the Court of Appeal has reversed the decision in AIG Europe (Ireland) Ltd v Faraday Capital Ltd saving reinsurers from their failure to ensure that the claims cooperation clause in their policy was appropriate to the claims likely to be made under a D&O liability policy. Distinguishing their earlier decision in Royal & Sun Alliance Insurance plc v Dornoch Ltd on the facts, the court held that “a loss which may give rise to a claim” was known to AIG when an announcement of an intention to restate the company’s accounts led to a drop in the share price of one-third. AIG’s failure to notify reinsurers of this in accordance with the relevant clause entitled them to reject the claim.