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On Thursday New York Attorney General Andrew Cuomo announced on that he has issued new subpoenas to Aetna Inc., Cigna Corp., UnitedHealth Group Inc. and WellPoint Inc., and other health insurers in a broadening investigation of possible fraud costing consumers hundreds of millions of dollars. In February, Cuomo began the investigation alleging that insurers have… Continue reading NY Attorney General Expands Health Insurer Probe

New York-based Citigroup, the largest U.S. bank, said it aims to cut its home loan exposure by $45 billion, reduce risk and save $200 million a year in an overhaul of its U.S. residential mortgage business. Citigroup suffered a $9.83 billion fourth-quarter loss tied largely to mortgages, also plans to fold its Citi Home Equity… Continue reading Citigroup Looks to Cut Home Loan Exposure by $45B

Today bond insurer Ambac Financial Group Inc reported that it sold $1.5 billion of shares and convertibles, protecting the company from ratings cuts but not satisfying some analysts who wanted the company to raise more.    Ambac said it sold $1.25 billion of common shares at $6.75 a share, or 9 percent below their closing… Continue reading Ambac Raises Money Needed to Avert Ratings Cuts

The Arkansas Insurance Department released its third straight report to the Senate showing that a majority of Arkansas homeowners and motor vehicle owners pay lower or the same rates when credit information is used in calculating rates, said the American Insurance Association (AIA). The report found that 30 percent of Arkansas homeowners and motor vehicle… Continue reading Arkansas Study Shows Credit Info Lowers Insurance Premiums

Cleveland Federal Reserve President Sandra Pianalto said on Wednesday that the global credit crisis creates big downside risks to an already softening economy requiring bold action from the U.S. central bank. Pianalto was speaking to an audience of investors at a New York event sponsored by the Money Marketeers. In the fourth quarter, the U.S.… Continue reading Pianalto: Bold Moves Needed by Fed to Address Global Credit Crisis

Alabama Insurance Commissioner Walter Bell, has issued an order to insurers to stop offering insurance such as homeowners on the condition the customer also purchase another policy with the same company, known as “mono-line status” or “tying”. One of these companies is Allstate, which said it is now involved in “productive dialogue” with Bell.   … Continue reading Insurers Ordered to Stop Mono-Line Practice in AL

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