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Sources familiar with the matter said on Thursday that American International Group (AIG), which is in the process of selling assets to repay a massive U.S. government loan, has hired Bank of America to advise it on the sale of its U.S. personal lines business. The insurer also has hired investment bank Keefe, Bruyette &… Continue reading AIG Hires BofA, KBW to Help with Asset Sales

The Property Casualty Insurers Association of America (PCI) appreciates the New York Insurance Department’s openness in discussing the issues associated with high gas prices, fewer miles driven and insurance rates; however, we urge them not to draw overly broad conclusions based solely on assumptions.    “We are disappointed in the department’s decision to deny most… Continue reading PCI Challenges NY Decision Assumption that Higher Gas Prices Equals Lower Auto Claim Costs

The current credit market crunch could keep the Florida Hurricane Catastrophe Fund from raising all the money it might need to pay claims if a major storm were to hit Florida in the next couple months. The CAT fund sells lower-cost back-up insurance to insurers working in Florida. The reinsurance, as it’s called in the… Continue reading Credit Market Crunch Could Impact FL CAT Fund

Citigroup Inc. posted its fourth straight quarterly loss on Thursday, hurt by more than $13 billion of credit costs and write-downs tied to complex and low-quality debt. Meanwhile, Merrill Lynch & Co reported a fifth straight quarterly loss as the credit crisis saddled the firm with at least $13.5 billion of write-downs.    Citigroup said… Continue reading Citigroup Posts Fourth Consecutive Quarterly Loss, Merrill Also Posts Loss

Analysts believe that credit-card delinquencies are likely to become the next flashpoint in the credit crisis, though the impact on the overall economy won’t be as severe as the housing slump.    As the economy worsens and unemployment rises, more Americans are having trouble paying off their credit card balances. That has pushed up losses… Continue reading Credit Card Debt Rises as Economy Worsens

Aon Corporation, a leading provider of risk management and human capital solutions, today announced a definitive agreement to sell its AIS Management Group unit to Mercury Insurance Group, California’s third-largest personal automobile insurance carrier. Terms of the sale include $120 million cash plus a potential earn out of up to $34.7 million payable over the… Continue reading Aon to Sell Auto Broker to CA Insurer Mercurcy

Even before this month’s market crisis signaled a deepening recession, retail sales into their longest slump in at least 16 years. Consumer purchases fell 1.2 percent in September, extending the decline to three straight months, the first time that’s happened since comparable records began in 1992, Commerce Department figures showed today. In another sign of… Continue reading Decline in Retail Sales Continues

Governor David A. Paterson announced on Tuesday that auto insurance rates for New York drivers will increase by an average of less than one percent, meaning New York drivers will pay almost $515 million less than what auto insurance companies were originally seeking to charge. As part of Governor Paterson’s call to make New York… Continue reading NY Governor Announces Limited Auto Increase

Hartford Financial Services Group Inc. has named Robert Paiano senior vice president and enterprise chief risk officer. Mr. Paiano in his new role will be responsible for risk management across all Hartford operations, according to the insurer. “We are operating in an unprecedented environment today, where effective risk management is crucial,” Lizabeth Zlatkus, Hartford’s executive… Continue reading Hartford Appoints Chief Risk Officer

Wells Fargo & Co announced on Wednesday that its third-quarter profit fell 25 percent as a result of higher credit losses and investment write-downs. Net income for Wells Fargo dropped to $1.64 billion, or 49 cents per share, from $2.17 billion, or 64 cents, a year earlier, the fourth straight quarterly decline. Revenue rose 5… Continue reading Wells Fargo’s Profit Down Twenty-Five Percent; Asks Judge to Void Citi’s Agreement with Wachovia