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A slumping U.S. economy and credit crunch drove down profits at General Electric’s financial, industrial and health care units, resulting in the company posting an unexpected 6 percent drop in first-quarter profit.     Shares of the second-largest U.S. company by market capitalization fell almost 10 percent, dragging down global markets.     Due to… Continue reading Economy and Credit Crunch Impact Giant GE

The Insurance Institute for Highway Safety found that Chrysler LLC and Kia Motors Corp. models are among sedans that are keeping U.S. occupants safer after being equipped with air bags that protect against side- impact crashes.     Chrysler’s Dodge Avenger side-impact safety improved to “good,” the highest rating, from “poor,” the lowest, in 2004,… Continue reading Insurance Institute Reports on Car Safety

A first-ever analysis from AAA finds that crashes involving teen drivers ages 15 to 17 cost American society more than $34 billion annually in medical expenses, lost work, property damage, quality of life loss, and other related costs in 2006.    “The impact of a teen crash extends beyond the emotional tragedies and physical injury… Continue reading AAA Analysis:Teenage Car Crashes Cost Society $34B

At the Financial Services Authority’s (FSA) annual Insurance Sector Conference in London, Hector Sants, the United Kingdom’s top regulator, along with the chairman of Lloyd’s and others, criticized current U.S. rules on reinsurance collateralization as well as the slow pace of regulatory reform in the United States.    “I am disappointed that progress has been… Continue reading UK Regulator Criticizes US Reinsurance Collateralization Rules and Slow Reform

In his speech in Washington at the Council of Institutional Investors, Treasury Secretary Henry Paulson stated today that the economy has “turned down sharply” and is at risk of further weakening. However, he said that the fiscal stimulus checks that will go out to Americans soon will have a real impact on the economy.  … Continue reading Paulson Speaks On Economy: Down Sharply, Stimulus Package to Impact

According to a report released by Fitch Ratings on Wednesday, litigation stemming from the sub-prime mortgage crisis is estimated to result in $3 billion to $4 billion in directors and officers liability and errors and omissions claims.    Fitch also notes that “insurers’ potential losses could be substantially higher if credit issues spread to sectors… Continue reading Fitch Report: Sub-Prime Crisis Will Result in Up to $4B in Liability Claims

Citing a worse-than-expected housing slump and concerns over rising unemployment that could lead to more defaults, Standard & Poor’s Ratings Services slashed its credit rating on four U.S. mortgage insurers: MGIC Investment Corp’s arm, Old Republic International Corp, PMI Group Inc., and Radian Group Inc.     Most companies will not generate an underwriting profit… Continue reading S&P Downgrades Four Mortgage Insurers

The White House announced early today that President Bush has approved a plan to expand a housing program to insure loans for credit-worthy homeowners unable to meet mortgage payments and which is expected to help about 500,000 borrowers by the end of this year.     The expansion is designed to help about 100,000 homeowners,… Continue reading BREAKING NEWS: Expanded Homeowners Program Approved by Bush

Yesterday we reported that the International Monetary Fund (IMF) stated that the credit crunch could result in $1 trillion in losses. The IMF also reported that world economic growth will slow to 3.7% in 2008 and 2009, 1.25% lower than growth in 2007.     The downturn will be led by the US, which the… Continue reading IMF: World Economy Forecasted for Slower Growth

According to data published today by the Mortgage Bankers Association, applications for U.S. home mortgages jumped last week, fueled by the ongoing increase in activity for government-backed loan programs.     The MBA said its seasonally adjusted index of mortgage application activity rose 5.4 percent to 725.6 in the week ended April 4. A year… Continue reading Also On the Home Front: Mortgage Apps Up Due to Fed-Backed Loan Programs