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What’s new: In brief (January 26, 2005)


January 26, 2005   by Canadian Underwriter


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Canadian CEOs are bullish on the future, according to results of the latest PriceWaterhouse Coopers (PwC) Global CEO survey. A full 55% of Canadian CEOs are very confident of future revenue growth, compared to just 38% of U.S. CEOs and 31% in Europe. Almost half of Canadian CEOs expect to see 5-10% growth over the next three years. Canadian CEOs were less excited about off-shoring than their U.S. counterparts just 30% see cost reduction benefits and 23% see competitive advantage in off-shoring, while 46% of U.S. CEOs see a cost benefit and 32% see a competitive edge in off-shoring.

A.M. Best has assigned a “aa-” rating to the upcoming debt issue by Allianz AG, and an “a” rating to is forthcoming subordinated bond, with a negative outlook on both. Allianz is making a series of transactions for up to EUR4 billion, hoping to raise funds of about EUR1 billion. The group says it hopes to boost its ratings as well as raise funds for its flagging banking operation, Dresdner.

Arthur J. Gallagher says it has concluded an independent internal review which has found no evidence of any wrongdoing of the type currently being alleged against Marsh, or of any “tying” arrangements which are being investigated in the third-party administrator realm. The firm says it is part of investigations in 15 states as part of the industry-wide probe, including investigation of contingent commissions. Gallagher’s brokerage arm did take part in the long-standing industry practice of accepting contingent commissions (which accounted for US$8.2 million in fourth quarter 2004 revenue), although it has followed many other brokers in discontinuing the practice since the investigations were launched.


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