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.

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

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

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.

UK-listed run-off vehicle Tawa plc's share price is now two thirds lower than its 2007 IPO price as financial market turmoil and investor fears...

Willis placed the cover on the US Airways Airbus A320 which crashed into the Hudson river, New York shortly after take-off on the 15 January.

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.

US regulators' forum the National Association of Insurance Commissioners (NAIC) is to hold a public hearing next week to gauge public and industry opinion of proposals to provide US life insurers capital relief as turmoil lashes global financial markets.

BNP Paribas and Deutsche Bank are marketing a $200mn US wind and quake cat bond for French reinsurer SCOR, our sister title Trading Risk revealed on 15 January.

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.

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.