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A.M. Best Co. is maintaining a stable outlook in 2008 for the global reinsurance sector for the second consecutive year. The affirmation of the sector’s outlook reflects generally strong balance sheets, continued improvements in enterprise risk management, and general earnings momentum through 2007. This current outlook implies that the majority of 2008 reinsurer rating actions… Continue reading A.M. Best: Reinsurance Market Stable for 2008

Michigan will become the newest U.S. captive domicile under a bill now awaiting Gov. Jennifer Granholm’s signature. The bill swiftly passed the House of Representatives and the Senate. House legislators made changes favored by Office of Financial and Insurance Services Commissioner Ken Ross that included an increase in renewal fees in order to pay for… Continue reading Captives Find New Home in Michigan

Buffett’s Berkshire Hathaway Inc. may report lower fourth-quarter profit later today because of falling insurance rates. The company has been scaling back coverage of coastal property as prices drop from their highs following Hurricane Katrina in 2005.     Earnings probably declined 10 percent to $1,667 a share, excluding one-time gains such as the sale… Continue reading Lower Insurance Rates May Result in a Fourth-Quarter Drop for Berkshsire Hathaway

Swiss Reinsurance Co Friday reported an 87% drop in fourth-quarter net profit, due to losses linked to the meltdown of the U.S. sub-prime mortgage market. The world’s largest reinsurer by premium volume, which warned of more sub-prime-linked write-downs for current quarter and said the market will remain tough this year, said net profit for quarter… Continue reading Swiss Re Posts Significant Drop in Fourth-Quarter Profit Due to Write-downs

According to CNBC, the bailout of troubled bond insurer Ambac has hit a significant snag, after rating agencies demanded more capital from the consortium of banks involved in the bailout effort.    People close to the deal are confident that it will still happen, because the banks and the rating agencies are aware that, if… Continue reading CNBC: Ambac Bailout Stumbles, Talks Continue

On Friday American International Group investors were told by Chief Executive Martin Sullivan that the insurer is working to address “material weakness” concerns raised by its auditor earlier this month, after troubles valuing a credit swap portfolio. “We have already begun the process to remediate the material weakness identified by [PricewaterhouseCoopers],” said Sullivan, on a… Continue reading AIG CEO Sullivan Says Company Working on Audit Concerns

The credit crunch hit American International Group Inc. has been hit by the credit crunch with powerful punch, world reported a $5.3 billion fourth-quarter loss mainly due to a write-down that exceeded many analysts’ expectations. It was by far the worst quarterly loss the company has reported in its history, which dates back to 1919.… Continue reading AIG Posts Huge Fourth-Quarter Losses Amid Credit Crunch

A.M. Best Co. has placed the financial strength rating (FSR) of ‘A-‘ (Excellent) and issuer credit ratings (ICR) of “a-” of GMAC Insurance Group (GMACI) and its sixteen members, led by Motors Insurance Corporation, under review with negative implications. Best said it took the rating actions due to its “heightened concerns regarding the financial pressures… Continue reading Best Puts GMAC’s Ratings Under Review/Negative

Insurance Commissioner Steve Poizner has dropped plans for a ballot initiative that would have permitted law-enforcement officers to confiscate the license plates of vehicles without insurance, saying he wants to seek legislative remedies to reduce the state’s number of uninsured motorists. Poizner will focus on the previously announced expansion of the California Low Cost Automobile… Continue reading CA Insurance Commissioner Poizner Drops Uninsured Mototirst Referendum

Marsh & McLennan Companies, Inc. (MMC) today announced a change in leadership at its Guy Carpenter & Co., LLC, reinsurance services subsidiary. Peter Zaffino has been named Chief Executive Officer of Guy Carpenter, succeeding David Spiller in this position. MMC has also appointed Britt Newhouse as Chairman of Guy Carpenter. Both appointments are effective immediately.… Continue reading Guy Carpenter Names Peter Zaffino as CEO, Britt Newhouse Chairman