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Providing liquidity to international financial markets and maintaining the stability of US markets have become important to insurance stock investors with the economic events in the Far East in 1997. Commercial casualty line prices have also deteriorated from 1994 through 1996 and this has affected 1997 insurance earnings. Other insurance sectors are weak as well, and these stocks could be disappointing for investors.

Insurance stocks have seemingly become more sensitive to interest rates in 1997, as many see these stocks as alternatives to bonds, but the impact may be less important than what observers believe. However, adverse reserves developments, along with poor auto insurance and workers' compensation lines results are putting pressure on margins. Expected industry consolidation has slowed activity in these stocks, but several are expected to perform well.

Reinsurance brokers believe that despite the price increase in certain types of reinsurance in the US, the amount of reinsurance purchased by insurance companies remains largely stable due to the recent natural calamities and to growing pressure from regulators. They admit, however, that some companies have raised their net retentions and have cut their overall reinsurance coverage. The stable demand for reinsurance has helped reinsurance brokers' maintain existing revenue levels, although they have also begun venturing into new services to enhance growth.

A survey of seven major insurance brokers reveals that profits at six of the seven increased by over 25% in 1993. Earnings for all seven brokers increased by 88.7% from $297.7 million in 1992 to $561.7 million in 1993 and revenues increased by 13.4% from $5.8 billion to $6.5 billion. The good financial results were experienced despite continued softness in the property-casualty insurance pricing cycle. The good results can be attributed to good management and tight cost controls.

B.R.I. Holding Corp is in serious economic shape because of debt accrued in a reverse acquisition of Chippewa Resources Corp in 1992. In the acquisition, Chippewa assumed the name Underwriters Financial Group Inc and became the parent company of the newly public B.R.I. The Securities & Exchange Commission required B.R.I. to revise its 10-K filing to reflect the merger, causing its 1992 shareholder equity to drop to -$8.6 million. B.R.I. is in danger of losing its listing on the American Stock Exchange; stock has fallen from a year high of $11.25 per share to $2.63.

Hurricane Andrew is long gone, but a storm is gathering in commercial insurance. Here's what it means for business. Late last year, Ivor Bamberger braced for the worst. His company's [...]

The top 10 reinsurance brokers' revenues grew only 3.8% in 1991, a decrease of 7.2% from 1990. A stagnant market and direct-writing reinsurance firms helped keep revenues down. New business and mergers increased revenue. The top 10 reinsurance brokers include Guy Carpenter and Company Inc, Sullivan Payne Co, E.W. Blanch Co, Aon Reinsurance Agency, Towers Perrin Reinsurance, Willcox Inc, Mine Re (North America) Inc, Alexander Reinsurance Intermediaries Inc, G.L. Hodson and Son Inc and John P. Woods Company Inc.

Lloyd's of London will completely restructure its operations to reassure its members. These changes include a three-body governing committee, a full-time chairman, new underwriting regulations, new cost-cutting measures, increased membership rights, financial closure of the 97 underwriting years before 1988 and a new arbitration system. Losses of approximately $8.6 billion for 1988-1991 prompted the major reorganization.

Lloyd's of London lost $3.85 billion and wrote $13.18 billion gross premiums for the 1989 underwriting year which ended Dec 31, 1991. Chmn David Coleridge stated at the annual meeting that Lloyd's capacity could fall as low as $15.04 billion from the present $19.1 billion as members quit. Coleridge also believes Lloyd's will endure only if capacity continues above $13.16 billion. He stressed Lloyd's is still solvent, its security is strong and that two-thirds of the members made a profit or lost no more than 15%.

After years of watching insurance brokers consolidate and merge, risk managers, and their association, the Risk and Insurance Management Society, are beginning serious discussions about the role of the new [...]

Ask a risk manager what they consider to be the fundamental role of the broker in the insurance transaction, and the likely response will be that the broker is their [...]

Sedgwick Group PLC's unparalleled focus on merger activities has made the Memphis, TN-based insurance broker the third leading company in the industry in terms of finance. In 1997, Sedgwick's gross revenues increased by 3.1% at 960.3 million pound sterling. Although the company's earning level is less than 50% of the top 2 industry players, Sedgwick officials take pride in rendering value-added products and high-quality services to clients. Recent reports claim that Aon Group is willing to acquire Sedgwick. Company officials neither deny nor confirm the validity of such reports.

Insurance agents and brokers can increase their commissions by working in niche markets. Program administrators should be able to find the proper insurance company to write a niche program. Niche programs can be found in 1997 as a result of the restructuring of the property and casualty insurance industry. Alternative risk concepts can be utilized when traditional programs will not work., Retail insurance agents and brokers, wholesale surplus lines brokers, general agents and managing general agents should increase commission income by focusing on insuring niche market opportunities. For instance, an agent [...]

Insurance brokers' revenues and profits in the 3rd qtr, 1995 are suffering from a difficult market brought on by rate competition. Despite a 31% increase in revenues, Acordia reported net income of $2.9 million in the 3rd qtr, 1995, which represented a decline of 51% from the $5.8 million it earned in the 3rd qtr, 1994. For the first three quarters of 1995, Acordia's income had declined by 13% to $16.1 million despite a 39% increase in revenues., Broker results continue to reflect a difficult market as rate competition moves forward unabated, resulting in revenue pressures for top brokerages, according to a leading insurance analyst. 'Any top-line growth [...]

Publicly-traded insurance brokers have been hurt by a weak economy, low insurance rates and uncertainty over the effects of health care reform. All of the publicly-traded insurance brokers, with the sole exception of Alexander & Alexander Services Inc, experienced revenue increases in the first three quarters of 1993, but the results of many insurers suffered when they took a charge for increased tax liabilities in the 3rd qtr. Most of the revenue increases can be attributed to new business and not to increased reinsurance and coastal property insurance rates.

Sedgwick Group PLC and Willis Corroon PLC claim that flat rates in US markets and lack of capacity in London held down their profits in first half of 1993. half. Nonetheless, Willis Corroon's pretax profits rose 16.6% to $94.1 million, led by a 22.9% rise in revenue from U.S. operations, to $312.6 million. Sedgwick's pretax profits were up from $80.7 million to $98.4 million, led by increased brokerage revenues.

Business Insurance magazine's annual review of the brokerage segment of the insurance industry reveals that the top 20 companies enjoyed a very low 4.5% average increase in revenues in 1992. Revenues climbed to $11.55 billion, although 25% of the companies experienced a decline in annual revenue. The major brokerages are attempting to overcome weak market conditions by restructuring and by diversifying their services. Some are looking to potential markets in the Far East and Eastern Europe, while others are focusing their services on particular niche markets. Marsh & McLennan Cos Inc, with $1.7 billion in annual revenues, was ranked number one by the survey.

Insurance brokers will continue to promote new business and control expenses to combat the effects of a slow economy, low interest rates and flat insurance rates on 1993 revenue and earnings. Marsh and McLennan, the world's largest insurance broker, had 1st qtr 1993 revenues increase 8.5% to $833.9 million from 1st qtr 1992 revenues of 768.8 million. Net income rose 76.4% for this period, to $107.4 million from $60.9 million for the previous year's first quarter.

Lloyd's of London members are ready to go to court to remove their liability for the large losses suffered by insolvent syndicates managed by Feltrim Underwriting Agencies Ltd and Gooda Walker Ltd. An estimated 1,300 Feltrim members will confer Nov 12, 1992, and 2,000 Gooda Walker members will meet on Nov 30, 1992, to decide their legal plans of action. The loss review reports indicate the losses were due to 'negligence' and 'sheer incompetence.' Net losses could total $2.23 billion.

Although having the home field is unquestionably an advantage in the sporting world, that has not proven to be the case for U.S. insurance brokers competing in their domestic market. [...]

Evolution Ahead For Reinsurance Market In 1990s Expect Fewer, Larger More Professional Reinsurers While the reinsurance marketplace of 1990 does not on the surface look terribly different from the reinsurance [...]

Re Brokers Face Deteriorating Results It was difficult, if not impossible, for reinsurers to see a profit in 1989, according to reinsurance broking executives contacted by the National Underwriter. Record [...]

Washburn: Insolvencies Not All Bad Many industry observers see the need for the removal of the disincentives that discourage insurance commissioners from declaring a company insolvent. But just the opposite [...]

Walbrook Rescue Still Alive LONDON--U.K. insurance brokers Sedgwick Group and C.T. Bowring, owned by Marsh & McLennan, are leading London insurance market initiatives to rescue excess casualty insurer Walbrook Insurance, [...]

J&H Undaunted By Flagging Market NEW YORK CITY--In terms of new business and acquisitions, Johnson & Higgins in 1989 once again realized its best year ever--despite a flagging market. J&H's [...]

Byline: SALLY ROBERTS NEW YORK-Supplemental commissions recently introduced by insurers to pay brokers are no different from the contingent commissions they're meant to replace, said Willis Group Holdings Ltd., which [...]

A new liability syndicate will launch at Lloyd's of London next year. Newly formed managing agency Illium Insurance will manage syndicate 4040, which will have capacity of u100 million ($157.6 [...]

2000 Top 49ers Ranking: 7 Position Last Year: 8 1999 Revenue: $146 million Number of Employees: 50 Ask the president of Anchorage's largest insurance brokerage what the key to the […]

6 Crutched Friars, London, EC3N 2PH England; 44-207-528-4444; fax: 44-207-528-4500; www.jltgroup.com 1999 1998 Gross revenues $435,242,000 $422,535,000 Brokerage revenues $432,006,000 $417,564,000 Brokerage: retail 24% 25% Wholesale 36% 36% Reinsurance 15% [...]

Friary Court, Crutched Friars, London EC3N 2NP, England; 44-207-560-3000; fax: 44-207-560-3502 www.heathlambert.com 1999/00 1998/99* Premium volume $4.31 billion $4.38 billion Gross revenues $424,065,840 $435,645,406 Brokerage revenues $405,664,325 $411,336,568 Brokerage: Retail [...]

2-8 rue Ancelle, 92200 Neuilly-sur-Seine, France 33-1-41-43-5000; fax: 33-1-41-43-5555 www.grassavoye.com 1999 1998 Gross revenues $281,880,000 $262,310,000 Brokerage revenues $277,668,000 $259,420,000 Brokerage retail 85.3% 85.9% Reinsurance 2.9% 3.3% Personal 9.0% 8.1% [...]