Author: Farkas Laura

FGIC Corp., parent company of bond insurer Financial Guaranty Insurance Co., said it is in discussions with “potential investors and other parties regarding strategic alternatives,” including selling the company outright. It said it will make a decision within weeks. The company said the options it is exploring include founding a new triple-A rated guarantor “dedicated… Continue reading Bond Insurer FGIC Considering Selling Itself

According to Standard & Poor’s, the performance of government-sponsored enterprises (GSE), such as Fannie Mae and Freddie Mac, could have a direct impact on the national economy and, more importantly, U.S. credit standing. So-called GSEs enjoy implicit government guarantees and could cause the U.S. to lose its sterling triple-A rating if the government were forced… Continue reading S&P Report: U.S. Credit Could Be Negatively Affected by Fannie, Freddie

If the first quarter is any indicator of likely tornado activity for 2008, insurers may be headed for another long season of increased claims activity and high catastrophe losses. The number of tornadoes in first quarter 2008 surpassed the previous four-year average, but an even more troubling trend for the industry has emerged: Losses of… Continue reading A.M. Best Special Report: Tornado Losses Approach Those of Hurricanes

Joseph Brandon resigned Monday as chairman and chief executive of its General Re Corp unit, less than two months after a jury convicted four former executives of the reinsurer of fraud, according to a statement Berkshire Hathaway Inc., which owns the company. Franklin “Tad” Montross, president of Stamford, Connecticut-based General Re, will replace Brandon as… Continue reading Gen Re’s Chairman/CEO Steps Down

Compiled by online foreclosure marketplace RealtyTrac, foreclosures in March surged nearly 60 percent above the year-ago total, with states where the real estate boom rang loudest just a few years ago now the hardest hit, according to a survey. The numbers also reveal show increasing numbers of homeowners content simply to walk away from their… Continue reading Foreclosures in March Up Nearly Sixty Percent from One Year Ago

A global survey of insurance equity analysts found that 85% of respondents expect to see a significant rise in property and casualty (P/C) mergers and acquisitions this year, and Life insurers in particular that expand into emerging markets over the next three years are likely to be rewarded with superior ratings. The survey, conducted by… Continue reading Survey Says Analysts See More P&C Mergers, Acquisitions

Consumers scrambling at the eleventh hour before the April 15th income tax deadline for as many deductions as possible are getting an answer from him that they don’t like, says Norman S. Solomon, a member of the American Institute of Certified Public Accountants: Homeowners insurance is a personal expense, and is not among the items… Continue reading Sorry, Taxpayers: Homeowners Insurance Generally Not Deductible

After three days of top-level meetings among the senior economic officials from around the world, one thing became clear: It is unlikely that there will be a joint international effort to calm the maelstrom currently battering the world’s financial markets. The meetings concluded yesterday with finance ministers and central bankers from the Group of Seven… Continue reading Economic Officials Fail to Make Consensus Over Financial Turmoil

A New York federal appellate court has upheld a Securities and Exchange Commission (SEC) rule that expanded the number of exemptions from the SEC’s ban on so-called short-swing insider trading. Said the court, directors holding more than 10 percent of a company’s shares, and those who have the power to appoint them, are exempt from… Continue reading SEC Upholds Ruling

The new municipal bond insurance company Berkshire Hathaway Assurance Corp. formed by billionaire Warren Buffett received Standard & Poor’s top “AAA” rating based on the venture’s hefty surplus of almost $1 billion. S&P is the first of the major credit agencies to rate the new bond insurer, acting in part at the request of the… Continue reading Buffet’s Muni Bond Insurer Gets Top Rating