St. Paul, Travellers to merge in US$16 billion deal
November 17, 2003 by Canadian UnderwriterU.S.-based The St. Paul Companies Inc. and Travelers Property Casualty Corp. have announced they will merge to form the second-largest insurer south of the border. The deal, valued at US$16 billion, is a tax-free, stock-for-stock merger that has been approved…
Captive & Art Growth: Corporate Retentions Rise in Wake of the Hard Market
November 1, 2003 Sean van Zyl, EditorFueled by traditional insurance capacity shortage during 2002, particularly in the liability risk classes and certain specialty risk sectors, the growth in corporate risk retention through establishment of captives and other alternative self-insurance mechanisms is expected to maintain record levels through this year and into 2004 – after coming off a “ten year banner year” for 2001 following the insurance cost impact of the 9/11 terrorist attacks. Canada has not been excluded from this trend, with the number of captives formed during 2002 more than doubling the overall worldwide growth rate of captive formations. Canadian risk solution experts CU spoke to believe that the premium value as well as establishment of self-insurance mechanisms for this year and 2004 will continue to reflect strong growth despite the moderate improvement in traditional insurance capacity and easing of pricing currently emerging in the marketplace.
Weighing Up Depreciation in a Business Interruption Claim
October 1, 2003 Richard Davidson, an insurance industry consultantCan depreciation be deducted from a business interruption claim as a saving? Depreciation is often a fat juicy figure that would gladden the heart of any adjuster or forensic accountant to deduct from a claim…but, should they?
On The Move (October 01, 2003)
October 1, 2003 by Canadian UnderwriterLawyers’ Professional Indemnity Company (LAWPRO) announces Kim A. Carpenter-Gunn, partner with Waxman, Carpenter-Gunn, has been appointed chairman of the board. She has been a board member since 1995. Cunningham Lindsey Canada Ltd. has named Michael Lowthian as executive general adjuster…
U.S. insurer exposure to 9/11 reaches US$9.3 billion
September 5, 2003 by Canadian UnderwriterNet claims for U.S. p&c insurers resulting from the September 11, 2001 terrorist attacks have reached US$9.3 billion, according to U.S. rating agency Weiss Ratings Inc.Weiss says a review of claims filed with the National Association of Insurance Commissioners (NAIC)…
Punitive Damages and the “Runaway Jury”
September 1, 2003 William Blakeney, Blakeney, Henneberry MurphyRobert Frost once suggested that, “a jury consists of twelve persons chosen to decide who has the better lawyer”. While there is an element of truth to this, insurers have long had faith in juries for their common sense and prudent approach to assessing damages. This perspective, however, was recently put “to the test” when a jury awarded an unprecedented $2.5 million in damages against an insurance company.
Marine underwriters merge through acquisition
July 28, 2003 by Canadian UnderwriterMarine underwriter Harlock Williams Lemon Ltd. (HWL) is buying Murray Underwriting Ltd., to become one of the top five marine carriers in the country.Harlock Murray Underwriting Ltd. will have annual revenues of $25 million. “The markets and staff of the…
“New School” Adjusting
July 1, 2003 Vikki SpencerAdjusting may be a time-honored profession, but it is one facing an intense period of transition. New privacy rules, varied and changing auto insurance systems, the rise of class actions and growing concern with potential bad faith lawsuits. As if…
Negligence Versus Intention
July 1, 2003 William Blakeney of BLAKENEY HENNEBERRY MURPHYOf all liability claims that can be presented to an insurer, allegations of sexual abuse represent a special challenge. These claims often involve mixed elements of negligent and intentional acts. As well, there may be both innocent and culpable insureds seeking indemnity under the policy. A recent decision by the Ontario Court of Appeal has provided new direction which could have significant impact on insurers.
U.S. reinsurer profits up
June 10, 2003 by Canadian UnderwriterU.S. reinsurers are reporting strong results in the first quarter of 2003, says the Reinsurance Association of America (RAA).In its underwriting report for 29 member insurers, the RAA says net written premiums were up to US$8.5 billion from US$6.7 billion…
Insight: The Cost of SARS
June 1, 2003 Craig HarrisThe spread of highly contagious atypical pneumonia to Canada, particularly Toronto, caused huge economic repercussions in the travel, tourism and hospitality industries. What is the impact on the insurance sector?
Tillinghast study shows 30% hike in D&O pricing for U.S./Canada
April 28, 2003 by Canadian UnderwriterA study released by Tillinghast – Towers Perrin based on a survey of U.S. and Canadian corporations on the purchase of directors’ and officers’ (D&O) insurance indicates that pricing rose on average by 30% for 2003 covers despite an overall…