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The world’s fourth-largest broker, Arthur J. Gallagher & Co., posted a first-quarter loss of $6 million despite a more than 10% increase in revenue from its brokerage and risk management operations compared to the same period last year. In contrast, Gallagher reported profits of $19.8 million for the first quarter last year. Gallagher attributes the… Continue reading Gallagher Reports First-Quarter Loss

OLDWICK, N.J. April 24 (BestWire) — A.M. Best Co. has downgraded the financial strength rating (FSR) to A- (Excellent) from A (Excellent) and issuer credit ratings (ICR) to “a-” from “a” of First American Corporation Property Casualty Companies (First American P&C Group) (Santa Ana, CA) and its member companies, First American Property & Casualty Insurance… Continue reading A.M. Best Downgrades Ratings of First American Corporation Property Casualty Companies

The Senate plans to vote today on the Genetic Information Nondiscrimination Act, which would make it it illegal for employers and insurance companies to deny applicants jobs and health care coverage because DNA tests show they are genetically disposed to a disease. Supporters of the Act said the House also is likely to give quick… Continue reading Bill to Ban Genetic Discrimination Up for Vote

The nation’s largest publicly traded home and car insurer, Allstate Corp, reported a whopping 77 percent drop in first-quarter net income, affected by write-downs in its investments and larger-than-expected catastrophe losses. Northbrook, Illinois-based Allstate said it was forced to write down the value of fixed-income securities by $347 million due to instability in the global… Continue reading Allstate Posts Sharp Decline in Profits

Travelers Cos. reported first-quarter net income of $967 million, or $1.54 a shares compared with $1.09 billion, or $1.56 a share a year earlier, an 8 percent on a 12 percent dip in investment income, although the insurer did boost its operating earnings guidance for the year. Travelers Chairman and Chief Executive Jay Fishman said,… Continue reading Drop in Income for Travelers, Too

Hartford, Connecticut-based Aetna Inc. posted a decline in first-quarter profit but membership growth and higher premium rates pushed the health insurer’s revenue higher, surpassing expectations on Wall Street. According to Aetna, earnings for the period amounted to $431.6 million, or 85 cents per share, in the three months ended March 31 compared with year-ago earnings… Continue reading First-Quarter Profit Down for Aetna

The nation’s seventh largest insurance brokerage, BB&T Insurance Services, announced an agreement to purchase California-based UnionBanc Insurance Services Inc., a subsidiary of Union Bank of California, N.A. Terms of the deal were not disclosed. The purchase would extend Raleigh, North Carolina-based BB&T Corporation’s insurance operations in California, where it already has a presence through wholesale… Continue reading BB&T Insurance Services to Buy UnionBanc

Acquisitions such as the Liberty Mutual’s purchase of Safeco Corp — and especially those with 51-percent premiums as is the case in this purchase — may come with yet more unexpected consequences. For example, based on the agreement in principle for the acquisition of Safeco by Liberty Mutual, A.M. Best Co. has placed Safeco and… Continue reading Safeco Placed on Ratings Review

Might Liberty Mutual Group’s $6.2 billion purchase of Safeco Corp mean that more sales and acquisitions to come in the insurance sector? Yes, according to Matthew Josefowicz, director of the insurance practice at research and advisory firm Novarica. “Although property/casualty insurers had their second strong year in 2007 in terms of underwriting results, achieving top-line… Continue reading Are More Insurance Company Sales, Acquisitions on the Horizon?

Liberty Mutual Group of Boston’s $6.2 billion purchase of Seattle, Washington-based Safeco Insurance will mean the city of Seattle will lose a Fortune 500 corporate giant, an 85-year-old iconic headquarters building that towers over the University District (sold two years ago, which some say was a portent of things to come), and jobs on both… Continue reading Liberty Mutual Purchase of Safeco Has Ripple Effect