As previously discussed here, the government of El Salvador has been considering imposing a tax on premiums ceded to reinsurers.  The original proposal was for a 10% tax, but the government has lowered that proposal to 5% (the proposal still includes a 25% tax as to reinsurers located in jurisdictions considered to be tax havens). 

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Read More El Salvador: Insurance Association Proposes Alternative 3% Tax for Reinsurers

In a judgment issued on 15 December in the English High Court (Lehman Brothers International (Europe)(in administration) v CRC Credit Fund Limited & Ors [2009] EWHC 3228), and based on assumed facts presented to him, Mr Justice Briggs described the failure by LBIE to protect client monies from the impact of insolvency as “truly spectacular” and involving “shocking underperformance“. 

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Read More UK: English High Court Judge Blasts the Spectacular Failure to Protect Client Monies by Lehman Brothers International (Europe) (LBIE), its Auditors and Regulators

Brazilian reinsurance company J. Malucelli Re has recently received foreign reinsurer authorization in Paraguay, Ecuador and the Dominican Republic and expects to receive authorization shortly in Argentina, Mexico and Costa Rica.  According to its Technical Director, Luiz Alberto Pestaña, these regulatory authorizations are just the beginning of J. Malucelli Re’s plan to become the largest warranty reinsurer in Latin America by 2015. 

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Read More J. Malucelli Re of Brazil Details Latin American Expansion Plans

In AC Ward & Son Ltd v Catlin (Five) Ltd & Ors [2009] EWHC 3122 (Comm), the claimant, AC Ward & Son Limited (AC Ward) was the owner of a warehouse in Essex, which was left unoccupied at weekends.  AC Ward obtained insurance through its brokers, Henderson Insurance Brokers Limited (the Brokers) and the insurance was underwritten by Catlin (Five) Limited (the Insurers) pursuant to a binding authority granted to AT Docherty General Underwriting Agency Limited (ADC). 

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Read More UK: High Court Rules on Avoidance and Breach of Warranty Issues

Max Capital Group Ltd. recently announced the establishment of its Latin American reinsurance operations in Latin America through representative offices in Rio de Janeiro, Brazil and Bogota, Colombia.  The company also announced the hiring of Carlos Caputo and Sonia Galvis, both formerly of XL Re Latin America, as the CEO and Chief Underwriting Officer, respectively, of Max Capital’s Latin American operations. …
Read More Max Capital Group Establishes Latin American Reinsurance Operations

Credit Suisse announced on December 15, 2009  that it is nearing a $536 million settlement with the New York County District Attorney’s office and the US Department of Justice, Federal Reserve Board, Federal Reserve Bank of New York and the Office of Foreign Assets Control (OFAC). 

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Read More Credit Suisse to Settle Iran Sanctions Claims

Mapfre (Spain) and Grupo Mundial (Panama) recently agreed to form a joint venture that would constitute Central America’s largest insurance company, with the move reportedly already approved by Grupo Mundial’s shareholders.  The resulting venture would bring together Mapfre’s subsidiary in El Salvador and Grupo Mundial’s operations in Panama, Costa Rica, Nicaragua, Honduras and Guatemala. 

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Read More Mapfre and Grupo Mundial to Form Largest Central American Insurer

Petitioners Mitsubishi Heavy Industries, Ltd. and Mitsubishi Power Systems Americas, Inc. (“Mitsubishi”) moved to vacate a partial arbitration award entered by the International Centre for Dispute Resolution in favor of Respondent Stone & Webster, Inc. (“Stone & Webster”). 

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Read More Court Finds That Arbitration Award is Not Final for Purposes of Review under the FAA

Plaintiff China National Chartering Corp. (“CNCC”) petitioned the U.S. District Court for the Southern District of New York to confirm an arbitration award rendered in its favor against defendant Pactrans Air & Sea, Inc. (“Pactrans”) by the China Maritime Arbitration Commission (“CMAC”). 

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Read More Federal Court Confirms Foreign Arbitration Award, Even Though Appeal of Award in Foreign Jurisdiction was Pending