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Switzerland’s largest insurer, Zurich Financial Services AG, reported fourth-quarter profit advanced 14 percent on higher income at its property and casualty division. Zurich Financial said that net income increased to $1.47 billion from $1.29 billion a year earlier, which surpassed the $1.25 billion median estimate of 11 analysts. The insurer said it would buy back… Continue reading Zurich Reports Fourth-Quarter Profit, P/C Income Contributed Significantly

The world’s biggest bond insurer, MBIA Inc. said it is equipped to survive the slump in prices of mortgage securities and dismissed suggestions that the industry needs a rescue or stronger federal oversight. “A bailout of highly credit-worthy companies who, at most, are at risk of losing the very highest ratings available, is misplaced,” MBIA… Continue reading Bond Insurer MBIA Says It Can Survive Mortgage Price Slump

Thursday Swiss bank UBS stated that it has 26.6 billion in exposure to risky U.S. mortgages distinct from sub-prime loans, increasing its vulnerability to the global credit crisis and sending its shares sharply lower.    “This will raise concerns about further major write-downs in 2008,” said Bear Stearns analyst Chris Wheeler in a note.   … Continue reading UBS Reports Exposure in US Mortgages

Scheduled to testify on Thursday at a House Financial Services subcommittee hearing on bond insurer problems are New York Gov. Eliot Spitzer and New York State Insurance Superintendent Eric Dinallo.    Also scheduled to testify at the hearing are senior executives of Pershing Square Capital Management, Fitch Ratings, Ambac Financial Group Inc, according to a… Continue reading Spitzer and Dinallo to Testify at Bond Insurer Committee Hearing in NY

The Commerce Department reported a rise in retail sales in the U.S. in January, calming concern that the world’s largest economy has already slipped into a recession. The 0.3 percent increase was led by spending on autos, clothes and gasoline, according to the Commerce Department. The figure followed a 0.4 percent decrease the previous month.… Continue reading Retail Sales Up in January

A bill introduced by Senator Charles Schumer (D-N.Y.) to temporarily reset deductibles following large terrorism events, is consistent with the position the Property Casualty Insurers Association of America (PCI) has taken on this issue.    “PCI has supported a reset provision because we believe it will provide much-needed assistance to areas previously impacted by significant… Continue reading Schumer Reset Bill Is Consistent with PCI Position

Mortgage insurer MGIC Investment Corp. reported fourth-quarter losses while it establishes a $1.2 billion reserve to cover future losses as the company was hard-hit by the credit crisis. The company stated that it doesn’t expect to turn a profit this year. MGIC reported a net loss of $1.47 billion, or $18.17 a share, compared with… Continue reading MGIC Reports Net Loss and Foresees Continued Downturn for ’08

On Tuesday six top mortgage companies announced the launch of a program designed to stave off foreclosure for seriously delinquent borrowers in the hopes that new, more affordable loan terms can be worked out. “Project Lifeline,” backed by the U.S. Treasury and the Department of Housing and Urban Development, would pause foreclosure proceedings for borrowers… Continue reading Major Mortgage Companies Launch Program to Help Borrowers with Foreclosure Threats

Today the General Re Corp. finite risk trial began to hear closing arguments began. Prosecutors charge that five defendants conspired to help American International Group Inc. (AIG) commit fraud. Lawyers for two of the defendants countering that no such conspiracy existed. Jurors heard from Assistant U.S. Attorney Eric Glover that the evidence in the case,… Continue reading Gen Re Trial Hears Closing Arguments

David A. Sampson, president and CEO of the Property Casualty Insurers Association of America (PCI), has issued the following statement on today’s field hearing of the House Financial Services Committee’s Subcommittee on Oversight & Investigations regarding the availability and affordability of homeowners insurance in disaster-prone areas: “PCI believes that we all share a number of… Continue reading PCI Calls for Responsible Catastrophic Risk Solutions