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A.M. Best Co. has assigned a debt rating of “bbb” to $500 million equity security units of XL Capital Ltd (Cayman Islands) [NYSE: XL]. The rating has been placed under review with negative implications. All other ratings of XL Capital Ltd and its subsidiaries are unaffected and remain under review with negative implications. Proceeds from… Continue reading A.M. Best Assigns Rating to XL Capital Ltd’s Equity Security Units

Proposed legislation that started out as a bill to create an insurance information office has been changed to enable federal regulation of insurance, according to the National Association of Professional Insurance Agents (PIA). When H.R. 5840, the innocuous-sounding Insurance Information Act of 2008, was introduced earlier this year, its supporters said it was simply an… Continue reading PIA Calls Proposed Federal Insurance Regulation Bill Misleading

On Monday, Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co. and Wells Fargo & Co., announced that they will begin issuing so-called covered bonds, a popular method of financing in Europe that could make more mortgage financing available in the U.S and help in reinvigorating the housing market.     The move… Continue reading Banks to Issue Covered Bonds to Broaden Mortgage Financing Availability

U.S. home prices continued to worsen in May according to the S&P/Case-Shiller home-price index. The indices show year-over-year drops for the second straight month in every region measured.     Home prices in 10 major metropolitan areas fell by a record 17% from a year earlier and 1% from April. In 20 major metropolitan areas,… Continue reading Home Prices Continue to Fall

New York Governor David A. Paterson announced Friday that he has signed a law to aid livery drivers in New York City, and in Westchester and Nassau counties, giving them better access to workers’ benefits.     Injured livery drivers up to now could go years without compensation as their cases bounced between the no-fault… Continue reading New Legislation in NY Provides Livery Drivers with Better Access to Workers’ Benefits

Property and casualty insurer Safeco Corp on Tuesday said second-quarter profit fell 20 percent as the percentage of premiums it used to pay claims increased. In April, Safeco agreed to an acquisition by Liberty Mutual Group for $6.2 billion. Net income for Safeco fell to $149.5 million, or $1.65 per share, from $186.4 million, or… Continue reading Safeco Reports 20% Decrease in Profits

The third-biggest U.S. securities firm, Merrill Lynch & Co., plans to sell $8.5 billion of stock and liquidate $30.6 billion of bonds at a fifth of their face value to shore up credit ratings imperiled by mortgage losses.    In a statement yesterday Merrill said Temasek Holdings Pte., the Singapore-owned fund that became the New… Continue reading Merrill to Sell $8.5BB in Shares in Effort to Shore Up Credit Rating

Much has changed in the catastrophe insurance landscape since October 2005, when Hurricane Wilma became the last serious hurricane to make landfall on the U.S. mainland. Thousands of claims have been paid, thousands of others litigated. A few smaller companies lapsed into insolvency, while billions were raised for new offshore capitalizations. Despite more than two… Continue reading New Storms Could Blow Cat Debate Back on the Radar

Leading lawmakers this week accused the Bush administration of moving with unusual speed to push through a rule making it tougher to regulate workers’ on-the-job exposure to chemicals and toxins. The agency did not disclose the proposal, as required, in public notices of regulatory plans that it filed in December and May. Instead, Labor Secretary… Continue reading Dems Question Labor Dept on Proposed Workplace Toxin Rule Change

Two Bush administration officials said today that the federal budget deficit will approach $490 billion in fiscal 2009, confirming the negative impact of the economic slowdown on the nation’s finances.    The projected deficit for the fiscal year that begins Oct. 1 is far higher than the $407 billion forecast by President George W. Bush… Continue reading Federal Budget Deficit to Reach $490B in 2009