August 2011/3

The Financial Services Authority (FSA) has been taking an increasingly hard-line approach to the requirements on insurers to advertise and notify policyholders on Part VII applications of insurance business, according to law firm Hogan Lovells.

Randall & Quilter (R&Q) is closing in on a capital partnership with a US hedge fund in order to boost its acquisition firepower.

AIG's muscular approach to litigation continued with a threat to sue Goldman Sachs over mortgage-related offerings, the investment bank said in its 9 August quarterly filing with the Securities and Exchange Commission.

American International Group (AIG) has filed a lawsuit suing Bank of America Corporation (BoA) for $10.5bn over residential mortgage-backed securities (RMBS) the lender and its subsidiaries packaged prior to the 2008 financial crisis.

Aon eSolutions is suing rival risk management software producer Riskonnect after three of its employees defected, allegedly taking confidential information with them.

Ratings agency Standard & Poor's (S&P) says third quarter issuance from the insurance-linked security (ILS) market are on track to beat historical norms for the period, signalling a potential change to the sales cycle.

Italian-listed asset manager Azimut has bought a half-stake in insurance-linked securities (ILS) manager Katarsis Capital Advisors and its subsidiary Eskatos Capital Management for EUR7.5mn.

American International Group's P&C subsidiary Chartis has withdrawn from writing new UK solicitors' professional indemnity (PI) business, amid claims that the Assigned Risk Pool (ARP) needs a major overhaul.

US captive insurers lifted their dividends to policyholders in 2010, as they sought to reward clients who chose not to flee to the commercial market in search of better pricing, according to a survey by AM Best.

The terrorism reinsurance market is currently oversupplied with capacity but this could quickly shift in the event of a major loss, broker Guy Carpenter warned last week.

International property reinsurers are anxiously anticipating a change in IAG's loss notification from the second New Zealand earthquake after Suncorp added a further $500mn to its total last month.

Despite the financial market turmoil of recent weeks, US and Bermudian (re)insurers have seen the estimated fair value of their investment portfolios increase in the third quarter, contributing to solid growth in book value per share (BVPS), according to research from UBS.

Challenging conditions in the US workers' compensation insurance market have heightened speculation over consolidation in the sector as carriers come under increased pressure from rating agencies.

Hedge fund-backed reinsurer Greenlight Re reported a $16mn loss in the second quarter as investment losses offset cuts to the forecast pay-out on the New Zealand and Japan earthquakes in Q1.

Net income at Zurich Financial Services strengthened by 86 percent to $1.35bn in the second quarter, as its results benefited from a positive $4.5bn year-on-year swing on unit-linked investments.

Underwriting losses at specialty insurer Markel Corp were more than offset by increased earnings from its non-insurance businesses and a reduced tax bill, allowing it to increase Q2 net income by 46 percent to $30.3mn.

Recent Lloyd's acquisition Jubilee Managing Agency Limited (JMAL) has revealed it has no plans to make material changes to its 2012 business plan for group life Syndicate 779.

Lloyd's underwriter Managing Agency Partners (MAP) has lifted profit forecasts for the business from its 2010 year of account and held its 2009 results stable.

Two of RJ Kiln's syndicates have posted a worsening result for the 2010 year of account, providing further losses for Names already hit by colossal losses on motor syndicates.

Warren Buffett's Berkshire Hathaway was one of 10 US-based insurance companies to have its credit rating reviewed negatively by Standard & Poor's (S&P) last week in line with the agency's recent controversial downgrade of the US sovereign credit rating.

European regulators introduced a two-week ban on short-selling on a range of financial stocks last week, including insurers Scor, Axa, Mapfre and Generali, as well as key banks.

Ratings agency AM Best upgraded the issuer credit rating for international specialty insurer HCC to "aa" from "aa-" and affirmed its A+ financial strength rating after the firm posted solid profits despite the high catastrophe loss toll.

Ratings agency Fitch says insurers will be able to absorb UK riot losses into their earnings and that the events will not lead to major price changes as the costs are set to fall back on the public purse.

Independent London Market wholesaler Price Forbes increased its pre-tax profits by 19.5 percent to £2.9mn in 2010, despite the continuing soft market, the firm's accounts filed at UK Companies House reveal.