Author: Farkas Laura

The nation’s property/casualty insurers are reporting a decrease of profit by nearly 6% in 2007, a sign that earnings could be heading for a steady decline in coming years. The industry logged $61.9 billion in net income after taxes last year, the second-highest after 2006’s record $65.8 billion, according to data compiled by Insurance Services… Continue reading P/C Insurer Profits Fell for ’07

The subprime mortgage debacle is seeping into various segments of industry, including the compensation of some of the leaders of the insurance industry, according to regulatory filings from companies in the S&P insurance index.     American International Group Inc. cut the 2007 cash bonus for Chief Executive Officer Martin Sullivan by 42 percent as… Continue reading Subprime Mess Cuts Into Insurers’ CEO Compensation

Attorney General Richard Blumenthal according to a ruling by the Connecticut Supreme Court can proceed in trying to recover damages from insurance broker Marsh & McLennan Cos. on the premise that its alleged illegal conduct harmed the state’s general economy. The ruling relates to a 2005 lawsuit Blumenthal brought against Marsh still pending in Superior… Continue reading Ruling Gives Blumenthal Green Light for CT to Pursue Damages Against Marsh

A slumping U.S. economy and credit crunch drove down profits at General Electric’s financial, industrial and health care units, resulting in the company posting an unexpected 6 percent drop in first-quarter profit.     Shares of the second-largest U.S. company by market capitalization fell almost 10 percent, dragging down global markets.     Due to… Continue reading Economy and Credit Crunch Impact Giant GE

The Insurance Institute for Highway Safety found that Chrysler LLC and Kia Motors Corp. models are among sedans that are keeping U.S. occupants safer after being equipped with air bags that protect against side- impact crashes.     Chrysler’s Dodge Avenger side-impact safety improved to “good,” the highest rating, from “poor,” the lowest, in 2004,… Continue reading Insurance Institute Reports on Car Safety

A first-ever analysis from AAA finds that crashes involving teen drivers ages 15 to 17 cost American society more than $34 billion annually in medical expenses, lost work, property damage, quality of life loss, and other related costs in 2006.    “The impact of a teen crash extends beyond the emotional tragedies and physical injury… Continue reading AAA Analysis:Teenage Car Crashes Cost Society $34B

At the Financial Services Authority’s (FSA) annual Insurance Sector Conference in London, Hector Sants, the United Kingdom’s top regulator, along with the chairman of Lloyd’s and others, criticized current U.S. rules on reinsurance collateralization as well as the slow pace of regulatory reform in the United States.    “I am disappointed that progress has been… Continue reading UK Regulator Criticizes US Reinsurance Collateralization Rules and Slow Reform

In his speech in Washington at the Council of Institutional Investors, Treasury Secretary Henry Paulson stated today that the economy has “turned down sharply” and is at risk of further weakening. However, he said that the fiscal stimulus checks that will go out to Americans soon will have a real impact on the economy.  … Continue reading Paulson Speaks On Economy: Down Sharply, Stimulus Package to Impact

According to a report released by Fitch Ratings on Wednesday, litigation stemming from the sub-prime mortgage crisis is estimated to result in $3 billion to $4 billion in directors and officers liability and errors and omissions claims.    Fitch also notes that “insurers’ potential losses could be substantially higher if credit issues spread to sectors… Continue reading Fitch Report: Sub-Prime Crisis Will Result in Up to $4B in Liability Claims

Citing a worse-than-expected housing slump and concerns over rising unemployment that could lead to more defaults, Standard & Poor’s Ratings Services slashed its credit rating on four U.S. mortgage insurers: MGIC Investment Corp’s arm, Old Republic International Corp, PMI Group Inc., and Radian Group Inc.     Most companies will not generate an underwriting profit… Continue reading S&P Downgrades Four Mortgage Insurers