Author: Farkas Laura

Newly appointed American International Group Inc. (AIG) CEO Robert Willumstad reported that he had a “positive” first meeting with former CEO Maurice “Hank” Greenberg on Thursday.     Willumstad, AIG chairman and a former Citigroup executive, took over as CEO at the world’s largest insurer, replacing Martin Sullivan, who succeeded Greenberg in 2005. Sullivan stepped… Continue reading AIG CEO Willumstad and Former Head Greenberg Meet

Citing their impaired ability to raise capital and write new business, Moody’s Investors Service on Thursday stripped the insurance arms of Ambac Financial Group and MBIA of their AAA ratings. Moody’s said earlier this month it was likely to cut the ratings of Ambac Assurance and MBIA Insurance as plunging share prices and the high… Continue reading Moody’s Cuts Ambac and MBIA Insurance Unit Ratings

In the wake of the collapse of brokerage firm Bear Stearns & Cos., Treasury Secretary Henry Paulson is expected to call for faster changes to the oversight of financial markets that would expand the role of the Federal Reserve. Mr. Paulson will say in a speech to be delivered today that the fall of Bear… Continue reading Paulson to Call for More Fed Control, Sooner than Later

Former managers of two high-profile Bear Stearns Cos. bond portfolios have been indicted on securities fraud and other charges in the collapse of the funds last year, which cost investors more than $1 billion.    Ralph Cioffi and Matthew Tannin, according to a nine-count indictment, have been charged with conspiracy, securities fraud and wire fraud. … Continue reading Former Bear Stearns Managers Indicted on Securities Fraud

Germany’s second-biggest reinsurer, Hannover Re completed the sale of $133 million of bonds to help protect against U.S. catastrophes.    The one-year bonds “consist exclusively of U.S. catastrophe business, predominantly hurricane risks in Florida,” the reinsurer said in an e-mailed statement today.    The bonds will be sold through Globe Re, a Bermuda-based company set… Continue reading Hannover Re Sells $133M in Bonds for Catastrophe Protection in U.S.

President Bush this morning at a press conference spoke about the need to increase U.S. oil production, including lifting the ban on offshore oil drilling in an effort to change the course of the energy crisis. The President said that Congress should end the ban on oil shale drilling, and open Alaska reserve to drilling… Continue reading BREAKING NEWS: President Bush Talks Oil Drilling Reforms

Only 3% of survey participants with international operations have purchased separate Directors and Officers (D&O) liability insurance policies for other individual countries, according to the 2007 Survey on Insurance Purchasing and Claims Trends conducted by Towers Perrin. Forty-three percent of all survey participants indicated that their firms are global.     Global D&O coverage has… Continue reading Study: U.S. Firms Rely On Worldwide U.S. D&O Policies to Provide Global Coverage

The Mortgage Bankers Association (MBA) reported today that applications for U.S. home mortgages dropped for the fourth week in the last five as soaring rates on standard, fixed-rate mortgages choked off refinancing opportunities. The industry group said its seasonally adjusted index of mortgage application activity fell 8.7 percent to 508.4 in the week ended June… Continue reading Mortgage Apps Drop Again as Rates Soar

According to the National Association of Mutual Insurance Companies (NAMIC), the latest attempt to eliminate competitive auto repair parts from the marketplace could substantially drive up prices for consumers. In testimony delivered to the U.S. Patent and Trademark Office this week, NAMIC joined with other property/casualty insurance trade associations in expressing strong concerns about litigation… Continue reading NAMIC: Getting Rid of Auto Repair Parts Competition Hurts Consumer

The American Insurance Association (AIA) on Tuesday refuted the assertions made in two recent letters issued by the Consumer Federation of America (CFA), responding to charges of “excessive” auto insurance rates and a failure on behalf of the New York Insurance Department to properly oversee auto insurers. The letters, which were sent last week to… Continue reading AIA Refutes CFA Assertions on NY Auto Insurance Rates