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In an effort to help preserve the top-tier credit ratings critical for its main insurance business, Ambac Financial Group Inc, the second-largest U.S. bond insurer, stated its plans to sell at least $1.5 billion of stock and convertible securities. The capital infusion would provide Ambac with additional funds to cover billions of dollars of claims… Continue reading Ambac Looking to Raise $1.5B Through Stock & Securities Sales

According to a new study by Conning Research & Consulting, mutual property/casualty insurers are likely to face increased competition over the next few years due to overall capital buildup in the insurance industry, but they are well positioned to compete.    “Property/casualty insurers are coming off five years of strong operating performance and capital buildup,”… Continue reading Research Shows Mutual Insurers Poised for Increased Competition in Soft Market

A.M. Best Co. has downgraded the financial strength rating (FSR) to B++ (Good) from A- (Excellent) and has assigned an issuer credit rating (ICR) of “bbb+” to Wolverine Mutual Insurance Company (Wolverine) (Dowagiac, MI). The outlook for the FSR has been revised to stable from negative, while the outlook assigned to the ICR is negative.… Continue reading A.M. Best Downgrades Rating of Wolverine Mutual Insurance Company

Three-term Arizona Congressman Rick Renzi pleaded not guilty Tuesday to federal charges including insurance fraud, extortion and money laundering. Renzi, 49 years old, made his initial appearance in U.S. District Court, where he was arraigned on charges stemming from a 35-count indictment issued Feb. 21. Two co-defendants also were named in the indictment. He entered… Continue reading AZ Rep Pleads Not Guilty to Insurance Fraud, Extortion

Insurance Superintendent Eric Dinallo has recommended that the state of New York should centralize its workers’ compensation data in a comprehensive information bank that then could be used to analyze, benchmark and improve the system. The secure information bank would correlate and translate detailed medical and other claim-related costs as well as measurements of quality… Continue reading NY Dinallo Report Recommends Centralized WC Database

According to a new study by Conning Research & Consulting, mutual property/casualty insurers are likely to face increased competition over the next few years due to overall capital buildup in the insurance industry, but they are well positioned to compete.    “Property/casualty insurers are coming off five years of strong operating performance and capital buildup,”… Continue reading Research Shows Mutual Insurers Poised for Increased Competition in Soft Market

Fed Vice Chairman Donald Kohn during a Senate Banking Committee hearing stated that the central bank failed to fully appreciate risks that financial institutions were taking before the recent credit problems, and it is reviewing its regulations. Kohn stated that the central bank is likely to become “more forceful” with the financial institutions it supervises.… Continue reading Fed Official Cedes Bank Risks Not Fully Appreciated

Banks are close to working out a rescue plan for troubled bond insurer Ambac Financial Group, though no deal has been reached yet, according to CNBC who spoke with people familiar with the matter. Talks are expected to continue through the night, and the banks hope to reach an agreement by today. Ambac’s stock rose… Continue reading CNBC: Ambac Rescue Close

According to a report scheduled to be released by AAA today shows that automobile crashes cost the U.S. $164.2 billion annually, or $1,051 per person. AAA says that even though drivers tend to focus more on how traffic congestion hurts productivity and makes travelers miserable, the actual cost of crashes totals more than twice the… Continue reading AAA Study Shows Car Crashes Cost $164.2B Annually

According to company disclosures and people familiar with the issue, federal authorities are preparing to charge more than two dozen people and a handful of financial firms amid an investigation of municipal contract awards. The Justice Department, the Securities and Exchange Commission and the Internal Revenue Service have been focusing on how firms are selected… Continue reading Fed Set to File Charges on Muni Contracts