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Impairment trends highlight perils of mismanaged reserves

May 25, 2004 by Canadian Underwriter

A new study by A.M. Best gives ample evidence to the perils of mismanaged reserves for p&c insurers. The study, which covers U.S. insurers from 1969-2004, shows that most impairments when an insurer has their ability to write business limited…

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Moody’s withdraws ratings on Symons International Group

May 25, 2004 by Canadian Underwriter

Rating agency Moody’s Investors Service has withdrawn its ratings on Symons International Group Inc. and its subsidiaries. The rater notes that interest payments on the company’s trust preferred securities have been in deferral since February, 2000. Those securities had been…

News Insurance

26% of companies target of employee lawsuit: Chubb

May 25, 2004 by Canadian Underwriter

One-in-four privately held companies has been the target of an employee lawsuit in the past few years, according to a new study by New Jersey-based Chubb Group.In fact, 44% of the companies surveyed said they expect to be the target…

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What’s new: In brief (May 25, 2004)

May 25, 2004 by Canadian Underwriter

Saskatchewan Government Insurance (SGI) has introduced a new deductible payment plan which allows claimants to finance the payment of their deductible after an accident over a period of 10 months. While SGI does not charge interest, it will charge claimants…

News Insurance

“Corporate cholesterol” costing insurers billions

May 24, 2004 by Canadian Underwriter

Inefficient business processes are costing insurers as much as US$10 per policy in waste, says a new report by Exigen Group. In the U.S., so-called “corporate cholesterol” amounts to more than US$2 billion, with insurers spending up to 30% more…

News InsuranceMergers and Aqcuisitions

Lloyd’s results highlight strong rebound

May 24, 2004 by Canadian Underwriter

Official results for 2003 from Lloyd’s for 2003 highlight the London market’s strong rebound since 9/11, and give evidence to overall industry trends of strong underwriting performance dragged by lingering liability issues from prior years.Lloyd’s is reporting net pre-tax profit…

News Climate ChangeInsurance

New research highlights the danger of gas hydrates

May 24, 2004 by Canadian Underwriter

Insurers need to be aware of a potential new geohazard which could increase the likelihood of extreme weather events, according to research by the Benfield Hazard Research Center (BHRC). Gas hydrates, ice-like deposits of water and gas, are being influenced…

News Insurance

EPL verdicts on the rise

May 24, 2004 by Canadian Underwriter

Jury awards in employment practices liability (EPL) cases in the U.S. rose 18% last year, according to new research by Pennsylvania-based Jury Verdict Research. The study notes the median EPL award rose to US$250,000, including cases for discrimination and wrongful…

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Odyssey Re rating set for upgrade; Fairmont Specialty receives initial review

May 20, 2004 by Canadian Underwriter

Two Fairfax operations are under the eye of rating agencies, with one set for possible upgrade.Odyssey Re’s operations may see its financial strength rating upgraded by Moody’s Investors Service on the back of strong first quarter results. Moody’s says it…

News Climate ChangeInsurance

Above-average Atlantic hurricane season predicted

May 20, 2004 by Canadian Underwriter

On the eve of the start of the Atlantic hurricane season, which begins June 1, The National Oceanic and Atmospheric Administration (NOAA) confirms expectations of an above-average Atlantic hurricane season this year.The outlook is for 12-15 tropical storms, with six…

News Insurance

European reinsurer results dragged down by investment weakness in 2004: Benfield

May 20, 2004 by Canadian Underwriter

Despite strong premium growth, many European reinsurers saw their results dragged by a lackluster investment environment, says a report by reinsurance broker Benfield Group.In the yearend review, “Impairment Drag”, Benfield notes, “The favorable trends in pricing and terms noted through…

News Climate ChangeInsurance

What’s new: In brief (May 20, 2004)

May 20, 2004 by Canadian Underwriter

French reinsurer SCOR reported overall net income of EUR31.8 million for the first quarter of 2004, with its non-life sector posting a combined ratio of 98.8%. This compares with 121.3% for the segment a year ago. However, operating income in…