March 2008/2

Fitch Ratings move to downgrade ratings on Security Capital Assurance Ltd (SCA) and its bond and financial guarantee (re)insurance subsidiaries to junk bond status may weigh on affiliated Bermudian (re)insurer XL Capital, according to analysts.

American International Group (AIG) has filed a lawsuit against its former CEO and chairman Maurice “Hank” Greenberg as part of its long-running legal battle over ownership of shares in the US giant.

Aon Limited deputy chairman Jonathan Palmer-Brown has been elected as chairman of the London Market Insurance Brokers’ Committee (LMBC).

US broker Arthur J Gallagher & Co has completed the $40mn divestment of its reinsurance arm to Aon Corp.

Mandatory disclosure of commissions for brokers has been highlighted as a possible solution to the issue of transparency, the Financial Services Authority (FSA) has revealed in its latest discussion paper on insurance intermediaries.

French insurance giant AXA’s UK subsidiary has taken formal control of broker SBJ Group after getting the green light from shareholders and UK regulator the Financial Services Authority.

Chubb insures the primary layer of the Marsh-placed $75mn directors’ and officers’ (D&O) programme for beleaguered investment bank Bear Stearns, The Insurance Insider can reveal.

Newly-redomiciled Lloyd’s (re)insurer Hardy Underwriting Bermuda Ltd reported record 2007 pre-tax profits of £18.3mn.

Troubled Bermudian giant XL Capital has gone outside the firm to name Michael McGavick as CEO in place of Brian O’Hara.

Arch Capital Group Ltd is to form Gulf Re, a Dubai-based $400mn capitalised reinsurer, in a joint venture with the Gulf Investment Corporation.

Montpelier Re Holdings Ltd has appointed Christopher Harris to succeed founding CEO Tony Taylor who is stepping down this summer.

The future of Bear Stearns hangs in the balance after JP Morgan and the Federal Reserve Bank of New York stepped in with an emergency funding package to bail out the beleaguered investment bank.