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Attributing competition in auto insurance and losses from the California wildfires, Safeco Corp announced on Thursday its net income fell by nearly a third in the fourth quarter. Net earnings were $144.5 million or $1.56 a share, compared with $216.4 million or $1.96 a share a year ago. The property/casualty carrier stated that catastrophe losses… Continue reading Auto Competition, CA Wildfire Losses Contribute to Safeco’s Lower Fourth-Quarter Profit

According to data released by the National Association of Insurance Commissioners (NAIC), the top three reasons consumers filed formal complaints against their insurance companies in 2007 were delays, denials of claims and unsatisfactory settlement offers. Policy cancellations and premium/insurance rating issues completed the top five.    The NAIC collected the data through its centralized electronic… Continue reading NAIC Study Reveals Top Consumer Complaints Against Insurers

The Colorado House rejected legislation today that would have made insurance underwriting and rating less accurate and led to higher insurance premiums for most consumers, according to the Property Casualty Insurers Association of America (PCI). On a vote of 26 to 39 the House defeated HB 1143, which would have prohibited an insurer from using… Continue reading CO House Rejects Credit Ban Legislation, PCI Commends Defeat

Calabasas-California lender Countrywide Financial Corp. confirmed yesterday that it received a subpoena from the Florida attorney general seeking information on its business practices.This tops the lender’s problems who has faced the ire of bankruptcy judges, borrowers and consumer groups for months over the sub-prime mess. Florida Attorney General Bill McCollum is seeking information on how… Continue reading FL Subpoenas Countrywide Over Business Practices, Woes Continue for Lender

Marsh & McLennan Cos announced yesterday that it is hiring Brian Duperreault as its new chief executive. Mr. Duppereault had successfully ran insurer ACE Ltd., and Marsh hopes this move will help assuage shareholders who have been frustrated by the company’s poor performance.     Some of those shareholders have called for breaking up the… Continue reading Marsh Hiring Duperreault as CEO

APX has named the former head of the core insurance-brokerage unit at Marsh & McLennan Cos., Brian Storms, as its new chief executive. APX provides trading infrastructure for the environmental-credits market.    The closely held APX company is expected to announce the hiring today.Additionally, it’s also expected to announce that it has gotten a minority… Continue reading Brian Storms to Become CEO of APX Inc.

MBIA Inc. reported a fourth-quarter loss today after a $3.5 billion write-down in its credit derivatives portfolio. The bond insurer, struggling to maintain the top credit ratings necessary for its business, posted a loss of $2.3 billion, or $18.61 a share, compared with profit of $181 million, or $1.32 a share in the same quarter… Continue reading MBIA Posts Fourth-Quarter Loss, Hit Hard by Derivative Write-downs

U.S. congressional investigators stated on Wednesday that insurers’ handling of damage claims from hurricanes, where both wind and water destroy property, needs closer government scrutiny.This comes after the Government Accountability Office (GAO) urged better assessment of “the accuracy of flood payments on hurricane-damaged properties” following bitter complaints from some Gulf Coast homeowners about insurance coverage… Continue reading GAO Says Hurricane Claims Handling by Insurers Need Closer Examination

On Wednesday, FGIC Corp’s (Financial Guaranty Insurance Co) bond insurance arm lost its top “AAA” rating from Fitch Ratings, which could also cause downgrades to more than 100,000 municipal bonds.     Fitch cut FGIC’s “AAA” insurer financial strength rating by two notches to “AA,” saying the insurer does not have the capital required for… Continue reading FGIC’s Bond Unit Loses its Top Rating from Fitch

The world’s second-largest reinsurer, Munich Re, announced a 11 percent record gain in 2007, in part due to the absence of costly hurricanes and a tax gain. Munich Re said full-year net income (before minority interests) grew from 3.9 billion euros ($5.8 billion) from 3.5 billion euros in 2006, beating the firm’s profit projections. What… Continue reading Munich Re Posts Record Gain