Author: Farkas Laura

On Monday mortgage insurer Radian Group Inc reported its first-quarter profit increased 72 percent due to unrealized gains on derivatives and securities. Excluding the gains, Radian swung to a loss during the first quarter. Net income increased to $195.6 million, or $2.44 per share, for the quarter ending March 31, from $113.5 million, or $1.42… Continue reading Radian Reports First-Quarter Unrealized Gains

Due to hefty payouts on default claims and charges to write off its investment in bond insurer FGIC, mortgage insurer PMI Group Inc. reported today a first-quarter loss from year-ago profit.    Delinquencies and defaults among mortgages have increased rapidly over the past year. For each default and foreclosure, PMI is forced to pay out… Continue reading PMI Swngs into First-Quarter Decline

Today Morgan Stanley raised a $4 billion infrastructure fund, exceeding its target, and is targeting investments in sectors like transportation, energy and utilities.     At $4 billion, the fund shot past its original target of $2.5 billion, raising capital in North America, Europe, Australia, the Middle East and Asia, Morgan Stanley said in a… Continue reading Morgan Stanley Raises Billions for Infrastructure

MBIA reported today an unexpectedly large first-quarter loss, hit by a loss on revenue of $2.96 billion as the on-paper value of insured derivatives plunged.     The bond insurer said its net loss was $2.4 billion, or $13.03 a share, in the three months ended March, compared with a profit of $198.6 million, or… Continue reading Huge Loss for MBIA in First Quarter

American International Group’s whopping $7.81 billion first quarter loss (See related article) brought an immediate reaction from Standard & Poor’s Ratings Services. S&P has lowered its counterparty credit ratings on AIG, and several of its subsidiaries with ratings that are based on AIG guarantees, to ‘AA-/A-1+’ from ‘AA/A-1+’.        S&P also lowered its rating on… Continue reading S&P Lowers AIG’s Ratings; On CreditWatch/Negative

Standard & Poor’s Ratings Services has lowered its counterparty credit rating on San Diego-based Arrowhead General Insurance Agency Inc. to ‘B-‘ from ‘B’. S&P also assigned the rating a negative outlook. “This rating action reflects our view that the company is unable to sustain the financial-performance goals that were established when we initially assigned the… Continue reading Standard & Poor’s Ratings Services has lowered its counterparty credit rating on San Diego-based Arrowhead General Insurance Agency Inc. to ‘B-‘ from ‘B’.

It is with tremendous sadness that we acknowledge the passing of Chairman, Founder and Friend – Eileen Lesberg of World Wide Specialty Programs. Eileen died May 3, 2008 peacefully and with grace at the age of 79.     Eileen’s unique and uncanny ability to perform seemingly impossible or insurmountable tasks was magical, as was… Continue reading Eileen Lesberg: She Left Her Heart in Staffing

Cape Cod homeowners dodged a second straight 25 percent increase in insurance premiums after Insurance Commissioner Nonnie Burnes yesterday rejected an insurance association’s request for double-digit rate hikes.     The FAIR Plan, as the state’s insurer of last resort is called, had sought a 25 percent rate hike for Cape Cod and the Islands.… Continue reading FAIR Plan Rate Increase Request for Cape Cod Residents Denied

State insurance regulators, working together through the National Association of Insurance Commissioners (NAIC), today announced the details of a regulatory settlement agreement between 40 jurisdictions and Conseco, Inc., due to a pattern of consumer harm in the company’s long-term care insurance business. This multi-state investigation has resulted in a $2.3 million fine and $30 million… Continue reading State Insurance Regulators Fine Long-Term Care Provider CONESCO

Governor. Marc Racicot, president, American Insurance Association (AIA), yesterday said the U.S. Senate made the wise choice in defeating an amendment that called for adding wind coverage to the National Flood Insurance Program (NFIP). Mr. Racicot’s statement follows:     “We applaud the Senate for its sound and reasonable decision not to add wind coverage… Continue reading AIA’s Racicot Commends Senate’s Decision to Reject Adding Wind Coverage to NFIP