December 2007/6

General Re has been ordered to produce records of its internal investigations in the criminal trial of four of its former executives that is due to begin in Connecticut on 7 January.

French mutual Groupama SA has completed its first insurance linked securities (ILS) transaction with its EUR200mn securitisation of French windstorm risk.

Ratings agency AM Best has upgraded the financial strength rating (FSR) of Argo Group subsidiary Peleus Reinsurance Ltd from A- (Excellent) to A (Excellent).

AXA's agreement to pay EUR810mn for a 36.7 percent stake in Russian insurer RESO Garantia has received an upbeat response from the investor community.

AM Best has removed the ratings of General Insurance Corporation of India (GIC) from negative and revised them to stable.

Lehman Brothers, the largest US underwriter of mortgage-backed bonds, faces legal action by Australian municipal governments after the value of its sub-prime related investments dropped by as much as 86 percent.

Insurance linked securities (ILS) pioneer and prolific cat bond issuer Swiss Re has returned to the capital markets with the issue of a further $60mn of notes under its $1.5bn Successor Hurricane Industry shelf programme.

Specialist broker THB is still in talks with PWS holdings over the acquisition of PWS' Lloyd's business and overseas interests.

In a further twist of the sub-prime knife, ratings agency Fitch has placed the world’s second largest monoline bond insurer, Ambac Assurance Corp on Rating Watch Negative.

Bermudian reinsurer Validus Re has replaced its collateralised quota share vehicle, $200mn marine and offshore energy sidecar Petrel Re, with a similar arrangement backed by an existing reinsurer.

Financial guaranty and credit (re)insurer Assured Guaranty Ltd (AGL) has successfully raised net proceeds of $304mn on the sale of 12,483,960 shares in a public offering priced at $25.50 a share.

Shares in reinsurance broker Benfield Group are continuing to fall following another bearish note from analysts at Numis Securities.