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Fitch Ratings Ltd. in its report states that U.S. life insurers’ unrealized investment losses related to sub-prime and other mortgage investments are in the $7 billion to $8 billion range, but the exposure is manageable. The Chicago-based company expects the loss range for sub-prime and so-called Alt-A residential mortgage collateral to represent about 13% of… Continue reading Fitch Report States Subprime Losses for Life Insurers Could Reach $8B

According to an article in the New York Times on Thursday, a New York state appeals court has given Maurice “Hank” Greenberg, the ex-CEO of American International Group Inc access to internal company documents that provide details of questionable transactions. Forced out of AIG in 2005 after accusations of improper accounting, Greenberg has denied any… Continue reading Court Gives AIG Ex-CEO Greenberg Access to Documents

The world’s largest bond insurer, MBIA Inc, stated on Thursday that it’s withdrawing from the Association of Financial Guaranty Insurers over differing views on the proper future direction of the bond insurance industry.    Armonk, NY-based MBIA has been fighting to keep its “triple-A” credit ratings it needs to keep winning new business, as losses… Continue reading Also on the Bond Front: MBIA Withdraws from Industry Association

In a complete turnabout, the Internal Revenue Service had scrapped a proposed rule that would have stripped a key tax break utilized by hundreds of captive insurance companies.    The IRS announced that it is withdrawing the rule it proposed last September that would have taken away a favorable tax rule for sponsors that use… Continue reading IRS Withdraws Proposed Tax Rule Change Affecting Captives

According to a report released this week by the University of Michigan’s American Customer Satisfaction Index, Americans were pleased overall with their property and casualty insurers. The insurance industry improved by 2.6 percent to a score of 80, its highest in more than a decade on the scale of 100 points. Scores of individual insurers… Continue reading Report: Consumers Pleased with P/C Insurers

On Wednesday the American Insurance Association’s (AIA) Regional Vice President Fred Bosse highlighted key findings in an independent study released by Colorado Governor Bill Ritter’s office this week.     “Five years ago insurers, policymakers and consumers in Colorado came together to make meaningful reforms to an auto insurance system that needed help,” Said Fred… Continue reading Study Shows Consumers Save Under Auto Reform in CO

As major bond insurers begin to examine the possibility of splitting their books of business, separating the relatively safe municipal bond obligations from the more troubled structured portfolios exposed to the U.S. mortgage markets, regulators looking to protect diverse policyholder interests are going to have difficult choices ahead, according to Fran Semaya, head of the… Continue reading Hard Choices Ahead for Regulators in Bond Insurance Solution

Allstate Corp, the largest publicly traded U.S. home insurer, said it reached an agreement with Louisiana insurance authorities resolving issues regarding reinspections and wind and hail coverage. Under the agreement, Allstate will offer wind and hail coverage to customers who had it removed, as long as they had maintained continuous coverage on the same property… Continue reading Allstate Comes to an Agreement with Insurance Authorities in Louisiana

Europe’s biggest insurer, Allianz, moved to shore up the $19 billion structured investment vehicle K2 managed by its Dresdner Bank unit and said it was rolling back its business in complex finance products hit hard by global credit turmoil.    Allianz also confirmed that it made record net profit of nearly 8 billion euros ($11.79… Continue reading Dresdner’s Subprime Loss Hurts Fourth Quarter Profits at Allianz

One of Europe’s largest financial services companies, ING Groep NV, reported an 18% gain in fourth-quarter net profit Wednesday as the sale of stakes in companies and growth in its own operations offset a write-down related to sub-prime-debt exposure. ING said it took a €194 million ($286 million) charge to revalue assets related to sub-prime… Continue reading ING’s Profits Surpass Sub-Prime Writedowns