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What’s new: In brief (June 15, 2004)


June 15, 2004   by Canadian Underwriter


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Converium Ltd. has launched a five-year, US$100 million catastrophe bond to cover losses from European windstorm, U.S. and Japanese earthquake, and U.S. and Caribbean hurricane. The transaction was underwritten by Aon Capital Markets with risk modeling provided by AIR Worldwide. The deal follows another recently marketed by Swiss Re Captial Markets to cover an undisclosed cedent against Japanese earthquake, valued at US$125 million. In the last few weeks, four large cat bond deals have been completed.

Calgary-based Anthony Clark International Insurance Brokers (ACL) says it has closed a US$7.5 million (Cdn$10.1 million) debt financing agreement with U.S. lender FCC, LLC. The revolving line of credit is for ACL’s U.S. subsidiary, Addison York Insurance Brokers.
The line of credit matures in five years, with interest-only payments for the first two years, with interest at prime rate plus 2%. An interest in both ACL and Addison are offered as collateral.
“The facility will primarily be used to fund acquisitions of general insurance brokerages within the U.S.,” ACL says. Currently ACL includes 21 general insurance brokerages in Canada and the U.S.

The U.S. Federal Trade Commission (FTC) is requesting public input into its study of credit scoring. It will also host a roundtable at the end of the month to look into the accuracy and completeness of consumer credit reports. The actions were required by the Fair Credit Transactions Act, renewed in 2003. At the same time, 10 states are carrying on with their own study of credit scores, despite withdrawal of three states from the project. The project is being led by Missouri. Legislation addressing insurance scoring was introduced in 26 states this year, with three allowing for the practice under certain guidelines, and three others modifying existing laws but continuing to allow credit scoring.


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