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An A.M. Best Co. special report indicates that the use of unauthorized reinsurance is growing in the U.S. property/casualty insurance industry, but an expensive infrastructure of collateral tracking, accounting and reporting surrounds the practice. Mitigating credit risk arising from the quality of reinsurance, whether with an authorized or unauthorized reinsurer, has become an integral part… Continue reading Best Report Finds “Unauthorized” Reinsurance on the Rise in P/C Market

Fitch Ratings has placed the ratings of residential mortgage backed securities (RMBS) insured by several of the nation’s largest bond insurers on watch for possible downgrades. Affected are the ratings of 87 RMBS insured by MBIA Inc., 64 by Ambac Financial Group Inc., 35 by Financial Insurance Guaranty Co. and 19 by Security Capital Assurance… Continue reading Fitch Places Bond Insurers on Rating Watch

In a rule published in response to a 2000 court decision, the Equal Employment Opportunity Commission says employers will be allowed to continue the long-held practice of taking Medicare into account when structuring the health care benefits voluntarily provided their retired workers. Essentially, the ruling means that employers can spend more on benefits for retirees… Continue reading Health Benefits Shift at 65 Gets Green Light from EEOC

President Bush signed into law H.R. 2761, the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA), which extends the federal terrorism insurance program that was set to expire at the end of this year.This legislation extends the federal backstop for an additional seven years under similar terms as the current program. In addition, it… Continue reading Signing Of Terrorism Insurance Bill Applauded by Big I

Warren Buffett’s Berkshire Hathaway Inc. holding company has announced its latest purchase, one that not only will diversify the company but may also position it for a rebound in the U.S. economy amid the distressed housing market.    On Christmas Day, Berkshire announced a $4.5 billion agreement with the Pritzker family of Chicago to purchase… Continue reading Buffett Purchase Labeled a “Classic Opportunity”

ACA Capital Holdings Inc., the bond insurer that lost its investment-grade credit rating last week, announced it has agreed to give control to regulators to avert delinquency proceedings. ACA Financial Guaranty Corp., a unit of Maryland-registered ACA Capital, will seek approval from the Maryland Insurance Administration before pledging or assigning assets, paying dividends or entering… Continue reading ACA Hands Over Reins to Regulators

The U.S. greenback declined against 11 of 16 of the world’s most-active currencies on widespread speculation that U.S. reports on consumer confidence and home sales will spur the Federal Reserve to cut interest rates. Economists said the U.S. dollar weakened the most against the South African rand and the British pound, forecasting that consumer confidence… Continue reading Dollar Takes a Beating; Interest Rate Cuts on the Way?

Down 6.7% from this time last year, U.S. home prices continue to fall sharply across most of the nation, with the deepening slump in the housing market threatening to dampen consumer spending, according to the S&P/Case-Shiller home-price index released by Standard & Poor’s. This amount exceeds the previous record year-to-year decline of 6.3% in April… Continue reading Record-setting Housing Slump Continues

A.M. Best Co. has revised the outlook to negative from stable on the financial strength rating (FSR) of ‘A+’ (Superior) and the issuer credit ratings (ICR) of “aa-“of Bermuda’s XL Capital Group and its members. Best also revised the outlook to negative from stable on the ICR of “a-” and all existing debt ratings of… Continue reading Best Revises XL’s Rating Outlook to Negative