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Today Liberty Mutual Group announced that it would buy property and casualty insurer Safeco for $6.2 billion in a deal that would make Liberty Mutual the fifth-largest U.S. property and casualty insurer.    Each share of Safeco will be exchanged for $68.25 cash, nearly a 51 percent premium over Safeco’s closing stock price of $45.23… Continue reading Liberty Mutual to Buy Safeco for $6.2B

Australia’s largest property and casualty insurer, QBE Insurance Group Ltd., has extended its A$7.7 billion ($7.3 billion) takeover offer for Insurance Australia Group Ltd. through May 5. Insurance Australia has been a target for takeover by QBE CEO Frank O’Halloran after it posted three straight years of declining profits.    QBE’s offer, comprised of cash… Continue reading Multibillion Bid for Australian Insurer Extended

As Earth Week (April 21-25) continues, Fireman’s Fund Insurance Company – the nation’s first provider of green insurance – will highlight its commitment to environmental responsibility and sustainability through a series of activities at its headquarters.      From special parking privileges for bicyclers and hybrid drivers to environmentally friendly product giveaways and meetings with local… Continue reading Green Insurer Doing Its Part to Heal the Planet

New York-based Ambac Financial Group Inc., the second-largest bond insurer, posted a wider loss than analysts estimated after taking $3.1 billion in charges for subprime-mortgage securities. Although the insurer was successful recently at staving off a credit-rating downgrade, it was not so fortunate in terms of financials, posting a $1.66 billion first-quarter net loss, in… Continue reading Ambac Posts Worse Than Expected Losses

A Michigan bill has been passed by the Democrat-controlled state House aimed at stopping the use of credit scoring in establishing rates for auto insurance.     The bill passed Tuesday by an eight-vote margin, but could face a much tougher time making its way through the Repulican-led Senate.     Supporters of the bill… Continue reading State House Passes Auto Insurance Bill

Fannie Mae, Freddie Mac and other companies bleeding red ink as mortgage delinquencies continue to rise have won a substantial victory in a two-year battle with the Internal Revenue Service, and will now be allowed to use those losses to reduce their tax burden.     The IRS withdrew proposed regulations that had asserted that… Continue reading Fannie Mae, Freddie Mac Come Out on Top in IRS Battle

The country’s largest health insurer, WellPoint Inc., posted a 25 percent decline in first-quarter net income amid a rising medical-loss ratio as the insurer once again lowered its full-year earnings projections.    Angela Braly, WellPoint president and CEO, said the new forecast is based on “higher medical costs and a lower level of favorable prior-year… Continue reading Health Insurer Posts Sickening Drop in Profits

Readers of the Wall Street Journal weigh in on whether the government should establish a federal office to regulate insurance after an op-ed piece by Representative Ed Royce appeared in the paper. Here’s what they have to say: In his op-ed “The Forgotten Financial Sector” (April 16), Rep. Ed Royce laments that the states have… Continue reading WSJ: Citizens Comment on Op-Ed Piece about Federal Insurance Regulation

Due to a mistake made on Monday by a Florida appeals court, Allstate’s 1,100 insurance agents in the state are still in business. Less than an hour after issuing an order denying Allstate’s appeal of a state-ordered suspension, the 1st District Court of Appeal withdrew it.    In a terse statement withdrawing the original order,… Continue reading FL Appeals Court Reverses Allstate Suspension

According to the latest Commercial Market Index Survey by The Council of Insurance Agents & Brokers, the soft cycle for commercial property/casualty insurance got even softer in the first quarter of 2008, with three-fourths of the agents and brokers reporting that renewal premiums for their small and medium accounts were down 1-20 percent compared with… Continue reading CIAB Survey: Market is Softer in First Quarter ’08