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The National Association of Insurance Commissioners (NAIC) is hearing widespread criticism from insurers, saying its revenues, expenses and surpluses are “on an upward glide path without end” and calling on the organization to tighten its belts amid the ongoing fiscal and credit crisis.      In written comments on the NAIC’s proposed $73.1 million 2009 budget,… Continue reading NAIC’s Fiscal Management is Under Attack, Calls Are to Tighten Belt

On Tuesday, the Daily News Flash reported that the American Insurance Association (AIA), a trade group representing 350 property/casualty insurers, had stated that its members were not open to federal assistance. Insurer Travelers Cos. Inc. followed suit, telling the U.S. Treasury that it has no plans to seek federal financial assistance and slammed other insurers… Continue reading Travelers Says No to Fed Assistance

On Tuesday insurance carrier Ace Limited reported that its operating earnings fell 27 percent in the third quarter as catastrophe losses increased. Results, however, beat Wall Street expectations.    Third-quarter operating earnings, which exclude investment gains or losses, were $504 million, or $1.51 a share, higher than analysts’ average forecast of $1.40 a share.The per-share… Continue reading ACE Earnings Fell Due to Cat Losses

The Conference Board, a private research group, released a report on Tuesday showing that U.S. consumer confidence fell to an all-time low in October, after a slight rise a month earlier, and expectations are even bleaker. The report said its index of consumer confidence for October dropped to 38.0, compared with a revised reading of… Continue reading Consumer Confidence Reaches New Low

Credit derivatives are the object of a proposed new disclosure for the NAIC’s Annual Statement that would apply to 2008. The disclosure proposed by the NAIC’s Statutory Accounting Principles Working Group is on a fast track and follows action by the Financial Accounting Standards Board to cause holders of credit derivatives to note their presence.… Continue reading NAIC Floats Proposal to Red Flag Certain Derivatives

In a statement released at the Baden-Baden, Germany, reinsurance renewal meeting on Monday, Munich Reinsurance Co. said it believes the current reinsurance market cycle is about to turn and said rates could increase by double-digit percentages.    The current financial turmoil is increasing demand for reinsurance, Munich Re said in its statement.    “To master… Continue reading Munich Re Believes Reinsurance Market Could Harden

Standard & Poor’s said on Tuesday that prices of U.S. single-family homes plunged a record 16.6 percent in August from a year earlier and plummeted more than 30 percent in Las Vegas and Phoenix.      Home prices in 20 major metropolitan areas fell 1.0 percent in August from July, according to the Standard & Poor’s/Case-Shiller… Continue reading S&P: Homeowners Prices Plunge 16.6% in August, Even More in Some Areas

Two sources with direct knowledge of talks between GM and Chrysler said on Monday that General Motors and Cerberus Capital Management have asked the U.S. government for roughly $10 billion in an unprecedented rescue package to support the auto giants’ merger.        According to one of the sources, who was not authorized to discuss the… Continue reading Auto Giants Ask Government for Rescue Package to Aid in Merger

After five years of steady rate decreases, many of California’s 1.3 million employers may pay higher premiums for workers’ compensation insurance next year. After analyzing costs in the $12-billion market, Insurance Commissioner Steve Poizner on Friday told more than 200 insurers that they would not be out of line if they raised rates by 5%… Continue reading CA Insurance Commissioner Recommends Five Percent Comp Increase

The Property Claim Services unit of New Jersey-based Insurance Services Office Inc. estimates that U.S. property/casualty insurers will pay $11.5 billion in catastrophe claims for the third quarter. In a statement made by the PCS 11 catastrophes in 22 states produced 1.7 million claims in the period, which it noted was the fourth-costliest third quarter… Continue reading Insurers to Pay $11.5B in Cat Claims for Third Quarter