April 2008/1

Our monthly column keeping a check on recent US and EU legislative and regulatory developments, in association with Sidley Austin LLP

Despite reports that run-off unit Minster is up for sale, JP Morgan is unlikely to dispose of the portfolio if its acquisition of Bear Stearns goes ahead, according to an advisor close to the deal.

Insurers are not liable for covering any part of an $80mn settlement made by troubled investment bank Bear Stearns over its stock research practices, the New York Court of Appeals has ruled.

US giant American International Group (AIG) has confirmed a $13.5mn settlement payout with the Pennsylvania Insurance Department.

US reinsurer General Re is to pay the US government the $5mn fee it received for a sham finite reinsurance contract with American International Group, according to reports.

Insurers owned by US giants American International Group (AIG), Chubb and CNA are facing a multi-million dollar bill for cleaning up the Fox River in Wisconsin after a jury ruled in a paper company's favour.

A US federal court has denied AJ Gallagher & Co's January request for a temporary restraining order against start-up broker Edgewood Partners Insurance Center (EPIC) following the defection of several senior employees.

Munich Re confirmed the launch in March of its second ILS transaction this year, following its extreme mortality cat bond Nathan Re in February.

The continued convergence of capital and insurance markets is one of the 'megatrends' facing the insurance industry, according to Joe Plumeri, chairman and CEO of Willis Group Holdings.

The successful launch of US insurer Chubb Group's latest $200mn cat bond, East Lane Re II, is a validation of indemnity triggers as a viable structure for cat bonds.

Insurance intermediary Towergate has been forced to put its £1bn refinancing plans on ice.

Marsh & McLennan Cos and Willis Group Holdings Ltd - two of the global brokers who axed contingent commissions in the aftermath of Eliot Spitzer's investigations into the industry - are complying...