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.

Scor said last week it will appeal a EUR18.6mn fine levied by the Spanish National Commission for Competition for allegedly participating in a cartel that fixed prices for construction defect insurance in Spain.

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).

US national insurer State Farm's Texan subsidiary, State Farm Lloyds (SFL), was ordered last week by the state's insurance commissioner, Mike Geeslin, to repay home insurance policyholders $310mn in excess charges that go back six years.

Omega Insurance Holdings confirmed last week that chairman Walter Fiederowicz is stepping down from the company, with a successor expected to be in place by 1 January 2010.

The market for microinsurance - insurance for low income individuals in the developing world - has the potential to reach as many as 3 billion people and generate premiums of up to $90bn, although it won't happen overnight.

The substantial flooding that damaged UK properties following heavy rainfall last week could hit £105mn but cost far less than the two Southern England flood events that produced £3bn in aggregate insured losses in 2007, according to modelling firm RMS.

The president of Aon Risk Services (ARS), Ted Devine, stepped down from the broking giant last week to launch a children's sporting charity.

QBE's flagship Lloyd's Syndicate 386 has boosted profit forecasts for its 2007 year to a staggering 58 percent of its £340mn capacity, on the back of releases from its bountiful reserves.

Sword Group, the French-headquartered IT company that owns London market supplier Intech, has made a significant inroad into the North Americas by acquiring Boston-based AgencyPort.

After the Australian Securities and Investments Commission (ASIC) decided to make rating agencies more accountable for their advice, Standard & Poor's (S&P) said it will stop supplying ratings of corporate bonds and other debt-based securities to retail investors in Australia.

The US Congress has once again temporarily extended the federal National Flood Insurance Program (NFIP), this time until 18 December 2009.

Arch Specialty and Lloyd's insurers Brit, Ace, QBE, Beazley and Chaucer have hit back against attempts by former Stanford Financial Group (SFG) executives to claim defence costs on their directors' and officers' (D&O) policies.