Author: Farkas Laura

Hurricane Ike is expected to be the third-costliest hurricane in U.S. history, with damage estimates coming in as high as $25 billion.     According to a statement from A.M. Best Co. Inc., despite its high price tag and possible impact on the reinsurance market, Ike is expected to be generally manageable given the industry’s… Continue reading Early Estimates Revised: Hurricane Ike Projected Losses Up to $25B

New York Governor David Patterson announced in a news conference Noon EST that it will allow American International Group Inc (AIG) to use up to $20B in subsidiary assets to shore up its capital.      Paterson asked New York state insurance regulators to essentially allow AIG to provide a bridge loan to itself.      The… Continue reading BREAKING NEWS: NY Governor Patterson Allows AIG to Use Up to $20B in Subsidiary Assets

In an exclusive interview with CNBC.com, Wilbur Ross, chairman and CEO of WL Ross & Co., says he sees possibly as many as a thousand bank closures in the coming months. And this will create opportunities for investors. I do think a lot of the regional ones will (close), just as they did in the… Continue reading CNBC Interview: Wilbur Ross Says Many Regional Banks Will Close, Investor Opportunities Down the Road

As Hurricane Ike made its way through Houston, it has left homes flooded and millions without drinking water and power.     City police declared a nighttime curfew through next weekend, warning of downed power lines, broken traffic signals and water-filled roads. More than 14,000 workers from 33 states will arrive today to help restore… Continue reading In Wake of Ike Many Have No Power, Drinking Water

American International Group Inc. (AIG), the largest U.S. insurer by assets, fell by half in New York trading as the company failed to present a plan to raise capital and stave off credit downgrades.      AIG, seeking to raise $20 billion in capital and sell $20 billion of assets, rejected investments from buyout firms KKR… Continue reading Next, AIG Seeks $40B in Federal Loan

Lehman Brothers, the fourth-largest US investment bank, has filed for bankruptcy protection, dealing a blow to the fragile global financial system.        The news led to sharp falls in share prices around the world, and officials took measures to reassure markets.        Lehman had incurred losses of billions of dollars in the US mortgage market.   … Continue reading Wall Street Turmoil: First, Bankruptcy for Lehman Brothers

Hurricane Ike, which crashed into Galveston, Texas, early Saturday, may cost insurers in insured losses for onshore damages up to $18 billion according to preliminary estimates.        Ike made landfall as a Category 2 hurricane with winds of up to 110 mph, causing widespread flooding and wind damage and shut down power for many in… Continue reading Preliminary Estimates Have Hurricane Ike Costing Insurers Up to $18B

After American International Group Inc.’s (AIG) shares fell 30.8% in one day to close at $12.14 per share on Friday, Standard & Poor’s Corp. put its ratings of the insurer and its subsidiaries under review with negative implication. An S&P credit analyst Rodney Clark said in a statement: “We believe AIG has sufficient capital and… Continue reading AIG’s Ratings Under S&P Review

Hurricane Ike landed a powerful punch on the Texas Gulf Coast early Saturday, sparking fires, flooding streets and knocking out power to more than 4 million people. Ike’s storm surge flooded Galveston’s historic district and kept firefighters from reaching several blazes that burned out of control. Ike idled more than a fifth of U.S. oil… Continue reading BREAKING NEWS: Ike Strikes Texas

Today Arthur J. Gallagher & Co., which provides insurance brokerage and risk-management services, announced its purchase of retail insurance broker California Insurance Center Inc. to help expand its Western operations. Financial terms were not disclosed. Lafayette, Calif.-based California Insurance Center provides risk management and commercial property/casualty insurance services. They also offer programs for the construction,… Continue reading Update: Arthur J. Gallagher Purchases CA Retail Insurance Broker