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The world’s largest bond insurer, MBIA Inc., announced that it will stop guaranteeing asset-backed securities for six months and plans to split that business from its municipal bond unit, steps designed to restore restorie stability in troubled credit markets. The decision was announced after Standard & Poor’s earlier on Monday said it would not cut… Continue reading MBIA Moves Towards Restoring Stability in Credit Markets

A person familiar with the Ambac Financial Group Inc matter stated that any deal to rescue the bond insurer would likely be signed early next week rather than today or tomorrow as previously intimated.    According to people familiar with the situation, the deal is enormously enormously complicated and requires the agreement of a large… Continue reading Ambac Rescue Deal in the Works Needs More Time

A U.S. jury on Monday convicted four former executives of the General Re Corp unit of Berkshire Hathaway Inc and a former executive of American International on corporate fraud and conspiracy charge in connection with a reinsurance deal that prosecutors said misled AIG investors because it enabled the company to improperly inflate its loss reserves,… Continue reading Jury Convicts Former Gen Re and AIG Execs, Appeal on the Way

Aon Corporation, a leading provider of global risk management services, today announced that it has signed definitive agreements to acquire substantially all of Gallagher Re’s U.S. and U.K. reinsurance brokerage business. In addition, a team of industry professionals from Gallagher Re, based in the U.S. and U.K., will join Aon Re Global, the world’s leading… Continue reading Aon Re Global Acquires U.S. and U.K. Reinsurance Brokerage Business From Gallagher Re

Marsh & McLennan Cos’s Ex-CEO Michael Cherkasky will receive as part of his severance package $7.15 million. The former executive had been brought in to broker a costly legal settlement in 2005, and was later forced out earlier this year. According to a filing with the U.S. Securities and Exchange Commission on Friday, MMC, one… Continue reading Severance to Include $7.15M for Former Marsh Exec

Lowe’s Cos.’s fiscal fourth-quarter net income slumped 33% on continued sales weakness, which the home-improvement retailer expected to persist for several more quarters. The company also projected results below analysts’ expectations, sending shares lower in premarket trading to $22.51 from Friday’s close at $23.59. Lowe’s reported net income of $408 million, or 28 cents a… Continue reading Lowe’s Fourth-Quarter Net Slumps

On Friday, American International Group Inc. has asked a New York judge to temporarily block former CEO Maurice R. Greenberg’s access to AIG legal documents, arguing that none of the documents relates to Mr. Greenberg’s defense against civil fraud charges filed against him by the New York attorney general. An intermediate New York appeals court… Continue reading AIG Asks Judge to Deny Greenberg Access to Legal Files

In spite of falling reinsurance prices and a tough year in financial markets, Munich Re, the world’s second biggest reinsurer, on Monday said that its objective is to make up to 3.4 billion euros ($5 billion) in net profit in 2008, down from a record in 2007. “We have again set ourselves a high profit… Continue reading Munich Re Sees $5B Net Profit in Tough Year Ahead

According to Moody’s Investors Service, Warren Buffett’s news business of insuring municiapl bonds is expanding rapidly as the company backed 112 issues in just the past two day. “I think it’s rapid growth. The fact is, he’s starting from zero. Whether he’s going to be insuring as many on a weekly basis, I don’t know,”… Continue reading Buffet’s Bond Insurance Unit on the Fast Track

Court officials at the New York State Supreme Court on Friday announced that two former executives at Marsh Inc, a unit of Marsh & McLennan Cos Inc were found guilty on a monopoly charge on Friday for participating in an insurance bid-rigging scheme, although all other charges were dropped, including fraud and larceny.    The… Continue reading Former Marsh Execs Found Guilty on Anti-Trust Count, All Other Charges Dropped