Author: Farkas Laura

Today the Lloyd’s of London insurance market announced it was planning to reduce its underwriting capacity this year to 15.95 billion pounds ($31.6 billion), slightly lower than 2007’s record initial capacity of 16.1 billion. A number of Lloyd’s insurers, including Amlin, Hiscox, and Kiln have returned capital to shareholders and several others have said they… Continue reading Lloyd’s To Reduce Underwriting Capacity for ’08

OLDWICK, N.J. January 25 (BestWire) — A.M. Best Co. has downgraded the financial strength rating (FSR) to A (Excellent) from A+ (Superior) and the issuer credit ratings (ICR) to “a” from “aa-”of XL Capital Group (XL Capital) (Bermuda) and its members. Concurrently, A.M. Best has downgraded the ICR to “bbb” from “a-” and all existing… Continue reading A.M. Best Downgrades Ratings of XL Capital Ltd. and Its Subsidiaries

Wednesday’s House passage of H.R. 3959, which would require buyers of residential homes costing $600,000 or more to pay phased-in, actuarial flood insurance prices, is a positive step toward shoring up the National Flood Insurance Program (NFIP) without creating unanticipated premium increases, according to the Property Casualty Insurers Association of America (PCI). The bipartisan bill,… Continue reading PCI Applauds House Passage of Garrett-Frank Flood Bill

John Houldsworth, former CEO of Gen Re’s Cologne Re Dublin (CRD) subsidiary, testified for a second day on the Gen-Re – AIG trial on Thursday and stated that he pulled the $600 liability limit in an allegedly fraudulent loss portfolio deal “out of the air,” and that most the business ceded in the portfolio was… Continue reading Testimony from Former Gen Re CEO Continues

Wu Dingfu, chairman of the China Insurance Regulatory Commission, at an annual conference on Friday stated that higher interest rates, a rising yuan and stock market volatility pose stiff challenges for Chinese insurance companies. Chinese insurers enjoyed investment returns last year totalling 279.2 billion yuan ($38.67 billion) — more than in the previous five years… Continue reading Chinese Insurers Face a Tougher 08 According to Regulator

Europe’s largest primary insurer by gross premiums, German-based Allianz SE, dispelled investor worries of big sub-prime write-downs by reporting that its net-profit goal for 2007 was obtained despite credit turmoil in the fourth quarter. The comapny reached its full-year net-profit goal of €8 billion ($11.7 billion), up 14% from €7.02 billion the previous year. The… Continue reading Allianz Reaches 2007 Net Profit Target

On Thursday Standard & Poor’s (S&P) stated that it is considering downgrading its ratings on MGIC Investment Corp and its mortgage insurance arm, after the company warned it could pay up to $2 billion in insurance losses in 2008. “The firm’s projections for incurred losses in the fourth quarter of 2007 and paid losses in… Continue reading S&P May Downgrade MGIC Rating Based on Projected Insurance Losses

American International Group Inc. (AIG) announced today that it’s bailing out a $2.5 billion structured investment vehicle, or SIV, managed by its derivatives arm. Under the rescue plan, the AIG arm will repay the senior debt of the SIV, Nightingale, as it matures and keep financing its portfolio of bank debt and asset-backed securities with… Continue reading AIG Bails Out Nightingale SIV

French bank Societe Generale says it has uncovered “massive” fraud by a Paris-based trader which resulted in a loss of 4.9bn euros ($7.1bn; £3.7bn).The bank said the fraud was based on simple transactions, but concealed by “sophisticated and varied techniques”.    Societe Generale also announced new write-downs of 2.05bn euros related to the subprime mortgage… Continue reading Massive Fraud at Societe Generale by Rogue Paris Trader, Also Announces Losses Related to US Subprime

In a press conference on Wednesday, U.S. Sen. Christopher Dodd stated that je is determined to move federal flood insurance legislation through the Senate promptly, despite resistance from Louisiana lawmakers.     “I intend to do all I can to move this legislation to the president’s desk as soon as possible,” said former US Presidential… Continue reading Senator Dodd to Push Flood Insurance Reform Legislation