Atlas Magazine.pdf by yan198555

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									                                                   N° 15
                                                 Nov. 2004


                             Atlas Conseil International

                        Atlas Magazine
            Insurance news from Africa and the Middle East
Summary                                                              Event
                                             After the storm comes the calm
      Page 1 : Event
    After the storm
   comes the calm                          After this summer’s black           The  mood   that had
                                    series of hurricanes and the         already prevailed over the
                                    downward          revision      of   Monte Carlo meeting is now
   Page 2-4 : Atlas                 Converium’s rate, it is now the      confirmed.
         Algeria                    commercial practices of the
                                    large American brokers that has            With the exception of
                                    recently shaken the insurance        certain guarantees such as the
                                    sector.                              unlimited    motor      liability,
                                           The           investigation   numerous tariff cuts are to be
                                    conducted by New York’s state        reported.
                                    general prosecutor has touched
                                    on numerous other companies                The hazards accumulated
                                    scattered around the United          during recent months have
                                    States territory, and which are      taken their toll on reinsurers’
  Page 5 - 6 : Focus,               likely to stand trial for their      outcome without reversing the
        Asbestos                    methods of management.               year 2004 positive trend, though.

                                          Given    the   effects  of           The profits made during the
                                    globalization, the judicial and      first  semester    shall  enable
                                    financial storm that has just hit    reinsurers to envision the future
                                    hard in the heart of the             with more serenity.
                                    American system shaking the
                                    New York stock market, will                Although this ease remains
                                    undoubtedly send shockwaves          moderate, it provides many
                                    to other countries.                  reinsurers with a puff.
       Asbestos fibre

                                           No    sooner    had    the
                                    insurance industry started to see
                                    the light than it was confronted
     Page 7 - 11 :                  with these recent unfavorable
   Insurance news                   events that are likely to hamper
                                    the     sector’s   endeavor    to
                                    achieve stabilization.
      Page 12-13 :
                                          Nevertheless, and     as
        Statistics
                                    contracts renewal is looming
  World top reinsurers
                                    ahead, reinsurers gathering in                     Baden Baden
   by region in 2003
                                    Baden Baden recently, remain
                                    quite confident.                              Atlas Conseil International




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                                                                             Web: www.atlasconseil.com.tn
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                                                                Atlas
                                                             Algeria
                      The country
  Area : 2 381 740 Km2
  Population (2003) : 32 277 942 inhabitants
  GDP (2003) : 66 billion USD
  GDP per capita (2003) : 2 045 USD
  GDP growth rate (2003) : 6,8 %
  Inflation rate (2003) : 2,6 %
  Main economic sectors : hydrocarbon industry
  (petroleum and natural gas), mining industries,
  agriculture, services.

                        Major towns
                  (per number of inhabitants)

  Algiers (capital) : 3 700 000       Constantina : 1 000 000
  Oran : 1 600 000                         Annaba : 850 000




           Insurance market features                                              Market structure by class of
                                                                                      business in 2003
        Regulatory authority : Ministry of Finance                                Pr o p er t y                                     M ar ine
                                                                                                                                    12 . 8 4 %
                                                                                  d amag es
General Management of Treasury / Insurance Management




                                                                                                                                                        Algeria
                                                                                     40 %
                                                                                                                                     A g r icult ur a
       Written premiums (2003) : 445 million USD                                                                                        l r i sks
                                                                                                                                        3 ,32 %
           Insurance density (2003) : 13,8 USD
                                                                                                                                     Per so nal
              Penetration rate (2003) : 0,67%                                                                                        acci d ent
                                                                                                                                       i ns .
                                                                                                                                      3 . 75 %
                                                                                         M otor                        C r ed it i ns .
                                                                                         3 9 . 17 %                        0 .92 %




     Turnover evolution                                                                                                445 768
         (in thousands USD)                                                                       372 526
                                           400 000
                                                                        290 455
                                           300 000           253 842

                                           200 000
          Exchange rate
                                           100 000
       2000 : 1USD = 76,873 DZD
       2001 : 1USD = 75,211 DZD
                                                  0
       2002 : 1USD = 77,868 DZD
       2003 : 1USD = 70,285 DZD
                                                             2000       2001                      2002                 2003



                                                       Market structure
                                                                                                      Figures as at 30-06-2004

           Company type                                                                Number of companies
          State companies                reinsurance companies                                            1
                                         insurance companies                                              3
                                         specialized insurance companies                                  4

          Specialized mutuals                                                                             2

          Private companies                                                                               6

          Total                                                                                          16

Atlas Magazine is published by Atlas Conseil International                                                           N°15 - November 2004               2
                                                                   Atlas
                                    Premiums split by company 2000-2003
                                                                                                                     In thousands USD
                                 2000                            2001                       2002                      2003
Companies
                        Amount          Share        Amount               Share       Amount        Share       Amount       Share
SAA                     88 702          34,94%           90 044             31%        94 033       25,24%      120 778      27,09%
CAAR                    55 013          21,67%           60 975             21%        89 712       24,08%       73 218      16,42%
CAAT                    52 683          20,75%           54 271           18,68%       68 423       18,37%       97 091      21,78%
CAGEX                    118            0,05%             208              0,07%        131         0,04%          203        0,05%
SCGI                     165            0,07%             287              0,1%         573         0,15%         1 456       0,33%
AGCI                       -               -                -                 -          7            0%           163        0,04%
CASH                    6 426           2,53%            16 244            5,59%       24 993       6,71%        26 017      5,84%
CNMA                    30 310          11,94%           37 858             13%        34 432       9,24%        36 860      8,27%
MAATEC                   214            0,08%             219              0,08%        249         0,07%          278        0,06%
TRUST ALGERIA           10 691          4,21%            12 484            4,3%        27 955       7,50%        32 827      7,36%
2A                      4 492           1,77%            8 889             3,06%       12 984       3,49%        15 518      3,48%
CIAR                     4 960          1,95%            7 750            2,67%        10 464       2,81%       19 584          4,39%
AL BARAKA                 68            0,03%            1 226            0,4%         2 750        0,74%       5 448           1,22%
STAR HANA                  -               -               -                 -          929         0,25%          -               -
AL RAYAN                   -               -               -                 -         2 169        0,58%       5 996           1,35%
GAM                        -               -               -                 -         2 722        0,73%       10 331          2,32%
TOTAL                   253 842         100%         290 455              100%        372 526       100%        445 768      100%




                                                                                                                                        Algeria
                              Premiums split by class of business 2000-2003
                                                                                                                     In thousands USD
                                         2000                         2001                      2002                     2003
Classes
                                 Amount          Share          Amount        Share      Amount        Share    Amount          Share
Motor                            106 321         41,88%         117 906       40,59%      131 865      35,40%    174 615     39,17%

Property                          81 595         32,14%          92 800       31,95%      154 859      41,57%    178 265         40%

Marine                            38 285         15,08%          45 561       15,69%      50 550       13,57%     57 257     12,84%

Agricultural risks                12 433          4,9%           19 242       6,62%       15 626       4,19%      14 792        3,32%

Personal accident                 14 154         5,58%           13 293       4,58%       14 739       3,96%      16 734        3,75%

Credit ins.                       1 054          0,42%            1 653       0,57%        4 887       1,31%      4 105         0,92%

TOTAL                            253 842         100%           290 455       100%       372 526       100%      445 768        100%


                              Major companies’ turnover evolution 2000-2003


100 000

                                                                                                SAA                  CAAR


                                                                                                CAAT                 CASH
 50 000

                                                                                                TRUST ALGERIA        2A


                                                                                                CIAR                 Al Baraka
       0
                 2000              2001                  2002                2003


Atlas Magazine is published by Atlas Conseil International                                                       N°15 - November 2004   3
                                                              Atlas
                             Loss experience of major companies 2000-2002
                                                                                                                   In thousands USD

                                       2000                                2001                               2002
 Companies
                             Claims*          Loss ratio**       Claims*          Loss ratio        Claims*             Loss ratio
 SAA                          68 495              79,8%           77 441            89,0%           77 286 249            86,1%
 CAAR                         63 551             115,8%           60 574            95,5%           34 971 906            41,4%
 CAAT                         29 389              57,1%           26 083            50,5%           39 666 316            59,2%
 CASH                             -                  -            5 654             52,7%           1 218 904              5,1%
 CNMA                         19 362              67,2%           18 936            53,6%           17 305 767            49,3%
 TRUST ALGERIA                 6 634              72,8%           5 241             49,5%           6 100 797             21,6%
 2A                            1 437              43,2%           4 083             49,4%           5 816 497             49,4%
 CIAR                          2 223              57,1%           5 047             78,6%           5 965 255             60,8%
 AL BARAKA                        -                  -             330              36,5%           1 055 071             47,7%
 AL RAYAN                         -                  -                 -              -                 640 941           41,8%
 GAM                              -                  -                 -              -                 789 098           42,5%

 TOTAL                       191 091             80,5%           203 389           74,1%          190 816 803             53,5%
 (*)Claims = paid claims + outstanding claims
 (**) Loss ratio = claims/earned premiums




                                                                                                                                         Algeria
                                           2002 companies’ productivity

                                                                                   Premium*/employee
                    Companies                                Staff 2002
                                                                                               (USD)
                    SAA                                        3 665                           25 657
                    CAAR                                       1 616                           55 514
                    CAAT                                       1 477                           46 325
                    CAGEX                                         -                               -
                    SCGI                                         23                            24 913
                    AGCI                                         20                              350
                    CASH                                         52                            480 634
                    CNMA                                        1103                           31 216
                    MAATEC                                       22                            11 318
                    TRUST ALGERIA                               115                            243 086
                    2A                                          310                            41 883
                    CIAR                                        182                            57 494
                    AL BARAKA                                     -                               -
                    STAR HANA                                     -                               -
                    AL RAYAN                                     80                            27 112
                    GAM                                         339                             8 029

                    TOTAL                                      9 004                        41 373**
                    (*) : written premium
                    (**) : market average productivity




Atlas Magazine is published by Atlas Conseil International                                                        N°15 - November 2004   4
                                                              Focus

                                                             Asbestos

       Asbestos is a natural mineral whose by-products are used in various industrial fields. It is found in household
tools and objects such as joints, floor and wall covering and household cleaning stuff.
Asbestos’ noxiousness is discarded if the product is properly conserved and confined. However, it gets very
harmful when it degrades and gets porous and volatile. In fact, it is the presence of fibers in the air that could be
hazardous to health. The inhalation of micro particles by people causes various serious ailments which could
appear ten to forty years after exposure and even after retirement.



                                                              Description
                                 Asbestos is a natural mineral containing calcium, iron and magnesium hy-
                       drate silicate with fibrous texture.
                       It is made up of two mineralogical groups:
                       ♦ The serpentines: white asbestos (chrysolite), the most common and only variety
                            of its group.
                       ♦ The amphiboles: featuring five varieties: tremolite, actinolite, anthophyllite,
                            crocidolite, amosite, and the last two items being the most used.




                                                                                                                            Focus
                                                      Features and uses

      Renowned for its high resistance to heat and fire, for its chemical inertia, its mechanic resistance, its
imputrescibility, its low cost and elasticity, asbestos is used in various ways and in the following domains:

     ♦       Building insulation.
     ♦       Lagging insulation and waterproofness.
     ♦       Shipbuilding yards, as a fire-resistant insulator.
     ♦       The textile industry for the manufacture of fireproof clothing.
     ♦       The manufacture of filters for food and pharmaceutical industries.
     ♦       Electrical insulating products.
     ♦       The automobile industry, mechanical and plastic material, iron and steel metallurgy.

Asbestos is present in the makeup of more than 3000 products.




                Asbestos, society stakes
         In fifty years time, asbestos has become                                    Pathologies
         altogether :
                                                                      The size and the form of the fibers are the
         ♦    A public health issue.                                  main factors accounting for the extent of
         ♦    A topic for policies tackling the prevention            penetration and infection of the respiratory
              of professional hazards.                                system. The contamination causes :
         ♦    A subject of scientific researches.
         ♦    A controversial issue and a matter of                    ♦   Asbestos.
              interest clashes between different pressure              ♦   Throat and lung cancer.
              groups      and    lobbies     representing              ♦   Pleura and perisyv toneum mesotheliom.
              producers, industrialists, organizations for
              the protection of the environment and for
              asbestos casualties, insurance companies
              and lawyers firms.




Atlas Magazine is published by Atlas Conseil International                                           N°15 - November 2004
                                                             Focus
                                          The history of asbestos hazards
             The use of asbestos dates back to 1860 when its extraction started to
develop with the discovery of new deposits and in the light of the industrial headway. Its
exploitation and marketing had grown considerably until the mid 1970s when its use was
progressively slowed down by restrictive measures.

        The first suspicions about the potential danger of asbestos started to cross
people’s minds at the beginning of the 20th century. It was the United Kingdom which
first adopted protective laws and regulations in favor of workers against exposure to
asbestos in 1931. After the Second World War, France decides to assume charge of
asbestos as a professional disease. Given the scale and the increase of pathologies,
numerous countries decided to take radical measures. For instance, the European
Union, Australia, and Chile elaborated strict provisions restricting the use of all forms and
types of asbestos and stepped up efforts to come up with replacement products. But
the greater part of developing countries remains the biggest importers of asbestos.



                                                        Some figures
               ♦    In France, the progression of asbestos-related diseases for all of the pathologies
               rose from 202 to 4 494 annual cases between 1985 and 2002. As far as cancer is con-
               cerned, the number of cases grew from 25 to 1018 cases per year for the same pe-
               riod. Surveys and studies have shown that contamination due to asbestos kills twice
               as many people as work accidents altogether.




                                                                                                                          Focus
              ♦     In the United States, in the period between 1979 and 2001, 43 000 deaths due to
              asbestos cancer had been reported. Asbestos directly accounts for the death of 10
              000 people a year, that is 30 casualties a day, and 40 000 deaths are expected for
              the next 40 years.
              The American economy has lost 60 000 jobs following the bankruptcy of involved firms
              who lost compensation and damage lawsuits lodged by victims.
              As far as the social aspect is concerned, retirement funds have shrunk by 25% due to
              the disputes pertaining to asbestos contamination, these provisions being exhausted
              in lawsuits and lawyers dues.
              Over 8000 firms (trade, industries, construction, textile, shipbuilding yards, insurance)
              have stood trial for asbestos contamination accounts. More than 600 000 cases are
              undergoing trial and 70 000 additional lawsuits are lodged each year.



                                           Social and economic impact
       While asbestos cases constitute good news for lawyers firms, they mean nothing but unprecedented gloom
and doom for the other economic sectors. In order to guard against this risk, some firms have been compelled to
raise important funds whereby they become, somehow, their own insurers. The French group Saint-Gobain
disbursed a sum of 100 million euros to the United States for its 2002 financial year.
In response to the increase of these disputes and their financial fallout, the American authorities are elaborating a
plan that aims at reducing the number of cases by setting stricter medical criteria. Such a measure is likely to
discard 90% of the lawsuits underway.



        For a long time to come, the controversial issue of asbestos will remain a major cause of concern as trials
continue to take place throughout the world: Canada, Brazil, South Africa, Switzerland, Italy and France before it
starts to affect the developing countries.




Atlas Magazine is published by Atlas Conseil International                                         N°15 - November 2004   6
                                                             News
                                                             Africa

                                                              ANGOLA

Conference : The eighth annual conference of CPLP, ( Insurance Supervisory Bodies for Portuguese-speaking
countries ) with many topics on the agenda such as: compulsory insurance for motor liability, fraudulent practices
and capital laundering
Six out of CPLP eight member countries, that is, Angola, Mozambique, Portugal, Sao Tomé and Principe, East Timor
and Macao have attended the conference proceedings while Brazil and Guinea-Bissau were absent.

The compulsory insurance for motor liability : The government has announced the creation, on the short-term
basis, of the compulsory insurance scheme regarding motor liability as well as its guarantee fund.



                                                             CAMEROON

Insurance malpractices : The Association des Sociétés d’Assurance du Cameroun, (ASAC), has revealed that
15% of the road users controlled in Yaoundé, during a “heavy-handed” operation baptized “Coup de Poing”,
were found in infraction. The Association also denounces the fraudulent practices of some insurance middlemen.



                                                               EGYPT




                                                                                                                          News
Artifact insurance : Following the agreement reached with insurance companies, the Conseil Supérieur des
Antiquités, (CSA), has underwritten a 30.450 million USD to cover its exhibition of Egyptian antiquities held in Athens
in 2004. For the previous exhibition held in Venice, the insurance cover amounted to 137 million USD.

Family planning scheme : In an effort to contain and reduce the excessive birth rates in Egypt, the government
plans to propose a 10 000 EL, (600 USD)- insurance policy to women who would settle with two births and a 3000
EL, (480 USD)-policy for all women who could manage a five-year interval between the first and second birth.



                                                              GHANA

Health insurance : A new health insurance scheme, which is funded by a 2% tax levied on all goods and
services, has been set up since last October.

                                                              GUINEA

Confiscation : Following a dispute over the amount of disaster damage settlement due to an important client,
the Société Guinéenne d’Assurance et de Réassurance, (UGAR), accounts have been seized by justice
authorities.



                                                              KENYA

Seminar : The Organisation des Assurances Africaines, (OAA), held “a life safari” seminar in Nairobi from
November 3 to 5, 2004 and whose topic is dedicated to : guaranteeing success through products and
management systems.



                                                             MAURITIUS

Legal action : Financial Services Commission, (FSC), has lodged a lawsuit against a number of firm managers
among whom the manager of Secura Global Insurance Company.




Atlas Magazine is published by Atlas Conseil International                                         N°15 - November 2004   7
                                                              News
                                                               NIGERIA

Rating : Standard and Poor’s Agency has granted the BBB mark to African Reinsurance Corp whereas A.M. Best
Co Agency awarded it an A-.

Outcome : An excellent 2003 financial year for Africa Re:

  Written premiums :                                           164.2 million USD in 2003 against 104.3 million USD in 2002
  Total revenues including financial products :                169.7 million USD in 2003 against 108.6 million USD in 2002
  Net results :                                                  6.5 million USD in 2003 against 5.7 million USD in 2002



                                                             SOUTH AFRICA

Bid : South Africa’s second Life insurance company Sanlam is currently studying Barclay’s bid for the purchase of
some of the shares it holds in Absa for a price that has been kept secret. Both Salam and Absa have established a
joint bancassurance network since 2002. Barclay is currently operating in twelve African countries.




                                                         Maghreb

                                                               ALGERIA




                                                                                                                                  News
Figures : The Conseil National des Assurances, (CAN), reports that with a turnover of 32 billion AD (445 million USD),
the insurance sector has reported a slight 8.6% increase for the year 2003.

Pollution insurance : In an effort to make up for the absence of pollution insurance policies in the country,
insurance and environmental sector officials have pushed for a plan to set up a co-insurance or a compensation
fund for industrial pollution. Currently, only SONATRACH, the state-owned oil company, has taken steps to assume
such a risk.

Office closure : after a two-year activity in the country the London-based Algero-Libyan reinsurance company
MED Re proceeds to the definitive closure of its sales representative office in Algiers before December 31, 2004.



                                                                LIBYA

New companies : Creation of two new insurance firms in Tripoli.

       African Insurance Company:
       Authorized capital : 773 395 USD
       Paid up capital    : 232 018 USD
       Shareholders        : 60% employees’ investment funds.
                             40% companies and private individuals.
       General Manager : Mr. Abdelmohsen Swessi

       Sahara Insurance Company :
       Authorized capital : 3 866 976 USD.
       Paid up capital    : 1 160 093 USD.
       Shareholders        : 60% the National Investment Company.
                            40% companies and private individuals.
       General Manager : Mr. Abdelatif El Keeb.
       Executive Manager : Mr. Ibrahim Felfel.

Departure : Mr. Mohamed Ridha Ben Mejrab, reinsurance Manager, has resigned from United Insurance Co. on
October 15, 2004. He is joining Sahara Insurance, a newly-founded company.




Atlas Magazine is published by Atlas Conseil International                                                 N°15 - November 2004   8
                                                              News
                                                             MAURITANIA

Market figures : Mauritania’s global market turnover amounts to 7 million USD in 2003. Motor liability insurance
tops the list of the market where seven firms operate. The Nationale d’Assurance et de Réassurance (NASR-SA),
former Société Mauritanienne d’Assurance et de Réassurance is leading the scene.

Compulsory importation insurance : The Fédération Nationale des Assureurs de Mauritanie (FNAM), ( The
National Federation of Mauritanian Insurers), and Customs General Management are elaborating the texts
pertaining to the enforcement of compulsory insurance for imported goods.



                                                              MOROCCO

Bargaining about AXA Assurance Maroc : Negotiations may have been engaged between holdings ONA
and SNI on the one hand and the Banques Populaires Group on the other, about a possible takeover of 49% of
the shares that ONA holds in AXA Maroc capital.
The Banques Populaires have longed to penetrate the insurance sector, but the different license applications
made, so far, by the bank have been rejected by the supervising authorities.
On the other hand, AXA remains strictly opposed to the possibility of a merger with Wafa Assurance.

Training : CNIA Assurance has launched a training program since the start of September 2004 in favour of its
general staff network on the issue of “sales and bargaining techniques”

2003 outcome : In its 2003 annual report, CNIA Assurance reports a turnover of 1.020 billion DH (117 million USD),
achieving a 12.8% increase compared to 2002.
Global compensation sums amount to 726 million DH (83 million USD), boosting premium-disaster ratio to 71%.




                                                                                                                         News
                                                               TUNISIA

Licence : The accreditation for the creation of a MED Re office in Tunis is shaping. The final decision shall be soon
published in the official gazette.

Rating improvement : One of the main African reinsurers Best Re has had its Standard & Poor’s rating rise from
BBB- to BBB with a stable outlook. The ongoing capital increase (10 000 000 USD) credits Best Re with a
capitalization level corresponding to an AA rating, according to S&P.




                                                     Middle East

                                                             SAUDI ARABIA

Foundation : Banque Saudi Fransi and Assurance Générale de France (AGF), have signed an agreement for the
creation of a new Saudi insurance company.

Merger : Cumberland and Libano-Suisse have struck a deal whereby both firms’ subsidiaries in Saudi Arabia
should merge. The new company will be set up in partnership with two Saudi groups.

Foundation : Mr. Machaal Karam , Chief executive of UCA, has announced the creation ,by the company, of a
new Saudi insurance Company in Saudi Arabia, and which will operate in accordance with the new regulation
enacted by SAMA.

Redeployment : After its decision to pull back from Saudi Arabia, the American giant AIG is planning to extend
its operations to other Gulf countries namely Bahrain, Kuwait and Abu Dhabi.



Atlas Magazine is published by Atlas Conseil International                                        N°15 - November 2004   9
                                                             News
                                                             BAHRAIN

License : Bahrain Monetary Agency (BMA) has awarded a license to brokerage giant AON Corporation for the
creation of AON Re Middle East, a brokerage company with 265 000 USD in capital.
AON Corporation employs more than 52 000 persons in its 600 offices spread out in more than 120 countries.
Monetary authorities have equally granted a license to Saudi financial group for the establishment of Card
Insurance Company, a health insurance company with a capital of 2,65 million USD.

Publication : Bahrain’s Monetary Agency (BMA) has published the first volume of the code regulating all
accredited financial institutions. This first volume regards the banking sector, the second one touches on the
Islamic institutions while the third volume, dealing with insurance firms, will be published next January.

Appointment : Arab Insurance Group (ARIG) has appointed Mr. Sultan Ahmad Al Ghaith as member of its
Directors’ Board and Executive Committee. Mr. Al Ghaith is also the General Manager of United Arab Emirates’
retirement and social security body.

                                                    UNITED ARAB EMIRATES

New scheme : In its effort to meet the needs of Mecca pilgrims, Dubai Islamic Insurance and Reinsurance Co
(Aman) has launched a series of life, health and accident insurance policies.



                                                             JORDAN

Agreement : Bank Audi and Middle East Insurance Company have made an agreement for the marketing of
four bancassurance products in the United Kingdom.




                                                                                                                      News
Conference : The eleventh International Conference of Insurance Supervisors, which was held in Amman from
October 5 to 7 tackled the global insurance market, its challenges and opportunities. The conference was due to
gather about 370 professionals representing all regions of the world.

Outcome : Insurance Commission is expecting a premium increase of 11.1%, that is, a global sum of 186 million
JOD (263 million USD) for the ongoing year.
With the sum of 23 million JOD (32 million USD), the life branch reports a 16.8% increase.
Gross premiums had jumped from 104.3 million JOD (147.3 million USD) in 2000 to 167.4 million JOD (236.4 million
USD) in 2003, that is, an annual average increase of 20.2%.

Appointment : The Directors’ Board of Arab Jordanian Insurance Group (AJIG) has appointed Mr. Zoheir Adly El
Aatâout as head of the company.



                                                             LEBANON

New policy : The Swiss insurance company Zurich is no longer willing to cover risks in Lebanon, and plans to bring
its operations there to a halt. This decision underscores the company’s new policy to favour Europe and the United
States.




Atlas Magazine is published by Atlas Conseil International                                     N°15 - November 2004   10
                                                             News

                                                             World

Munich Re : The German reinsurer has set up in Mumbay (India) a new service company: Munich Re India
Services Ltd, which aims at reinforcing its ties with the Indian insurance sector.
With the total premium amounts in the life branch nearing 16 billion USD in India in 2003, Munich Re estimates that
for the 2010 horizon, it should report an annual growth of 15 to 17%.

U.S.A. : Trial of the Tobacco magnets. The American government has lodged a historic lawsuit against the
tobacco industry giants whom it accuses of illegitimate past profits for which it requires a 280 billion USD refund.
Such a move by the American justice is likely to deal a serious blow to a sector worth 85 billion USD, and which
employs 400 000 people.

Special commissions : The world's number one insurance broker, Marsh & McLennan acknowledged receipt of
845 million USD in commissions in 2003 and 420 million USD in the first six months of 2004 from insurers. MMC's shares
have been on the decline ever since.

Rating : Following the lawsuit lodged by Eliot Spitzer, New York’s state prosecutor, against Marsh & McLennan,
Moody’s Agency has revised the Broker’s rating downwards and kept the broker under negative watch.

Judicial inquiry on life insurance firms : The scandal related to the insurance unfair commercial practices has
had negative repercussions on the Wall Street stock market. Following the case of Marsh & McLennan,
investigations are now targeting life insurers Aetna and Cigna whose shares have now abruptly collapsed.

Takeover bid : Taking advantage of the legal hardships and AON’s stock failures (a 30.8% loss in five days), the




                                                                                                                           News
world’s number three broker Willis plans to launch an OPA against it to buy it out for the price of 10 billion USD this
move will enable Willis to step up competition with Marsh on most of its markets.

Capital increase : Following its financial hardships in the United States which accounted for the 70% fall in its
shares, the Swiss group Converium has proceeded to an increase of its capital by 343 million euros (437 million
USD). With the acquisition of 5.84% of the shares, the British fortune manager Odey Asset Management becomes
an important shareholder in the group.

Relocation : In line with the general move of British financial institutions, Royal & Sun intends to transfer 10% of its
total staff, that is, 1100 jobs to India in order to take advantage of cheaper labour.

Maintaining premium tariffs according to gender : The European Commission has given the insurance sector
special dispensation enabling it to keep on calculating motor insurance and life insurance premiums according to
gender criterion. In a bid to justify their arguments, the experts pointed out that women pay less for the motor
insurance as they cause less road accidents, and pay more for life insurance premiums as they live longer.

Athletic performance premium :         Following the publication of «LA. Confidential, the secrets of Lance
Armstrong» questioning the six-time Tour de France champion’s outstanding achievements and integrity, the
Texan company SCA Promotions, dealing in the insurance of great athletes has decided to suspend the payment
to Lance Armstrong of the 5 million USD premium. The case is currently subject to arbitration before the Dallas
tribunal.




Atlas Magazine is published by Atlas Conseil International                                          N°15 - November 2004   11
                                                           Statistics

                       World top 10 reinsurers by region in 2003

                                                              AFRICA
                                                                                                              In millions USD

                                                                 Net premiums        Combined ratio (%)       S&P rating
  Rank       Company                              Country
                                                                                                            at 01/08/2004
                                                                  2003     2002       2003      2002

     1       Munich Re                            South Africa    203.5    140.3       93.3     101.1            BBBpi

             Société Centrale de
     2                                            Morocco         177.0    154.0      106.4     106.4            BBBpi
             Réassurance

     3       Africa Re                            Nigeria         164.2    104.3       90.3      93,1            BBB+

     4       Swiss Re Africa                      South Africa    153.5     92.2      100.8     125.2            N.N.

     5       Hannover Re.                         South Africa    113.3     81.1      101.1      98.4            BBB-

     6       Swiss Re Life & Health               South Africa    109.6     70.8       N.M.      N.M.            N.R.

     7       Zimbabwe Re*                         Zimbabwe        83.2      72.6       N.A.     116.7            N.R.




                                                                                                                                Statistics
     8       BEST Re                              Tunisia         56.5      46.5       88.8      89.4            BBB**

     9       Hannover Life Re                     South Africa    52.2      46.9       N.M.      N.M.            N.R.

    10       General Cologne Re                   South Africa    42.3      22.0      108.1      94.6            AAA

(*) : figures for 2003 are S&P estimates
(**) : recent rating October 2004

                                                                 ASIA                                         In millions USD

                                                                 Net premiums        Combined ratio (%)      S&P rating
    Rank       Company                             Country
                                                                                                            at 01/08/2004
                                                                  2003     2002        2003     2002

         1     Korean Re                           South Korea   1 350.8   1 160.7     95.1      95.0            BBB

         2     General Insurance Co.               India          946.7    806.9       100.2    113.0            BBpi

         3     Central Re                          Taiwan         339.5    307.1       98.2      98.7            BBB+

         4     Malaysian National Re               Malaysia       146.4    116.4       90.0      96.7           BBBpi

         5     SCOR Re Asia-Pacific                Singapore      131.7    162.5       69.0      84.0            BBB+

         6     China International Re              Hong Kong      125.3    122.8       96.1      84.6             A-

         7     Arab Insurance Group                Bahrain        102.7     71.0       99.7     117.3            BBB

         8     Thaï Re Public                      Thailand       51.7      50.5       96.4      90.1            BBB

         9     Singapore Re                        Singapore      35.0      31.2       107.0    106.7            N.R.

      10       Kuwait Re                           Kuwait         18.3      10.3       102.5    120.3            BBB

 N.A. : not available
 N.M. : not meaningful
 N.R. : not rated
 Pi : for information

 Atlas Magazine is published by Atlas Conseil International                                             N°15 - November 2004    12
                                                          Statistics

                                                              EUROPE
                                                                                                                         In millions USD

                                                                  Net premiums              Combined ratio (%)          S&P rating
  Rank       Company                       Country
                                                                                                                       at 01/08/2004
                                                                 2003        2002             2003       2002

     1       Munich Re                     Germany              25 489.4    21 343.3          98.1       107.2               A+

     2       Swiss Re                      Switzerland          14 003.9    11 352.1          100.1      116.0              AA

     3       Lloyd's                       United Kingdom        7 818.3    6 808.6           90.4           94.9               A

     4       Hannover Rück                 Germany               4 663.2    3 965.5           94.8       100.3              AA-

     5       Allianz AG                    Germany               4 661.9    4 046.4           101.5      105.9              AA-

     6       GE Frankona Rück              Germany               2 628.7    1 977.4           87.7       107.0               A+

     7       Converium                     Switzerland           2 492.4    1 829.6           89.5           90.6           BBB*




                                                                                                                                           Statistics
     8       Swiss Re Germany              Germany               2 222.6    1 645.6           94.3       109.8              AA

     9       European Re                   Switzerland           2 130.7    2 779.0           85.0           62.5           AA

    10       Kölnishe Rück Ges             Germany               1 987.3    1 839.6           105.7      115.6              AAA

(*) : recent rating September 2004




                                                              UNITED STATES
                                                                                                                         In millions USD
                                                      Net premiums               Combined ratio (%)
                                                                                                                      S&P rating
  Rank       Company
                                                    2003           2002             2003              2002          at 01/08/2004

     1       General Re                            3 073.3        3 617.4           103.6             104.7               AAA

     2       Everest Re                            2 964.5        2 119.2           100.1             101.9               AA-

     3       Transatlantic Re                      2 945.3        2 219.8              98             103.8                AA

     4       Swiss Re Life & Health                2 839.4        3 241.9             N.S.            N.S.                 AA

     5       National Indemnity                    2 523.4        2 526.4           52.8              54.0                AAA

     6       Swiss Re America                      1 988.5        1 283.0           139.0             108.1                AA

     7       Employers Re                          1 968.0        2 550.9           105.4             171.8                A+

     8       Odyssey America Re                    1 837.8        1 439.2           92.6              98.3                 A-

     9       American Re                           1 548.1        1 198.1           102.6             279.6                 A

    10       Berkley Insurance                     1 395.6         934.1            92.4              100.3                A+




 Atlas Magazine is published by Atlas Conseil International                                                         N°15 - November 2004   13

								
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