July 2005/4

Mutual insurer Equitable Life has dropped the lion's share of its case against its former auditor Ernst & Young (E&Y), reducing its claim for damages to £700mn against the original £2.05bn figure.

ACE's Bermudian contemporary XL continues to suffer its own legacy issues, unveiling a further boost to its US reinsurance reserves this month, which included a $64.7mn pre-tax increase for its workers' compensation reserves.