January 2009/3

Bermuda-based (re)insurer Arch Capital Group has received approval in principle from the Lloyd;s Franchise Board and UK regulator the Financial Services Authority (FSA) to establish a new managing agent and syndicate at Lloyd’s.

Beleaguered bank Merrill Lynch has agreed to pay out $475mn and $75mn respectively to settle two class action lawsuits filed against it in relation to its subprime losses.

US active and run-off specialist Citadel Risk Management has acquired “substantially all” of US broker Arthur J Gallagher’s reinsurance run-off portfolio

Start-up Lloyd’s insurer Ark has shaken up its underwriting management team, with effect from January 2009.

Markel Corporation's London-based subsidiary Markel International has appointed Louisa Lu as senior casualty underwriter in its Singapore product liability office.

London-based (re)insurance corporate finance boutique Atlas Partners has recruited Jonathan Walker as managing director and Ian Nelson as a senior advisor to its UK and international insurance M&A team.

UK-based international (re)insurance group Brit Insurance Holdings PLC has set up a US service operation, Brit Insurance Services (USA) Inc in conjunction with the UK arm of broker A J Gallagher.

The steady flow of senior executives leaving troubled insurance giant American International Group (AIG) continued with the departure of David Jordan from AIG subsidiary Lexington Insurance Company.

German insurance giant Allianz has announced the launch of a new global marine unit though its global Corporate and Specialty division (AGCS).

Munich Re-owned Lloyd's Syndicate 457 leads the cover for the theft of approximately $108mn of diamonds from the prestigious Paris branch of jeweller Harry Winston last month, with cover understood to be placed by Willis.

Aon Benfield, the reinsurance arm of broking giant Aon Corp, confirmed last week it is to outsource its UK back office following the £935mn merger of the two firms last year.

Fairfax Financial Group - one of the rare winners from 2008's financial rout - is close to completing its acquisition of Canada's largest commercial property and casualty insurance group after building an 87.8 percent stake.