What’s New: In brief (September 28, 2006)

The House of Representatives recently voted 417 to zero in favor of a bill intended to create a system for the regulation and taxing of surplus lines insurers and reinsurers. The Nonadmitted and Reinsurance Reform Act will make nonadmitted insurance subject to regulation only in the policyholders’ home states. It will also give a reinsurer’s state of domicile sole authority for regulating the reinsurer’s solvency under most circumstances. In a statement the president of the National Association of Professional Surplus Lines Offices Inc. says the vote is an important step, which will ultimately help improve both the operation and regulation of the surplus lines industry. Currently, there has been no companion legislation introduced in the Senate.

Zurich Financial Services Group has completed the refinancing of its US$3 billion syndicated revolving credit facility. Given current strong liquidity in the bank market, Zurich replaced its existing US$3 billion credit facility that was completed in 2004 with a 5-year facility including two 1-year extension options. As the former facility, it serves for general corporate and backup liquidity purposes. The facility received strong support from the market and was signed with the same bank syndicate, according to Zurich.