Author: Farkas Laura

Today Freddie Mac announced a loss of $2 billion for the third quarter and said it is “seriously considering” a 50% cut in its fourth-quarter dividend.The government-chartered company also reported that it is looking at ways to raise additional capital. Freddie’s results were worse than the $1.4 billion loss recorded 11 days ago by the… Continue reading Freddie Mac Hit Hard in Third-Quarter Losses

A.M. Best Co. has downgraded the financial strength rating (FSR) to B (Fair) from B+ (Good) and issuer credit rating (ICR) to “bb” from “bbb-”of PMA Capital Insurance Company (PMACIC) (Philadelphia, PA). The outlook for these ratings is negative. Additionally, A.M. Best has affirmed the ICR of “bb” of PMACIC’s parent, PMA Capital Corporation (PMA… Continue reading A.M. Best Downgrades Ratings of PMA Capital Insurance Company

On Friday, Arthur J. Gallagher & Co. announced the signing of a definitive agreement to acquire Yanni Partners, Inc. of Pittsburgh, Pennsylvania. Terms of the transaction were not disclosed. The transaction is expected to close before January 31, 2008. Founded in 1989, Yanni Partners, Inc. is an institutional investment consulting firm offering performance analysis, investment… Continue reading Gallager to Buy Yanni Partners

Massachusetts drivers are set to see whether they will pay less for auto insurance next year. Auto insurers are set to release their proposed rates, and consumers will find out whether greater competition will relieve demands on their finances.    Up until now, Massachusetts was the only state where regulators, not the market, set car… Continue reading New Auto System in MA Put to the Test as Rates are Set to be Released

Looking to make changes in the global insurance marketplace, the National Association of Insurance Commissioners formally released its Reinsurance Regulatory Modernization Proposal.    During a meeting held Nov. 7 – 8 in Atlanta, the NAIC’s Reinsurance Task Force received comments from U.S. and European ceding insurers and reinsurers on the draft proposal. The task force… Continue reading NAIC Releases Reinsurance Proposal

The Florida Office of Insurance Regulation (OIR) has denied five Allstate homeowners insurance rate increases.    The OIR issued a notice of intent to disapprove homeowners filings of 43.4% from Allstate Floridian Insurance Co., 27.4% from Allstate Floridian Indemnity Co., 39.7% from Encompass Floridian Insurance Co., and 41.6% from Encompass Floridian Indemnity Co. A 36.5%… Continue reading Allstate Denied Homeowners Rate Increase in Florida

On Friday, the U.S. Senate approved legistlation that would extend the federal terrorism insurance program for seven years. This extension represents less than half the period approved by the House, and excludes coverage of nuclear, biological and chemical events.       Initially passed after the Sept. 11 attacks, the Terrorism Risk Insurance Act promised to… Continue reading Senate Extends TRIA Backstop Seven Years

The percentage of people who receive health insurance benefits from their employers is increasingly becoming less and less. This trend is raising anxiety among workers and invigorating a debate about whether insurance should be tied to jobs. Several ideas have been introduced, including a range of proposals in Congress, to address this issue. The measures… Continue reading Employer-Provided Health Coverage Becoming Less Common, Solutions on the Table

A survey sponsored by Massachusetts Mutual Life Insurance Company (MassMutual), the Family Firm Institute, and the Cox Family Enterprise Center at the Kennesaw State University Coles College of Business and released earlier this month indicates that family businesses are optimistic about their robust growth, although not without having to face future challenges. According to the… Continue reading Mass Mutual Survey Finds Family Businesses Optimistic About Growth

Marsh & McLennan Cos. Inc. Chief Executive Officer Michael Cherkasky recently announced that it plans to collect an “enhanced commission” for middle-market and small commercial business from insurers. Following is a formal statement they issued on-line after Cherkasky’s announcement last week related to their plans to receive additional commisions: “Since late 2004, Marsh has not… Continue reading Marsh Issues Statement on Enhanced Commissions