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Following AIG’s successful raising of $17 billion in capital, Standard & Poor’s Corp. has affirmed its AA+ counter-party credit and financial strength ratings on American International Group Inc.’s core operating subsidiaries.    The outlook on the ratings is negative, S&P said.    In addition, the ratings agency affirmed the New York-based insurer’s AA- counter-party credit… Continue reading AIG’s S&P AA+ Rating Affirmed

As U.S. banks try to clean up the subprime mess, tougher versions of old lending rules are now being reintroduced and consumers are finding it harder to get loans.    The American dream of home ownership is moving further out of reach for people of modest means. Even affluent buyers, who took advantage the last… Continue reading The American Dream: Low Downpayments are A Thing of the Past

A.M. Best Co. has downgraded the financial strength rating (FSR) to B+ (Good) from B++ (Good) and issuer credit rating (ICR) to ‘bbb-” from ‘bbb” of American Farmers & Ranchers Mutual Insurance Company (Oklahoma City, OK). In addition, A.M. Best has assigned an FSR of B+ (Good) and ICRs of ‘bbb-” to American Farmers &… Continue reading A.M. Best Downgrades Ratings of American Farmers & Ranchers Mutual Insurance Company; Places Ratings Under Review

Consumers benefit when insurance companies use credit-based insurance scoring in underwriting and rating policies. That’s the message the National Association of Mutual Insurance Companies (NAMIC) will deliver to a congressional panel examining insurers’ use of credit-based insurance scoring today. The House Financial Services’ Subcommittee on Oversight and Investigations’ hearing today is the second on the… Continue reading NAMIC to Congress: Credit-Based Insurance Scoring Benefits Consumers

The Wall Street Journal reported on Wednesday that former chief executive of American International Group (AIG), Maurice “Hank” Greenberg, may face civil charges for his alleged role in an effort to improperly boost the insurer’s financials. The publication reported that Greenberg received a “wells notice” from the Securities and Exchange Commission on Friday and may… Continue reading WSJ Reports that Greenberg May Face SEC Civil Charges in Gen Re Case

After the board at Insurance Australia Group Ltd. rejected a sweetened offer from Australian insurer QBE Insurance Group Ltd. on Wednesday, the $8.4 billion takeover bid was withdrawn. IAG shares fell as much as 8.3 percent Wednesday as analysts said the insurer’s board must now convince investors it was right to reject the offer. “QBE… Continue reading Australian QBE Insurance Withdraws Bid Offer to Competitor

According to the Mortgage Bankers Association (MBA), applications for U.S. home mortgages fell to its second-lowest level of the year last week as interest rates rose.     The industry group reported that its seasonally adjusted index of mortgage application activity fell 7.8 percent to 621.6 in the week ended May 16.The index touched its… Continue reading Mortgage Applications Hit Second-Lowest Level in ’08

Nationwide Insurance in its second annual DWD (Driving While Distracted) study found that, while 98 percent of Americans claim to be safe drivers, a vast majority also admit to DWD. More than four out of five cell-phone owners are guilty of talking on their phones while driving, and nearly three-quarters (72 percent) of all drivers… Continue reading Nationwide Study on Drivers: Distracted On the Road

The strong winds and large hail that hit parts of Austin, Texas last week are expected to result in insured losses totaling $50 million. Claims from damaged homes and automobiles continue to come in.    Up to 20,000 insurance claims are expected from the storm that uprooted trees, knocked out windows, damaged roofs, and smashed… Continue reading Texas Storm Expected to Result in $50M in Insured Losses

Richard “Dickie” Scruggs was ordered by a federal magistrate judge to turn over to State Farm documents he claimed proved that the insurer cheated policyholders following Hurricane Katrina. U.S. Magistrate Judge Robert H. Walker of the District Court for the Southern District of Mississippi, said State Farm can have a series of documents it requested… Continue reading Judge Orders Scruggs to Turn Over to State Farm Documents in Katrina Case