May 2008/2

The US Senate has rejected moves to add wind coverage to the federal programme that provides flood insurance.

Bermudian (re)insurer Validus Holdings Ltd has formed a new Miami-based company to act as an approved coverholder for its Lloyd's Syndicate 1183.

The US Securities and Exchange Commission (SEC) is to begin distributing over $800mn to American International Group (AIG) shareholders as part of the giant's settlement with regulators.

Willis has launched a new Malta-based captive management operation, Willis Management (Malta) Ltd.

UK listed broker Jardine Lloyd Thompson Group (JLT) has strengthened its reinsurance operations with a slew of appointments from rival firms.

Marsh & McLennan Companies (MMC) slipped to a $210mn first quarter net loss as a result of a $425mn goodwill writedown at its security consulting arm Kroll.

Aon Corp has expanded its presence in the Latin American market after snapping up Peruvian reinsurance intermediary, Cosegur Re.

The UK Treasury is under renewed pressure to create a more favourable tax regime for businesses or face an exodus of corporations to overseas domiciles.

Shares in Highway Insurance Holdings plc nosedived after the UK motor specialist offered a bleak update on the sector leading to fears its dividend might be cut.

The chairman of "Class of 2005" firm Flagstone Reinsurance Holdings said its nimble stature was key to its ability to ride through the softer market conditions.

Bermudian sidecar-style reinsurer Castlepoint Holdings Ltd continued to grow both its top and bottom line in the first quarter.

Allied World Assurance Company Holdings Ltd (AWAC) said underwriting discipline helped net income grow by $17mn in the first quarter of 2008, compared to the prior-year period.