QBE Insurance buys US firm to boost premiums

AUSTRALIA'S QBE Insurance, the second-biggest insurer in the Lloyd's of London market, said today it had bought a small US insurer for about $140 million (Pounds 80 million) to boost premium income. QBE said National Farmers Union Property Casualty of Colorado was expected to have net earned premium of about $190 million for 2005.

AIG closes under-fire Bermuda reinsurance unit

INSURANCE giant American International Group says it will shut down a Bermuda unit that attracted scrutiny from US regulators. The subsidiary, Richmond Insurance, has surrendered its insurance licence and is no longer selling reinsurance policies in Bermuda. Regulators took aim at dealings between AIG and Richmond which they said were not properly disclosed.

Ford chief on eBay board as online car sales soar

ONLINE auctioneer eBay has announced that Ford Motor Company chairman and chief executive Bill Ford has joined its board of directors. The move reflects the large contribution to eBay's revenue from the sale of used cars.

The eBay motors division last year pulled in about $14.3 billion (Pounds 8.2 billion) in gross revenue.

Mitsui to take stake in Japanese retail group

TRADING firm Mitsui is to buy 45 billion yen (Pounds 229 million) worth of shares in Japanese retailers Ito Yokado and Seven-Eleven Japan, giving it 1% of each. The retail group, which comprises the two firms and restaurant operator Denny's Japan, is a major competitor of Tesco and Wal-Mart and has targeted 50% growth in net profit to 170 billion yen this year.

TRADER TALK

HEDGE fund operation RAB Capital has reduced its stake in Pounds 20 million corporate adviser Libertas Capital. RAB, run by Michael Alen-Buckley and Philip Richards, sold almost 350,000 shares to cut its stake to 4.3 million shares.

However, at 10.3% of the company, it remains the biggest single institutional shareholder.

www.citywire.co.uk

BOND WATCH

RISING domestic equity prices and a dip in US Treasuries conspired to push the yield on the 20-year Japanese government bond to a twomonth high today.

The yield rose 0.01% to 2%, its highest since mid-May, while the five-year JGB firmed by 0.02% to 0.53%, a level not seen since mid- April.

SPEAKING OUT

My focus is 100% - no, one million per cent on the future.

- Prudential chief executive Mark Tucker declines to discuss the regime of his predecessor Jonathan Bloomer

IN PROSPECT

THE National Institute of Economic and Social Research publishes its quarterly survey of the economic situation and prospects for the UK and worldwide tomorrow. Research articles include growth forecasts of the Federal Reserve, the Bank of England inflation prospects and the performance of local government. The Bank of England is due to release its monthly report on personal borrowing.

(c)2005. Associated Newspapers Ltd.. Provided by ProQuest Information and Learning Company. All rights Reserved.