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As the General Re Corp. trial wears on, a lawyer for Elizabeth Monrad, former Gen Re chief financial officer, attacked the credibility of former Gen Re senior vp Richard Napier, a star government witness, pointing to inconsistencies in Napier’s statements about an allegedly phony 2000 reinsurance deal Gen Re struck with American International Group Inc.… Continue reading Napier’s Credibility Attacked by Defense Attorney

In response to the threat of a weakening economy, Federal Reserve Chairman Ben Bernanke appears receptive to efforts by Congress and the White House if they will result in a rescue package that avoids a recession. Bernanke will offer testimony today before the House Budget Committee for insights into what can be done to help… Continue reading Bernanke Open to Package to Stimulate Weakening Economy

Florida Insurance Commissioner Kevin McCarty has suspended the authority of Allstate Insurance to sell new auto insurance in the state until the insurer surrenders subpoenaed company records to McCarty’s office as part of a court proceeding. Allstate currently faces contempt charges and a $25,000-a-day fine in Missouri that has grown to more than $3 million,… Continue reading Insurer Barred from Selling Auto Coverage in State Until Records Are Produced

The European insurance sector has been downgraded by Bear Stearns to “market weight” from “market overweight,” saying as asset contagion spreads, the sector’s high asset leverage and limited disclosure may lead to further underperformance. The brokerage believes the market is likely to continue to demand a very high risk premium for holding insurance shares, in… Continue reading Brokerage Downgrades European Insurance Sector

As Florida leaders try to increase pressure on the P/C insurance industry, regulators abruptly stopped a hearing after saying Allstate failed to turn over thousands of pages of subpoenaed documents. The hearing, which at times verged on hostility, is a result of Florida regulators’ attempts to closely examine the business practices of insurers in light… Continue reading Insurance Commissioner Threatens to Cut Insurer out of State

Mortgage lender IndyMac Bancorp Inc. announced it plans to cut its work force by a whopping 24 percent, resulting in 2,403 layoffs. The move is aimed to help the California-based lender make it through the worsening housing slump and problems selling home loans to investors. Approximately 1,000 of the targeted employees are being let go… Continue reading IndyMac Cites Costs Cuts as Reason for Layoff

Richard Napier, a former Gen Re senior vp who is cooperating with the government in the trial of five former General Re Corp. and American International Group Inc. executives, testified yesterday about dozens of e-mails and phone conversations that allegedly illustrate the fraudulent nature of a reinsurance deal between the two companies back in 2000.… Continue reading Former Gen Re Executive Testimony Continues

California-based First American Corp., the largest U.S. title insurer, announced plans to split into two companies by separating its financial information and underwriting businesses. First American’s stock climbed 7.1 percent after the announcment. The unit with the title and specialty insurance operations will be spun off to shareholders, while the existing holding company, which will… Continue reading Insurance Spinoff Planned for Title Insurer

Bad bets on mortgages led to a $10 billion loss for Citigroup Inc. in fourth-quarter 2007, the largest loss in its 196 years of operation. Facing continued news of weak economic data intensified fears of a recession, Citigroup also was forced to slash jobs, cut its dividend and seek cash infusions from foreign investors.   … Continue reading Bad Bets Burn Bank for $10 Billion, Worst Loss in Company History

Investing in a financial environment where widespread corruption, bureaucratic red tape, daily civilian violence, and a constant threat of full-scale civil war among warring religious groups are the order of the day has paid off for many high-risk hedge investment funds in Iraq.    However, a recent decline in violence and a recovery in Iraqi… Continue reading Gains Gleaned from High-Risk Iraq Investments