Author: Farkas Laura

Mortgage insurer MGIC Investment Corp. reported fourth-quarter losses while it establishes a $1.2 billion reserve to cover future losses as the company was hard-hit by the credit crisis. The company stated that it doesn’t expect to turn a profit this year. MGIC reported a net loss of $1.47 billion, or $18.17 a share, compared with… Continue reading MGIC Reports Net Loss and Foresees Continued Downturn for ’08

On Tuesday six top mortgage companies announced the launch of a program designed to stave off foreclosure for seriously delinquent borrowers in the hopes that new, more affordable loan terms can be worked out. “Project Lifeline,” backed by the U.S. Treasury and the Department of Housing and Urban Development, would pause foreclosure proceedings for borrowers… Continue reading Major Mortgage Companies Launch Program to Help Borrowers with Foreclosure Threats

Today the General Re Corp. finite risk trial began to hear closing arguments began. Prosecutors charge that five defendants conspired to help American International Group Inc. (AIG) commit fraud. Lawyers for two of the defendants countering that no such conspiracy existed. Jurors heard from Assistant U.S. Attorney Eric Glover that the evidence in the case,… Continue reading Gen Re Trial Hears Closing Arguments

David A. Sampson, president and CEO of the Property Casualty Insurers Association of America (PCI), has issued the following statement on today’s field hearing of the House Financial Services Committee’s Subcommittee on Oversight & Investigations regarding the availability and affordability of homeowners insurance in disaster-prone areas: “PCI believes that we all share a number of… Continue reading PCI Calls for Responsible Catastrophic Risk Solutions

General Motors announced that it will offer buyouts or early retirements to all 74,000 U.S. hourly workers represented by the United Auto Workers in a sweeping deal with the union intended to clear the way for GM to hire lower-cost replacements. The cost-saving agreement follows on a program launched in January for about 5,200 workers… Continue reading GM Offers Buyouts, Early Retirements to Union Workers in US

In a phone call to CNBC this morning, Warren Buffett stated that he has a plan to help the troubled bond insurance situation. Shares of Ambac and MBIA, two of the largest bond insurers, rose right after the interview was aired early this morning.     In a live telephone call to the CNBC Squawk… Continue reading CNBC: Buffett Offers to Reinsure $800B in Municipal Bonds

Tuesday morning shares in European insurers slid as news of AIG’s accounting hole in the derivatives portfolio of sparked renewed fears over their sub-prime exposure. The DJ Stoxx European insurance index was the only sector in negative territory at 1154 GMT, down 0.2 percent, having been down as much as 2.2 percent earlier in the… Continue reading European Insurer Stocks Slide, Responding to AIG News

The latest sector to be affected by the collapse of the housing boom is the $17-billion Title insurance business. Closes scrutiny of the sector is underway, including allegations that insurers colluded illegally and paid kickbacks to agents or brokers to get business.    An antitrust suit filed Feb. 1 in federal court in Brooklyn accuses… Continue reading Title Insurance Sector Scrutinized, NY Sues Four Big Companies

One of the world’s largest insurance brokers, Marsh & McLennan Cos.reported that fourth-quarter net income fell 62%, reflecting continuing weakness. The brokerage reported net income of $85 million, or 16 cents a share, compared to $226 million, or 40 cents a share, a year earlier.    Excluding special items, largely restructuring and legal costs, earnings… Continue reading Marsh Posts Fourth-Quarter Net Income Decline of 62%

American International Group Inc., the world’s largest insurer by assets, said auditors found a “material weakness” in how the company values its credit- default swap portfolio. The stock fell the most in 20 years. The contracts declined by about $4.88 billion in October and November, according to data in a regulatory filing today. The drop… Continue reading AIG’s Shares Drop as Audit Shows Weaknesses