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Fitch reported on Wednesday that the U.S. property and casualty insurance industry reported strong results in 2007 but fell short of the record net profits and underwriting performance of 2006. For the second consecutive year, underwriting results benefited from benign natural catastrophe activity and positive loss reserve development that combined to partially offset the adverse… Continue reading Fitch: Strong Results for P/C Industry for ’07 Yet Not as Good as ’06

Citigroup Inc. and Enron Creditors Recovery Corp., Enron’s successor corporation, reached a $1.66 billion agreement, settling a lawsuit over the bank’s alleged role in Enron’s 2001 collapse.    The settlement came a day before Citigroup was expected to ask a judge to toss out the suit, and represents a huge step toward the final settlement… Continue reading Citigroup Reaches Settlement on Enron Lawsuit

The American Insurance Association (AIA) today said a climate change-related proposal by the National Association of Insurance Commissioners (NAIC) would create unnecessary friction and unproductive controversy between regulators and insurers, and divert attention and resources from possible areas of cooperation to reduce greenhouse gases.     The NAIC Climate Change and Global Warming Task Force… Continue reading AIA Sees NAIC’s Climate Change Proposal as Creating Conflict

Today the Commerce Department reported that gross domestic product increased at a mere 0.6 percent annual rate in the October-to-December quarter, providing stark evidence of just how much the economy has weakened. In the prior quarter, the economy clocked in at a sizzling 4.9 percent growth rate. The gross domestic product (GDP) measures the value… Continue reading Fourth-Quarter ’07 Saw a 0.6% Growth in Economy

According to Oppenheimer analyst Meredith Whitney, credit problems are worsening and it is expected that Merrill Lynch and UBS will lose money this quarter and suffer write-downs of $6 billion and $11.1 billion, respectively. Her forecasts were issued late Wednesday, after bank shares tumbled following her decision a day earlier to slash estimates for Citigroup,… Continue reading Oppenheimer Analyst Expects Likelihood of Losses, Write-downs at Merrill and UBS

According to the S&P report “ERM Development in the Insurance Sector Could Gain Strength in 2008,” published on S&P’s RatingsDirect this week, a review of ERM practices of rated companies in 2006 showed several dozen companies developing systems to support better ERM practices. “We predicted that 10 to 15 of those companies could receive improved… Continue reading S&P: Review of Industry ERM Practices Shows Improvement

According to the Michael White-Symetra Bank Fee Income Report™ (Bank-FIR), bank insurance brokerage fee income hovered near record levels in 2007, reaching a total of $4.04 billion, only 0.8% lower than the record $4.08 billion attained in 2006. The report, compiled by Michael White Associates, LLC (MWA) and sponsored by Symetra Financial, measures and benchmarks… Continue reading Banks’ Insurance Brokerage Fees at Near Record Levels for 2007

In court papers filed in Chicago, American International Group Inc., which set aside $301 million to repay state workers’ compensation programs it shortchanged, the insurance giant claims Liberty Mutual Group Inc., Hartford Financial Services Group Inc. and a predecessor of Travelers Cos. broke federal racketeering laws by “conspiring” to dump shared costs on AIG while… Continue reading AIG Claims Rivals Broke Racketeering Laws in WC Dispute

According to a report by the New York City’s Independent Budget Office, more than 20,000 jobs in the high-paying financial sector of the city may be at risk over the next two years as the crisis in mortgage markets drives down Wall Street’s profits. The report issued on Monday estimated that Wall Street’s profits for… Continue reading Mortgage Fall-Out on Wall Street May Result in Job Losses of 20,000 Over Two Years

On Tuesday, an emergency order to stall JPMorgan Chase from moving forward with its takeover of Bear Stearns was filed by two U.S. pension funds in a Delaware court. JPMorgan Chase & Co has agreed to buy 95 million newly issued Bear shares, or a 39.5 percent stake. It is widely seen as giving JPMorgan… Continue reading Bear Stearns Investors File an Emergency Order to Stop JPMorgan’s Take-over