Author: Farkas Laura

Executives at Marsh & McLennan Cos. Inc. said Wednesday that the company plans to cut 900 additional positions within its Marsh Inc. brokerage unit; this is in addition to more than 500 positions eliminated in the first half of 2008.     The layoff plan was announced on the heels of Marsh’s report of a… Continue reading Marsh to Cut More Jobs this Year

Colorado State University hurricane forecasters are now reporting that nine hurricanes will occur in this year’s Atlantic hurricane season, upping their count from what they predicted in June.     In a forecast released on Tuesday, the team also increased its estimate of intense hurricanes—those packing sustained winds of at least 111 miles per hour—to… Continue reading CO University Ups its Hurricane Prediction to Nine

NO stranger to challenges itself, worldwide insurer American International Group Inc. isn’t likely to receive applause when the company releases its second-quarter earnings, expected later today. “It is not going to be a pretty quarter,” said Keefe Bruyette & Woods analyst Clifford Gallant, who forecasts AIG will be buffeted for the third quarter in a… Continue reading AIG Likely to Post Lukewarm Results

South Africa’s largest insurance company, Old Mutual, announced a larger than expected downturn resulting from problems at its U.S. arm after markets dipped lower than expected. The insurer warned that sales there could dip as a result in 2008, sending its shares lower. Word of challenges in the U.S. helped to push Old Mutual shares… Continue reading U.S. Hit Causes Old Mutual Shares to Take a Dive

Writedowns on investments for Munch Re, the world’s second-largest reinsurer, caused net profit to fall by nearly half in the second quarter. The results prompted Munich Re to reaffirm that medium-term goals and promise to make no changes in dividends. Said a spokesperson for the reinsurer, “Despite marked reductions in share prices and the fall… Continue reading Profits Down for Munich Re, Insurer Pledges Stable Dividend

New York-based Ambac Financial Group announced a sharp increase in second-quarter earnings, bolstered by valuation gains on credit derivatives.    A spokesperson for Ambac said net income rose to $823.1 million, or $2.80 a share, from $173 million, or $1.67 a share, up substantially in the period a year earlier.   

Marsh & McLennan Co. announced second-quarter income from continuing operations of $55 million, or 11 cents a share, while adjusted earnings were 41 cents a share. The company’s revenue increased 9% to $3.05 billion, beating out analysts’ estimates of $2.94 billion. The earnings are in major contrast to the year-ago period, when Marsh & Mac… Continue reading Marsh Mac Reports 2Q Earnings

In a move that will likely invite public scrutiny and disputes regarding the data, the New York Department of Insurance may start requiring auto and home insurers to report denials, nonrenewals and cancellations of insurance policies by ZIP code statewide. Such a change in policy would mean New York is finally using authority it has… Continue reading Redlining Trends May Be Apparent in Insurer Data, Insurers May Be Forced to Report Denials

A Chicago, Illinois appeals court panel has upheld a lower court’s ruling that a so-called mass action can be moved to a federal court from a state court under the federal Class Action Fairness Act (CAFA), even if a group of plaintiffs deny that their action is a mass action. In Bullard et al vs.… Continue reading Tort Reform ruling Upheld in Appeals Court

In other news, New York-based investment firm Morgan Stanley told thousands of clients that they won’t be allowed to withdraw money on their home-equity lines of credit (HELOCs). The move will have the greatest impact on those clients with properties that have lost value. From this point forward, Morgan Stanley will review HELOCs on a… Continue reading Morgan Stanley Says No to Home Equity Line Withdrawals