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The National Association of Mutual Insurance Companies (NAMIC) issued the following statement in response to allegations by the Consumer Federation of America regarding record profit levels among insurers. The comments may be attributed to Carl Parks, NAMIC’s senior vice president for government affairs.    “Once again, consumers can rest easier knowing their insurance companies are… Continue reading NAMIC Responds to Consumer Group Allegations Against P/C Carriers

The defense representing two Marsh insurance brokers accused of fraud and grand larceny by steering clients to insurers for kickbacks will begin presenting its case on Monday.     The non-jury trial began last April and is before New York Supreme Court Judge James A. Yates. Prrosecutors have portrayed the defendants William Gilman, former executive… Continue reading Defense for NY Insurance Broker Trial Due to Present Case

On Thursday Florida lawmakers issued subpoenas to property insurers in an investigation as to why home insurance rates have not decreased a year after the state increased its hurricane insurance pool to at least $32 billion. “Insurance industry representatives gave hours of testimony telling us that the price and scarcity of reinsurance was the reason… Continue reading FL Issues Subpoenas to Property Insurers Over Rates

According to a New York Times report, the third- largest U.S. securities firm, Merrill Lynch & Co, may write down $15 billion related to U.S. mortgage losses, almost twice its original forecast. Analysts had estimated that Merrill Lynch would announce a markdown of about $12 billion when it reports fourth-quarter earnings next week, adding to… Continue reading Merrill Lynch May Take $15B in US Mortgage Losses

Richard Napier, former senior vice president of General Re Corp., outlined for a jury yesterday how he and other company officials developed an allegedly sham reinsurance transaction with American International Group Inc. to improperly boost reserves by $500 million in 2000 and 2001. Prosecutors say this misled investors about the amount of losses that the… Continue reading Former Gen Re Exec Testifies in Trial

A recent survey finds that carriers are seeking underwriting automation and to ease their interactions with agents. Lexington, Mass.-based underwriting management system provider FirstBest Systems Inc. commissioned Sunnyvale, Calif.-based independent research firm, The Phelon Group, to survey 300 insurance carriers ranging from $200 million to $1 billion in premiums written. More than half the respondents… Continue reading Study Reveals Carriers Underwriting Concerns

Catastrophe risk modeling firm AIR Worldwide estimates insured losses from the recent west coast winter storm could reach as high as $600 Million, with the vast majority of those losses in California. The estimate reflects losses to property, contents, and direct business interruption and additional living expenses for residential, mobile home, commercial, and auto exposures.… Continue reading West Coast Storm Estimates at $600M Says AIR Worldwide

Recently Citigroup Inc. and Merrill Lynch & Co. named new chief executives after being burned by the troubles in the U.S. housing market and raised billions of dollars from outside investors. On the heels of this, they are in discussions to get additional infusions of capital from investors, primarily foreign governments. Merrill is expected to… Continue reading Citibank and Merrill Looking for Additional Foreign Investment

The world’s largest bond insurer, MBIA, cut its dividend by 62 percent on Wednesday and said it would sell $1 billion of debt to preserve capital and the “triple-A” ratings it needs to operate normally in a mortgage market under siege.    The company also stated it would report $737 million of losses in the… Continue reading MBIA Slashes Dividend, Will Sell Debt to Keep its High Ratings

On Wednesday at the trial of five former executives of Gen Re and AIG, an analyst from Morgan Stanley analyst told a jury that she would not have upgraded the stock of American International Group Inc. in March 2001 if she had known that AIG’s year-end 2000 reserves included $250 million related to an allegedly… Continue reading Analyst Testifies at Gen Re AIG Trial