January 2009/4

Lloyd's insurer Chaucer Holdings plc confirmed last week that it is looking to raise additional capital after speculation had contributed to a near 40 percent slide in its share price this month.

Creditors of collapsed Icelandic banks have brought legal actions in the UK High Court totalling £360mn to date.

Swiss Re led the slide in European insurance stocks on Friday (23 January) as its share price fell more than 20 percent amid concerns that it is set for a further round of heavy write-downs and may need to raise capital when it reports its fourth quarter

Bermudian-headquartered (re)insurer Aspen Insurance Holdings Ltd has endured a struggle to renew the reinsurance programme for its financial institutions (FI) book written out of London reflecting concerns over the sector's loss exposures, The Insurance Insider can reveal. 

Investment bank Merrill Lynch has agreed to pay out $475mn and $75mn to settle two class action lawsuits filed against it in relation to its sub-prime related losses.

European insurers' pure solvency ratios are "extremely stretched" and 2009 will be an acutely difficult year for some of Europe's largest market participants, particularly in the life sector...

Adding the Madoff scandal to the list of litigation-spawning incidents which have caused a myriad of unprecedented dislocations in the financial system could be "the straw that breaks the camel’s back" for the professional and managerial indemnity markets

Max Capital has revealed a negative return of approximately 20 percent on its alternative investment portfolio for 2008, prompting unrealised asset write-downs of around $233mn and a full-year loss and negative net operating return on average shareholders

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.

Bermuda-headquartered Lloyd's (re)insurer Catlin is predicted to swing to a full-year loss for 2008, and may need a capital infusion, according to Numis Securities.

Brit Insurance Company appointed JP Morgan Cazenove to become its co-adviser and was rewarded with a downgrade two days later by the firm’s parent company, JP Morgan.

The drag of Transatlantic Holdings' relationship with majority shareholder American International Group (AIG) was evident in the downgrade of its core operating companies' financial strength ratings from AA- to A+ by Standard & Poor's last week.