N&P faces claim of massive Keydata bond mis-selling | This is Money
N&P cannot admit liability because that would invalidate its insurance, just as you cannot admit you were in the wrong following a motor vehicle accident. However the insurers are trying to say that their policies contain a clause which excludes losses caused by the insolvency of the investment company, in this case Keydata. This is yet another example of the failure of regulation.
The FSA is expected to make a decision shortly.