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

Asia Pacific

AMP splits in two AMP’s share price suffered last week at the hands of a restructuring plan that will see it spin-off its British life insurance and investment management businesses in a bid to protect its Australian assets from further..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Europe

New Holocaust names The International Commission on Holocaust Era Insurance Claims (ICHEIC) has extended the deadline for unpaid claims from policyholders of life insurance policies held before World War II to 30 September 2003. A batch of new..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

North America

Prudential completes Skandia deal Life insurer Prudential Financial has completed the acquisition of the US business of Skandia Insurance Company. Prudential paid US$1.2bn for American Skandia, the largest distributor of variable annuities through..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Converium Group

Despite the tough challenges of deterioration on prior years’ business, newly independent reinsurer returns to profitability Swiss reinsurance group Converium (formerly Zurich Re) returned to profitability in 2002, its first full year as an..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Allianz Group

2002 property/casualty pre-tax profits were up by 216%, but the 31% decline in the group’s capital base remains a concern German insurance giant Allianz had a bad year in 2002, posting a pre-tax loss of €1.2bn (US$1.3bn) compared with..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Bermudian market boosted by profitable start to 2003

First quarter results are boding well for listed Bermudian reinsurers, and also for the newer companies seeking a listing in the not-too distant future The major players in the Bermudian market have recorded double-digit growth in share value over..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Allianz sells out to local insurance group

After a $5.4mn loss in 2002, the German group is exiting the Chilean life market As expected, AGF Allianz’s Chilean life subsidiary, AGF Allianz Vida, whose sale was announced last January, was finally bought at the end of April by the local..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

IRB privatisation back on the agenda

Law that prevents privatisation still in force, but authorities keen to address issue Lidio Duarte, the new president of IRB-Brasil Re, confirmed that the long delayed privatisation of the state reinsurer is once again under discussion in..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Plans to revive re pool

Public sector companies are in intense negotiation with private companies Indian insurance companies are being forced to revive a reinsurance pooling arrangement dumped more than a year ago. Companies are facing difficulties in finalising their..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Groupama loss

The group has tough profitability targets to meet if it wants to go public The French mutual insurer Groupama has produced its first loss, €154mn (US$169.4mn) for last year. Provisions of €687mn against various stock market losses..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Mondial expands

Allianz unit may move into health sector to stem fall in core business Allianz subsidiary Mondial Assistance is planning to diversify into healthcare insurance. While announcing a net profit of €17.1mn (US$18.8mn) for last year, company..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

French insurers lead IAS protest against EU

Companies are up in arms about transitional accounting rules European Union proposals to introduce International Accounting Standards (IAS) from 2005 have upset French insurers. Protests were led by Claude Bebear, chairman of the supervisory board..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Generali settles down to focus on profit

Shareholders bury differences at AGM but regulators to keep close watch Generali forecast a consolidated net profit of €1.5bn (US$1.65bn) by 2005 at its recent AGM. The company also promised internal and external growth – though..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Falling airline passenger numbers bound to affect premium income

Two former chairmen of the AIOA talk about current market conditions and other challenges facing aviation insurers Despite the dramatic increase in their premium income last year, there has been precious little comfort for aviation insurers. Barely..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Clear blue sky and sunshine for reinsurers

There has never been a better time to be in the business than right now Reinsurers’ quarterly results that have been unveiled so far show impressive growth in top lines and, in most cases, bottom lines as well. Almost everyone is confident..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Adapt or lose out in Middle East reconstruction bonanza

There are plenty of trade finance opportunities in a post-Saddam Hussein Iraq, but the ground rules have changed There are going to be a lot of new project finance deals in the Middle East region over the next several years, providing unprecedented..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Caribbean

Guardian closes ING deal Guardian Holdings, based in Trinidad and Tobago, has secured the acquisition of Fatum, an insurance business of ING Group based in the Netherlands Antilles and Aruba. Guardian paid €45mn (US$51mn) for Fatum, which..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

15–28 APRIL 2003

Late reports 11.4, Tricolor, salvage English Channel: a deal has been signed to remove the sunken vehicle carrier Tricolor which has been stranded in the English Channel since December. Wilhelmsen, the Norwegian owners of the stricken vessel..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Green light for higher commissions

The Argentine Pension Funds Superintendency (SAFJP) has authorized the four largest pension fund managers (AFJPs) which control 70% of the market to increase the commissions they charge their members. The four are Siembra, Origenes, Maxima and..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Pesificacion will not apply to dollar-based life and retirement policies

‘Pesificacion’ is the popular designation of the compulsory conversion of all financial transactions into pesos at a pre-set rate of exchange. This process was introduced in Argentina in early 2002 shortly after the country defaulted on..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Brokers upset over IRDA ruling

Recently licensed broking firms are being excluded from tariffed business The notification issued last month by the Indian Insurance Regulatory and Development Authority (IRDA) which closed all public sector business to brokers and re-fixed the..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Change in insurance accounting standards

The number of companies will contract with new solvency requirements Ukraine will enlist the help of international organisations when it switches the country’s insurance companies to International Accounting Standards, Viktor Suslov, chairman..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Private asset managers get ready to take charge of non-state pension funds

Officials have a mountain to climb in introducing a fully-funded pension system Russia is undergoing the critical first stage of introducing a fully-funded pension system, according to the key government technocrat in charge of devising and..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

26% increase in life income for OTP

Ability to leverage bancassurance opportunities increases business flow OTP-Garancia, Hungary’s fifth largest insurer, owned by the country’s largest retail financial institution OTP Bank, is targeting growth through plans to use its..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Understanding and interacting

Much of what is needed to improve customer understanding already exists in most insurance organisations. Unfortunately, those same organisations are letting it slip through their fingers every day. Dr Chris Todman of Kognito Knowledge Solutions..

Online Published Date: 09 May 2003

Appeared in issue: 713 - 09 May 2003

Middle East

Arab market on the up Significant growth opportunities have been forecast for insurance markets in the Middle East and North Africa by leading company in the region, Arab Insurance Group (Arig). Arig said recent reforms, including the opening of..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

Asia Pacific

HIH individuals could be banned by regulator The Australian financial services regulator has identified a substantial list of persons that will be investigated in light of the findings of the HIH Royal Commission. The Australian Prudential..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

Europe

ING sells Mexican stake ING has ended its bancassurance venture with Mexican company Seguros Bital. The Dutch group is planning to sell its 49% shareholding back to HSBC subsidiary Grupo Financiero Bital, from which ING acquired the shareholding in..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

North America

HartRe business moves to Endurance Specialty Bermudian company Endurance Specialty Holdings has emerged as the buyer for HartRe, the reinsurance business of Hartford Financial Services Group. Hartford said it was selling the business in order to..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

Jardine Lloyd Thompson Group

Significant increases in turnover and profitability follow the restructuring of the group’s operational structure last year UK broking group Jardine Lloyd Thompson (JLT) had another good year in 2002, posting a pretax profit of £100mn..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

GE Frankona Re (Denmark)

The Employers Re subsidiary terminates its international retrocession accounts and sees strong increase in direct business Danish reinsurer GE Frankona Re posted a reduced pretax profit of DKr320mn (US$45mn) in 2002 thanks to a poor underwriting..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

Everest Re Group

With a 99% combined ratio in 2002 and limited exposure to asbestos claims, the group is set to profit from the hard market Bermuda-based reinsurance and insurance holding company Everest Re Group had an excellent year in 2002, posting a pre-tax..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

Capital and long-tail liability concerns continue to burden sector

With the bleak outlook for life and composite insurance sector stocks, the focus is now on non-life specialist markets A London Financial Times interview last month with the manager of one of the UK’s best performing investment funds..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

SOUTH AFRICA

Market set to maintain positive underwriting performance Results from South Africa’s two leading non-life insurers point to an improvement in underwriting profitability for the general insurance market in 2002 despite increased reinsurance..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

Moves to increase local and foreign confidence in insurance sector

New legislative measures focus on consumer protection in preparation for onslaught of foreign competition in 2004 Legislators, in preparation for Hungary’s accession to the EU are making numerous revisions to the country’s insurance..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

Gerling

Bank gives up shareholding in insurer Deutsche Bank has given up trying to find a buyer for its 34.5% stake in the insurance group Gerling, and has abandoned its shares. This has left Rolf Gerling holding 94% of the group’s equity, and..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

Arch Capital Group sets a hot pace for rest of reinsurance sector

Reinsurer’s direct insurance operations drive spectacular expansion • Hartford disposes of reinsurance portfolio Arch Capital Group has reported a remarkable growth in premiums during the first quarter which far surpasses any of the..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

Vote in support of EU airline operators

MPs seek equilibrium in global aviation market following the events of 11 Sept Proposals for EU-wide alignment of aviation insurance requirements1 cleared first reading in the European Parliament on 13 May – subject to some major..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

29 APRIL–12 MAY 2003

Late reports 24.4, explosion, fatalities Canada: a natural gas explosion that levelled a shopping mall in western Toronto has left seven people missing, presumed dead. Four were injured. The blast started a fire at the shopping complex, which..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

Waking up to the reality of IT demand in the London market

Tony Illinesi, London market services manager for IT provider CSC, reflects on the changed relationship between IT companies working to re-establish their credibility and insurers trying to meet their IT needs with vastly reduced budgets “If..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

Life cos against new body

Government sides with insurers against move by parliament for central control The French parliament wants to subject the country’s life insurers to control by the Autorite des Marches Financiers (AMF), the new financial markets supervisor due..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

MPs vote for environmental liability regime

Parliament demands that insurance cover be mandatory, but time is running out • Compulsory motor insurance in Russia The European Parliament called for an EU-wide liability regime on 14 May by way of an amendment to Environment Commissioner..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

Using legacy assets: Capitalising on COBOL

Financial services companies are constantly looking to preserve existing IT investments, and get the most out of current systems without the cost of replacing software unnecessarily. According to Ian Archbell , vice president of product management..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003

Tougher investment laws

Authorities keen to avoid crisis suffered by insurers as result of debt default As the Argentine authorities struggle to restore stability to the country’s ravaged economy, new insurance investment rules have been introduced. As of 1 July..

Online Published Date: 23 May 2003

Appeared in issue: 714 - 23 May 2003