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Company profile: Munich Re of Africa
Although Munich Reinsurance Company of Africa (MroA) saw a 13% reduction in its gross premium income in 1999, it managed to increase pre-tax profits by 130% to R44.9mn. Although the improvement in the pre-tax result was almost entirely due to a 300%..
Online Published Date:
05 January 2001
Appeared in issue:
653 - 05 January 2001
GE Frankona Re
Last year was not a good one for ERC Frankona, as GE Frankona Re was then called. Despite a relatively low retention rate the company still managed to rake up an enormous underwriting loss of around DMmn813mn (US$420mn). Despite this, an increased..
Online Published Date:
05 January 2001
Appeared in issue:
653 - 05 January 2001
Record number of mergers in 2000
The first 11 months of 2000 produced a record 607 insurance merger announcements (in 1999, 573 had been announced at the 11-month stage) with 75 new deals announced in November alone.
The most striking thing about November was that there were no..
Online Published Date:
05 January 2001
Appeared in issue:
653 - 05 January 2001
Pain before gain
I
t has been a hard decade for aviation insurers in the London companies market. Not only have they traded at a loss for eight of the last 10 years, but they have also suffered record claims over the last three. Now, at long last, the market is..
Online Published Date:
05 January 2001
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653 - 05 January 2001
Tower to buy Aetna policies
New Zealand’s Commerce Commission has given permission for the takeover of Aetna Insurance’s 40,000 health insurance policies by Tower. Aetna sold its New Zealand subsidiary to the country’s largest health insurer, the Southern..
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05 January 2001
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653 - 05 January 2001
MetLife eyes private market
Metropolitan Life (Argentina), one of the US life insurers working in Argentina since the early 1990s, has decided to set up its own pension fund manager – an AFJP. The company is due to start operating in March next year.
The shareholders..
Online Published Date:
05 January 2001
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653 - 05 January 2001
Scor refocuses US life business
European insurance groups continue to strengthen their presence in the US life reinsurance market.
The most recent entrant, France’s Scor group, announced last week that its US subsidiary Scor Life US Re, established only five months ago, has..
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05 January 2001
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653 - 05 January 2001
Tata-AIG on final stretch
Tata-AIG General Insurance, the joint venture between the Mumbai-based Tata group of industries and US giant American Insurance Group has been asked by India’s Insurance Regulatory & Development Authority to file application for the..
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05 January 2001
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653 - 05 January 2001
XL buys CGU Surety
Following from the sale of its US general insurance business, CGNU has sold its US surety business. The buyer is Bermuda’s XL Capital through its US subsidiary XL Specialty Insurance. The purchase includes inforce business as well as CGU..
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05 January 2001
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653 - 05 January 2001
All eyes on Parion as market prepares for change
The much-awaited restructuring of the German insurance market is finally gathering pace, but is not likely to reach full speed before 2002.
From 1 January 2002 onwards capital gains from the sale of companies or stakes in companies will be tax..
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05 January 2001
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653 - 05 January 2001
World loss log 28 November–11 December
Late reports
27.11, crash, fatality
US: a pilot was killed when his Cessna single-engine aircraft collided with a Cessna 172 four-seater about 30 miles west of Houston, Texas and then crashed on interstate highway 10. The pilot of the second..
Online Published Date:
05 January 2001
Appeared in issue:
653 - 05 January 2001
World insurance stock prices
Company/group
Currency
1999 year end
16/11/00
30/11/00
% change from 16/11/00
Capitalisation US$mn
1. CGU
Ace
US$
16.69
39.50
39.00
(1.3)
8,656
AIG
US$
72.09
96.94
96.56
(0.4)..
Online Published Date:
05 January 2001
Appeared in issue:
653 - 05 January 2001
Company profile: Hibernian Re
Hibernian Re is the small reinsurance arm of large Irish insurer Hibernian. It, in turn, is owned by UK colossus CGNU.
The company writes all its business from Dublin’s International Financial Services Centre. It also writes all its business..
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05 January 2001
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653 - 05 January 2001
Company profile: Arab Re
Arab Reinsurance Company SAL was established in Lebanon in 1972 to develop and provide reinsurance capacity for the Arab insurance markets through its management of the Arab Reinsurance Pool. In addition to managing the pool, Arab Re also writes..
Online Published Date:
05 January 2001
Appeared in issue:
653 - 05 January 2001
Countering hostile bids
O
ur report indicates that the first 11 months of 2000 produced a record number of insurance mergers: 75 new deals were announced in November alone. But as WIR reports from Brussels, a move within the European Parliament to change company takeover..
Online Published Date:
05 January 2001
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653 - 05 January 2001
Single regulator
Finland is planning to combine its banking and insurance regulators to create a single financial services inspectorate. If the move succeeds, it will put an end to several years of wrangling.
The move has been largely prompted by the imminent..
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05 January 2001
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653 - 05 January 2001
Privacy objection
An application from New Zealand’s leading credit and debt collection agency to buy records of patients from the Accident & Compensation Insurance Corporation (ACC) has alarmed New Zealand’s privacy commissioner, who has voiced..
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05 January 2001
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653 - 05 January 2001
Against the tide: NZ’s renationalisation
The reintroduction of lump sum compensation payments, in addition to weekly disability benefits, for accident victims means New Zealand’s recently renationalised, unique accident insurance system has undergone a full reinstatement of its..
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05 January 2001
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653 - 05 January 2001
HIHNZ outrates parent
Ratings agency Standard & Poor’s has removed its negative CreditWatch from HIH Casualty & General Insurance (NZ) (HIHNZ), the main trading entity of HIH New Zealand. It also affirmed the company’s A- credit rating.
This means..
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05 January 2001
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653 - 05 January 2001
SPP issue creates market
SPP’s plans to return excess funds to its clients have spawned a secondary market in pension rights in Sweden (see WIR 652/9)
. In the course of the November issue rights worth some SwKr200mn were traded. Since the money from SPP is to be used..
Online Published Date:
05 January 2001
Appeared in issue:
653 - 05 January 2001
Australia bars genetic testing
The Australian Competition & Consumer Commission (ACCC) has granted authorisation for two years to a proposed agreement by life insurers that they will not require applicants for life insurance to undergo genetic testing. The ACCC said there..
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05 January 2001
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653 - 05 January 2001
Brokers oppose demutualisation
The Swedish insurance brokers’ association SFM has expressed doubts about plans to demutualise life insurer Handelsbanken Liv. SFM chairman Mats Lindkvist was concerned that Handelsbanken Liv’s 270,000 policyholders would only benefit..
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05 January 2001
Appeared in issue:
653 - 05 January 2001
Model predicts hailstorm losses
The hailstorm that cut a swathe through Sydney in April 1999 cost insurers about A$1.7bn. For the Australian insurance industry it was one the worst natural disaster in the country’s history. A computer model that predicts hailstorm losses for..
Online Published Date:
05 January 2001
Appeared in issue:
653 - 05 January 2001
Hungarian health market lifts
Two companies already active on the Hungarian insurance market are gearing up for the forthcoming restructuring of the health insurance sector. Due to the infancy of private healthcare provision, there are a limited number of health insurance..
Online Published Date:
05 January 2001
Appeared in issue:
653 - 05 January 2001
Overseas investment in Taiwan
Taiwan has taken a significant step in preparing its insurance sector for the challenges of globalisation. The government extended the limit on overseas investment by local insurers from 10% to 20% of their insurance funds. The move could see the..
Online Published Date:
05 January 2001
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653 - 05 January 2001
New chief at Sampo
Björn Wahlroos, former head of investment bank Mandatum, is taking over as chief executive of newly-merged Finnish bancassurer Sampo-Leonia. The appointment of Mr Wahlroos follows the forced resignation of Sampo-Leonia’s former chief..
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05 January 2001
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653 - 05 January 2001
EFIC in private sector alliance
Australia’s Export Finance & Insurance Corporation (EFIC) chairman Ian Payne has welcomed the announcement by the country’s trade minister Mark Vaile that EFIC should seek an alliance with a private insurer to improve credit..
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05 January 2001
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653 - 05 January 2001
Life and annuity market grows in Argentina
Figures released by the Argentinian insurers’ association has revealed the life and annuities sector collected P2.35bn (US$2.35mn) of premiums for the period to September 2000. It now represents 0.85% of Argentina’s GDP. Life premiums..
Online Published Date:
05 January 2001
Appeared in issue:
653 - 05 January 2001
A fine balance
Christine Farnish,
director of consumer relations at the Financial Services Authority, explains how the interests of consumers will be protected under the new ‘risk-based’ model that will regulate the activities of insurers, banks and..
Online Published Date:
05 January 2001
Appeared in issue:
653 - 05 January 2001
NRMA consultant to be sued
Following the leak of a confidential board report into the use of proxies at the annual general meeting in 1998 (see WIR 651/8)
NRMA chairman Nick Whitlam is to sue his former strategic consultant Robert Dempsey for breach of confidence.
Extracts..
Online Published Date:
05 January 2001
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653 - 05 January 2001
World loss log 19 December 2000–8 January 2001
Late reports
17.12, train collision, fatalities
Japan: 1 person was killed and 27 injured after 2 small local trains collided head on in Matsuoka, Fukui Prefecture, about 220 miles west of Tokyo. About 40 to 50 people were on board the..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
Company profile: Lureco
Founded in 1986, financial reinsurer Luxembourg European Reinsurance (Lureco) is part of the General Electric group. On 24 June 1999 ERC Life Re gained control of the company from ERC Frankona Re, Munich.
Gross premiums written stood at €284mn..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
Company profile: Swiss Re Southern Africa
After nearly doubling its gross premium income in 1998, Swiss Re Southern Africa radically restructured both its management structure and business portfolio the next year. It reduced the overall volume of business by 36%, largely by turning away..
Online Published Date:
19 January 2001
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654 - 19 January 2001
Korean Re
Korean Re’s pre-tax profits jumped spectacularly from Won4.6bn to Won42.3bn (US$32.8mn) for the year ending 31 March 2000 as the company halved its underwriting losses while increasing its investment income by 269%. The 1999 result, an..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
Non-life in doldrums as life booms
Data from the annual Swiss Re sigma
survey of worldwide insurance for 1999 confirms evidence that has been gathered from company annual reports and anecdotally: that rates went nowhere that year as the industry waited for an upturn.
As ever,..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
Think global, act local
Donald J Shepard, president and chief executive of Aegon USA and member of the executive board of Aegon NV, talks to
WIR about the group’s position in the North American market in the wake of the Transamerica acquisition.
North America is..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
Sweden to offer new scheme
The Swedish government has announced plans to introduce a ‘competence saving’ system from 1 January 2002. To be known by the initials IKS and operating along the same principles as pension funds, the new system will accumulate..
Online Published Date:
19 January 2001
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654 - 19 January 2001
Munich Re closes CNA Life Re deal
Munich Re has joined the growing list of European insurance operations seeking to increase exposure to the US life reinsurance market by completing its acquisition of the life re business of CNA through its subsidiary Munich American Reassurance..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
Handelsbanken buys SPP
Swedish banking and insurance group Handelsbanken is to buy insurers SPP Liv and SPP Fond for SwKr7.1bn.
The company plans to demutualise SPP Liv and merge it with Handelsbanken’s currently relatively weak SHB Liv, to create a new entity.
It..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
First private policy issued in India
Royal Sundaram Alliance has become the first private non-life player to issue a policy. Other new players like Tata AIG General Insurance, Hero Zurich General and Iffco Tokio Marine are expected to follow shortly.
“At this point of time we are..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
Reinsurers set a ‘harddeck’
Despite increases across the board at the recent renewals season, reinsurance rates have still not reached a level sufficient for underwriting profit. While rate increases in loss-making lines have increased significantly, there has been no general..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
AIG extends in Canada
AIG has acquired Norwich Union Life Assurance Canada, the biggest direct life insurer in the country. The acquisition was facilitated through AIG’s purchase of Norwich Union Holdings from the UK-based CGNU for C$159mn (US$106mn). An AIG..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
Hannover Re completes fourth life securitisation
German reinsurer Hannover Re has concluded its fourth life risk securitisation in a €200mn (US$186mn) deal that covers unit-linked life business from Germany and Austria.
Hannover Re has been a trailblazer in the area of life securitisation,..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
Lloyd’s capacity increases
The amount of capital provided by individual Names at Lloyd’s is declining, but not as rapidly as many expected. Although the number of Names decreased by nearly 14% from 3,296 in 2000 to 2,852 in 2001, their capital contribution remained more..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
World insurance stock prices
Company/group
Currency
2000 year-end (29/12/00)
Capitalisation US$mn 31/12/00
11/01/01
% change from 29/12/00
Capitalisation US$mn
Ace
US$
42.44
9,419
36.00
(15.2)
7,990
AIG
US$
98.56
228,227
84.31
(14.5)..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
Company profile: Kölnische Rück Wien
Kölnische Rück Wien, part of GeneralCologne Re, is responsible for the Austrian and the Central European markets of Poland, the Czech Republic, Slovakia, Hungary, Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Macedonia, Albania,..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
PZU embroiled in diplomatic row
Pan-European insurance alliance Eureko has accused the Polish government of treating shareholders like cattle over its handling of the country’s largest general insurer, PZU.
The accusation comes in the wake of the latest government decision..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
Defining privacy
Michael Skay, insurance partner at New York law firm Chadbourne & Parke, outlines the potential for confusion on the issue of privacy and information sharing after the passage of the
Gramm-Leach-Bliley Act.
As the financial world continues to..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
General insurers raring to go
How quickly things change. By far the biggest surprise of the Confederation of British Industry and PricewaterhouseCoopers Financial Services Survey published last week is the astonishing bullishness of UK general insurers at a time when their..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
Folksam eyes KP for purchase
Folksam is expected to buy life insurer KP Pension & Försäkring. Folksam managing director Tore Andersson has confirmed a deal is in the offing. He has not named the takeover target but, since he has discounted the possibility of..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
Change in EU air liability
A vote in the European Parliament last month was hailed by members as a step toward a worldwide unlimited liability regime for air travel.
European airlines are already subject to an unlimited regime under the terms of EU legislation adopted four..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
OECD in retreat
Following pressure applied by the Commonwealth, the Organisation for Economic Co-operation & Development (OECD) has agreed to review its procedures for addressing the issue of harmful tax practices. The step back from the controversial report..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
Vote speeds up passage of insolvency directive
It now seems that a vote in the European Parliament has brought forward the introduction of the EU Directive on the winding up of insurance companies. But EU financial services legislation, about to be signed into law, has been blocked for so many..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001
Tough on insolvency
The number of the players in the South Korean insurance market has been reduced to 40 from 50 due to the restructuring of financially impaired companies. More insurers are expected to close down in the near future.
Lee Chun-geon
, head of South..
Online Published Date:
19 January 2001
Appeared in issue:
654 - 19 January 2001