Equity Red Star slammed for being too slow to adjust reserves

The damning review of the UK arm of Insurance Australia Group (IAG), which is under investigation by the Financial Services Authority, said there were enough warning signs for the insurer to act earlier and to reserve adequately for deteriorating claims, a trend that was noted and acted upon by others in the market.

IAG has recently pumped $365m (£237m) into the company to shore up its position but the authors of the revised JP Morgan report, replacing an earlier version issued to the market