January 2008/2

R&Q Re (Bermuda) Ltd is set to go live on the island during the first quarter of this year after recently listed UK run-off firm Randall & Quilter Investment Holdings (R&Q) received regulatory approval.

Recently merged New York law firm Dewey & LeBoeuf LLP has opened a full service office in Dubai, with a primary focus on corporate finance.

Arthur J Gallagher & Co is suing start-up broker Edgewood Partners Insurance Center, as well as 24 named individuals, in California after the defection of senior staff.

Global law firm Mayer Brown LLP is to merge with the Asian law firm, Johnson Stokes & Master (JSM).

Insurance specialists Edwards Angell Palmer & Dodge LLP (EAPD) and London-based Kendall Freeman have completed their merger, a deal that was first predicted by The Insurance Insider.

It was former CEO Maurice "Hank" Greenberg's concern over the falling share price of American International Group Inc (AIG) that prompted an allegedly sham finite reinsurance deal with Gen Re, a US court was told earlier this month.

Issuers of natural catastrophe bonds finished 2007 strongly, with four cat bonds brought to market, totalling $781mn and EUR200mn.

More than $2.7bn of sidecar capacity is available to reinsurers for 2008, despite unfavourable market conditions of falling rates and an excess of traditional capacity, not generally suited to the high returns sought by investors.

The California Earthquake Authority's $500mn Redwood X transaction, launched on 31 December 2007, brought to a close a busy season for cat bond issuance - taking total natural catastrophe bond issuance in 2007 to a record $7.105bn.

A suit against Credit Suisse filed by Florida insurer Bankers Life Insurance over losses on investment-grade bonds backed by sub-prime mortgages sold by the bank is expected to become a "bellwether" for legal action relating to the credit turmoil.

Lloyd’s insurer Amlin plc has seen its premium income drop 7 percent so far this year reflecting the softer market conditions.

Sub-prime related writedowns have so far wiped more than $170bn from the balance sheets of companies worldwide, according to data compiled by information provider Advisen.