The latest commercial market index survey by The Council of Insurance Agents & Brokers has found that the commercial property/casualty market continued to soften during the third quarter of 2006. Six out of 10 survey respondents said their small accounts experienced decreases in renewal premiums during the third quarter of this year, while the average premium rates for all commercial accounts decreased 5.3 percent in that same time period.
Aon Sells Group
Aon Corp. has agreed to sell its managing general underwriting unit Construction Program Group to Old Republic Insurance Co. for $85 million. The sale of CPG, and the previously announced sales of its Aon Warranty Group and Virginia Surety Co. Inc. units to Onex Corp. for $710 million, are expected to be completed in the fourth quarter of this year.
Willis Group Holdings Ltd. has announced the establishment of a captive advice and management operation based in Sweden, called Willis Management (Stockholm) AB. The firm will be an addition to Willis' global captive practice. The new division will be able to advise Scandinavian clients with captives in Sweden or abroad, as well as also cater to the needs of Swedish captives held by foreign owners.
The Foundation for Agency Management Excellence, the charitable foundation of The Council of Insurance Agents & Brokers, has granted four $5,000 scholarships to college students pursuing careers in risk management and insurance. The need-based scholarships will go to Khadine Adams, a junior at Howard University; Greg Cohen, a senior at the University of Georgia Terry College of Business at Athens; Jessica Hussong, a senior at the University of Wisconsin Madison; and Mandy Holden, a senior at California State University at Sacramento.
York Acquires Cos.
York Insurance Services Group Inc. has announced its acquisition of Eventide Risk Management LLC, a leading provider of workers' compensation and medical cost containment services in California. York has also taken over Eventide's subsidiaries, Southern California Risk Management Associates Inc. and Medical Audit and Management Inc.
Willis CEO Honored
Joe Plumeri, chairman and chief executive officer of Willis Group Holdings Ltd., has been named the 2006 Insurance Leader of the Year by the School of Risk Management division of the Peter J. Tobin College of Business of St. John's University in New York. The annual award recognizes leadership in the insurance industry either over several years or during the year of the award. The award will be presented to Plumeri by the school at a dinner on Jan. 17, 2007.
Marsh Spurns Bid
Brian Storms, chief executive of Marsh, has announced that the Big-Three insurance broker and its parent, Marsh & McLennan Companies, are not for sale, although MMC is selling Putnam Investments, its fund management arm. Willis, the world's third-largest insurance broker, along with Kohlberg Kravis Roberts, a private equity group in the United States, approached MMC with an offer for Marsh, which the MMC board rejected.
--Compiled by staff from news and wire reports
December 1, 2006
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