Author: Farkas Laura

James J. McNasby has been named to general counsel of Marsh Inc., Marsh & McLennan Cos. Inc.’s (MMC) insurance brokerage and risk advisory unit. Most recently the senior vice president of North America Legal for Northfield, Illinois-based Kraft Foods Inc. and chief lawyer for Kraft’s North American business, Mr.McNasby succeeds Richard J. Sullivan, who left… Continue reading Marsh Names General Counsel

The largest U.S. bank, Citigroup Inc., announced that it will buy the remaining interest of Nikko Cordial Corp. for 530 billion yen ($4.6 billion), making the Japanese brokerage a wholly owned subsidiary.     At a briefing in Tokyo today, Citigroup Japan Holdings Ltd. Chief Executive Officer Douglas Peterson said that the bank will use… Continue reading Citigroup to Acquire Rest of Nikko Cordial’s Shares

American International Group Inc. and AIG shareholders have combined a lawsuit complaint against former chairman Maurice R. Greenberg and former chief financial officer Howard Smith, charging them with breaching fiduciary duties.    The joint complaint, which was filed in Delaware Chancery Court on Friday, was previously issued as two separate complaints AIG and the shareholders.… Continue reading AIG and its Shareholders Consolidate Lawsuits

On Monday, the states of Arizona, California, Illinois, Maryland, New Hampshire, New Jersey, New York and Washington announced that they would challenge the Bush administration in federal court over its new rules that block the expansion of a health insurance program for children from low-income families.       Accusing the administration of overstepping the federal… Continue reading States Face Off with President over SCHIP

On Friday, a New Jersey federal judge threw out the remaining racketeering claims pending against several dozen insurers and brokers in a class action lawsuit stemming from industry-wide investigations into bid-rigging and client-steering allegations. The decision, which follows a recent ruling dismissing antitrust claims against the brokers and insurers, resolves the major claims in the… Continue reading NJ Judge Throws Out RICO Case

The National Association of Insurance Commissioners (NAIC) is drafting a proposal to comprehensively modernize reinsurance regulation in the United States. The proposal — developed by a subgroup of the NAIC’s Reinsurance Task Force — calls for amending the existing regulatory framework to allow for single-state licensing of U.S. reinsurers, and encourages the NAIC to develop… Continue reading NAIC Proposes Modernizing Reinsurance Regulation

Due to “dislocations in the mortgage-backed securities and credit markets, and deterioration in the consumer-credit environment, Citigroup expects to see a slump of about 60% in third-quarter net income from a year earlier.    In 2006, third-quarter earnings were $5.51 billion, or $1.10 a share. The mean estimate of analysts surveyed by Thomson Financial was… Continue reading Citigroup Expects Significant Downturn in Third-Quarter Income

The world’s largest wealth manager, Swiss-based UBS A.G., reported $3.4 billion in losses and its plan to cut 1,500 jobs in its investment bank. This is one the largest worldwide casualties from the credit crunch that began this summer in the United States. The company announced on Monday that it would write down 4 billion… Continue reading UBS Reports $3.4 Billion in Write-downs, Effect of Credit Crunch

On Thursday, the Florida Association of Insurance Agents (FAIA) warned the state’s homeowners to consider buying coverage from Citizens. This warning comes in the wake of the board that governs Citizens Property Insurance Corp. agreeing to consider cutting the commissions it pays to agents a week earlier. The agents association says that its warning had… Continue reading FL Agents Take Aim at Citizens

The New York Alliance Against Insurance Fraud, a cooperative effort by insurance companies in New York, has launched a public campaign to raise public awareness with respect to the forms of insurance fraud, the cost to consumers and the consequences of fraud. It is estimated that insurance fraud costs Americans at least $80 billion a… Continue reading Fighting Insurance Fraud in NY