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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JUNE 19, 2009 12:00 AM (EDT)
Despite the downturn in the economy in 2008, the multibillion dollar global insurance brokerage business held steady, for the most part, in terms of brokerage revenues. Best Review's annual Global Insurance Brokers list, which ranks the Top 20 by their 2008 brokerage revenue, is featured in this week's issue of BestWeek U.S./Canada.
This year, for the first time, the ranking was based solely on each broker's primary insurance placement business. Non-retail placements—reinsurance, wholesale, managing general agent and others—are excluded. This new criteria led to changes in the Top 20. Aon Corp., Marsh Inc. and Willis Group Holdings Inc. hold the top spots on the list. Moving up the top five list this year was Arthur J. Gallagher & Co., with Jardine Lloyd Thompson Group moving up from 2007's sixth-place spot.
In BestWeek Europe, when the world's top reinsurers and their clients gather for renewal discussions at Les Rendez-Vous de Septembre in Monte Carlo, they will be anxious for evidence of stabilized financial markets while trying to read a mix of macro-economic conditions that could have profound implications on underwriting conditions. Global financial turmoil has depleted the balance sheets of reinsurance and insurance companies alike. Under deteriorating markets conditions, capital and capacity availability are primary concerns of both buyers and sellers of reinsurance.
Also, in BestWeek U.S./Canada, under the Obama administration's recent proposal to grant new powers to the central U.S. banking authority, the Federal Reserve would gain potentially vast new authority over financial holding companies and other enterprises deemed to be systemically significant due to their "size, leverage and interconnectedness." As part of this mandate, the Fed would have the authority to set capital, liquidity and other requirements, including mandatory set-asides of additional reserves. Such regulated companies would be required to plan for an orderly resolution should they begin to circle the drain, BestWeek said.
BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, please visit www.ambest.com/sales/BestWeek, or e-mail your request to customer_service@ambest.com.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.