What’s new: In brief (February 08, 2005)

U.S.-based MarketScout says p&c premiums rose 1% in January, indicating significant softening compared to January, 2004 when premiums rose 11%. According to MarketScout’s “market barometer”, rate increases peaked in March, 2003 with a 28% jump, but increases have fallen back considerably since then. In each of the last three months of 2004, rate increases averaged just 2%.

A.M. Best has placed GE Insurance Solutions under review with “negative implications” following the company’s announcement that it would take a US$427 million after-tax reserve charge on its fourth-quarter 2004 results. The review includes Employers Re Corp. and its GE Frankona subsidiaries. Overall, GE Insurance has added US$750 million to its reserves in 2004 for prior years (largely 1997-2001 accident years). “n the absence of a tangible, long-term plan including support from [parent company] GE, the ratings will likely be downgraded given the historical poor underwriting performance primarily related to 2001 and prior accident years and a decline in risk-adjusted capitalization,” the rater says.

Applied Systems Canada has announced its 2005 series of cross-Canada road shows, with stops in 15 cities from Halifax to Victoria. The tour kicks of in Mississauga, ON on April 5, and will include a breakfast session for existing clients and a lunch session for prospects. For further information visit the “My Event Calendar” section of www.CanadianUnderwriter.ca.

Correction: Statements attributed to Lloyd’s chair Peter Levene in Monday’s newsletter were in fact made by Lloyd’s CEO Nick Prettejohn. We apologize for the error and any inconvenience it may have caused.