Author: Farkas Laura

After the board at Insurance Australia Group Ltd. rejected a sweetened offer from Australian insurer QBE Insurance Group Ltd. on Wednesday, the $8.4 billion takeover bid was withdrawn. IAG shares fell as much as 8.3 percent Wednesday as analysts said the insurer’s board must now convince investors it was right to reject the offer. “QBE… Continue reading Australian QBE Insurance Withdraws Bid Offer to Competitor

According to the Mortgage Bankers Association (MBA), applications for U.S. home mortgages fell to its second-lowest level of the year last week as interest rates rose.     The industry group reported that its seasonally adjusted index of mortgage application activity fell 7.8 percent to 621.6 in the week ended May 16.The index touched its… Continue reading Mortgage Applications Hit Second-Lowest Level in ’08

Nationwide Insurance in its second annual DWD (Driving While Distracted) study found that, while 98 percent of Americans claim to be safe drivers, a vast majority also admit to DWD. More than four out of five cell-phone owners are guilty of talking on their phones while driving, and nearly three-quarters (72 percent) of all drivers… Continue reading Nationwide Study on Drivers: Distracted On the Road

The strong winds and large hail that hit parts of Austin, Texas last week are expected to result in insured losses totaling $50 million. Claims from damaged homes and automobiles continue to come in.    Up to 20,000 insurance claims are expected from the storm that uprooted trees, knocked out windows, damaged roofs, and smashed… Continue reading Texas Storm Expected to Result in $50M in Insured Losses

Richard “Dickie” Scruggs was ordered by a federal magistrate judge to turn over to State Farm documents he claimed proved that the insurer cheated policyholders following Hurricane Katrina. U.S. Magistrate Judge Robert H. Walker of the District Court for the Southern District of Mississippi, said State Farm can have a series of documents it requested… Continue reading Judge Orders Scruggs to Turn Over to State Farm Documents in Katrina Case

Leaders in the U.S Senate Banking Committee are closer to passing housing legislation that would stem foreclosures by insuring as much as $300 billion in mortgages and create a new regulator for Fannie Mae and Freddie Mac. Senators Christopher Dodd, the panel’s chairman, and Richard Shelby, its top Republican, reached a deal to pay for… Continue reading Lawmakers Closer to a Housing Rescue Deal

A federal judge said in a recent ruling that the government in a trial earlier this year presented “sufficient evidence” for a jury to conclude that a conspiracy to fraudulently boost the financials of American International Group Inc. (AIG) started with a phone call by former Chief Executive Maurice R. “Hank” Greenberg. This is the… Continue reading Judge Says Greenberg Had Role in AIG-Gen Re Case

Chief Executive Martin Sullivan of American International Group (AIG) on Tuesday told investors that the insurance company’s recent issue of equity and debt raised in the region of $20 billion, far more than initially expected. Speaking at an investor conference in London, Sullivan said that the capital raising, announced after AIG reported a record $7.8… Continue reading AIG Raises $20B in Capital, Looking to Invest in Future Growth

Home improvement industry leader Home Depot today reported a 66 percent drop in quarterly profit as the U.S. housing meltdown hurt sales and it implemented plans to close stores and cut back expansion plans.    The company said earnings fell to $356 million, or 21 cents a share, in the first quarter ended on May… Continue reading Home Depot Reports Significant Profit Drop for Quarter

According to a report by A.M. Best Co., Inc., if a major hurricane hit the U.S. this year, the conditions that caused the credit markets to turn upside down could leave policyholders out in the cold and affect the ability for carriers and insurers to cover claims. The report concludes that investors are showing a… Continue reading Best Outlook: Credit Crunch Could Wreak Havoc in Cat Pool Funding