Economy shrinks 0.5%, latest figures reveal

GDP slumps for first time in more than a year

UK gross domestic product (GDP) decreased by 0.5% in the fourth quarter of 2010, fuelling fears of a double dip recession.
The Office for National Statistics (ONS) estimates for October to December 2010 compared with an increase of 0.7% in the previous quarter.

Aon: Insurers are reluctant to pay BI claims

Broker warns companies to develop ERM programs to minimise risk.

Aon has reported an increased demand and enquiries for business interruption (BI) insurance but a decreasing appetite of insurers to pay claims for this type of insurance.

QBE scales back Evergreen as staff face axe

QBE in redundancy talks with four staff as it stops renewing proportion of business.

QBE Europe is scaling back business at its SME underwriting business Evergreen, while four staff are in redundancy talks, Insurance Times understands.

The insurer is winding down some of its business, although a spokesman would not say how much business was being scaled back. QBE said it had no plans to put Evergreen into run-off.

Ataraxia acquisitions get own Lloyd’s insurer

New Lloyd's insurer, Ataraxia Markets, to underwrite for acquired businesses.

Ataraxia Broking, the brainchild of former Brokerbility chief executive Stuart Randall, is setting up a Lloyd’s insurer to exclusively underwrite business for its acquisitions, Insurance Times reveals this week
The new insurer arm, which will be called Ataraxia Markets, will begin underwriting from the Lloyd’s building next month.

Resolution buys Bupa - £102m

Bupa Health Assurance becomes part of Friends Provident

Resolution has bought the entire issued share capital and business of Bupa Health Assurance for £102m, funded from surplus capital held within Friends Provident’s life operating businesses.

BHA will be run as a stand-alone business within the Friends group for a period of up to a year. After that Resolution expects £22m of savings through synergies.

Chaucer in takeover rumours

The buy-out division of Goldman Sachs is rumoured to have teamed up with TPG Capital to bid to takeover Lloyd’s insurer Chaucer, the Telegraph reports.

But is said people familiar with the matter said Goldman Sachs and TPG are not in takeover talks at the moment and that the buy-out tittle-tattle is "wide of the mark".

Cost of piracy still uncertain, says Actuarial Profession

The true cost of maritime piracy is still uncertain, according to a report by the Actuarial Profession.
The report states that the relative lack of statistics on maritime piracy makes risk estimation difficult.

Neil Hilary, a staff actuary with the Profession and one of the authors of the report, said: "Piracy attacks have been on the increase in the last 15 years. But since 2006, the level of attacks has increased by an average of 125%, and this is almost entirely due to the attacks by Somali pirates.