MPs investigate reattribution of “orphan” funds
by Gill Montia
Story link: MPs investigate reattribution of “orphan” funds
A committee of MPs has today begun a major inquiry into the way in which insurance companies are reattributing their surplus with-profits funds.
The money, which is sometimes referred to as an “orphan” fund, or inherited estate, is defined by the Financial Services Authority (FSA) “as the excess of assets maintained within the long-term fund over […]
Axis acquires Middle Eastern business
by David Masters
Story link: Axis acquires Middle Eastern business
Axis International Loss Adjusters and Surveyors has reported acquiring Global Adjusters, a specialist Middle East-based chartered loss adjuster.
Global Adjusters will now trade under the name Axis International - Middle East, and boosts Axis’s already strong global presence. Axis already operates in Europe, the Americas, Africa, Asia, the Caribbean, and Oceania.
Global Adjusters has a staff […]
QBE profits increase 30%
by David Masters
Story link: QBE profits increase 30%
Australian insurer QBE has reported an increase of 30% in 2007 operating profit after tax, at Aus$1,925 million (£907 million).
Gross written premiums during 2007 increased by 20% to Aus$12,406 million. Insurance profit rose 27% to Aus$2,262 million. The company’s combined operating ratio also increased slightly, from 85.3% to 85.9%.
Because of ‘excellent’ results, QBE’s […]
50% fall in profits for Lloyds TSB
by David Masters
Story link: 50% fall in profits for Lloyds TSB
Lloyds TSB Insurance saw profits fall by nearly 50% for last year in the wake of January’s storms and the summer floods.
The division achieved pre-tax profits for 2007 of £128 million, compared to £243 million in 2006.
The January storms cost the business £12 million, whilst the summer floods in June and July cost a total […]
Terrorism insurance unappealing to the Middle East
by Richard Kilner
Story link: Terrorism insurance unappealing to the Middle East
The number of firms in the Middle East and North Africa taking out insurance against terrorism remains very low, according to Willis.
This is in spite of a recent series of terrorist incidents in the region.
Bahrain will see the group host a presentation at the General Arab Insurance Federation, which will focus upon the seemingly contradictory […]
New risks faced by oil industry
by Richard Kilner
Story link: New risks faced by oil industry
Marsh’s chief executive officer, Dan Glaser, has warned the oil industry that they face a new series of risks that it must prepare itself for.
Glaser made the comments speaking to hundreds of senior executives in the oil industry at the National Oil Companies Conference.
Operational and legal risks were the most prominent threats businesses faced a […]
Car insurance premiums rise 5.24%
by Gill Montia
Story link: Car insurance premiums rise 5.24%
According to the latest Car Insurance Index published by Sainsbury’s, the average car insurance premium increased by 5.24% in 2007.
In December of last year, the average premium stood at £497.26, compared to £472.52 in December 2006.
The index also highlights the differences in premium based on age; in 2007, motorists aged between 40 and 50 saw […]
Coversure opens three new franchises
by Gill Montia
Story link: Coversure opens three new franchises
Coversure, the broking franchise group based in Huntingdon, is opening three new branches: Chesterfield, Hertford and Andover.
The expansion brings the total number of Coversure brokerages to 89 and the newcomers include two ex-Swinton franchisees: Suzanne Moss and Anoushka Lynes, who will be opening in Chesterfield and Andover respectively.
The two are joined by Alex Bard & […]
Ambac rescue package too little, too late
by Gill Montia
Story link: Ambac rescue package too little, too late
A rescue package for Ambac, the bonds insurer in danger of having its credit rating downgraded, may have come too little, too late.
A consortium of banks, including Barclays and Royal Bank of Scotland, are working on a $3 billion package that has yet to be finalised but it is rumoured that Ambac could need far […]
AIG and General Re executives convicted of fraud
by Gill Montia
Story link: AIG and General Re executives convicted of fraud
Five former employees of insurers, American International Group (AIG) and General Re, have been convicted of fraud and conspiracy to defraud. The executives misled investors by inflating AIG’s reserves.
Four of those convicted worked for General Re and one for AIG; it can be argued that their conduct led to the resignation of AIG founder and […]
Towergate to sell 25% of business
by David Masters
Story link: Towergate to sell 25% of business
The chairman of Towergate, Peter Cullum, is in talks with the private equitity group Candover and is expected to sell up to one quarter of the company’s business.
The Sunday Times reported this week that Cullum, who co-founded Towergate a decade ago and owns 70% of the company, is ready to sell a £850 million stake […]
Towergate takes over at T F Bell
by David Masters
Story link: Towergate takes over at T F Bell
Leciseter broker T. F. Bell Group have been acquired by Towergate.
The terms of the acquisition require T. F. Bell’s 57 staff and directors to move to Towergate. They will continue to be run as a team, led by CEO Stephen Hough, and will be based at two sites in Hinckley.
T. F. Bell is Towergate’s […]
Aon acquires Gallagher Re in $30 million deal
by David Masters
Story link: Aon acquires Gallagher Re in $30 million deal
Aon has reported the acquisition of Gallagher Re’s U.K. and U.S. businesses.
Aon said that it has “signed definitive agreements to acquire substantially all of Gallagher Re’s U.K. and U.S. reinsurance brokerage business.”
In a statement regarding the acquisition, Aon revealed that the agreement includes an initial payment of around $30 million in cash, and a further […]
Competition in home insurance keeps prices low
by Richard Kilner
Story link: Competition in home insurance keeps prices low
A report compiled by Datamonitor analysts reveals that house insurance costs are unlikely to rise, due to the increasingly competitive nature of the marketplace.
As consumers have become less naive and more sophisticated in their approach to home insurance, price comparison sites have flourished.
This has driven up competition, and correspondingly prevented prices from increasing.
In recent years […]
Heart disease on the climb, insurers offer incentives to be healthy
by Richard Kilner
Story link: Heart disease on the climb, insurers offer incentives to be healthy
After three decades of decline, heart disease is now rising again, according to research conducted by a team from University of British Columbia, published in the Archives of Internal Medicine.
Particularly at risk are the younger generations.
The rates of heart disease have begun to level off for those between 35 and 55 years of age, with […]
Towergate to sell 25% share to Candover
by Gill Montia
Story link: Towergate to sell 25% share to Candover
Peter Cullum, the founder and majority owner of insurance group, Towergate, is reported to be negotiating the sale of around 25% of the business to Candover, for up to £850 million.
Towergate is the UK’s largest privately-owned insurance intermediary and Candover is reported to be interested in acquiring a share of the business before a flotation […]
Saunders joins Marsh
by Richard Kilner
Story link: Saunders joins Marsh
Adrian Saunders has been named by Marsh as the firm’s new Private Client Services chief for the UK.
Saunders leaves behind the post of managing directors of strategic partnerships at Zurich Insurance to join the firm.
Prior to his stint at Zurich he worked with Hiscox as regional manager for the North of England.
In his new role […]
Groupama delivers 2007 growth despite floods and storms
by David Masters
Story link: Groupama delivers 2007 growth despite floods and storms
Groupama has announced is 2007 results, with its personal lines business seeing growth of 3.6% to £221.7 million. This was buoyed by continuing growth in Groupama’s home and motor insurance portfolios.
The French insurer’s profits for the year were £23.1 million, a fall of over £10 million compared to 2007. The fall in profit […]
‘Strong performance’ for Advent
by David Masters
Story link: ‘Strong performance’ for Advent
Advent has announced its final results for 2007. The specialist property insurance and reinsurance Lloyd’s insurer reported after tax profits for the year of £19.2 million, compared to £16 million in 2006.
The company’s profit before tax totalled £25.2 million. The return on shareholder’s equity for the year was 21.6%. Net […]
Record year for FM global
by David Masters
Story link: Record year for FM global
FM Global, a commercial property insurer, has reported record results for 2007. The company has seen consistently strong performances over the past five years, and 2007 was the FM Global’s sixth consecutive year with good financial and operating results.
The company saw stable capacity and services, good profitability, capital growth and client retention, all of […]
