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On Monday mortgage insurer PMI Group estimated a significant fourth-quarter net loss from its financial guaranty segment, and reported a net loss of $236 million in its U.S. mortgage insurance operation for the same period. PMI earned $33 million from its financial guaranty segment, and $217.3 million from its U.S. mortgage business in the same… Continue reading PMI Estimates Substantial Fourth-Quarter Loss

In a statement made by Munich Re’s insurance unit ERGO on Tuesday, the insurer anticipates net profit to decline between 480-600 million euros ($728-$910 million) this year, due to lower tax benefits and investment earnings.    ERGO’s net profit fell to 781 million euros in 2007 from 889 million the previous year.    Germany’s second-biggest… Continue reading Munich Re’s ERGO Unit Expects Profit Decline for ’08

According to a “Financial Times” report , the second biggest U.S. Bond insurer Ambac Financial Group Inc has decided against splitting in two as part of a $2 billion to $3 billion recapitalization.    Under a recent proposal Ambac would have split its operations into a triple-A-rated municipal bond insurance business and a structured finance… Continue reading Ambac Reverses Decision to Split Company

The largest U.S. mortgage lender, Countrywide Financial, said it may see more credit losses as downward trends in the economy and in the real estate market conspire to boost delinquency rates.    In its annual filing with the Securities and Exchange Commission, released Friday, Countrywide said rising monthly payments on adjustable-rate mortgage loans, also known… Continue reading Countrywide May See More Credit Losses

Does Wall Street underrate Main Street? A growing number of states and cities say yes. If they are right, billions of taxpayers’ dollars — money that could be used to build schools, pave roads and repair bridges — are being siphoned off in the financial markets, where the recent tumult has driven up borrowing costs… Continue reading States and Cities Want to Change How Bonds are Rated

To an industry slowly recovering from a four-year period of intense regulatory scrutiny, the recent federal jury decision to convict five former senior insurance executives of securities fraud in connection with a finite reinsurance deal is yet another black eye, experts say in a story in “BestWeek” U.S./Canada.    Many are expecting the guilty verdicts… Continue reading BestWeek: Guilty Verdict in Finite Re Trial Is Mixed Blessing for Industry, Experts Say

Mired in sub-prime losses and an 80% slide in stock, bond insurer MBIA Inc. approved the lowest executive bonuses in its history. Payouts averaged 40 percent of the company’s targets, compared with an average 75 percent to 90 percent, MBIA said in a regulatory filing today. Some executives’ bonuses were reduced by more than half.… Continue reading MBIA Approves Low Bonuses for Execs

Bond insurer Ambac Financial Group Inc. in taking initial steps towards bolstering its credit ratings, will cut its dividend and stop writing policies for complex debt securities for the next six months. Similar to measures recently announced by rival MBIA Inc., Ambac’s strategy is to preserve its top-notch triple-A rating, which it needs to compete… Continue reading Ambac Takes First Steps for Turnaround, Cuts Dividend and More

Speaking on CNBC this morning, billionaire investor Warren Buffett said that the U.S. economy is in recession , however, in his view over the long-run the U.S. economy will do fine and that each generation will live better than the one before it.     He also said he is no longer offering to guarantee… Continue reading CNBC: Billionaire Buffett Says US in Recession, Long-Haul Will be Fine

Members of the National Association for Business Economists (NABE) said on Monday that the combined punch of sub-prime mortgage defaults and heavy debt remains the biggest risk to the health of the U.S. economy. The conclusion was based on a survey of 259 members conducted between February 1-15 and updates a poll conducted in August.… Continue reading Economists Say Sub-Prime Crisis and Heavy Debt Still Biggest U.S. Risk