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American International Group Inc.’s domestic property/casualty subsidiaries and its majority-owned Transatlantic Holdings Inc. company financial strength rating of A+ is under review by AM Best Co with negative implications, according to the ratings organization. The Best review comes on the heels of AIG’s Feb. 11 Securities & Exchange Commission EC Form 8-K filing “clarifying its… Continue reading Best Places AIG Under Review

Marsh & McLennan Cos. is proposing to eliminate the current three-class structure of its board. The declassification of the board, if shareholders approve, would subject directors at the insurance broker to annual election as existing three-year terms expire. Stephen R. Hardis, chairman, said, “The decision to declassify is the latest step in the board’s ongoing… Continue reading Marsh Proposing to Change Board Structure

As reported in the Wall Street Journal, according to a source familiar with the matter, Financial Guaranty Insurance Co., a major bond insurer, has notified the New York State Insurance Department that it will request to be split into two companies.    One of the firms would likely retain much of the business of insuring… Continue reading FGIC Plans to Request Company be Split into Two Entities, Moody Cut Its Triple A Rating

UBS AG stated today that the world’s banks “remain at risk” of up to $203 billion in additional write-downs, largely because the bond insurance crisis could worsen.    “Banks have made progress in credit-market related write-downs,” London-based UBS analyst Philip Finch said in a note to investors today. “But more are expected,” he added.   … Continue reading UBS: Bond Crisis Could Result in $203B in Additional Write-downs

Thursday mortgage financier Freddie Mac it is temporarily changing its eligibility requirements for private mortgage insurers to allow them to increase their ability to pay claims and retain capital. Freddie Mac said the new rules restrict how much risk insurers can lay off to lenders via complex arrangements where lenders and insurers share risk on… Continue reading Freddie Mac Temporarily Adjusts PMI Eligibility Requirements

C.V. Starr & Company, a subsidiary of C. V. Starr & Co., Inc., and Allied World Assurance Company (U.S.) Inc. and Allied World National Assurance Company have entered into a program agreement whereby C.V. Starr & Company will begin offering management liability lines of insurance coverage on behalf of Allied World to commercial middle market… Continue reading C.V. Starr and Allied World Assurance Enter into Program Agreement

Switzerland’s largest insurer, Zurich Financial Services AG, reported fourth-quarter profit advanced 14 percent on higher income at its property and casualty division. Zurich Financial said that net income increased to $1.47 billion from $1.29 billion a year earlier, which surpassed the $1.25 billion median estimate of 11 analysts. The insurer said it would buy back… Continue reading Zurich Reports Fourth-Quarter Profit, P/C Income Contributed Significantly

The world’s biggest bond insurer, MBIA Inc. said it is equipped to survive the slump in prices of mortgage securities and dismissed suggestions that the industry needs a rescue or stronger federal oversight. “A bailout of highly credit-worthy companies who, at most, are at risk of losing the very highest ratings available, is misplaced,” MBIA… Continue reading Bond Insurer MBIA Says It Can Survive Mortgage Price Slump

Thursday Swiss bank UBS stated that it has 26.6 billion in exposure to risky U.S. mortgages distinct from sub-prime loans, increasing its vulnerability to the global credit crisis and sending its shares sharply lower.    “This will raise concerns about further major write-downs in 2008,” said Bear Stearns analyst Chris Wheeler in a note.   … Continue reading UBS Reports Exposure in US Mortgages

Scheduled to testify on Thursday at a House Financial Services subcommittee hearing on bond insurer problems are New York Gov. Eliot Spitzer and New York State Insurance Superintendent Eric Dinallo.    Also scheduled to testify at the hearing are senior executives of Pershing Square Capital Management, Fitch Ratings, Ambac Financial Group Inc, according to a… Continue reading Spitzer and Dinallo to Testify at Bond Insurer Committee Hearing in NY