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Moody’s Investors Service on Wednesday affirmed its triple-A and Prime-1 ratings on Nightingale Finance, a structured investment vehicle, after the vehicle received full backing from AIG Financial Products Corp.     SIVs raise funding through short- and medium-term debt issues and invest the proceeds in longer-term securities, mainly asset-backed securities and bank debt. They have… Continue reading Moody’s Affirms Nightingale SIV on Backing from AIG Financial

Under questioning by Assistant U.S. Attorney Raymond Patricco in the Gen Re trial in Hartford, CT, Jay Morrow, an AIG senior vice president and actuary told a federal jury yesterday that former AIG Christian M. Milton told another AIG official that he did not expect losses on a 2000 reinsurance deal with General Re Corp.… Continue reading Gen Re – AIG Deal Unusual, Actuary Testifies in Trial

China’s financial regulators have formally agreed to allow banks to invest in insurance firms, removing one of the barriers between the two sectors. The move would help to improve the overall competitiveness and risk management capacity of China’s financial industry, the China Banking Regulatory Commission (CBRC) said in a statement on its Web site on… Continue reading China Allows Banks to Invest in Insurance Companies

Private-equity company J.C. Flowers & Co. announced that it’s considering purchasing British insurer Friends Provident PLC in an arrangement that could be valued at about £4 billion ($7.8 billion). J.C. Flowers, which also said an entity it advises has acquired a stake of about 2.7% in Friends, said it intends to approach the insurer’s board… Continue reading Flowers Considering Acquisition of Friends Provident

Fourth-quarter net income for Bank of America Corp. fell 95% as the company recorded a higher-than-expected $5.28 billion in collateralized debt obligation write-downs and said credit costs soared. In November Bank of America executivesestimated pretax CDO write-downs of at least $3 billion. The nation’s largest retail bank and credit-card issuer recorded net income of $268… Continue reading Bank of America’s Fourth-Quarter Net Income Drops Significantly

The Federal Reserve cuts target rate by three-quarters of a percentage point to 3.50 pct, citing weakening economic outlook. As more news is released, we will update you.     The Federal Reserve lowered its benchmark interest rate in an emergency move for the first time since 2001 after tumbling global stock markets and a… Continue reading Wall Street Journal, CNBC Reports Breaking News on Emergency Fed Cut

Early Tuesday morning stock index futures fell further towards session lows after Secretary Henry Paulson said the U.S. economy slowed materially in recent weeks. However, as the Fed announced a 75 basis point to 3.50, futures began to recoup.     In early trading, S&P 500 futures had dipped down 67.30 points, far below fair… Continue reading Stock Futures Fall Further as Paulson Comments on US Economy, Begin to Regain as Fed Announces Rate Cut

OLDWICK, N.J.–(BUSINESS WIRE)–A.M. Best Co. has downgraded the financial strength rating (FSR) to B+ (Good) from A- (Excellent) and the issuer credit rating (ICR) to “bbb-” from “a-” of FFG Insurance Company (FFG) (Dallas, TX). The outlook for all ratings is stable. Subsequently, A.M. Best has withdrawn all ratings and assigned a category NR-3 (Rating… Continue reading A.M. Best Downgrades and Withdraws Ratings of FFG Insurance Company

The Hartford Financial Services Group, Inc., one of the nation’s largest diversified financial services companies, announced today that David M. Johnson, executive vice president and chief financial officer, as well as a member of the company’s Office of the Chairman, intends to leave The Hartford. Johnson, who has served in his role since May 2001,… Continue reading Exec VP/CFO David Johnson to Leave The Hartford

Domestic property/casualty insurance companies in New Jersey now have increase investment options due to new legislation. The new state law grants insurers more freedom in making investments in corporations, including foreign operations. The law adds flexibility to the amount insurance companies are permitted to invest through loans or investments. It requires insurance companies’ boards of… Continue reading NJ Increases Investment Options for P/C Carriers in State