November 2009/4

Former American International Group (AIG) chairman and CEO Maurice "Hank" Greenberg and his one-time CFO Howard Smith have buried the hatchet with AIG, settling all their long-running legal battles.

US financial watchdogs have heaped further criticism on the Federal Reserve Bank of New York (FRNY) for its handling of last year's near-collapse of American International Group (AIG).

Expansive Lloyd's insurers RJ Kiln and WR Berkley have confirmed increases in capacity for the 2010 year of account.

The Pennsylvania Insurance Commissioner Joel Ario last week filed a complaint to force Kingsway Financial Services to unwind a set of "sham transactions" that it said negatively impacted Lincoln General, one of its subsidiaries in the state.

Lloyd's (re)insurer Chaucer became the latest firm to admit to a shortfall in its trade credit portfolio last week, as it revealed it had strengthened the reserves by £23.5mn in the third quarter.

Bermuda-domiciled Hardy Underwriting unveiled good progress towards its goal of doubling premium income between 2008 and 2012 last week.

In a deal with European private equity firm Astorg Partners unveiled last week, Willis neatly avoided the $400mn sword of Damocles that has hung over the company's balance sheet in the form of a financial obligation to consolidate its French broking affiliate Gras Savoye.

JLT energy broking partner Paddy McMurray is to join acquisitive international wholesale energy broking venture Alesco, The Insurance Insider has learned.

ILS pioneer Swiss Re has increased the size of its Vita IV extreme mortality cat bond to $75mn and its Successor X US wind and quake transaction up to $120mn, due to investor demand.

In a key example of the challenges service providers have been posed by the global economic downturn, Navigant Consulting's (re)insurance service line is set to be discontinued in the coming months.

Flagstone Re's US wind and quake cat bond Montana Re has increased in size by $55mn to $175mn during the marketing phase, with high investor demand pushing pricing to the low end of guidance, our sister publication Trading Risk has learned.

Shipowner mutual the London P&I Club will push for a 5 percent annual premium increase, as the P&I sector finds its feet after the 2008 financial crisis and members grapple with the world trade slump.