October 2, 2002 by Canadian Underwriter
Zurich-based Winterthur Insurance Co. is the latest in a long line of insurers boosting its capital. Owner Credit Suisse is injecting CHF2.0 billion (Cdn$2.15 billion) into the company based on falling equity markets draining the insurer’s assets. This is on top of a CHF7.9 billion (Cdn$8.5 billion) boost in late June.
The announcement follows on the heels of similar capital-raising efforts from insurers, including anticipated cash calls from Zurich, Royal & SunAlliance and Swiss Life.
Scor Re also recently announced a share issue planned for early November to raise EUR400 million (Cdn$627 million). “We are convinced that this further reinforcement of our strong financial base, at a time when recovery in the reinsurance cycle is being confirmed, is the best strategic choice for SCOR and its shareholders,” says Scor Re CEO Jacques Blondeau. “This will allow us to offer our clients additional underwriting capacity for the 2003 renewal season and thus to respond to the strong demand from the insurance markets.”
Munich Re also confirmed this week the injection of over US$1.4 billion (Cdn$2.2 billion) to its subsidiary American Re. “American Re is in a strong position to fully capitalize on the much-improved business environment in the U.S. reinsurance market,” says American Re chairman and CEO John Phelan. “Changes in the senior management of American Re, the reorganization of the company, and a much stricter focus on the U.S. market are significantly improving the profitability of the company.”