• Catastrophe specialists at three leading reinsurers, Swiss Re, XL and American Re, have launched a society aimed at promoting professionalism and education in catastrophe modelling.
The new society – called The International Society of Catastrophe Managers – has named Ronald Nash, v.p. and chief catastrophe manager of XL Global Services, as its president. Andrew Castaldi, senior v.p. and chief underwriting officer at Swiss Re Americas, will serve as secretary and Carl Hedde, v.p. and head of catastrophe management at Munich Re subsidiary American Re, will assume the role of treasurer. ISCM held its first board meeting on Feb. 22 at the Reinsurance Association of America's 2006 catastrophe modelling conference in Tampa, Fla.
• U.S. insurance broker Hilb Rogal & Hobbs has agreed to buy Zutz Associates, a Delaware insurance agency, for an undisclosed sum. HRH made a $56.2 million profit in 2005, compared with a $81.4 million profit in 2004.
• Rating agency Moody's has upgraded the financial strength rating of Aetna Life Insurance Company, the main life unit of U.S. life and health insurance group Aetna, to Aa3 from A1. The upgrade is a result of Aetna's strong earnings and membership growth during 2005.
• U.S. insurance group PMA Capital made a net loss of $21 million for 2005, compared with a net profit of $1.8 million in 2004. For the fourth quarter of 2005, the company made a net loss of $1.2 million, compared with a loss of $10.3 million in the same quarter of 2004.
• U.S. reinsurer OdysseyRe has completed a $100 million private offering of floating-rate senior notes. The notes were sold in two tranches: series A, which matures in 2021, and series B, which matures in 2016.
• U.S. insurance group HCC has agreed to buy a 23.6% stake in Lloyd's managing agency Heritage Underwriting for an undisclosed sum. Heritage manages syndicates 1200 and 3245 at Lloyd's, which write property insurance and professional indemnity business.
• U.S. mutual life insurer MassMutual Financial made a net profit of $753 million in 2005, compared with a net profit of $335 million in 2004. Assets under management increased to $396 billion in 2005 from $326 billion in 2004.
• U.S. mutual insurer FM Global made a net profit of $635 million in 2005 compared with $557.7 million in 2004. Its combined ratio for 2005 was 77.4%, compared with 75.3% the previous year.
• White Rock, a company specialising in protected-cell companies and rent-a-captives, has launched a new segregated accounts captive on Bermuda. The new firm is called White Rock Insurance (SAC) Bermuda, and is licensed for all classes of general and life business. White Rock is a division of Aon Captive Services Group, a part of broking firm Aon.
• U.S. broker USI Holdings made a net profit of $7.8 million in 2005, compared with a profit of $8.3 million in 2004. For the fourth quarter of 2005 alone, USI made a net profit of $3.3 million, compared with a net loss of $7.5 million for the same period of 2004.
• Bermudian catastrophe reinsurer IPCRe made a net loss of $623.4 million for 2005, compared with a net profit of $138.6 million for 2004. Its 2005 combined ratio was 251.8%, compared with 77.9% in 2004. For the fourth quarter of 2005 alone, IPCRe made a net loss of $74.8 million, compared with a net profit of $8.6 million. As a pure catastrophe writer, the company was hit hard by losses from hurricanes Katrina, Rita and Wilma.
• U.S. life and annuity reinsurer Transamerica Re has opened a consulting office – Transamerica Re Consultoria em Seguros e Servicos – in Brazil with addresses in Sao Paulo and Rio de Janeiro. The office will provide consulting services throughout Brazil. It will advise on management of insurance risks, product development, financial planning and will offer training programs in areas such as actuarial science and underwriting.
• U.S. insurer The Hanover Insurance Company plans to transfer the renewal rights to a block of discontinued personal lines business to Proformance Insurance Company. The terms of the transfer were not disclosed. The policies being transferred are part of a segment of The Hanover's New Jersey personal lines business that was discontinued in 2002.
• Reinsurance broker BMS Group has entered into a cooperation agreement with Indian reinsurance broker Bharat Re. The partnership will allow BMS to expand in India. Bharat Re was formerly known as TTK Insurance Services, and is the broking arm of The Shriram Group, which has offices in Chennai, Mumbai, Delhi and Kolkatta.
• U.S. insurer State Auto made a net profit of $125.9 million in 2005, compared with a $110 million profit the year before. Its 2005 combined ratio was 90.1%, compared with 91.7% for 2004. However, its fourth quarter net profit fell to $29.5 million in 2005, compared with $38 million in the same period of 2005.
• Bermuda start-up insurer and reinsurer Lancashire Holdings says it expects to have written $165 million of business by March 1. Richard Brindle, the firm's chief executive, says it is writing business at better terms than expected, but believes conditions will improve still further. Lancashire was launched in December, in the wake of the U.S. hurricanes, with an initial public offering. It has $1 billion in capital.
• Oval, a consolidator of U.K. insurance broking firms, has raised £53 million ($93 million) in financing for the next stage of its growth plans. Barclays Leveraged Finance and Lloyds TSB Corporate Acquisition Finance were joint lead arrangers of the financing package.
• U.S. health insurer Cigna has had to take a $14 million charge to its 2005 results after losing a dispute over retrocessional coverage protecting the firm's run-off workers' compensation reinsurance business written in the London market. As a result, the company had to lower its net income for the fourth quarter of 2005 to $210 million from $224 million.
• Attorney Dennis Barron has filed a class-action lawsuit against U.S. health insurer Anthem Insurance, its holding company Anthem, and investment bank Goldman Sachs. Barron has filed the lawsuit on behalf of former members of the firm who received a cash compensation on or around Dec. 1, 2001 when the firm demutualized. The suit alleges violations of the U.S. Securities Exchange Act of 1934 and the statutes of the state of Indiana, breach of fiduciary duty and contract, unjust enrichment, and negligence.
• Allianz Insurance Company of Canada and The Nordic Insurance Company of Canada, both insurance subsidiaries of ING Canada, are to be combined under the name The Nordic Insurance Company of Canada. ING Canada acquired Allianz Canada in 2004.
