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.

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.

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.

Troubled global insurer AIG's asset sales have continued with an agreement to offload its financial products division's commodity index business to Swiss banking group UBS for up to $150mn.

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

Platinum Underwriters Holdings became the latest (re)insurer to increase its loss estimates from Hurricane Ike as the brutal impact of September's storm continues to escalate.

As evidence mounts that the potential EUR66.5bn German P&C legacy market may finally explode into activity, the European run-off industry prepares to convene on Cologne for its annual run-off Rendez-Vous.

London-based broker RFIB Holdings Ltd reported revenue and profit growth for the 12 months to 30 June 2008 and said it expects the pattern to continue as the impact of new teams boosts performance and the stronger dollar begins to filter through.