BestWeek: Subprime Mess May Spill Over to D&O Market.

OLDWICK, N.J. -- As concern over losses in the U.S. subprime mortgage market move from the boardroom to the courtroom, insurers who underwrite the liability of major financial institutions are preparing for a new rash of claims, according to an exclusive story in BestWeek U.S./Canada.

At least 10 securities class actions have been filed thus far, and that number is likely to grow, according to Jill Sulkes, a managing director in Marsh Inc.'s Financial Institutions Practice. In addition to suits targeting the growing number of mortgage originators that recently have filed for bankruptcy, she expects subprime-related claims for directors and officers liability could be made by banks, including investment banks, hedge funds, and real estate investment trusts. R. Mark Keenan, chairman of the Financial Institutions Group with New York-based policyholder firm Anderson Kill & Olick P.C, expects "a smorgasbord (of claims) that really is only limited to the inventiveness of plaintiffs' counsel."

"Where I see the majority of the claims are investor claims on misrepresentations on your financial statements, or material admissions on failing to get an investor out. That could go into pensions or fiduciary liability," Keenan said.

Also in BestWeek Europe:

Softening rates, increasing competition and the ever-shifting threats of natural catastrophes are expected to be high on the agenda as reinsurers and their clients meet at Rendez-Vous in Monte Carlo.

Also, in BestWeek U.S./Canada:

Volatile interest rates, combined with the banking industry's increased exposure to mortgage-backed securities, may mean more volatile assets and lower asset valuations reflected on the balance sheets of U.S. banks, according to a new A.M. Best special report.

And in both editions of BestWeek:

The Best's Global Insurance Composite Index finished the week of August 23, 2007 up 11.98% from a year ago. The composite index reflects the performance of 177 insurance stocks. The week's top performers were Scottish Re, QBE, China Insurance International Holdings, Meritz Fire & Marine Insurance Co. and Tower.

The bottom five performers were Atlantic American, CNA Surety, Presidential Life, Fuji Fire & Marine and Gainso.

BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, please call A.M. Best's customer service department at [phone], ext. 5742, or e-mail your request to [e-mail].

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.