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Asia Pacific
AIG rises in Japan
American International Group (AIG) has consolidated its position in the Japanese life insurance market through the purchase of General Electric’s (GE) GE Edison Life Insurance, for up to US$2.2bn. The sale also includes..
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04 July 2003
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717 - 04 July 2003
Europe
Genetics moratorium stays
UK insurers welcomed the outcome of a government white paper recently that will extend the moratorium on the use of genetic testing in the industry until 2006. The moratorium was first introduced in November 2001, and set..
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04 July 2003
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717 - 04 July 2003
North America
Life income halves
US life and health insurers recorded a 53% dive in net income last year, according to rating analysts Weiss Ratings. Earnings slipped from US$15.4bn in 2001 to just $7.3mn largely as a result of declining equity markets. Weiss..
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04 July 2003
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717 - 04 July 2003
HSB Engineering Insurance
North America continues to account for the bulk of HSB’s business, but the UK contribution is increasing
UK-based insurer HSB Engineering, part of American International Group (AIG), reported a 43% increase in consolidated pretax profits in..
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04 July 2003
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717 - 04 July 2003
Folksamerica Re
Property business accounted for 48% of premium income in 2002, up from 30%, but casualty writings fell from 59% to 37%
US broker-market reinsurer Folksamerica Re, which provides reinsurance cover for property/casualty and accident/health risks in..
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04 July 2003
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717 - 04 July 2003
IPC Holdings
The relatively lower level of catastrophe losses in 2002 transformed a net loss of $3.9mn into a profit of $158mn last year
Bermuda-based IPC Holdings, which primarily provides property/catastrophe reinsurance through its wholly-owned subsidiary..
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04 July 2003
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717 - 04 July 2003
Introduction of compulsory motor TPL and life tax boost market
After rising by 4% in 2001, direct premiums for non-life insurance soared by 71.9% in 2002
The Lithuanian insurance market experienced extraordinary growth in 2002 following the introduction of compulsory motor third-party liability (TPL) insurance..
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04 July 2003
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717 - 04 July 2003
Scor’s revival short-lived
Executive exits, rating actions and capital concerns combined to give European insurers a rough ride at the half year stage
In the space of just two weeks Scor’s capitalisation slipped by 23% to US$758mn from its highest capitalisation value..
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04 July 2003
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717 - 04 July 2003
News round up
The government is pushing through measures to aid ailing life insurers
• Worried about the possibility of some life insurers collapsing, the Japanese government has introduced a law to allow companies to reduce the guaranteed yields they had..
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04 July 2003
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717 - 04 July 2003
Alex Letts: chief executive, ri3k
ri3k is now the only independent online reinsurance platform left in Europe. But will it move to fill the gap left by Inreon?
The sudden closure six weeks ago of Inreon, the London based online reinsurance trading platform, has had two main..
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04 July 2003
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717 - 04 July 2003
Mannheimer rescue
State steps in to save failed company
Protektor Lebensversicherungs AG, the life company set up by the German insurance industry under pressure from the regulator BaFin, is to take over the portfolio of the failed Mannheimer Lebensversicherungs AG...
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04 July 2003
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717 - 04 July 2003
Non-life boost for market’s premium income
1st quarter results indicate that insurance sector is set to build on 2002 growth
Premium income from property and liability insurance in France rose by 9% in the first quarter of this year, according to the French insurers’ association..
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04 July 2003
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717 - 04 July 2003
27 MAY–9 JUNE 2003
Property and business interruption
12.6, explosion, fatalities
India: two people were killed and 18 were injured in an explosion and fire at a pharmaceutical plant in Punjab state. The fire broke out in the factory in Mohali, near Chandigarh. The..
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04 July 2003
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717 - 04 July 2003
Results confound SARS epidemic
The Asian life sector is doing better than it did during the boom years
The SARS epidemic, which has shaken several industries, has not affected the life insurance sectors in China, Hong Kong and Singapore. The life insurance industry is also..
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04 July 2003
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717 - 04 July 2003
Swiss Life resorts to ‘back to basics’ policy
Further divestments are expected this year as company focuses on core lines
Swiss Life is concentrating on its core business of life insurance following a recent spate of disposals.
The sale of subsidiaries in Britain and Spain are expected to..
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04 July 2003
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717 - 04 July 2003
EU companies set to launch massive marketing drive in region
Foreign insurers are targeting the growing number of small entrepreneurs who work from home
The arrival of a growing number of western insurers, rising crime rates and an expanding number of high income households is helping to increase the take-up..
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04 July 2003
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717 - 04 July 2003
Chile to change legislation
US and EU companies will be able to market their products directly from abroad
The Chilean government has announced a series of significant measures to further the modernisation of the country’s financial markets started a few years..
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04 July 2003
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717 - 04 July 2003
First American cancels plans to enter Hungarian market
But undeterred by its experience in one country, the company plans to offer title insurance cover in the Czech Republic
Contrary to earlier expectations, First American Title Insurance, one of the largest title insurance compaines in the US, will..
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04 July 2003
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717 - 04 July 2003
Corporate governance and social responsibility
The publication of the Higgs Report into the role and effectiveness of non-executive directors has important implications for the insurance industry – both in terms of the effectiveness and profitability of business, and in the wider realm of..
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04 July 2003
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717 - 04 July 2003
India lifts limits on brokers
IRDA eases rules as brokers prove that they are able to regulate themselves
India’s insurance regulator has allowed insurance brokers to work for state run companies. It has also put an end to the existing system under which insurance..
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04 July 2003
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717 - 04 July 2003
Asia Pacific
Japan: profits under threat
The country’s non-life insurers remain under “severe” pressure, according to analyst Standard & Poor’s (S&P), at a time when profitability is suffering as the result of falling share..
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18 July 2003
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718 - 18 July 2003
Europe
EC aviation aid ruling
A ruling by the European Commission (EC) has saved Europe’s airlines from having to return the aid they received from governments in the wake of 11 September 2001. Nine member states extended aid to the end of October..
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18 July 2003
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718 - 18 July 2003
North America
Goshawk rating affirmed
Analyst AM Best has affirmed the financial strength rating of Bermudian insurer Goshawk Re after its parent company in the UK, Goshawk Insurance Holdings, said it was conducting a “strategic review” of all of its..
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18 July 2003
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718 - 18 July 2003
24 JUNE–7 JULY 2003
Late reports
21.6, missing jet, terrorism fears
Angola: the US is working with African governments to try to find a stolen passenger jet that it fears may end up being used by terrorists. A White House spokesman admitted the US had few leads over..
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18 July 2003
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718 - 18 July 2003
Faraday Re
The global treaty reinsurer, formerly known as Cologne Re, increased its pre-tax profits by 1,300% during 2002
London market reinsurer Faraday Re had one of the best years in its history in 2002, according to its new chairman Milan Vukelic.
A..
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18 July 2003
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718 - 18 July 2003
Swiss Re Group
Another disappointing year as improvements in the company’s p/c business were more than offset by asset impairments
Pretax profit for Swiss Re’s consolidated operations stood at SF36mn (US$26mn) last year compared with a SF104mn loss in..
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18 July 2003
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718 - 18 July 2003
A year of downgrades leaves RSA ‘disappointed’
The company’s US business is behind the latest downgrade but company denies any weakening
Royal & SunAlliance (RSA) shares were up nearly 3% despite a ratings downgrade by analyst Moody’s – the fourth in under a year...
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18 July 2003
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718 - 18 July 2003
State and private cos differ on discounts
Government decision to scrap 5% premium discount divides market
The two sets of general insurers in India, the entrenched state-managed companies and the private and foreign players that have recently entered the market, are once again pulling the..
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18 July 2003
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718 - 18 July 2003
Private pensions introduced
Private pension schemes have finally been introduced in India. The long awaited move came when the Indian prime minister, Atal Bihari Vajpayee, launched a pension scheme for senior citizens, Varishtha Pension Bima Yojana, on 15 July.
The plan will..
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18 July 2003
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718 - 18 July 2003
Dr Wolf Becke, head of life and health reinsurance, Hannover Re
The pioneer of financing reinsurance on the challenges facing the European and US life insurance sectors
Reinsurance, which until recently used to be a relatively minor concern for European life insurers, has now become an issue of critical..
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18 July 2003
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718 - 18 July 2003
XXX surprise for reinsurers
Companies will face massive need for credit finance to fund US business
It is the belief of one of the most respected figures in the global life reinsurance sector that some unpleasant surprises await those European reinsurers currently active in..
Online Published Date:
18 July 2003
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718 - 18 July 2003
Europe round-up
Russia expects premium surge • Dollar exchange hits Swiss Re • Allianz mulls Dresdner sale • Unipol eyes bank shares
The Russian Association of Motor Vehicle Insurers estimated additional income of between US$600mn and $700mn in..
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18 July 2003
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718 - 18 July 2003
Scor defiant in face of rating uncertainty
Management reacts to news of another downgrade, placing an A rating further out of reach before key renewal season
Scor received a sharp wake-up call when agency Standard & Poor’s (S&P) cut its rating of the French reinsurer’s..
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18 July 2003
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718 - 18 July 2003
Authorities set to introduce new motor claims reserves this year
Motor remains the biggest source of premium income for insurers. But results are blighted by fraud, theft and accidents
Motor insurance has historically been one of the main drivers of the insurance industry in Argentina. At March 2003 (nine months..
Online Published Date:
18 July 2003
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718 - 18 July 2003
Run-off’s second golden age?
The insurance market, like other financial sectors, is subject to cyclical change and is perennially at the mercy of forces larger than itself. When the downswing comes it can bring considerable financial and operational pain: cost cutting, staff..
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18 July 2003
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718 - 18 July 2003
Insurance sector unable to prosper in weak economic environment
With the life sector in a slump and the three biggest companies posting losses, the market faces some tough challenges
The Portuguese insurance market recorded an increase of 5% in direct premium income to €8.4bn (US$9.5mn) in 2002, according..
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18 July 2003
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718 - 18 July 2003
HK$13.5mn for Sars death claims
Significant loss, but local companies not expected to suffer unduly
The Sars (sever acute respiratory syndrome) epidemic has given rise to the second biggest payout ever made by the insurance industry in Hong Kong after the September 1999 typhoon..
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18 July 2003
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718 - 18 July 2003
Sector takes heart from underwriting profit
Less concerned with financial security ratings, reinsurers are using their new found profits to source new business
The three months to March 2003 is not the first time that the 30 member companies of the Reinsurance Association of America (RAA)..
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18 July 2003
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718 - 18 July 2003
No cut in yields
Fearing policy cancellations, few companies are prepared to cut payments
Two of Japan’s biggest life insurers have assured policyholders that they will maintain guaranteed interest rate yields on policies. This assurance comes in the face of..
Online Published Date:
18 July 2003
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718 - 18 July 2003