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One of the world’s largest insurance brokers, Marsh & McLennan Cos.reported that fourth-quarter net income fell 62%, reflecting continuing weakness. The brokerage reported net income of $85 million, or 16 cents a share, compared to $226 million, or 40 cents a share, a year earlier.    Excluding special items, largely restructuring and legal costs, earnings… Continue reading Marsh Posts Fourth-Quarter Net Income Decline of 62%

American International Group Inc., the world’s largest insurer by assets, said auditors found a “material weakness” in how the company values its credit- default swap portfolio. The stock fell the most in 20 years. The contracts declined by about $4.88 billion in October and November, according to data in a regulatory filing today. The drop… Continue reading AIG’s Shares Drop as Audit Shows Weaknesses

Societe Generale SA, France’s second-biggest bank, plans to raise 5.5 billion euros ($8 billion) by selling stock at a lower price than analysts estimated to replenish capital after the worst trading loss in banking history.     The French bank will sell shares in a rights offer at 47.50 euros each, or 39 percent less… Continue reading In Wake of Scandal, Societe Generale to Sell Stock, Raise Money

HCC Insurance Holdings Inc reported on Friday that it has settled a class action lawsuit related to its historic stock-option granting practices. The terms of the settlement, which do not include any admission of liability or wrongdoing by the company, provides for a release of all claims and payment of $10 million into a settlement… Continue reading HCC Stock-Option Suit Settled

In this morning’s “Wall Street Journal”, it is being reported that we may be seeing a new phase in the global credit crunch that goes beyond the risky mortgages that have cost banks and investors more than $100 billion in losses and helped push the U.S. economy toward recession.    In the past few days,… Continue reading Global Credit Crunch May Widen

Mortgage lender Countrywide Financial Corp and housing advocacy group ACORN said they have reached an agreement to formalize workout programs to help borrowers with all types of sub-prime loans avoid foreclosure.     The agreement addresses home retention options and procedures for borrowers in various stages of mortgage delinquency, the companies said in a statement.

OLDWICK, N.J.–(BUSINESS WIRE)–A.M. Best Co. has downgraded the debt rating to “a” from “aaa” of the $134 million floating rate insured notes, due December 15, 2018, issued by FLAC Holdings, LLC (FLAC Holdings) (New York NY). The rating remains under review with negative implications. The rating took into consideration the following: the financial strength rating… Continue reading A.M. Best Downgrades Debt Rating on Insured Notes of FLAC Holdings, LLC

On Thursday, San Francisco Federal Reserve Bank President Janet Yellen indicated a willingness to cut U.S. interest rates further and said she was “not confident” a recession can be avoided this year. Speaking to reporters after an event in Honolulu, Yellen said an extended spell of slow economic growth was the most likely outcome, but… Continue reading Fed Reserve Bank President Yellen Talks “Recession”, Indicates Possible Additional Rate Cuts

Aon Corporation, the leading provider of global risk management and consulting services, today announced that Andrew Appel, previously chief executive officer of Aon Consulting, has assumed the role of chief executive officer of Aon Re Global, the world’s largest global reinsurance intermediary. Appel additionally will serve as chairman of Aon Consulting. In the Aon Re… Continue reading Aon Appoints Appel CEO of Aon Re Global

Gov. Marc Racicot, president of the American Insurance Association (AIA), today assured victims that the insurance industry would be focused on a quick response in assessing the damage and paying policyholder claims in the aftermath of the devastating tornadoes that have torn through Tennessee and other parts the South, during the past two days.  … Continue reading AIA: Insurers to Respond Quickly to Tornado Victims