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Still playing corporate games
While the plight of the US bond insurers has continued to hold the attention of insurers concerned about a range of financial cover they have provided, corporate activity in the insurance sector has by no means evaporated. US private equity heavyweight JC Flowers has been working on a fresh approach to embattled life assurance group Friends Provident, which recently called on regulators to force Flowers to clarify its intentions.
Bermuda-based Omega Insurance Holdings says it is still talking to potential bidders after increasing annual pre-tax profits 163 per cent to £29.7 million. After enjoying premium rates at all-time highs in some classes of business, Omega, in common with all insurers, faces a persistent softening in premium rates.
Chief executive Richard Tolliday says his company scores by being selective. However, he argues it is hard to see a rate upturn coming soon without a major market hit.
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