Although Warren Buffett has entered the business of bond insurance with the formation of his new company, Berkshire Hathaway Assurance, he is clear about not getting involved in the type of rsky products that have lead to widespread trouble for the industry of late. In an interview with Canadian paper “Financial Post” on… Continue reading Buffett Says He’ll Stay Away from Risky Side of Bond Insurance Business
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The UK Facing Crisis Amid Global Credit Crunch, BoE Cuts Interest Rates
For more than a decade, the United Kingdom has been building a name for itself as a world financial hub that rivals New York. But the global credit crunch is making this status more of a liability than an attraction. No other large country is as dependent on the movement of foreign money through its… Continue reading The UK Facing Crisis Amid Global Credit Crunch, BoE Cuts Interest Rates
Florida Commitee Hears from Nationwide and Allstate on Homeowners Rates
Executives from Nationwide and Allstate units doing business in Florida testified before the state’s newly formed Senate Select Committee on Property Insurance Accountability that the companies have complied with legislation designed to lower rates for homeowners insurance. Nationwide Insurance Company of Florida was awarded in March by an arbitration panel a 54% rate increase,… Continue reading Florida Commitee Hears from Nationwide and Allstate on Homeowners Rates
Profits at Moody’s Down, Outlook for ’08 Weak
The world’s second-largest credit rating company, Moody’s Corp., reported a 54 percent drop in profit and stated the first half of 2008 will be “weak” after a collapse in new bond sales reduced demand for rankings. Fourth-quarter net income declined to $127.3 million, or 49 cents a share, from $278.6 million, or 97 cents,… Continue reading Profits at Moody’s Down, Outlook for ’08 Weak
MBIA to Raise $750M, Annoucement Comes after Fitch’s Downgrade Warning
On the heels rating agency Fitch’s warning that it may downgrade the bond insurance unit of MBIA Inc, the largest US bond insurer said on Wednesday that it would raise $750 million by issuing new shares in an attempt to boost its capital to retain the top credit ratings crucial for its business. … Continue reading MBIA to Raise $750M, Annoucement Comes after Fitch’s Downgrade Warning
MarketScout Reports January Premiums Decline at Slower Rate
Largely as a result of D&O prices related to the sub-prime lending crises, the composite rate reductions for Property and Casualty insurance moderated slightly in January. According to Richard Kerr, Founder and CEO of MarketScout, “D&O and all lines of professional liability actually experienced moderated reductions in January 2008 as compared to December 2007. D&O… Continue reading MarketScout Reports January Premiums Decline at Slower Rate
New Report, Property/Casualty Insurance Profit Dynamics, Published by Fitch
A new report: ‘Property/Casualty Insurance Profit Dynamics’ has been published by Fitch Ratings. The report looks at the profitability dynamics for property/casualty insurers and how Fitch assesses insurer profitability on a statutory basis, examining the interplay of five key factors: underwriting performance, investment yield, operating leverage, asset leverage and tax rates that affect insurers’ profitability… Continue reading New Report, Property/Casualty Insurance Profit Dynamics, Published by Fitch
Fitch Warns of Possible Downgrade of MBIA Bond Insurance Units
Just three weeks after reaffirming the industry leader at AAA, Fitch Ratings warned on Tuesday that could downgrade its top-level ratings on the bond insurance units of MBIA Inc. The warning comes as Fitch, which also said it could downgrade the AAA-rated units of CIFG Guaranty, re-evaluates the industry in light of its new… Continue reading Fitch Warns of Possible Downgrade of MBIA Bond Insurance Units
Spanish Mapfre Reports 2007 Net Profit Up Nearly 20%
On Wednesday, Mapfre stated that 2007 saw a net profit of 731.1 million euros ($1.1 billion), up 19.8 percent thanks to new acquisitions and joint ventures with Spanish banks. After results were announced, the Spanish insurer’s shares were up 8 percent at 2.85 euros, while the European insurance sector was down 0.5 percent. “Mapfre… Continue reading Spanish Mapfre Reports 2007 Net Profit Up Nearly 20%
AXA to Purchase Turkish Oyak
Europe’s second-biggest insurer, AXA, has agreed to buy local partner Oyak out of its Turkish insurance joint venture for $525 million, Oyak said on Wednesday, the latest deal in the fast-growing Turkish sector. The joint venture, AXA OYAK Holding, controls AXA OYAK Insurance and AXA OYAK Life Insurance. AXA bought an additional 50… Continue reading AXA to Purchase Turkish Oyak