If claimants organising lawsuits over the Enron collapse thought things were confusing, the situation just got worse. Accounting firm Andersen, which is under fire from many directions over its perceived failure to deal with its errant client during the years before Enron imploded, has just announced some more bad news for its beleagured partners: their insurer just sank.

Bermuda-based insurer Professional Services Insurance Co, a wholly owned Andersen subsidiary, has been declared insolvent, with claims pending so far totalling $705 million. According to the Wall Street Journal, Andersen has failed to make a $200 million premium payment, leaving its insurer technically insolvent.