UPDATE 1 — Munich Re MGA says AmTrust actions exposed it to regulatory risk in London lawsuit

(Updated para 7 with decline to comment from MD/HSB) By Annabel Tinson Sept 23 (The Insurer) — MD Insurance Services has filed a claim in London's Commercial Court against AmTrust Specialty, seeking an injunction to stop the insurer pursuing recovery claims against developers and builders covered under latent defects insurance schemes that the MGA marketed and sold. MD Insurance specialises in UK structural warranties and is owned by Munich Re company HSB. The MGA's claim form, filed on August 28, alleges that AmTrust Specialty unlawfully commenced and pursued recovery claims against customers insured under structural latent defects policies, which cover building defects that were not apparent until after construction was completed. MD Insurance says AmTrust Specialty's behaviour should comply with regulatory requirements for the "legal and proper treatment of customers" and not act in a way that puts it in breach of those rules or puts it at risk of adverse regulatory action. The policies were underwritten by AmTrust Specialty and marketed and sold by MD Insurance in its capacity as a coverholder. MD Insurance says policyholders made claims on these policies and AmTrust Specialty