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13–26 November 2001
Late reports
9.11, fire damage
Russia: a fire on board Russian research vessel Morskoy Geofizik
destroyed 46 Japanese cars and over 1,000 tyres. The vessel was making a commercial voyage from Japan to Vladivostok. The fire started 15 miles off the..
Online Published Date:
07 December 2001
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677 - 07 December 2001
Company profile: Munich Re of Africa
Munich Re of Africa Group (MroA) saw a 28% rise in group pretax profits to R101mn (US$13.3mn) last year as increased nonlife losses were offset by significant investment gains and an improved life result.
MroA, which is active in most of the..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
Generali
Generali saw a 12% rise in consolidated pre-tax profits to €1.8bn (US$1.6bn) last year as increased investment and life insurance earnings offset a deterioration in the profitability of its nonlife operations. Net profit grew from €819mn..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
Country profile: Austria
Growth in life market compensate for nonlife losses
The Austrian Insurance Association, the Verband der Versicherungsunternehmen Österreichs (VVO), is not too bothered that last year nonlife claims and life assurance benefits increased faster..
Online Published Date:
07 December 2001
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677 - 07 December 2001
Portugal
Insurer/banking alliances dominate fastest-growing market in EU
Portugal may be one of Europe’s smaller insurance markets but it is one of the fastest-growing on the continent both in terms of insurance premium income as a percentage of GDP..
Online Published Date:
07 December 2001
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677 - 07 December 2001
Motor theft rises as Colombian law is relaxed
Car thefts in Colombia have increased significantly over the last few months, largely due to the decision by the country’s constitutional court to suspend certain articles of the new Criminal Procedures Code.
The decision means car thieves who..
Online Published Date:
07 December 2001
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677 - 07 December 2001
Munich Re profits of €85mn surprise market
Munich Re has forecast a premium income of more than €34bn for the whole of this year, a year-on-year increase of more than 10% as the group announced a turnover of €25.8bn for the first nine months of this year.
Munich Re noted that..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
French government moves on insurers’ demand for terror guarantee
The French government has finally responded to local insurers’ fears about their exposure to terrorist attacks. But the move came only as insurers were sending cancellation notices to their major industrial clients.
It is understood that a..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
Insurers deny reports that Enron’s collapse will substantially impact on their earnings
The financial failure of Enron Corporation, the largest in US history, is expected to cost insurers billions of dollars in losses.
According to industry analysts, life insurers have about US$1bn in exposure to investments in Enron and nonlife..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
Shouldering the burden: 11 September and the insurance sector
Over the last three months, aviation and property/casualty insurers and reinsurers have significantly increased estimates of their losses from the 11 September terrorist attacks on the World Trade Center in New York.
A number of reinsurers had their..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
Keep a check on your partner
Many London market insurers persuade themselves that they are immune to the dangers posed by insurance fraudsters. Accordingly, they adopt a relaxed approach to audits and inspections – thereby achieving minor short-term cost..
Online Published Date:
07 December 2001
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677 - 07 December 2001
New German legislation will favour big insurance groups
The German parliament is close to passing legislation that would allow dominant shareholders to ‘squeeze out’ entrenched minority shareholders.
The draft text, which is awaiting approval from the upper house, the Bundesrat, would allow..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
World insurance stock prices
Company/group
Currency
2000 year-end
15/11/01
29/11/01
Change from 15/11/01 %
Capitalisation US$ mn
© iiudata
Ace
US$
42.44
36.40
38.78
6.5
8,999
AIG
US$
98.56
81.95
..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
Company profile: Brasil Re
The Instituto de Resseguros do Brasil (IRB), the only reinsurer allowed to operate in the Brazilian market, was transformed from a state institution to a public limited company in 1997 as an interim step before privatising the reinsurer. It was..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
US attacks hurt Chile
Chile’s domestic insurers have been hurt by the fallout of the terrorist attacks against the US, according to Marcos Büchi, president of the Chile Insurers Association.
Projections for 2001 annual profits fell from 10.83% to 4.08% after..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
Argentina to reduce AFJP fund charges
Tough economic conditions in Argentina have prompted the government to put measures in place to help ease the social security burden on the workforce.
Patricia Bullrich, Argentina’s social security minister, met representatives of pension fund..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
New Jamaican insurance law set to regulate activities of foreign players more effectively
The new Jamaica Insurance Act currently winding its way through parliament was primarily motivated by the collapse of the life insurance sector in the mid-1990s but will help strengthen the regulatory function for general insurers as well.
The..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
PZU privatisation hits yet another obstacle
There is concern in the Polish insurance market following comments from Treasury minister Wieslaw Kaczmarek indicating he will allow time to run out on a deal to privatise PZU, Poland’s largest insurer.
Mr Kaczmarek last week said he would not..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
EU approves money-laundering legislation
Delayed by a protracted wrangle over lawyer/client confidentiality, new EU legislation on money laundering recently approved by the European Parliament will impose wider responsibilities on insurers, banks and other financial institutions.
Current..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
Prominent industry figure calls for French health system privatisation
The French employers’ association, Medef, has proposed opening up the country’s social security system to competition.
The announcement – intended to stir up a public debate – was made by Medef deputy president Denis Kessler,..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
Texas amends claims procedures for mould
Texas insurance commissioner Jose Montemayor has finally responded to local pressure to do something about mould damage insurance cover.
He ruled that cover for high-priced procedures for disposing of mould damage – beyond that necessary to..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
Japanese motor theft reaches record levels
The incidence of motor vehicle theft in Japan has escalated over the last three years. The number of stolen cars rose from around 36,000 in 1998 to over 56,000 in 2000.
First-half 2001 data indicates a further 20% increase is likely in the current..
Online Published Date:
07 December 2001
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677 - 07 December 2001
New Zealand government forges ahead with pension fund despite widespread opposition
New Zealand’s Labour government is pushing ahead with its NZ$50bn (US$22bn) superannuation fund despite warnings from Treasury officials and private sector economists, and a threat from one of the smaller opposition parties that it will move..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
Report clears Ireland’s motor insurers of excessive profits
A
report by consulting actuarial firm Tillinghast – Towers Perrin refutes allegations that Irish insurers have been earning excessive profits from motor insurance.
The report was commissioned by the Irish Insurance Federation (IIF) earlier..
Online Published Date:
07 December 2001
Appeared in issue:
677 - 07 December 2001
World insurance stock prices
Company/group
Currency
2000 year-end
29/11/01
13/12/01
Change from
29/11/01 %
Capitalisation US$ mn
© iiudata
Ace
US$
42.44
38.78
37.12
(4.3)
8,614
AIG
US$
98.56
83.15
79.61
(4.3)..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
Le Mans Ré
Established in 1999, French reinsurer Le Mans Ré is jointly owned by Mutuelles du Mans Assurances (MMA) with a 51% shareholding and Bermuda-based XL Capital with 49%.
MMA’s nonlife and life reinsurance businesses were transferred to Le..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
Country profile: Kenya
Underwriting losses force insurers to agree on premium rates
The impact of local currency fluctuations on the Kenyan insurance market is immediately obvious when any attempt is made to place it within a global context.
While the market’s..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
Colombia
Foreign insurers remain undeterred by high crime rate and civil conflict
Since the market was deregulated at the beginning of the last decade, Colombian insurers have become used to operating under challenging conditions, but the last two years..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
Manulife buys Cigna’s life business in Taiwan
Manulife has acquired part of Cigna’s life operations in Taiwan for an undisclosed sum. Cigna claims the transaction will help it focus on its bancassurance operations in the country. The deal is subject to the approval of Taiwan’s..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
New Zealand health insurance costs soar
Premiums for private health insurance in New Zealand have more than doubled in the past 10 years. The biggest provider, Southern Cross, with 800,000 members, has increased premiums 8% annually over the last decade.
With compounded inflation this..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
Insurers focus on underwriting profits
The dismal performance of the stockmarkets over the past year is causing more problems for insurers than the terrorist attacks of 11 September. This was one of the conclusions reached at the recent seminar organised by Crédit Lyonnais..
Online Published Date:
21 December 2001
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678 - 21 December 2001
Winterthur sells its Austrian subsidiary
Credit Suisse Group’s insurance subsidiary Winterthur has sold its Austrian insurance and pension business to Zurich Kosmos Versicherungen, part of Zurich Financial Services Group. The sale price was not revealed.
The companies being sold are..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
French government issues terror guarantee
The French state has finally accepted to be the reinsurer of last resort for terrorism claims.
An agreement reached between local insurers (represented primarily by the industry association, the FFSA) and the finance ministry on 10 December sets up..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
Aon invests $200mn in new Bermuda insurer
The world’s second-largest insurance broker, Aon Corporation, and Zurich Financial Services will each invest US$200mn in Endurance Specialty, a new $1.2bn capitalised insurer and reinsurer based in Bermuda.
Aon set up the company in an attempt..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
US insurance groups resort to cost cutting
CNA Financial Corporation has announced plans to restructure its US insurance operations. The group blamed a weak economy, rising reinsurance claims and poor stockmarket performance for the decision. It will cut 1,850 of its staff in an attempt to..
Online Published Date:
21 December 2001
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678 - 21 December 2001
Prudential America raises $3bn in IPO
Prudential Insurance of America, the second-largest life insurer in the US, ended 86 years as a mutual insurer to become a publicly listed company with an initial share offering of US$3bn – the biggest ever for the insurance sector.
Prudential..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
52% rise in premium income mitigates companies’ third-quarter losses
As expected, the Reinsurance Association of America’s (RAA) report for the first nine months of this year confirmed the catastrophic impact of the 11 September terrorist attacks on US reinsurers’ balance sheets.
The US$2.8bn..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
Axa issues profits warning
Axa surprised the industry when it warned that its profits could be down by as much as 52% by the end of 2001.
The group is forecasting net cash earnings of €1.2bn for 2001, noticeably lower than the analysts’ estimates of €2bn and..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
27 November – 10 December 2001
Late reports
24.11, club fire
Brazil: a fire killed at least six people and injured 340 after an indoor fireworks display ignited a wooden stage at an overcrowded dance club in southeastern Brazil. People panicked as the flames spread through the..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
Company profile: Egypt Re
The gross premium volume Egyptian Re derived from the local market declined by 12% to E£316mn (US$74mn) in 2000.
This was a direct result of measures taken by the Egyptian Insurance Supervisory Authority in 1999 to reduce the amount of legal..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
Company profile: Gothaer Re
Gothaer Rückversicherung, part of German mutual group Parion, saw a 33% fall in pretax profits to DM20mn (US$9mn) in 2000 as increased claims and business acquisition expenses hit the underwriting result, which deteriorated from a loss of..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
Chile: insurance industry development in the age of democracy
N
ext March, Chile will have completed 12 years of democracy following the nearly 17 years of military government under General Augusto Pinochet.
Though the three elected administrations that have followed him have been unwilling or unable to..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
Bank Negara agrees four-way Idris merger
The Malaysian insurance regulator Bank Negara has given the go-ahead for the four insurance subsidiaries of the Idris Hydraulic industrial group to merge.
The four are Talasco Insurance, People’s Insurance, Tenaga Insurance and Malaysia Nippon..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
China to introduce insurance league tables
China has tightened its regulation of the insurance industry to coincide with its entry into the World Trade Organisation (WTO). Many of the new rules focus on the operations of foreign insurance groups.
China’s Insurance Regulatory Commission..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
EU marine safety bill receives final reading
EU maritime safety legislation prompted by the 1999 loss of the Erika
cleared its final stages in the European Parliament on 13 December.
But a followup ‘Erika II’ package of measures, including a proposal for a European maritime safety..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
ESG Re lifts profits
In stark contrast to the fortunes of the rest of the global reinsurance sector, Bermuda-based speciality reinsurer ESG Re reported a greatly improved performance for the third quarter ended September 2001.
The company net operating profit of..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
New EU directive to streamline debt will apply to insurers
European Commission (EC) proposals to streamline European regulation of debt management through a new directive on financial collateral arrangements have been welcomed by the European Parliament.
The Parliament voted on 13 December to clear the..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
Singapore cracks down on health insurers
The Monetary Authority of Singapore (MAS) is planning to restructure the health insurance sector.
Healthcare costs in Singapore are among the highest in Asia and although this is a cause of considerable concern at home, it makes the market highly..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
EU rules favour UK insurers
British insurers with branches or operations in the euro zone stand to benefit from legislation adopted almost unnoticed in the runup to the 1 January completion of European monetary union. A new EU regulation on payments in euros will make it..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001
Arbitrage or risk transfer?
After four-and-a-half years of preparation, the Financial Services Authority (FSA) finally took over as the UK’s single financial services regulator on 1 December. Except for an increased focus on the responsibilities of senior management of..
Online Published Date:
21 December 2001
Appeared in issue:
678 - 21 December 2001