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Ohio state insurance director Mary Jo Hudson forecasts that Ohio is expecting to see slight increases in auto insurance rates through the end of 2008 and larger increases in homeowners premiums.    However, Hudson noted that average rates charged by the state’s top ten car insurers declined 2.6 percent in 2007, while rates for homeowners… Continue reading Some Rates Up, Others Down in Ohio Market

Swiss Re, the world’s largest reinsurer, announced it has agreed to purchase Barclays‘ life insurance arm for 753 million pounds ($1.48 billion). The purchase is intended to boost the reinsurer’s Admin Re business in England. Swiss Re also reported a mark-to-market loss on structured credit default swaps of 362 million Swiss francs ($345.7 million) in… Continue reading Swiss Re Buys Barclay’s Life Arm

The Senate may take up legislation that could broaden the coverage of the Americans with Disabilities Act. The ADA Amendments Act of 2008, introduced by Sen. Tom Harkin (D-Iowa), would instruct courts to interpret broadly the definition of disability under the ADA. Following suit with similar legislation that has already won House approval, the bill… Continue reading Senate to Examine Bill to Broaden ADA

The word on Wall Street says that the U.S. Federal Reserve is expected to keep short-term benchmark interest rates steady as the lackluster housing market, higher prices and tight credit woes weigh heavy on the faltering U.S. economy. While the federal funds rate will likely stay at 2 percent, more than one voting member of… Continue reading In Face of Uncertain Growth, Fed Expected to Keep Rates on Steady as She Goes

Tropical Storm Edouard is picking up strength as it whirls its way across the Gulf of Mexico. U.S. weather forecasters are expecting the storm to hit the Texas coast with near-hurricane strength by midday today. Edouard is the fifth tropical storm of this year’s Atlantic hurricane season. Thus far it has maximum sustained winds near… Continue reading Batten Down the Hatches: Storm Gaining Strength

Reports have surfaced that for years, Richard Syron, CEO of embattled Freddie Mac, failed to heed internal warnings that could have protected the U.S. mortgage market giant from some of the catastrophic financial problems it now faces.    Syron received a memo in 2004 from Freddie Mac’s chief risk officer warning him that the firm… Continue reading Freddie Mac CEO: “We Couldn’t Afford to Say No to Anyone”

Amsterdam and Brussels, Belgium-based Fortis, the financial-services firm that ousted its chief executive officer last month, declined sharply in trading in the wake of its announcement that second-quarter profit dropped 49 percent on credit-related writedowns. Fortis posted net income of 830 million euros ($1.29 billion), down from 1.62 billion euros in the year-ago period. The… Continue reading Fortis Annouces Major 2Q Decline on Writedowns

Glen Allen, Virginia-based broker Hilb Rogal & Hobbs Co. (HRH) announced that although it posted higher revenues in the first six months of 2008, profits plunged by more than $30 million after an $18.4 million second-quarter impairment charge. For the six-month period, profits fell 64.9% to $16.7 million. HRH said the second-quarter expense—which is a… Continue reading Impairment Charge Proves Costly for Broker

Louisville, Kentucky-based Humana Inc., the second-largest provider of U.S.-funded health insurance, posted a 3.2 percent drop in profits for the secondquarter, attributing the decline to rising costs in its Medicare drug plans for senior citizens. Second-quarter net income dipped to $209.9 million, down from $216.9 million in the year-ago period. Still, the insurer’s profits were… Continue reading Health Insurer Posts Declines, Points to Rising Medicare Drug Costs

Ambac Financial Group, Inc. (Ambac) today announced that it has settled one of its largest CDO exposures, AA Bespoke, in exchange for a final cash payment of $850 million to its sole counterparty. AA Bespoke is a $1.4 billion transaction that originally comprised AA rated CDO of ABS tranches, most of which have been downgraded… Continue reading Ambac Settles $1.4 Billion CDO Squared Transaction