Allgemeine Versicherungs (GKA) increase its strategic dilemma. Gerling has..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Hannover Re

Clarendon Insurance, a subsidiary of Hannover Re, has signed an agreement with Acceptance Insurance to acquire the outstanding shares in the latter’s subsidiary Redland Insurance. Redland operates in the US programme insurance market..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Elmonda

Elmonda Group, which combines the Swiss company Elvia Travel Insurance and France’s Mondial Assistance, has acquired the privately-held US travel insurance group World Access. The move will strengthen Elmonda’s presence in North America..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Allianz

True to its promise that the emerging markets are its next strategic target, Germany’s Allianz is rapidly moving into Eastern Europe. Banks play an important role in the Allianz scheme. Last August, Allianz acquired 2% of Pekao in Poland, in..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

If

Even before it is fully operational, Swedish insurer If’s ambitions are growing. Managing director Bo Ingemarson told a recent seminar in Stockholm that If would be actively chasing business opportunities in all areas. The first step would be..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

RSA

UK composite Royal & Sun Alliance (RSA) has signed a partnership agreement with Sundaram Finance Ltd. (SFL). The two parties now intend to bid for a trading license from the Insurance Regulatory & Development Authority (IRDA) to form a..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Sampo

At Sampo Insurance’s annual general meeting, chief executive Jouko Leskinen took the view that the agreement setting up If was binding – though he did not want to speculate whether If would survive. He added that Sampo was in no hurry to..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Skandia

Skandia’s management is coming under increasing pressure over its share option scheme. The company’s recent AGM approved the revised version of the scheme, but only after board chairman Lars Ramqvist had appealed to the meeting for it to..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Risk factors

Lloyd’s chairman Max Taylor has highlighted weather, e-commerce, claims against corporate executives and loss of brand reputations as the four most significant risks facing business today. Speaking to a US business audience Mr Taylor said the..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Following in unison

The Lloyd’s Policy Signing Office (LPSO) and the London Processing Centre (LPC) have produced the first fruits of their collaborative efforts with the launch of a uniform ‘to follow’ policy. The policy form provides the basic..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

WISe move

Lloyd’s has signed an agreement for a central, low-cost connection to WISe Trusted Trading. The agreement embraces the Corporation of Lloyd’s and all its managing agents and is the first major connection of the whole market to the..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Positive thinking

Now could be the time to invest in a Lloyd’s listed vehicle, a new report has argued. The report by HSBC argues that 1999 will prove to have been the bottom of the cycle, that “the worst has now passed”, and that a market..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Results show selective benefit

Syndicate results for the 1997 year of account provide compelling evidence that careful agency selection is the route to success for any Name or corporate looking to earn a crust in the volatile Lloyd’s market. The figures show that exactly..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Interest holds up despite earnings drop

Interest in Lloyd’s among insurance companies remains high, despite the market’s growing losses, a new study produced by US analyst Conning & Company has reported. In spite of Lloyd’s earnings volatility and diminishing..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Profits fall as merger proceeds

Limit Underwriting and Wellington, the two Lloyd’s insurers planning to merge their operations, both saw their profits fall in 1999. Limit’s profits fell more than 60% to £21.3mn (US$33.7mn). However, chairman Jonathon Agnew said he..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Marriage of convenience

“We will become the most convenient personal financial portal for our customers – the one-source site for all the financial information they need,” Mr Hüppi claimed. And to achieve that goal, the group has decided to build an..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Insurers learn to relate online

As the new e-conomy bandwagon picks up speed, WIR examines two of the latest business models to be announced – and finds ‘relationship building’ to be the common theme. Zurich Financial Services (ZFS) took the opportunity offered..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

IRB sale delayed again

The government in Rio de Janeiro has yet again delayed the planned privatisation of state reinsurer IRB, with the National Development Ministry citing doubts about the reserve price for the business. The sale was scheduled for 25 April, but hardened..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Kidnappings reach record high

Worldwide kidnappings for ransom reached record levels last year, a new survey by the UK-based Hiscox insurance group reveals. Total reported kidnappings for ransom rose 6% in 1999 to reach 1,789 – and 92% of those incidents took place in the..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Zurich ends dual structure

Zurich Financial Services (ZFS) is to merge its two holding companies, Zurich Allied (ZA) Allied Zurich (AZ) plc, eliminating the dual structure that was created when ZFS acquired the insurance businesses of British tobacco company BATin 1998. The..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Munich Re reaches east

After months of worrying about the details, Alte Leipziger has finally taken the plunge and sold Alte Leipziger Europa (ALE), its Eastern European holding, to Munich Re. Munich Re acquired 60% of ALE from Alte Leipziger for an undisclosed sum. It..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

HIH

A new policy providing protection against unexpected legal costs, introduced only last month, is attracting hundreds of clients every week. The policy launched by Sydney-based HIH Insurance Group, which has nine outlets in New Zealand, offers cover..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

The St Paul

The St Paul Companies has issued $500mn of senior notes. The two-part deal includes $250mn of five-year notes with a 7.875% coupon and a further $250mn of 10-year notes with an 8.125% coupon. The company said the proceeds were to be used for general..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

NU/CGU

The EU has given its blessing to the proposed merger of UK insurers Norwich Union (NU) and GCU, saying strong competition would remain in the UK market. The EU approval followed earlier and resounding votes by NU and CGU shareholders in favour of..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Indonesia

Syariah Takaful has been launched in Indonesia as the country’s first syariah insurance company with ambitious plans to raise premium income of Rp3.5tn (US$460,000). A new marketing strategy will also place emphasis on increasing the..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

GIC

Four Indian oil companies, one petrochemical unit and three electricity companies have opted for a new mega-risk policy recently announced by the Insurance Development and Regulatory Authority. The new policy has been freed of tariff control,..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

US Insurers oppose mega-catastrophe legislation

Insurance industry bodies have voiced their opposition to a new bill aimed at creating a federal reinsurance authority that would compensate for losses caused by ‘mega-catastrophes’. The Alliance of American Insurers (AIA) described the..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Malaysia New moves on consolidations

The central bank is to double the minimum paid up capital of insurance firms in an effort to increase the pace of consolidation in the industry. The new measures will require insurers to have a paid-up capital of M$100mn (US$26.3mn), compared with..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Italy Insurers protest motor freeze

The Italian insurance association, Ania, has protested to the European Commission that the Italian government’s recent decision to freeze motor-liability tariffs is in violation of EU rules. A number of individual insurers have also lodged..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

New Zealand New rules for workplace cover

Private firms will be able to manage their own workplace insurance in partnership with the state-owned Accident Insurance and Compensation Corporation (ACC) under rules and conditions recently published by the government. From 1 July all..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

US Engineers bemoan frivolous litigation

America’s consulting engineers continue to enjoy the soft insurance market, plentiful capacity and relatively stable prices. Their insurers, though, are hinting that rate increases are on the way. The observations come from the annual..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

US State regulation hinders e-business

The financial services industry in the United States is waiting for Congress to establish uniform laws regarding the conduct of business via the internet. But even with uniform laws at the federal level, the insurance industry might find itself at a..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

EU MEP’s miss compulsory insurance vote

An attempt by the European Parliament to require biotechnology companies to take out civil liability cover for damage caused to the environment or human health by Genetically Modified Organisms (GMOs) has collapsed. The assembly’s Environment..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

New models

At a press conference to set out its own business model, Anderson Consulting (AC) recently sought to impress upon insurers that the internet can provide a revolutionary platform for new business communications between brokers and other parties..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Unfamiliar competition

Indeed, the separation of manufacturing from distribution means that the internet-marketing wing of insurers will run into some unfamiliar competitors. Now that the wider world has realised that financial products are amenable to commoditisation,..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Polish growth

The Polish insurance business showed a net profit of Z497mn (US$116mn) in 1999, a 5.1% increase on the Z473mn recorded the previous year. Gross premiums grew more than 21% to Z18.3bn. Even the non-life sector saw significant growth, with gross..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

NZ insurers told to lift premiums

Ratings agency Standard and Poor’s (S&P) has advised New Zealand insurance companies to increase premiums on non-life policies to counter falling profitability. Some firms are experiencing heavy underwriting losses on their non-life..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Finish Increase

Primary premium income for Finland’s Local Insurance (Lahivakuutus) Group increased by 9% to FMk1.02bn ($157.8mn) in 1999. Primary premium income for the 105 associations making up the group increased by 6% to FMk647mn. The turnover of the..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Holocaust funds

French insurers have promised to pay FFr70mn (US$10.4mn) towards a foundation dedicated to the memory of the persecution suffered by Jews in France during WWII. Responding to the publication of a government-commissioned report into the spoliation of..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Dai-itchi’s next move

Troubled mid-ranking Japanese non-life insurer Dai-ichi Mutual Fire & Marine is preparing a broad reform plan for the country’s Financial Supervisory Agency amid rumours that it will have to sell its business if it is to rebuild its..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

NRMA to demutualise

Members of NRMA, Australia’s largest general insurer, have voted overwhelmingly in support of a plan to demutualise. The company will be floated on the Australian stock exchange in July and could achieve a market capitalisation in the order of..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000

Time for some spine

Graham Nichols, chairman of the Aviation Insurance Officers’ Association, argues that the time has come for aviation insurers to show some responsibility. ‘A snap shot of underwriting conditions in the aviation insurance industry during..

Online Published Date: 28 April 2000

Appeared in issue: 636 - 28 April 2000