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Company Profile: Sirius International Insurance
Sirius International Insurance Corporation saw its pre-tax profits rise by 29% from SKr824mn (US$93.3mn) to SKr1.1bn in 1999. Record investment gains of SKr1.1bn helped offset an underwriting loss of SKr55mn. The company produced an underwriting..
Online Published Date:
04 August 2000
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643 - 04 August 2000
Company Profile: Terra Nova
Last year was a tough time for Terra Nova. The company has since been renamed Markel International following the completion of its purchase by Markel Corporation in March this year. The company’s pre-tax result plunged from a US$101mn profit..
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04 August 2000
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Company Profile: Zurich Financial Services Group
Zurich Financial Services (ZFS) Group reported strong results in 1999. A decision earlier this year to reorganise the company’s corporate structure will help it to translate good results into a positive stock market performance. Operating..
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04 August 2000
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American Re
Munich Re’s main US operation, American Re suffered a fall in its pre-tax result from a profit of US$322mn in 1998 to a loss of $178mn in 1999. A severe deterioration in the company’s loss experience caused the underwriting loss to..
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04 August 2000
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IUA company figures 1999: taking on US regulators
Our review of the annual report of the International Underwriting Association (IUA) in the last issue looked at the important dialogue between Lloyd’s and the IUA. But convergence issues were not the organisation’s only concern. Chief..
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04 August 2000
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Lack of regulation stifles Saudi market
Economic pressures are threatening to transform the informal, largely unspoken arrangement which currently constitutes the Saudi Arabian insurance market.
The fall in the oil price over the years and the subsequent decision by the Saudi government..
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04 August 2000
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Lloyd’s records 26% increase in Canadian business
The transformation of the Canadian economy from its traditional reliance on natural resources to technology and knowledge-based industries has impacted on the Lloyd’s market, the eighth largest insurer in Canada. In 1999, Lloyd’s..
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04 August 2000
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Equitas improves position despite poor investment performance
Equitas has managed to strengthen its overall financial position despite a massive fall in its investment income from £714mn (US$1.06bn) in 1999 to £178mn for the year ended 31 March. Michael Crall, Equitas’ chief executive described..
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04 August 2000
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ReAC, Steffey sued by former shareholder
Run-off Australian reinsurer ReAC has hit further troubles with shareholders. Hong Kong-based Grand Improve Holdings has divested itself of its shareholding in the company and is to sue ReAC for A$3.7mn (US$2.2mn).
The claim relates to losses..
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04 August 2000
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Losses up at PXRe
Bermudan reinsurer PXRe has said that it underestimated the effect last year’s natural catastrophes would have on its books. The company said that losses from last December’s French windstorms, Hurricanes Floyd and Lennie and Typhoon..
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04 August 2000
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Clarendon closes Redland deal
Hannover Re’s US programme insurance subsidiary Clarendon Insurance has completed its purchase of Redland Insurance (RMR537/02
) (WIR636/12
). Redland, a subsidiary of Acceptance Insurance, was sold following a ratings downgrade by AM Best of..
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04 August 2000
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German reinsurers look to better prospects
Both Munich Re and Hannover Re, respectively the largest and fifth largest reinsurers in the world, are looking forward to significantly improved underwriting prospects for 2000.
The two companies staged their annual general meetings within a day of..
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04 August 2000
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Italian insurers fined
Italy’s insurers have been caught out by the country’s regulatory authorities engaging in anti-competitive practices in the country’s motor insurance sector. And the fine imposed on the industry has set a record for one awarded by..
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04 August 2000
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Indian aviation premiums to rise in wake of crash
India’s General Insurance Corporation was the insurer of the Alliance Air Boeing 747 that crashed in Patna in eastern India on 17 July. The company’s liability will come in at around US$8mn.
The aircraft which broke into four after the..
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04 August 2000
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Improved prospects for If
After a troubled eight months, things are at last beginning to look up for If. The pan-Nordic insurance joint venture seemed headed for certain disaster when two months ago Finland’s biggest insurer, Pohjola, decided not to join its business..
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04 August 2000
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Ethiopia mulls foreign participation
The governor of Ethiopia’s central bank has given a strong hint that foreign insurers may be allowed to participate in the country’s domestic market. Speaking to the Ethiopian Economic Association, Teklewold Atnafu said that..
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04 August 2000
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Swiss Re in US life move
In a bid to further increase its US life business, Swiss Re is to acquire National Capital Financial Corporation, the parent of Midland Life.
The purchase is being structured as an administrative reinsurance transaction.
Under the arrangement, Swiss..
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04 August 2000
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643 - 04 August 2000
Fortis acquires funeral insurer
Fortis, the Belgium-based insurance and banking group has further strengthened its presence in the US market by acquiring funeral insurer, American Memorial Life from Service Corporation International (SCI).
The deal will make Fortis the second..
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04 August 2000
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Sydney Olympics underinsured
This summer’s Olympic Games in Sydney are only insured against possible revenue losses of €66mn (US$61mn), according to Munich Re. With a 10% to 15% share of the market, the company is currently the biggest insurer of major sporting..
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04 August 2000
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Allianz targets MBA
Allianz is still negotiating to buy the 32% stake in Malaysia British Assurance (MBA) held by the Malaysian industrial group, Amsteel. The deal, which has the blessing of the Malaysian government, has been dragging on for some time. The government,..
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04 August 2000
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ZFS takes stake in National Life
Zurich Financial Services (ZFS) will take a 25% stake in a Thai life insurer, National Life Assurance Company. National Life, which was established three and half years ago, is a subsidiary of the Thai financial services group, National Finance..
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04 August 2000
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ING snaps up Aetna businesses for $5bn
Dutch banking and insurance group, ING has finally bought Aetna Corporation’s financial services operations in the US and its overseas insurance businesses for US$5bn in cash and $2.7bn in assumed debt. This is not much less than the $8bn that..
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04 August 2000
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HDI sells part of Hannover Re stake
The lull in the German property/casualty market is beginning to bite.
For many years, mutual Haftpflichtverband der Deutschen Industrie (HDI), took a great deal of pride in the fact that as a mutual it could withstand higher loss ratios than other..
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04 August 2000
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BAIG acquisition forms largest aviation insurer
One of the companies most heavily affected by the crash of the Air France Concorde in Paris is to form the largest aviation underwriter in the world. The British Aviation Insurance Group (BAIG) will buy Associated Aviation Underwriters (AAU) for an..
Online Published Date:
04 August 2000
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Tough times for Allianz
German insurer Allianz has not had a good month. The company announced half-year figures for its German property/casualty company, one of the cornerstones of its business, and had to revise sharply downwards the earlier optimistic profit forecast..
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04 August 2000
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Insurance in the new services economy
Orio Giarini
, Secretary General of the Geneva Association (the think tank for the international insurance industry), says that insurance is a field which offers incredible commercial, cultural and intellectual opportunities, but the terrain is also..
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04 August 2000
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Frankona sidelines Fink
ERC Frankona’s chief executive Bernhard Fink is to be sidelined following a reorganisation of the company’s structure. The German reinsurer, a subsidiary of GE Capital and sister company to Employers Re, will also be renamed. In future,..
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04 August 2000
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World Loss Log 12 July – 24 July
Late reports
7.7, collision, chemical spill
US: m tug Jackie Cenac
(144gt, built 1974), which was pushing tank barge CTCO 315
(1,619gt, built 1995) loaded with petroleum distillate raffinate collided with moored construction barge and caused..
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04 August 2000
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World Insurance Stock Prices
Company/Group
Currency
1999 year end
13/07/00
27/07/00
% change from 13/07/00
Capitalisation US$mn
1. CGU
Ace
US$
16.69
31.13
36.69
17.9
8034
Axa
€
71.00
156.00
163.90
..
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04 August 2000
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Company Profile: ERC Frankona Re
Danish reinsurer ERC Frankona Re described 1999 as its best year ever, despite a 13% fall in the company’s gross premium income. Improved underwriting and investment results together with a fall in administration expenses helped the company to..
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04 August 2000
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New Chilean insurers’ chief pushes growth
Following the decision of Mikel Uriarte not to stand again the Chilean Insurers’ Association (locally known as the Asociación de Aseguradoras de Chile) has elected Marcos Buchi as its president for a two year term. The association..
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04 August 2000
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India relaxes reinsurance regulations
The Insurance Regulatory and Development Authority (IRDA) has relaxed its previously tough stance against foreign reinsurers. Earlier proposals had indicated that individual companies would be limited to 5% of the total amount of reinsurance..
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04 August 2000
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Zurich extends political risk coverage to Latin America
Zurich US has extended its coverage of political risk to the capital markets of Central America. A new contract will help the El Salvadoran subsidiary of giant global power giant AES raise capital with investment grade rated senior notes.
The deal..
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04 August 2000
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CGNU disposes of German subsidiary
CGNU continues its strategy of disposing of selected non-life subsidiaries and strengthening its life and savings divisions. After putting up its US general insurance subsidiaries for sale, CGNU has now agreed to sell its German non-life subsidiary,..
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04 August 2000
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India auto manufacturers to enter insurance
India’s biggest motorcycle and scooter manufacturer, Bajaj Auto has plans to sell non-life insurance products when the market is opened to private insurers later this year. Bajaj follows the example of Maruti Udyog, the auto manufacturing..
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04 August 2000
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Oriental Insurance to enter bank alliance
Delhi-based Oriental Insurance is negotiating a strategic alliance with the Calcutta-based UCO Bank. Both are state-run companies. Oriental wants UCO to distribute its products in India’s eastern region where it has a wide network of..
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04 August 2000
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Nipponkoa to launch
The merger of Nippon Fire & Marine and Koa Fire & Marine in April next year will be called Nipponkoa Insurance. The two companies have also announced that for Japanese regulatory purposes, the designated ‘surviving entity’ will..
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04 August 2000
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Pharmaceuticals tap insurance
Cadila, the Indian pharmaceuticals giant based in the west of the country, has joined four other Indian pharmaceutical companies in the race to tap the non-life insurance market.
The company is in the process of making an application for a..
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04 August 2000
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Southern Cross to buy Aetna subsidiary
As Aetna sells its financial services and international insurance unit to ING (see page5), New Zealand mutual health insurer, Southern Cross Medical Care Society has reached an agreement with Aetna to buy its New Zealand subsidiary, Aetna Health..
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04 August 2000
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IRDA solvency test
A senior official with India’s Insurance Regulatory and Development Authority (IRDA) said it had adopted accepted international practice for determining solvency margins. The authority has prescribed a three-stage formula for determining the..
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04 August 2000
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Sri Lanka liberalises
The Sri Lankan parliament has voted for a change in the country’s Insurance Control Act
to allow the creation of an insurance regulator independent from the finance ministry. According to the deputy Finance Minister, Gamini Peiris, the new..
Online Published Date:
04 August 2000
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Japan sets date for ‘third sector’ liberalisation
After coaxing by the US, Japan has moved to liberalise the so-called ‘third sector’ of its insurance industry. The decision will result in Japanese companies being able to compete with the foreign companies that currently dominate the..
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04 August 2000
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Brazil: Reinsurance regulations create opportunity
Beatriz da Costa Viellas, resident Counsel at the London representative office of Brazilian law firm Amaral Gurgel Advogados outlines the regulatory framework which will govern the soon-to-be liberalised Brazilian reinsurance market, the biggest in..
Online Published Date:
04 August 2000
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Professional liability cover for China
A Domestic Chinese insurer has launched the first professional liability policy in the country.
Initially aimed at accountants, the China Ping’an Insurance Company (CPIC) hopes to extend the policy to other professions soon.
The policy was a..
Online Published Date:
04 August 2000
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643 - 04 August 2000
NRMA
Australia’s largest general insurer NRMA will float on the stock exchange on 8 August. This follows the exhaustion of all legal avenues to prevent it by dissident directors. It now seems that institutional investors will take a larger stake..
Online Published Date:
04 August 2000
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NZ national insurance scheme falters
The move by New Zealand’s Labour-led coalition government to put a national pension scheme in place looks unlikely to win the cross party support needed to push the scheme through parliament. The government is now considering a direct appeal..
Online Published Date:
04 August 2000
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IRDA in broker appeal
India’s Insurance Regulatory and Development Authority has approached the government for an amendment to the Insurance Act
that prohibits payment of commission by an insurance company to anyone other than an agent. This provision is coming in..
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04 August 2000
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Mitsubishi plans online weather market
Japanese conglomerate Mitsubishi is to establish an online weather derivatives market to enable Japanese companies to hedge against weather related risks such as snowfall, rain or windstorms. The idea is that a company can, with one derivative..
Online Published Date:
04 August 2000
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Towers Perrin warns CEA
A review carried out by consultancy firm Tillinghast-Towers Perrin has recommended that the California Earthquake Authority re-examine its reinsurance arrangements describing them as too expensive. The report also warned that the rise of specialty..
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04 August 2000
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