A raft of US class action lawsuits last year against China-based companies that had floated in the US through reverse takeovers has led to Chinese companies that have interests in the US facing considerable increases – up to 50% – in their directors' & officers' (D&O) insurance rates. The class actions frequently relate to allegations of misleading financial statements that painted an over-rosy picture of the Chinese companies' current profitability and future prospects. Reinsurance broker Guy Carpenter said in its review of the renewals season that most Asia-Pacific renewals saw a decline in D&O rates, although in Taiwan there was a 30% to 40% rise in D&O rates, with underwriters reducing capacity and imposing tougher terms & conditions. Professional indemnity rates in Asia Pacific were roughly stable, Guy Carpenter said.