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.

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

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

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

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.

Indian-based software exporter and outsourcing giant Satyam Computer Services Ltd - which was earlier this month hit by its founder and former chairman B Ramalinga Raju's confession to a $1bn fraud - had a $75mn limit in director's and officer's (D&O) lia

Kuwaiti Islamic reinsurance company Al Fayer Retakaful Insurance's financial strength rating of A- has been put under review with negative implications by ratings agency AM Best.

Class of 2005 Bermudian (re)insurance group Ariel Holdings wrote less premium than expected and reported a modest decline in shareholders' funds in 2008, according to ratings agency AM Best.

Lloyd's messaging hub initiative will not lead to a substantial cost to market participants, according to the Corporation's director of market operations and North America Sue Langley.

Swiss banking giant USB has been ordered to pay French financial management company Oddo & Cie EUR30mn ($39.4mn) to reimburse its Madoff-related losses through Access International's LuxAlpha Sicav fund, which is supervised by UBS's Luxembourg unit.

With governments once again in bail-out mode as the banking sector both sides of the Atlantic lurched into its latest crisis, the (re)insurance sector - despite its relatively bright outlook - is again struggling to decouple itself from the fortunes of it