Author: Farkas Laura

A group of 18 insurers is suing American International Group and bankrupt fronting company Trenwick America Reinsurance Corp. for allegedly scheming to collect as much as $73 million in what the insurers claim are “grossly inflated” workers compensation and other reinsurance claims. The suit alleges that only about $15 million of the $73 million in… Continue reading Reinsurers Sue AIG Alleging Claims Fraud; AIG Denies All Wrongdoing

As of July 26, Safeco stopped writing new personal property policies in Florida and has notified the Florida Office of Insurance Regulation that at the beginning of 2006, it plans to stop renewing personal lines property policies held by current personal property customers.    Safeco represents 0.6 percent of the Florida personal property market?approximately 30,000… Continue reading Safeco Stops Writing New P/L Property Policies in Fla.; Will Stop Renewing Them in 2006

The Ohio Department of Insurance is investigating allegations that brokers across the state are engaging in bid-rigging and undisclosed commission arrangements with insurance companies, the Associated Press reported. The state could take action against insurance companies or brokers by early fall, Director Ann Womer Benjamin said. The probe began last November and was prompted by… Continue reading Ohio Investigates Bid-Rigging Among Insurers, Brokers

A.M. Best Co. has downgraded the financial strength rating to B+ (Very Good) from B++ (Very Good) of National American Insurance Company (Okla.) (NAICO) (Chandler, Okla.) and revised its outlook to negative from stable. Concurrently, A.M. Best has assigned an issuer credit rating (ICR) of “bb-” to NAICO’s parent, Chandler (U.S.A.) Inc. (Chandler) and a… Continue reading A.M. Best Downgrades Rating for NAICO

ACE Limited said it is today filing a Form 8-K restating its financial results for the years 2000 through 2004, as well as its results for each of the quarters in the years 2003 and 2004, and for the first quarter of 2005. The primary purpose of the restatement is to correct the accounting treatment… Continue reading ACE Ltd. Restates 5 Years’ Results to Correct Finite Reinsurance Accounting

Safeco Chairman and Chief Executive Officer Mike McGavick announced plans to leave his CEO post, effective Aug. 31, 2005. He will retain his duties as chairman of the board and will provide other transitional leadership as needed at least through the end of this year. The Associated Press reported that McGavick may be considering a… Continue reading McGavick Announces Plans to Leave Safeco

SAN FRANCISCO (MarketWatch) — RenaissanceRe Holdings shares fell on Monday after the Bermuda-based reinsurer said that one of its executives refused to cooperate with a U.S. Securities and Exchange Commission investigation and resigned. Michael Cash, a senior vice president in the company’s specialty reinsurance division, had received a subpoena from the SEC asking him to… Continue reading RenaissanceRe falls on exec resignation

Germany’s Hannover Re, the world’s third largest reinsurer, announced the adoption of a new strategy for its U.S. subsidiary Clarendon at its annual “Investors Day” press conference on Friday, July 1.     Following what it described as an “intense analysis of business,” Hannover’s management, led by Chief Executive Wilhelm Zeller, concluded that Clarendon should… Continue reading New Strategy Adopted for U.S. Subsidiary Clarendon

The country’s largest brokerages will likely lose their market share to middle-market firms in the near future, a new report by Cochran, Caronia & Co. predicted.         Adam Klauber, the author of the report and Cochran, Caronia & Co.’s managing director of equity research, said that rapid growth through acquisition over the past decade… Continue reading Report: Marsh, Aon Will Lose Market Share

Insurance brokerage executives at Standard & Poor’s insurance conference, “Insurance 2005: Under the Microscope,” expressed confidence Tuesday that brokers would survive the sunset of the contingent-commission era through a combination of higher premium commissions, a broader array of insurance products for their clients, and better alignment of costs and expenses.       Despite the negative… Continue reading S&P Conference: With End of Contingent Commissions, Brokers Find Ways to Plug the Hole