Market News

ACE GROUP
ACE USA forms specialized underwriting unit for renewable energy under the ACE Casualty Risk Division. It will offer full package of p-c products through energy underwriting specialists in different regions. Darren Small appointed VP and National Renewable Energy Underwriting Manager to lead the new unit. >> David Furby appointed division president for Commercial Property & Casualty in Overseas General. Joseph Clabby succeeds Furby as president of ACE Continental Europe. >> On European claims team, Steve Parry takes on additional duties as VP, ACE Overseas General Property Claims on top of existing role as regional property claims manager for Europe. He will now oversee property claims for all other regions with ACE Overseas General. >> Simon Hirst-Marsden, also with the European claims team, is promoted to VP, ACE Overseas General Energy Claims. That is in addition to his existing role as regional claims manager for marine, aviation, transport and energy claims in Europe. >> ACE U.K. appoints Matthew Shaw as president of ACE Global Markets and as active underwriter for Syndicate 2488. >> Ed Zaccaria is new president of ACE USA Regional Operations. >> Bruce Kessler named president of ACE Westchester, the company’s Atlanta-based wholesale broker-distributed business for E&S p-c lines in North America.
www.acegroup.com

AIG
Agrees to pay $725 billion to three Ohio pension funds to settle longstanding fraud charges. Together with previous settlements in Ohio, AIG’s payments mark the first billion-dollar settlement arising from the financial crisis and the 10th largest securities class-action settlement ever in the U.S. AIG is funding $550 million of the settlement through stock offerings. >> Chairman Harvey Golub resigns after a clash with CEO Robert Benmosche over leadership and strategy for bailout repayment. Robert S. “Steve” Miller, a restructuring veteran already on the board, elected to replace Golub.
www.aig.com

ALLIED WORLD ASSURANCE COMPANY
Launches Syndicate 2232 and receives approval from Singapore Monetary Authority and Lloyd’s Asia to register and operate a service company, Capita 2232 Services Pte., as part of Lloyd’s Asia platform. Capita 2232 will underwrite exclusively on behalf of Syndicate 2232 and offer treaty products from Singapore, including property, casualty and specialty lines to clients in Asia Pacific, the Mid-East and Africa.
www.awac.com

ARIEL RE
Opens representative office in Rio de Janeiro and is approved to operate as admitted reinsurer in Brazil. Initial focus to be on surety and trade credit. Thomas Rothenberger to head the office.
www.arielre.com

AXIS CAPITAL
Axis Insurance forms Design Professionals and Environmental Liability unit led by Richard Zarandona, who joined as EVP from Arch Insurance Group’s Environmental and Design Professional division. >> Now writing international accident and specialty health reinsurance in Ireland and the U.K. Paul Chapman named head of International Accident & Health, based in London. International reinsurance cover now available on quota share, excess of loss, and aggregate excess of loss basis for corporate personal accident, business travel accident, association/affinity programs, and catastrophic health.
www.axiscapital.com

CATLIN
Plans to form reinsurance company in Switzerland. Has applied to Swiss authorities for approval. Catlin Re will have at least $1 billion in capital from internal sources and will initially underwrite specialty reinsurance based upon market conditions. Catlin also plans to apply to the Bermuda Monetary Authority to create a branch of Catlin Re Switzerland on the island. It will initially underwrite reinsurance of Catlin subsidiaries currently written by Catlin Insurance Company. Its existing Bermuda portfolio of open market insurance and reinsurance will continue to be underwritten by Catlin Bermuda. >> Paul Brand, chief underwriting officer of Catlin Group, will take on additional role as CEO of Catlin’s European operations.
www.catlin.com

CHAUCER
Opens office in Buenos Aires offering facultative property coverage through Syndicate 1084. Uwe Fischer, formerly of Glacier Reinsurance, will head the office, which will begin underwriting business on Oct. 1. Alejandro Ferrin and Guido Wolman join the team.
www.chaucer-insurance.co.uk

CHUBB
Receives approval for second branch in China, this one in Nanjing. Expected to open in December.
www.chubb.com

CNA
Agrees to transfer about $1.6 billion of net asbestos and pollution liabilities to Berkshire Hathaway’s National Indemnity Co. CNA will pay reinsurance premium of $2 billion and transfer about $200 million in rights for billed third party reinsurance receivables. The premium and receivables will go into a collateral trust for CNA, and National Indemnity will take over claims handling and collection from third party reinsurers for asbestos and pollution claims. CNA worked the deal to eliminate uncertainty from legacy liabilities. >> Robert Jirgal joins as SVP for Business Process Re-engineering, a newly created position. He will develop and implement business strategies. He was VP and managing partner of Financial Services for Gartner Consulting. >> Michael Furlong joins as VP of underwriting for Specialty Lines Group. He comes from Swiss Re, where he led Lawyers and Accountants Professional Liability section. >> Don Wehrkamp moves from Zurich Financial Services to join as commercial underwriting officer of Kansas City territory.
www.cna.com

DONEGAL GROUP
Buying Michigan Insurance Co., a subsidiary of West Bend Mutual Insurance. It writes p-c insurance exclusively in Michigan and had direct written premiums of $106.6 million and net written premiums of $26.7 million in 2009. It will participate in a 50% quota share agreement with third party reinsurers and a 25% quota share reinsurance agreement with Donegal Mutual Insurance Group. The external quota share reinsurance can be reduced over time. Deal expected to close Q4 2010.
www.donegalgroup.com