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OLDWICK, N.J.–(BUSINESS WIRE)–April 8, 2008–A.M. Best Co. has downgraded the financial strength rating (FSR) to A- (Excellent) from A (Excellent) and the issuer credit rating (ICR) to “a-” from “a” for Mid-Continent Insurance Company (Mid-Continent) (Somerset, PA). The outlook for these ratings is stable.    These rating actions follow Mid-Continent’s significant loss reserve strengthening that… Continue reading A.M. Best Downgrades Ratings of Mid-Continent Insurance Company

According to MarketScout, U.S. property/casualty insurance rates dropped an average of 12% in March compared with the same period last year. However, the decrease rate seems to be moderating, according to the Dallas-based electronic insurance exchange. “We anticipate rate decreases to moderate for the remainder of 2008,” Richard Kerr, MarketScout’s chairman and chief executive officer,… Continue reading MarketScout: P/C Rates Drop Moderating

According to the RIMS Benchmark Survey™, the industry’s leading survey of policy renewal prices as reported by corporate risk managers, commercial lines insurance premiums experienced the largest quarterly drop since 2005 during the first quarter of 2008.    Undeterred by mounting claims from the meltdown of the sub-prime mortgage market, the average directors and officers… Continue reading RIMS Benchmark Survey: Commerical Lines Premiums Down

While speaking to reporters before Morgan Stanley’s annual meeting today, Chief Executive Officer John Mack said the credit crisis will last `”a couple of quarters” longer as it spreads to commercial real estate, European lenders with sub-prime holdings and U.S. mid-sized banks. “It’s going to be a difficult year for the Street,” Mack said.   … Continue reading Morgan Stanley CEO Mack Speaks on Credit Crisis at Company Meeting

The following is reaction to the Treasury Department’s “Blueprint for a Modernized Financial Regulatory Structure,” which endorses an optional federal charter system for insurance.     “The current regulatory structures make serving insurance customers across the country complicated, costly and cumbersome. Increasingly, insurance challenges are also national and international in scope. In the 21st century,… Continue reading More Weigh In on Treasury’s Proposal for OFC

Potential losses from the credit crunch could reach $945B or higher, according to the International Monetary Fund (IMF) Global Stability Report.    The overseer of the global company says that losses are spreading from sub-prime mortgage assets to other sectors, such as commercial property, consumer credit, and company debt. It says that there was a… Continue reading IMF Report Says Credit Crunch Could Reach $1 Trillion

The largest U.S. savings and loan, Washington Mutual, stated that will receive a $7 billion capital injection from private equity firm TPG and other investors, about $2 billion more than previously reported.     The company also said it expects to report a first-quarter loss of $1.1 billion, or $1.40 per share. Additionally, it expects… Continue reading WaMu Rescue Comes as $7Billion in Capital Infusion

House Majority Whip Rep. James Clyburn (D-S.C.) and Sen. Susan Collins (R-Maine) addressed 1,200 independent insurance agents and brokers at the Independent Insurance Agents & Brokers of America’s (the Big “I”) Legislative Conference & Convention last week.    Clyburn discussed the current financial crisis and the economic stimulus package. “We kept small businesses in mind….and… Continue reading Federal Insurance Regulation Among Issues Addressed at IIABA Conference

On Friday a Florida appeals court upheld a state regulator’s order suspending Allstate Corp from writing new insurance policies in Florida. In January the state’s Office of Insurance Regulation (OIR) suspended Allstate, stating it had not fully complied with a subpoena to testify about its property insurance business. Allstate immediately appealed and won a stay… Continue reading Allstate Suspension in FL Upheld by Appeals Court

According to a source familiar with the matter, U.S. private equity firm TPG and other investors are closer to striking a deal to invest around $5 billion in U.S. thrift Washington Mutual. The announcement could come as early as today. According to the report, the investment looks like it could be both a common- and… Continue reading WaMu Close to Receiving $5B in Investment Amid Heavy Mortgage Losses