Netherlands-base assurer Aegon has repaid EUR1bn ($1.5bn) of the EUR3bn in core capital that the company received in last year's bailouts (IIN 24, October 28 2008). Aegon raised EUR1bn in an August rights issue. It has repaid EUR1.15bn to the Dutch government under the terms of the assurer's agreement when it received the funds. Aegon had previously announced on October 28 and on November 11 that it would be repaying the EUR1bn. It has now announced that it has done so. In 2008 the Netherlands set aside EUR20bn for aid to financial firms, of which EUR10bn was taken up by ING and EUR3bn by Aegon.

AIG stock lost nearly 15% in value on Monday following a report by investment research firm Sanford Bernstein that the New York-based group had a non-life reserve shortfall of around $11.9bn. Bernstein Research analyst Todd Bault reported that the bulk of AIG's reserve problems were in its long-tailed casualty business, with general liability lines accounting for $5.6bn, professional liability lines accounting for $2.6bn and workers' compensation accounting for $1.8bn. Mr Bault said that the findings marked "nearly the opposite behaviour that we expect", given that that reserves at AIG's rivals have been rising. The report also appeared to contradict the conventional wisdom that AIG's financial difficulties were concentrated on credit default swaps and other derivatives in the book of business at AIG Financial Products. Chartis, the group's renamed p/c operation, has been widely seen as the solid foundation of the group's future. Mr Bault wrote that if his findings were reasonable "AIG would likely have to take some kind of reserve charge" prior to an initial public offering of Chartis, saying that such a charge could even prevent an IPO from taking place. AIG's shares lost 14.7% in value to close at $28.40 in Monday's trading. Yesterday marked the official debut of the Chartis brand in the UK, part of the global rebranding of AIG non-life businesses.

UK-based broking firm Jardine Lloyd Thompson (JLT) has bought HSBC Actuaries & Consultants Ltd (HACL), a UK-based employee benefits and actuarial consulting firm. JLT paid £27.25m in cash ($45m) for the unit, which is being purchased from HSBC Insurance Brokers Holdings Ltd. HACL had reported revenue of £40.1m, generating an operating profit of £2.8m. It employs 440 staff across six practice areas. JLT's existing Employee Benefits business employs about 1,000 staff, generating revenue of £87.6m and an operating profit of £14.9m last year. HSBC Insurance Brokers has itself been subject to a bid rumour, with broking group MMC said to be considering a $230m to $330m bid for the HSBC division, now thought to be seen as non-core.