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Today Lloyd’s of London reported that its insurance market’s profit dropped 47 percent in the first half on falling investment income and increased cost of claim.    The world’s oldest and biggest insurance market reported pretax profits in the six months to June 30 of 949 million pounds ($1.76 billion) compared with 1.81 billion pounds… Continue reading Lloyd’s Sees Profits Drop By Nearly Fifity Percent

Congress moved closer to an agreement on a $700 billion financial rescue plan as President George W. Bush urged swift action to help avert “a long and painful” recession.    “The package is basically done,” Representative Paul Kanjorski, a Pennsylvania Democrat told CNBC today. “The hard issues are resolved. They have to shake hands. They… Continue reading Congress Moves Closer to Rescue Plan Agreement

The U.S. property/casualty industry’s net income after taxes fell more than 50% to $15.9 billion in the first half of 2008 on a combination of deteriorating underwriting results and declining investment returns. As a result, the U.S. property/casualty industry’s annualized after-tax return on equity (return on surplus)—which measures overall after-tax profitability from underwriting and investment… Continue reading Best Report Shows U.S. P/C Results Down Significantly in First Half

On Wednesday American International Group Inc’s (AIG) shares fell sharply after the company signed a deal that will put majority ownership in the hands of government.     Late on Tuesday, AIG said it had signed a “definitive” agreement for up to $85 billion in borrowings from the U.S. Federal Reserve, the main part of… Continue reading AIG Shares Fall After Insurer Inks Deal with Federal Reserve

In an evening address to the nation Wednesday night, President George W. Bush called on Americans to support a massive bail-out of financial markets to ease a “serious financial crisis”. The entire economy was in danger, he said in a live TV speech, and failure to act now would cost more later.        He invited… Continue reading Bush Says Bailout Critical to Ease Crisis in Speech to Nation

For the month of August, existing-home sales resumed falling in and prices took a record drop, while inventories decreased sharply. The National Association of Realtors said Wednesday that home resales dropped to a 4.91 million annual rate, a 2.2% decrease from July’s revised 5.02 million annual pace. July originally was seen rising 3.1% to 5.00… Continue reading Home Re-Sales Fell in August

The Mortgage Bankers Association (MBA) reported that applications for U.S. home mortgages retreated to sluggish levels last week as rising interest rates hurt a rise in loan refinancing. According to data published by the MBA, its seasonally adjusted index of mortgage application activity dropped 10.6 percent to 591.4 in the week ended Sept 19. The… Continue reading Mortgage Apps Dropped 10.6%

In an effort to minimize additional disruption as result of the crisis that hit American International Group Inc. (AIG) last week, state insurance regulators will be working with federal officials and the insurer as the company moves forward. State insurance leaders said at a press conference Tuesday at the National Assn. of Insurance Commissioners quarterly… Continue reading State Regulators to Work with Feds, AIG Over Insurer’s Asset Sales

American International Group, Inc. (AIG) today announced that it has signed a definitive agreement with the Federal Reserve Bank of New York for a two-year, $85 billion revolving credit facility. Interest will accrue at a rate based on 3-month LIBOR plus 8.50%. The facility provides for an initial gross commitment fee of 2% of the… Continue reading AIG Signs Definitive Agreement with Fed for $85B Loan

Senator Charles Schumer (NY-D) said Wednesday when speaking on CNBC that Congress will act on the government’s proposed $700 billion rescue plan for the nation’s banking industry by the end of the week, although it likely will be different than what has been proposed by the Treasury. Schumer said that despite reluctance from legislators on… Continue reading Senator Schumer Says Resuce Plan Will Be Worked Out This Week in Congress