October 2008/3

Arch Capital Group Ltd is close to launching a new Dublin-based reinsurer that will act as a hub for its European reinsurance operations, The Insurance Insider can reveal.

Flagstone Reinsurance Holdings Ltd has become the eighth Bermudian to secure a Lloyd’s platform since the start of 2007 with an agreement to buy Marlborough Underwriting Agency Ltd from Berkshire Hathaway.

The financial community is awaiting with some trepidation tomorrow’s (21 October) key settlement date for the $361bn of credit default swaps (CDS) in default after the collapse of Lehman Brothers last month.