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Aon is suggesting that P&I clubs only need to increase premiums by 0-7.5% despite the surge in high value claims in 2006 and 2007 and the steep decline in investment income for 2009, according to Aon’s P&I Mid-Term Review*. The insurance broker believes the unprecedented effects of the global credit crisis have acted as a warning for clubs to increase underwriting discipline and cut their over reliance on investment income. Reduced shipping activity should also reduce claims levels and bring more stability to shipowners’ premiums.

The Review explains how the inflated incidence of high value claims (individual claims in excess of $7 million) in 2006 and 2007 were random and not aligned to a particular trend. The values for 2008 and 2009 have dropped considerably but the inter club pooling mechanism failed to cater for the volatility of a concentrated surge of activity followed by relative inactivity over a short space of time.

This was coupled with the credit crunch having an adverse effect on club investment performance with many clubs over exposed to equities and reporting substantial losses. Stephen Hawke, head of Aon’s marine liability team, commented: “The flight from equity to cash and bonds was for many clubs too little too late: the P&I landscape resonated to the crashing of barn doors as the horses disappeared over the horizon.”

Some clubs have decreased their investment portfolio risk profile and while future returns will be low single digit, they should be positive. Despite this remedial action, 7 out of the 13 clubs have made unbudgeted refinancing calls over this last year.

Stephen added: “P&I clubs can’t be blamed for the unpredictable but can grasp control of their own underwriting and investment strategies. The inability to predict the inherent volatility of the modern world – random years of very high value claims and falling investment markets – is excusable. What is not is a persistent inability for clubs to control the controllable by continuing to run underwriting deficits, while the comforting safety net of investment income had been rudely cut away.

“Aon has consistently preached the virtues of underwriting discipline and warned of the addictive vice of investment income dependency. More accountability needs to be placed on offending operators rather than relying on the easy socialistic opt out of general increases. This should be effected through our recommendation of more modest general increases of 0-7.5% at the 2010 renewals.”

* Aon’s P&I Mid-Term Review is a reference document that captures the finances, profiles and tariffs of the mutual and fixed premium protection & indemnity insurers.

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ProtectMyHoliday.com, the consumer financial failure website for the travel market, announce a sharp increase in demand for protection against the failure of established ‘Legacy’ Carriers.

Taking a snapshot of their risk exposure on the 17th August 2009, British Airways came top with over 20% of the Total Sum Insured against the airline, second was Virgin Atlantic with 12% and third was Jet 2 with 11% of the total volume.

‘Historically demand has been highest for budget airlines and lesser known carriers’, stated Michael Ward, Sales and Marketing Manager at International Passenger Protection Limited (IPP), the leaders in providing financial insurance to the travel industry and parent company of ProtectMyHoliday.com.

‘The figures do not suggest or indicate that an airline might be in trouble, plus important factors like volume of ticket sales need to be taken into account, however at the start of the year someone booking with a legacy or blue chip airline would be unlikely to have felt the need for protection whereas now the general public’s perception is that any airline or travel supplier may fail’ continued Ward.

‘Certainly the well documented difficulties at BA and general poor performances in this sector has changed public thinking about financial protection, especially when combined with the massive struggle facing the CAA to get the ATOL into the black after massive losses last year’, stated Ward.

ProtectMyHoliday.com allows travellers to financially protect themselves against the unbounded elements of their trip including (but not limited to) Airlines, Accommodation Suppliers, Car Hire Companies, Excursion Providers, Eurostar, Ferry Operators, Villa Owners, Theme Parks, and much more.


The top 10 airlines on risk by exposure size on protectmyholiday.com on 17/08/2009 were:

  1. British Airways 21%
  2. Virgin Atlantic 12%
  3. Jet 2 11%
  4. Monarch Airlines 6%
  5. Continental Airlines 6%
  6. Easyjet 5%
  7. Thomas Cook Airlines 5%
  8. Qantas Airways 4%
  9. Cathay Pacific 4%
  10. Air New Zealand 4%

(rest 22%)

IPP’s advice is for consumers to ensure that their trip is protected through one of the following means:

  • Specialist cover : dedicated insurance products such as www.protectmyholiday.com, where consumers can obtain specialist financial protection for as little as £5 per person
  • Retail travel insurance : many quality retail travel insurance policies now have cover included as standard – double check the cover
  • Travel Agents : some Travel Agents have arranged insurance for all of their flights so that they will re-book passengers in the event of a collapse.
  • ATOL : applicable when a flight ticket is brought in conjunction with another component part of the holiday from the same holiday company. The holiday company being booked with must either hold an ATOL or be an agent of a company that does, in which case it must tell the customer when they book which ATOL they are protected by, and as soon as money is exchanged, issue an ATOL Receipt to the customer.

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Aon has appointed Keith Ashworth as head of risk transfer for UK & EMEA in Aon Global’s newly integrated team, combining UK broking with EMEA business development and EMEA wholesale property teams.  His primary focus will be on large multinational companies, designing and placing multiline, as well as property & casualty risk transfer programmes.

Keith joined Aon in 2006 as a director of Aon Global.  He previously worked for JLT for seventeen years and brings more than thirty years of experience in insurance broking, risk financing and captive reinsurance.

The following internal appointments will support Keith:
Guy Malyon – head of UK broking, including property, casualty and motor
Chris Sutton – head of strategic risk financing focusing on large, complex global accounts
Alan Abel – head of risk transfer, EMEA property

Keith commented: “We have a unique opportunity to bring together our outstanding broking talent in UK broking, EMEA business development and EMEA wholesale property.  Each member of our combined team of 37 has contributed to building the most effective framework and setting a strong team culture which will form the foundation for our future success.”

Keith will report into Karl Hennessy, managing director of Aon Global UK, who added: “I’m delighted that Keith will be leading our broking, especially as we integrate our UK & EMEA resources to optimise our capabilities.  Coupled with other initiatives such as the Client Promise and the Global Risk Insight Platform, we are now able to offer an unparalleled service for our clients to differentiate our performance.”

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Broker insurer MMA Insurance has reinforced its senior management team with the appointment of Bob Perry as Claims Director.

Reporting to MMA’s Chief Executive Garry Fearn, Mr Perry will be responsible for all claims functions within MMA including motor, property and casualty claims, anti financial crime and claims supplier management. He joined MMA in May 2009 as interim Claims Director but now takes up this post permanently.

Prior to joining MMA, Mr Perry was Managing Director of ACM ULR Ltd, the claims division of BGL Group. He has also been Claims Director for Budget and has held a number of key claims roles for Zurich Municipal and AGF Insurance.

Commenting on the appointment, Mr Fearn said: “As we refocus our business towards Commercial Lines, our Claims proposition to SME clients is key to our successful development. As a broker insurer we are also mindful of the current challenges around the motor claims process. I am confident that Bob brings the necessary experience and expertise to ensure that MMA delivers the critical service at “the moment of truth” for our policyholders.”

Mr Perry added: “I am delighted to be joining a company enjoying such success in these challenging times. MMA recognises the issues and opportunities within the claims area, which is refreshing. I will be working closely with all our stakeholders to ensure that our claims function will be effective, efficient and will give brokers and their policyholders what they need.“

This appointment is subject to FSA approval.

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American International Group Inc (AIG.N) won dismissal of a federal lawsuit accusing the troubled insurer of fraudulently shortchanging state workers’ compensation pools out of more than $1 billion.

However, Thursday’s ruling by Judge Robert Gettleman of the U.S. District Court in Chicago does not absolve AIG of potential claims by insurers that take part in such pools.

Many are pursuing claims in a separate lawsuit that seeks class-action status and which Gettleman is also overseeing.

In Thursday’s ruling, the judge said the National Council on Compensation Insurance Inc lacked standing to sue New York-based AIG on behalf of several hundred insurers in its National Workers Compensation Reinsurance Pool.

Many states require firms that sell workers compensation insurance to also fund pools to cover injuries for workers at companies that cannot obtain coverage on the open market, in some cases because their jobs are too risky.

The judge, citing a New York state investigation and an internal AIG probe, said the insurer had for several decades understated workers compensation premiums to evade required payments, resulting in at least $60 million of unlawful annual benefits.

Gettleman said, though, that while NCCI claimed to rely on AIG’s false reports in administrating the pool, it did not allege that the company’s actions harmed it or the pool.

The judge added, however: “There is no dispute that the pool’s members — the participating companies — have standing to bring claims separately against AIG.”

Gettleman previously put the case seeking class-action status on hold, and said he will rule on that request “in due course.”

AIG spokeswoman Christina Pretto said the insurer was pleased with Thursday’s ruling.

The company is trying to sell assets to repay the government, which owns a nearly 80 percent stake, after roughly $180 billion of federal bailouts in the last year.

Pete Wentz, a spokesman for the board of the National Workers Compensation Reinsurance Pool, said the insurers plan to keep pursuing their claims “to remedy AIG’s admitted wrongdoing (and) to obtain a full and fair accounting by AIG.”

AIG shares were up 6.3 percent at $34.33 in morning New York Stock Exchange trading.

The case is National Council on Compensation Insurance Inc v. American International Group Inc et al, U.S. District Court, Northern District of Illinois (Chicago), No. 07-2898.

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    The World Health Organisation is today issuing guidelines for the use of antivirals in the management of patients infected with the H1N1 pandemic virus.

    The guidelines represent the consensus reached by an international panel of experts who reviewed all available studies on the safety and effectiveness of these drugs. Emphasis was placed on the use of oseltamivir and zanamivir to prevent severe illness and deaths, reduce the need for hospitalization, and reduce the duration of hospital stays.

    The pandemic virus is currently susceptible to both of these drugs (known as neuraminidase inhibitors), but resistant to a second class of antivirals (the M2 inhibitors).

    Worldwide, most patients infected with the pandemic virus continue to experience typical influenza symptoms and fully recover within a week, even without any form of medical treatment. Healthy patients with uncomplicated illness need not be treated with antivirals.

    On an individual patient basis, initial treatment decisions should be based on clinical assessment and knowledge about the presence of the virus in the community.

    In areas where the virus is circulating widely in the community, clinicians seeing patients with influenza-like illness should assume that the pandemic virus is the cause. Treatment decisions should not wait for laboratory confirmation of H1N1 infection.

    This recommendation is supported by reports, from all outbreak sites, that the H1N1 virus rapidly becomes the dominant strain.

    Treat serious cases immediately

    Evidence reviewed by the panel indicates that oseltamivir, when properly prescribed, can significantly reduce the risk of pneumonia (a leading cause of death for both pandemic and seasonal influenza) and the need for hospitalization.

    For patients who initially present with severe illness or whose condition begins to deteriorate, WHO recommends treatment with oseltamivir as soon as possible. Studies show that early treatment, preferably within 48 hours after symptom onset, is strongly associated with better clinical outcome. For patients with severe or deteriorating illness, treatment should be provided even if started later. Where oseltamivir is unavailable or cannot be used for any reason, zanamivir may be given.

    This recommendation applies to all patient groups, including pregnant women, and all age groups, including young children and infants.

    For patients with underlying medical conditions that increase the risk of more severe disease, WHO recommends treatment with either oseltamivir or zanamivir. These patients should also receive treatment as soon as possible after symptom onset, without waiting for the results of laboratory tests.

    As pregnant women are included among groups at increased risk, WHO recommends that pregnant women receive antiviral treatment as soon as possible after symptom onset.

    At the same time, the presence of underlying medical conditions will not reliably predict all or even most cases of severe illness. Worldwide, around 40% of severe cases are now occurring in previously healthy children and adults, usually under the age of 50 years.

    Some of these patients experience a sudden and very rapid deterioration in their clinical condition, usually on day 5 or 6 following the onset of symptoms.

    Clinical deterioration is characterized by primary viral pneumonia, which destroys the lung tissue and does not respond to antibiotics, and the failure of multiple organs, including the heart, kidneys, and liver. These patients require management in intensive care units using therapies in addition to antivirals.

    Clinicians, patients, and those providing home-based care need to be alert to warning signals that indicate progression to a more severe form of illness, and take urgent action, which should include treatment with oseltamivir.

    In cases of severe or deteriorating illness, clinicians may consider using higher doses of oseltamivir, and for a longer duration, than is normally prescribed.

    Antiviral use in children

    Following the recent publication of two clinical reviews, [1,2] some questions have been raised about the advisability of administering antivirals to children.

    The two clinical reviews used data that were considered by WHO and its expert panel when developing the current guidelines and are fully reflected in the recommendations.

    WHO recommends prompt antiviral treatment for children with severe or deteriorating illness, and those at risk of more severe or complicated illness. This recommendation includes all children under the age of five years, as this age group is at increased risk of more severe illness.

    Otherwise healthy children, older than 5 years, need not be given antiviral treatment unless their illness persists or worsens.

    Danger signs in all patients

    Clinicians, patients, and those providing home-based care need to be alert to danger signs that can signal progression to more severe disease. As progression can be very rapid, medical attention should be sought when any of the following danger signs appear in a person with confirmed or suspected H1N1 infection:

    • shortness of breath, either during physical activity or while resting
    • difficulty in breathing
    • turning blue
    • bloody or coloured sputum
    • chest pain
    • altered mental status
    • high fever that persists beyond 3 days
    • low blood pressure.

    In children, danger signs include fast or difficult breathing, lack of alertness, difficulty in waking up, and little or no desire to play.

    [1] Neuraminidase inhibitors for treatment and prophylaxis of influenza in children: systematic review and meta-analysis of randomised controlled trials. Shun-Shin M, Thompson M, Heneghan C et al. BMJ 2009;339:b3172; doi:10.1136/bmj.b3172

    [2] Prescription of anti-influenza drugs for healthy adults: a systemic review and meta-analysis. Burch

    WHO is today issuing guidelines for the use of antivirals in the management of patients infected with the H1N1 pandemic virus.

    The guidelines represent the consensus reached by an international panel of experts who reviewed all available studies on the safety and effectiveness of these drugs. Emphasis was placed on the use of oseltamivir and zanamivir to prevent severe illness and deaths, reduce the need for hospitalization, and reduce the duration of hospital stays.

    The pandemic virus is currently susceptible to both of these drugs (known as neuraminidase inhibitors), but resistant to a second class of antivirals (the M2 inhibitors).

    Worldwide, most patients infected with the pandemic virus continue to experience typical influenza symptoms and fully recover within a week, even without any form of medical treatment. Healthy patients with uncomplicated illness need not be treated with antivirals.

    On an individual patient basis, initial treatment decisions should be based on clinical assessment and knowledge about the presence of the virus in the community.

    In areas where the virus is circulating widely in the community, clinicians seeing patients with influenza-like illness should assume that the pandemic virus is the cause. Treatment decisions should not wait for laboratory confirmation of H1N1 infection.

    This recommendation is supported by reports, from all outbreak sites, that the H1N1 virus rapidly becomes the dominant strain.
    Treat serious cases immediately

    Evidence reviewed by the panel indicates that oseltamivir, when properly prescribed, can significantly reduce the risk of pneumonia (a leading cause of death for both pandemic and seasonal influenza) and the need for hospitalization.

    For patients who initially present with severe illness or whose condition begins to deteriorate, WHO recommends treatment with oseltamivir as soon as possible. Studies show that early treatment, preferably within 48 hours after symptom onset, is strongly associated with better clinical outcome. For patients with severe or deteriorating illness, treatment should be provided even if started later. Where oseltamivir is unavailable or cannot be used for any reason, zanamivir may be given.

    This recommendation applies to all patient groups, including pregnant women, and all age groups, including young children and infants.

    For patients with underlying medical conditions that increase the risk of more severe disease, WHO recommends treatment with either oseltamivir or zanamivir. These patients should also receive treatment as soon as possible after symptom onset, without waiting for the results of laboratory tests.

    As pregnant women are included among groups at increased risk, WHO recommends that pregnant women receive antiviral treatment as soon as possible after symptom onset.

    At the same time, the presence of underlying medical conditions will not reliably predict all or even most cases of severe illness. Worldwide, around 40% of severe cases are now occurring in previously healthy children and adults, usually under the age of 50 years.

    Some of these patients experience a sudden and very rapid deterioration in their clinical condition, usually on day 5 or 6 following the onset of symptoms.

    Clinical deterioration is characterized by primary viral pneumonia, which destroys the lung tissue and does not respond to antibiotics, and the failure of multiple organs, including the heart, kidneys, and liver. These patients require management in intensive care units using therapies in addition to antivirals.

    Clinicians, patients, and those providing home-based care need to be alert to warning signals that indicate progression to a more severe form of illness, and take urgent action, which should include treatment with oseltamivir.

    In cases of severe or deteriorating illness, clinicians may consider using higher doses of oseltamivir, and for a longer duration, than is normally prescribed.
    Antiviral use in children

    Following the recent publication of two clinical reviews, [1,2] some questions have been raised about the advisability of administering antivirals to children.

    The two clinical reviews used data that were considered by WHO and its expert panel when developing the current guidelines and are fully reflected in the recommendations.

    WHO recommends prompt antiviral treatment for children with severe or deteriorating illness, and those at risk of more severe or complicated illness. This recommendation includes all children under the age of five years, as this age group is at increased risk of more severe illness.

    Otherwise healthy children, older than 5 years, need not be given antiviral treatment unless their illness persists or worsens.
    Danger signs in all patients

    Clinicians, patients, and those providing home-based care need to be alert to danger signs that can signal progression to more severe disease. As progression can be very rapid, medical attention should be sought when any of the following danger signs appear in a person with confirmed or suspected H1N1 infection:

    * shortness of breath, either during physical activity or while resting
    * difficulty in breathing
    * turning blue
    * bloody or coloured sputum
    * chest pain
    * altered mental status
    * high fever that persists beyond 3 days
    * low blood pressure.

    In children, danger signs include fast or difficult breathing, lack of alertness, difficulty in waking up, and little or no desire to play.

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    Britain is a nation of animal lovers; owning eight million dogs*. An RAC survey** of 2,000 dog owners revealed that a third of owners are increasingly including their dogs in their holiday plans and contrary to the economic downturn, only 1 in 7 put this down to cutting kennel fees***.

    35% of owners consider their dog as their ideal travel companion, with a further 10% saying their dog is more entertaining than their actual partner, their best friend or their children. Dogs were also deemed 50% more likely to entertain than the extended family!

    The survey also found that over a third of owners are planning every aspect of their holidays around their dog with:

    • Almost half of these (47%) only considering dog-friendly accommodation
    • 44% choosing to stay in the UK
    • A fifth curtailing their time away

    * 1 in 5 only considering outdoor holidays such as camping

    However owners often fail to give consideration to the in-car safety of their dog on a journey, so RAC has teamed up with Dogs Trust to urge holidaymakers to take care and strap-in their dogs when they go away this summer. 88% of Brits surveyed agreed that belting up during a journey is an important safety measure however unnervingly 60% have never used a dog harness/seat belt to keep their dog secure.

    Head of RAC patrols and dog owner, Phil Ryan said, “It’s great that owners are involving their dogs in their holiday plans but rather than just ensuring the destination is dog-friendly, thought and care needs to be given to the journey. There is no legal requirement for owners to secure their pets when travelling, however this should be considered given that, at 30mph for example, an unrestrained 50lb border collie would be thrown forward with a force equivalent to almost nine 12 stone men**** and also considering the high regard that owners give their dogs – no longer ‘pets’ but ‘partners’.”

    The Road Traffic Act 1988 states that “Dogs travelling in vehicles should not be a nuisance or in any way distract the driver during a journey”, but without further regulations in place this law is extremely hard to enforce. The Highway Code also advises that dogs are suitably restrained so they can’t injure you or themselves, if you stop quickly.

    To encourage safe travel for dogs RAC has teamed up with Dogs Trust to offer canine travel tips :

    • Make sure your dog is secure and comfortable on a journey for their own safety and so they cannot distract you – they should be fitted with a correctly sized harness or within a travelling crate or container
    • Allow your dog to become familiar with car journeys by ensuring they have positive experiences over a number of short trips before embarking on a long journey
    • Plan your journey time and route carefully as – you’ll need to stop at regular intervals to exercise your pet. To help plan your route visit www.rac.co.uk
    • Travel first thing in the morning or later at night when it is cooler, and less busy
    • Consider your pet with regards your destination. Busy environments, such as  bustling city centres or loud carnivals and public events are not always suitable for dogs, as they can get distressed
    • Feed your pet no sooner than two hours before a long journey, to ensure that your pet does not have a full stomach when travelling
    • Take a supply of your dogs usual food, in the event that you get stuck in traffic or have a breakdown
    • Always take plenty of water and make frequent stops
    • Keep the dog’s harness/lead close to hand in case you need to get out of the vehicle
    • And remember; never leave an animal in a car on a warm/hot day – even for a few minutes. See www.dogstrust.org.uk for more information about dog friendly holidays.

    Dogs Trust Chief Executive Clarissa Baldwin added: “The clunk-click seatbelt message is well known for humans, but sadly not always applied to our beloved pets. We know that more and more families are involving their dog in their holiday plans, including travelling outside the UK. Dogs Trust urges people to consider their pet’s travel needs at the same time that they are stocking up with sun cream and foreign currencies.”

    Keeping your pet safe en route can cost less than £10 although 40% of those surveyed thought it would be more than three times that amount. RAC dog harnesses, which work with any normal seatbelt to keep your dog secure in the event of an accident, start from £7.99 and are available from RAC’s webshop, www.rac.co.uk. For a limited time they come with a free dog water bottle too.

    * According to the Pet Food Manufacturers’ Association’s annual report 2009

    ** Research was conducted on 2,000 British dog owners, by 72-point on 13 August 2009

    *** According to www.boardingkennels.org kennel fees cost an average of £150 per week

    **** According to RoSPA, ‘Carrying Pets Safely’ 2006

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    QBE and Marsh are pleased to announce the signing of an agreement in Sweden, whereby Marsh has been granted binding authority for two portfolio programmes, one for Directors and Officers Liability Insurance and one for Crime Insurance. Marsh will act as the coverholders for QBE and will be able to offer insurance to predefined portfolio companies that have a turnover not exceeding €500 million and a risk profile that matches a pre-agreed set of criteria.

    Torkel Lindberg, General Manager of QBE’s Swedish operation commented: “We are delighted to be chosen by Marsh to work with them on this innovative programme, which will give increased efficiency to our relations with midsized Swedish business risks, and as such will allow us to offer end clients highly favourable terms and conditions. Our business in Sweden is recently relaunched and is already growing rapidly. This deal gives further impetus to our expansion in Sweden.”

    Martin Hagenström, Team Leader at Marsh commented: “We were keen to develop a programme that delivered increased efficiency and cost savings to the midsize business community in Sweden. QBE has won the tender in competition with the local Swedish market and the London market. We found that QBE met our criteria, offering innovative thinking in combination with knowledge and understanding of clients’ needs. We look forward to working with our clients to deliver D&O and Crime insurance products that effectively meet their needs.”

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    The Board of QBE Insurance Group is pleased to announce a record profit after tax for the half year ended 30 June 2009 of A$1,018 million, up 19%. The profit has been achieved despite volatile investment markets and economic conditions arising from the global financial crisis.

    In view of the first half profit, the directors have declared an increased interim dividend of 62 cents, up from 61 cents for the same period last year. The dividend payout is up 16% to A$628 million due to the additional shares issued from the A$2.1 billion raised in December 2008 and January 2009. The dividend is 20% franked. The record date is 1 September 2009. The dividend bonus share plan and the dividend reinvestment plan continue at a 2.5% discount.

    • Profit included the following five large items related to the global financial crisis (which saw, in particular, official interest rates reduced to their lowest level for nearly 50 years, a significant fall in equity markets, rating downgrades of a number of counterparties, large movements in various currencies and an abnormal increase in the frequency of trade credit and other credit related insurance claims) additional incurred claims of A$145 million on trade credit and other credit related insurance policies;
    • realised and unrealised losses on equities of A$144 million compared with a loss of A$86 million for the same period last year;
    • lower interest yields reduced investment income by A$115 million compared with the same period last year;
    • net foreign exchange gains of A$282 million compared with a gain of A$8 million for the same period last year; and
    • profit of A$66 million on the further repurchase of QBE debt securities.

    Gross written premium was up 22% to A$8,057 million and net earned premium was up 21% to A$6,186 million. Growth was assisted by the lower average Australian dollar compared with the same period last year, acquisitions made in 2008 and overall average premium rate increases of 4%. The combined operating ratio, that is the ratio of claims, commission and expenses to net earned premium, was 89.3%. The insurance profit margin was at the upper end of our 2009 target range at 17.5% of net earned premium. The combined operating ratio for the Americas was 86.6%, Australia 87.7%, Asia Pacific 89.0% and Europe 89.9%.

    Mr Frank O’Halloran, QBE Group Chief Executive Officer, said “the strong underwriting profits from our four insurance divisions, together with overall average premium rate increases of around 4% and the expectation of higher interest rates as economic conditions improve, give us confidence about the outlook for the insurance profit margin going forward. Our outlook is subject to the usual caveats, in particular, no material movement in the Australian dollar against overseas currencies and large individual risk and catastrophe claims not exceeding those experienced in recent years.” He added “higher interest rates on our A$24 billion of high quality, short duration cash and fixed interest investments will also benefit our capital adequacy. This, and our low debt levels and strong capital position, provide considerable flexibility to convert further bolt on acquisitions.”

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    Zurich Financial Services Group (Zurich) will be one of five exclusive proud partners of the inaugural Asian Amateur Championship, taking place at the Mission Hills Golf Club’s World Cup Course in Shenzhen, China, from 29 October to 1 November.

    The event is a joint initiative by the Asia Pacific Golf Confederation, the Masters Tournament and The R&A and will feature a field of up to 120 top amateur golfers from golf associations across the Asia-Pacific region. An invitation to play in the 2010 Masters Tournament awaits the winner, while both the winner and the runner-up will gain a place in International Final Qualifying for The Open Championship being played next year at St Andrews, Scotland.

    Announcing Zurich’s support for the Asian Amateur Championship, Geoff Riddell, Chairman of Global Corporate & CEO of Asia Pacific & Middle East at Zurich, said: “Zurich is delighted to support the founding of such an exciting event, bringing together amateur golfers from across the Asia Pacific region and giving them the chance to compete in two of the most important and famous golfing events in the world. The Asian Amateur Championship is a unique platform for the amateur game in a region where golf’s popularity is increasing significantly. What makes the announcement of the Asian Amateur truly appropriate is this week’s victory of Yang Yong Eun, who becomes the first Asian player to win a major championship. The Asian Amateur will be able to build on the excitement this has generated and help drive the continued growth of golf in Asia.”

    Mr Riddell concluded, “Zurich is already a proud sponsor of golf tournaments in Switzerland, the US and around the world and sees golf as a perfect metaphor for Zurich’s customer focused brand positioning ‘deliver when it matters’. We are thrilled to partner with other leading companies, the Masters Tournament and The R&A to deliver the inaugural Asian Amateur Championship to young golfers throughout Asia.”

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      Robert Benmosche, the newly appointed chief executive of AIG, has started to cut up the insurer’s restructuring plan, deciding it is better to hold on to an investment advisory unit that is part of the insurer’s retirement services group.

      “Benmosche is beginning his strategic review and this is one of his early decisions,” AIG spokesman David Monfried told Reuters on Tuesday.

      Though the move is a small one, it shows that the CEO, barely a week into the job, may move quickly to recast an earlier restructuring plan to repay taxpayers after AIG racked up more than $80 billion in loans from the U.S. Federal Reserve and Treasury.

      Benmosche took AIG’s helm on August 10. He is expected to draw on his previous experience as chief executive of MetLife Inc to help drive asset sales, a process that had gotten off to a sputtering start.

      American International Group Inc, once the world’s largest insurer, has been struggling to find buyers for its larger properties, hampered by tighter credit markets. That led the company to hatch an alternate plan to sell stakes in some units through initial public offerings.

      Benmosche took over MetLife when it was a mutual insurer, or owned by its policyholders, and took it public earlier in the decade. It is now the largest U.S. life insurer.

      The federal loans helped stabilize AIG after it ran up massive losses on investments that soured as the U.S. housing market collapsed.

      Broker-dealer affinity

      “The broker-dealer group is core to the retirement services business,” said AIG’s Monfried. “We intend to keep it and continue to build a world-class financial advisory business.”

      It is comprised of three companies: Sagepoint Financial Inc, Royal Alliance, and FSC Securities Corp.

      The unit had previously gone by the name AIG Financial Advisors but like numerous other parts of the insurer it recently re-branded away from the AIG name.

      The companies have adopted new names to try to distance themselves from the AIG brand, which is now badly tarnished after the company’s near collapse.

      The broker-dealer companies are staffed by independent agents and brokers, said Monfried.

      He declined to comment on whether Benmosche has already decided on any other tweaks to the company’s restructuring plan.

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        The number of victims of Sayano-Shushenskaya Hydro Power plant (HPP) accident increased. The remaining 64 people are still missing, Sergey Shoygu, Russian Emergency Situations Minister stated.

        “The investigation is held at the spot on and under the water, a special laboratory for detection of constructions rigidity from Moscow arrived, and a robot capable of working in subsurface sea area to be brought to the site. Three salvage diver groups are already operating,” Shoygu informed.

        RusHydro will pay 1 million rubles ($31.000) to the families of each worker killed.

        The Sayano-Shushenskaya plant is insured by ROSNO, and RusHydro could get $200 million for the damage, Prime-Tass reported. Losses for stoppages of several aluminum plants are insured by Ingosstrakh.

        On August 17, a water pipe burst at 4:13 a.m. local time at the plant, located in the Khakasia republic village of Cheryomushki.

        Source : Moscow Times

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        Markel International today welcomed A. M. Best’s confirmation of  ‘A’ ratings, outlook stable, for both its insurance trading platforms: Markel International Insurance Company Limited (MIICL), its  London-based insurance company, and Markel Syndicate 3000, its Lloyd’s syndicate. Both ratings are unchanged from 2008.

        A.M. Best said that MIICL is expected to maintain excellent stand-alone risk-adjusted capitalisation in 2009 and into 2010.  A.M. Best expects MIICL to report a pre-tax profit for 2009 and supported by solid underwriting and investment earnings. In A.M. Best’s opinion, MIICL has a good position as a specialist underwriter of professional liability and property insurance in the UK and London market, leading approximately 75% of business written.  In addition, the company has branch offices in Spain and Sweden.

        MIICL benefits from the explicit support and financial flexibility of its publicly listed ultimate parent, Markel Corporation (Markel), a leading US excess and surplus lines group. MIICL and Lloyd’s Syndicate 3000 account for approximately 30% of the Markel group’s gross premium income and provide the group with access to UK, London market and international business.

        A.M. Best said: “The ratings reflect the financial strength of the Lloyd’s market, which underpins the security of all Lloyd’s syndicates. In addition, A.M. Best believes the Syndicate’s financial flexibility is enhanced by the continued support of Markel Corporation (Markel), the ultimate parent company of its managing agent, Markel Syndicate Management Ltd, and its capital provider, Markel Capital Limited”.

        Andy Davies, Markel International’s Finance  Director, said: “Once again, A.M. Best’s ratings reflect the strong underwriting performance and excellent capitalisation of both MIICL and Markel Syndicate 3000. Identical ratings for both our platforms enable us to offer our clients and brokers a choice of A-rated security.”

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          AIG (American International Group) said Monday that it agreed to pay new Chief Executive Robert Benmosche an annual salary of $7 million. The compensation consists of $3 million in cash and $4 million in fully-vested common stock of AIG, the insurer explained in a regulatory filing.

          Benmosche will also be eligible for a performance-based, long-term incentive award of up to $3.5 million a year in the form of stock or phantom stock units in AIG, the company added. Benmosche won’t get any severance on termination of his employment for any reason.

          The government’s Special Master for TARP Executive Compensation has approved the pay package in principle, AIG said in the filing. The compensation agreement has been submitted for review and approval as required by regulations from the Troubled Asset Relief Program, the company said.

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            Homes in London and Nottingham were the most likely in the UK to make a claim for theft or burglary on their home insurance, according to research from moneysupermarket.com.

            • Nottingham most at risk
            • London claims five of the top 20 most at risk for theft or burglary
            • Ensure home insurance is up to date, says moneysupermarket.com

            The research analysed 2.6 million home insurance enquiries on the site last year and found London held five of the top 20 postcode districts most at risk of theft or burglary, followed closely by Nottingham which has four. The research revealed SW11 in Clapham and N8 in Hornsey are the most risky postcode districts in London, and NG5 in Arnold and NG2 in West Bridgford claim the top spots for Nottingham – NG5 also takes the top spot overall, ranking it as the riskiest place to live. Other postcode districts at high risk of theft and burglary include LE3 in Leicester as well as Ellesmere Port in Cheshire.

            Julie Owens, head of home insurance at moneysupermarket.com said: “Along with many other UK cities London and Nottingham are classed as high risk areas for crime and it is no surprise to see these areas dominating the top 20. The research highlights a broad mix of areas across the North and South of the UK so it is clear that no matter where you live, there is always a risk you could become a victim of theft or burglary, and this should not be taken with light consideration.

            “Properties classified as being in a ‘high-risk’ area – whether that be for crime, or something like flooding or subsidence, could mean the price of your insurance premiums will be affected. Unfortunately there is no escaping this and to make matters more complicated, there are no hard and fast rules which apply. Most insurers have a blanket approach when it comes to assessing postcode districts for home insurance and this really needs to change. If houses are evaluated on a case by case basis it would mean homeowners received quotes at the best possible prices for their individual circumstances.

            “With the UK in the midst of recession, and recent ABI statistics reporting that in the first quarter of 2009, the cost of burglary insurance claims topped £100 million, making it the most expensive quarter for five years**, homeowners need to be extra vigilant when it comes to security for their homes. You never know when an opportunistic thief may strike, and I would advise ensuring your home contents insurance is fully up to date, and is at a high enough level to cover all belongings sufficiently.”

            The 20 UK postcode districts most likely to claim for theft or burglary on their home insurance


            Postcode District

            Town

            County

            Percentage

            NG5

            Arnold

            Nottinghamshire

            0.42%

            LE3

            Leicester

            Leicestershire

            0.35%

            NG2

            West Bridgford

            Nottinghamshire

            0.33%

            CH66

            Ellesmere Port

            Cheshire

            0.32%

            LS8

            Roundhay, Leeds

            West Yorkshire

            0.31%

            SW11

            Clapham

            London

            0.31%

            S8

            Sheffield

            South Yorkshire

            0.29%

            N8

            Hornsey

            London

            0.28%

            CR0

            Croyden

            Surrey

            0.28%

            BN3

            Hove

            East Sussex

            0.28%

            NG3

            Sherwood

            Nottinghamshire

            0.27%

            NG8

            Bilborough

            Nottinghamshire

            0.26%

            BR3

            Beckenhem

            Kent

            0.25%

            M28

            Manchester

            Greater Manchester

            0.25%

            LS15

            Grossgates, Leeds

            West Yorkshire

            0.25%

            E17

            Walthamstow

            London

            0.24%

            BS7

            Bristol

            Avon

            0.24%

            SW6

            Fulham

            London

            0.24%

            SE23

            Forest Hill

            London

            0.24%

            SL6

            Maidenhead

            Berkshire

            0.24%

            Results based on 2.6 million home insurance quotes on moneysupermarket.com for twelve months (full year 2008)

            Percentage related to households affected by theft or burglary in that postcode district


            Usefull links :

            Homeowners : Protect you home against burglars during holiday

            Nine ways to stop thieves burgling your home before going holiday

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            Aon Global Insurance Managers, a division of Aon Corporation responsible for captive management, today announced it will be streamlined into a new regional leadership structure with three hubs – Europe, the Middle East and Africa (EMEA); the Americas; and Asia Pacific – to further align its client service, thought leadership and operational excellence with the needs of its clients in this evolutionary era of risk management.

            The following appointments take immediate effect:

            • Andrew Tunnicliffe, chief operating officer for Aon Global Risk Consulting, will provide global leadership for the new regional structures.
            • Nancy Gray will assume responsibility for AGIM’s U.S. and Canadian operations. In addition, she will now be tasked with responsibility for operations in the Cayman Islands, Bahamas, Barbados, Bermuda and Panama.
            • John English will assume responsibility for the leadership of AGIM’s operations in EMEA. This covers operations in Guernsey, Dublin, the Isle of Man, Switzerland, Sweden, Luxembourg, Gibraltar and Malta.
            • Paul Johnson will continue to have responsibility for AGIM operations in Singapore, Hong Kong and Australia.

            Tunnicliffe commented: “The basic fundamentals of captive management have been impacted by a period of dramatic upheaval driven by the economic crisis. Aon Global Insurance Managers is committed to partnering locally and regionally with clients to address these challenges, including capital efficiency, regulatory and legislative change and the shifting political environment.”

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              Friends Provident, a British insurance company, has accepted a revised bid from a buyout firm, Resolution, worth £1.86 billion ($3.1 billion) after rejecting two previous offers.

              Resolution announced Tuesday that it would offer 0.9 shares for each share of Friends, almost 10 percent higher than its initial offer last month, and said it would give Friends’ shareholders the option to sell up to £500 million of stock in exchange for cash.

              The acquisition is the first for Resolution, which was founded by Clive Cowdery, the former head of General Electric’s European insurance unit, as well as a major turning point for Friends, which was first publicly traded in 2001. The cash part of the deal is coming from the £600 million that Resolution raised with its initial public offering in December.

              On Tuesday, Friends reported a decline of 38 percent in first-half underlying profit, which differs from book profit in that it is adjusted for one-time events. The company added that its outlook for the year remained cautious, but it maintained a dividend of 1.3 pence a share.

              “Trading conditions remain tough,” Trevor J. Matthews, the chief of Friends, said in the earnings statement. “In the U.K., the economic slowdown has reduced new business from increments and new members on our existing group pensions schemes.”

              The Friends board is set to approve the Resolution offer unanimously, Resolution said. John Tiner, chief executive of Resolution, said he expected the deal to be done by the end of October.

              “We are excited by the potential for our proposed restructuring of the U.K. Life Assurance and Asset Management Sector,” said Mike Biggs, the buyout firm’s chairman.

              But Resolution’s ambitions are even wider. In a conference call Tuesday with reporters, Mr. Cowdery said his company’s goal was “releasing the capital inside of the life insurance sector today and returning it to investors.”

              He said the company was looking for further acquisitions in the sector that could be restructured and eventually relisted.

              Mr. Matthews said the management of the company was “enthusiastic about the future with Resolution.”

              0 1

              Zurich Financial Services Group’s latest issue of the Economic Outlook highlights the following topics :

              • Leading indicators for major economies seem to have passed the lower inflection point.
              • Strongest impulses come from emerging economies, in particular from China and India.
              • The United States seem to lead the recovery among advanced economies, rather moderate growth is expected in Euroland.
              • Prospects for Latin America, Central and Eastern Europe foresee only a moderate upward correction.
              • Concerns about the health of the global banking system continue; further impairments will require continued deleveraging.
              • The main risks to the outlook such as high unemployment rates, rising corporate bankruptcies and high government debt levels are unchanged and continue to be stacked on the downside.
              • An increasing risk is also inflation; the current fiscal and monetary policy mix pursued around the world is inconsistent with the goal of price stability.

              About Zurich’s Economic Outlook

              Daniel M. Hofmann, Zurich Group’s Chief Economist, prepares the Economic Outlook, about once every two months. The Economic Outlook gives an overview of the global economy and presents macroeconomic data that Zurich has compiled on economic activity and trends, and presents the Chief Economist’s view on those data and his view on the economic outlook for the future.

              The full report (June’s edition) is available here

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              Britons looking to take out motorcycle insurance after purchasing a new bike might be interested to learn that the sales of powered two-wheeled vehicles fell by 26.5 per cent in July in the UK.

              Figures compiled by the Motorcycle Industry Association (MCI) have shown that new registrations totalled 10,465 during the month – down by 3,841 in comparison to the same month last year.

              However, the organisation noted that July 2008 was a uniquely high-selling month.

              “The reasons to switch to two wheels remain strong. Riding a motorcycle is one of the most cost-effective ways to travel, and provides a unique combination of fun, freedom and convenience,” MCI’s Sheila Rainger commented.

              Meanwhile, vehicle safety company Tracker recently revealed that British motorcyclists were last year able to recover vehicles worth up to £300,000 in total by installing their tracking devices.

              In total, the firm noted that hundreds of thousands of pounds worth of motorbikes are stolen every year in the UK.

              0 0

              The British Insurance Brokers’ Association (BIBA) has announced that Mike Slack has decided to retire and step down from the BIBA board.  Mike stepped down at the end of July following seven years on BIBA’s board.

              Mike Slack commented: “After seven years on BIBA’s board it is time to step down. I have enjoyed my position on the board and have enjoyed watching BIBA grow in strength since I first joined.  I am confident that I leave with BIBA fully representing all of its members’ interests.”

              Eric Galbraith, BIBA Chief Executive, added: “Mike has been very influential and supportive and his considerable input and dedication will be missed. We are grateful for everything he has done for the Association and wish him well for the future.”

              BIBA has recently announced that Robert Brown from Aon has joined the board and that Patrick Smith, Chairman of Swinton, will succeed Derek Thornton as Chairman.

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