Consumer cut backs could cost insurers £1.5 billion
by Gill Montia
Story link: Consumer cut backs could cost insurers £1.5 billion
A report from Deloitte, the professional services firm, is suggesting that the insurance sector could be facing a significant downturn in revenue as a result of the credit crisis.
Research conducted for Deloitte by YouGov (involving 2,286 consumers) found that 26% of respondents planned to cut back their insurance cover during the next twelve months, potentially […]
Brit Insurance invest £7m in Xbridge
by David Masters
Story link: Brit Insurance invest £7m in Xbridge
UK-based Brit Insurance Holdings plc has invested £7 million in communications technology firm Xbridge.
This gives Brit Insurance, who provide non-life insurance and reinsurance, a 38% state in the company.
Xbridge, also based in the UK, helps insurance companies connect with small and medium sized businesses.
Xbridge’s online and finance technology allows businesses to quickly and easily price […]
Jelf’s profits fall despite turnover boost
by David Masters
Story link: Jelf’s profits fall despite turnover boost
UK-based insurance company Jelf Group has reported its results for the six month period ending 31st March 2008 with turnover up 49% on year to £25 million.
However, despite this increase in turnover and 13% organic growth, pre-tax profits on year were down.
Jelf reported pre-tax profits of £738,000 for the six month period, compared to £787,000 […]
FSA changes to reattribution rules could cost insurers millions
by Gill Montia
Story link: FSA changes to reattribution rules could cost insurers millions
The Financial Services Authority (FSA) has published proposals that could mean insurance companies will no longer be able to use surpluses from their with-profits funds to compensate customers who have been mis-sold policies.
The mis-selling of endowment mortgage policies over several years left insurers with huge compensation bills, many of which have been settled using money […]
AIG credit rating downgraded to As3
by Gill Montia
Story link: AIG credit rating downgraded to As3
Credit rating agency, Moody’s, has downgraded the senior unsecured debt rating of American International Group (AIG), to Aa3 from Aa2.
Downgrades have also been applied to a number of the group’s subsidiaries, particularly businesses that rely on the financial support of their parent company and those exposed to the residential mortgage market in the US.
In the […]
Abbey Protection 2007 profits up 9%
by David Masters
Story link: Abbey Protection 2007 profits up 9%
UK-based insurer Abbey Protection has reported its 2007 results, with pre-tax profits up 9% to £7.3 million.
Revenue for the year also increased, up 11% to £27.3 million.
Abbey are expecting their consultancy and underwriting businesses to see 10% growth this year as the company seeks acquisitions.
Abbey Professional insures small and medium sized businesses against the cost […]
AIG’s $20 billion fundraising shock
by Gill Montia
Story link: AIG’s $20 billion fundraising shock
American International Group (AIG), the world’s biggest insurer, saw its shares plunge to their lowest level in a decade yesterday as it revealed the need for larger than expected fund raising.
The group posted a $7.81 billion net loss in the first quarter of 2008, after writing down $13.1 billion in relation to sub-prime and other […]
RAM reports $190m Q1 losses
by David Masters
Story link: RAM reports $190m Q1 losses
Bermuda-based insurance group RAM Holdings Ltd has reported its results for the first quarter, with a net loss of $189.5 million, or $6.95 per diluted share.
This is compared to a net profit of $14.3 million, or $0.52 per diluted share, for the first quarter of 2007.
The loss is being largely attributed to a decline in […]
Chaucer reports ’satisfactory’ Q1 performance
by David Masters
Story link: Chaucer reports ’satisfactory’ Q1 performance
Lloyd’s insurer Chaucer Holdings PLC has reported its results for the first quarter, with gross written premiums up marginally on year to £181.2 million.
This is compared to gross written premiums of £178.9 million for the first quarter of 2007.
The London-based insurer said that despite no major catastrophes during the quarter, insured market losses were high.
Furthermore, […]
Catlin premiums unchanged on year
by David Masters
Story link: Catlin premiums unchanged on year
Bermuda-based Catlin Group Ltd. has announced its first quarter results, with gross premiums written unchanged on year at $1.2 billion.
The Lloyd’s insurer also reported a slight rise in net premiums, up to $0.8 billion compared to $0.7 billion for the same period last year.
The results were slightly below company expectations, and are projected to […]
Strong Q1 for Zurich
by David Masters
Story link: Strong Q1 for Zurich
Zurich Financial Services Group has reported its first quarter results, with net profit up 3% on year despite a higher number of claims.
The Switzerland-based insurance provider - the fourth largest in Europe - reported total net profit of $1.43 billion. This is compared to $1.39 billion for the first quarter of 2007.
The results exceeded […]
Aspen repurchase $100m shares from Candover
by David Masters
Story link: Aspen repurchase $100m shares from Candover
Bermuda-based Aspen Insurance Holdings Ltd. has announced that it has agreed to repurchase 4.1 million of its ordinary shares from management fund Candover Partners Ltd.
The repurchase, worth around $100 million, is part of Aspen’s $300 million share repurchase program. All shares repurchased will be retired.
Candover, one of Aspen’s founding shareholders, is to sell its […]
Hiscox Q1 results as projected
by David Masters
Story link: Hiscox Q1 results as projected
Lloyd’s insurer Hiscox Ltd. has reported its results for the first quarter, with premium income falling 10% to £321.3 million.
This is compared to premium income of £358.4 million for the first quarter of 2007.
The Bermuda-based company is a market leader in art insurance, and kidnap and ransom cover.
Despite the poor performance globally, gross written premiums […]
Max Capital’s Q1 income falls 90%
by David Masters
Story link: Max Capital’s Q1 income falls 90%
Bermuda-based Max Capital has reported its first quarter results, with net income falling by almost 90% on year.
Net income for the quarter was $7.7 million, or $0.13 per fully diluted share. This is compared to $80 million, or $1.24 per fully diluted share, for the first quarter of 2007.
Net operating income was even more […]
Solvency II upstages credit crunch for European insurers
by Gill Montia
Story link: Solvency II upstages credit crunch for European insurers
Standard & Poor’s (S&P) has published a new report in which it predicts that the fall in value of US sub-prime asset and the broader disruption in the capital markets created by the credit crisis will have limited implications for insurers headquartered in Europe.
The credit rating agency stated that the insurance operations of European financial […]
Hannover Re reports rising profits
by David Masters
Story link: Hannover Re reports rising profits
Germany-based Hannover Re AG has announced its first quarter results, beating analysts’ expectations with profits up 23% on year.
First quarter profits for the world’s fourth biggest reinsurer totalled €151.5 million, or €1.26 per share. This is compared to profits of €123.5 million (€1.02 per share) for the first quarter of 2007.
Reinsurance companies make their […]
Swiss Re Q1 profits down 53%
by David Masters
Story link: Swiss Re Q1 profits down 53%
Switzerland-based insurance group Swiss Re has reported its results for the first quarter, with profits down 53% on year and over 25% lower than analyst predictions.
The group announced quarterly profits of 624 million Swiss francs (US$594 million), compared to profits of 1.33 billion francs for the first quarter of 2007.
Analysts had predicted that […]
Willis reports Q1 results
by David Masters
Story link: Willis reports Q1 results
Bermuda based Willis Group Holdings Ltd, the third largest insurance broker in the world, reported on Wednesday its results for the first quarter, with net income falling by $3 million on year.
Nevertheless, the results exceeded analysts’ expectations, and share prices rose 6.2% to $36.91 by the time the market closed on Thursday.
Net income for the […]
US insurers reeling at $3bn catastrophe payout
by David Masters
Story link: US insurers reeling at $3bn catastrophe payout
Property and casualty insurers in the US have been left reeling after a series of catastrophes in the first quarter left them with a $3.35 billion bill in claims to pay out.
According to the Property Claims Service, a sub-unit of the Insurance Services Office, nine catastrophes - including a series of February hurricanes, and […]
£5.5m loss for Advent Capital
by David Masters
Story link: £5.5m loss for Advent Capital
Specialist Lloyd’s (re)insurer Advent Capital has reported its results for the first quarter, with pre-tax losses of £5.5 million.
This is compared to the £0.5 million profit that the company made during the first quarter of 2007.
The poor results are being blamed on the second worst ever quarter in the history of the insurance industry for […]
