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A.M. Best Downgrades Ratings of The American Road Insurance Company OLDWICK, N.J. October 17 (BestWire) — A.M. Best Co. has downgraded the financial strength rating to B+ (Good) from B++ (Good) and issuer credit rating to “bbb-” from “bbb” of The American Road Insurance Company (TARIC) (Dearborn, MI). The outlook for both ratings is negative.… Continue reading A.M. Best Downgrades Ratings of The American Road Insurance Company

As members of the International Association of Supervisors (IAIS), U.S. state insurance regulators have joined their regulatory counterparts from around the world in adopting several supervisory papers at the IAIS Annual General Meeting in Budapest, Hungary. The standards and accompanying guidance papers address the risk-management practices of insurers, the role of models and the necessity… Continue reading NAIC Supports Global Solvency Focus

The Hartford Financial Services Group, Inc. on Friday announced the closing of a $2.5 billion capital investment by Allianz SE. Under the agreement, Allianz has purchased, at $31 per share, $750 million of preferred shares convertible to common stock after receipt of applicable approvals, and $1.75 billion of 10% junior subordinated debentures. The debentures are… Continue reading Hartford Closes Deal with Allianz

Treasury Secretary Henry Paulson in a news conference at 11:30 EST spoke about the government’s $250 billion capital injection program to financial institutions, saying it “wont cost taxpayers anything.” Paulson says that those banks participating in infusion are expected to strengthen efforts to help homeowners avoid foreclosures.      Paulson said the government will own shares… Continue reading Paulson Gives Details on Capital Injection to Banks

On Monday Federal Reserve Chairman Ben Bernanke told Congress that a fresh round of government stimulus is a good idea because there’s a risk the country’s economic weakness could last for some time. This is the first time Bernanke has supported such extra spending – something that President George W. Bush has not been keen… Continue reading Bernanke Sees Another Stimulus Package as Good Idea

Former American International Group Inc. Chairman Maurice R. Greenberg has refused to answer questions in a deposition by lawyers for the New York Attorney General’s office about a sham 2000 reinsurance deal between AIG and General Re Corp., Mr. Greenberg’s lawyer confirmed.    In the last of four days of testimony, Mr. Greenberg last weekend… Continue reading Greenberg Refuses to Answer Deposition in Gen-Re Case

There was no final detailed insurance policy on the World Trade Center before the 9-11 attack, just a broad agreement, and that uncertainty surrounding the nature and terms of the insurance contracts led to both sides spending six years in court and hundreds of millions of dollars in legal fees in a vain effort to… Continue reading NY Insurance Regulator Dinallo Says Insurers Must Provide Contract Certainty

Indicating that the three-year real-estate slump is intensifying, housing starts in the U.S. fell more than forecast in September as construction of single-family homes plunged to the lowest level in 26 years. The Commerce Department said that construction of single-family homes dropped 12 percent to a 544,000 annual rate. Starts on all residential properties, including… Continue reading Single-Family Housing Starts Fall to Lowest Level in 26 Years

More bank executives are being urged to give up bonuses for 2008 and follow the lead of the board of Deutsche Bank. Executives at banks hit hard by the credit crisis are facing pressure to forego bonus payments in recognition of mistakes made and — as in the case of Deutsche Bank — to spread… Continue reading Bank Execs Urged to Give Up 2008 Bonuses

Using the widely-read opinion pages of “The New York Times”, billionaire Warren Buffett writes that he’s been buying U.S. stocks for his personal account, picking up a “slice of America’s future at a marked-down price.” In addition to his Berkshire Hathaway shares, Buffett reveals that he used to own nothing but U.S. bonds. Now, he… Continue reading Buffett Says He’s Buying Stocks