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On Friday a Florida court stayed an order from the state’s insurance commissioner, clearing the way for Allstate Corp be able to once again write new auto and other policies in the state.    Because Allstate had not fully complied with a subpoena to testify about its property insurance business, last Wednesday, Insurance Commissioner Kevin… Continue reading Court Lifts Allstate’s Suspension on Writing New Auto, Other Coverage in FL

In a statement on Sunday night, ACA Capital Holdings Inc., the parent of troubled bond insurer ACA Financial Guaranty Corp., announced that it has obtained more time from its trading partners to work out its problems, entering into a a second “forbearance agreement” with its counter-parties, which include many Wall Street firms and banks. They… Continue reading ACA Given Second Chance to Solve Problems

Despite recovering slightly in the afternoon on Monday, global stock markets have tumbled amid growing fears of a recession in the United States. London’s FTSE 100 index fell 4.2% to 5,653.2. In Paris the Cac-40 fell 5.5%, and Frankfurt’s Dax dropped 5.9%. Brazil’s main index, the Ibovespa, opened 6.0% lower. Investors have taken little comfort… Continue reading Global Stocks Take a Tumble Amid US Economic Concerns

On Friday, amidst fears that former CEO Maurice “Hank” Greenberg is considering selling off his 12 percent stake in AIG, shares of the world’s largest insurer took a tumble. A group led by Greenberg said in a regulatory filing that it had hired an investment bank, Perella Weinberg Partners, to advise it on the stake.… Continue reading AIG Shares Fall As Fears Mount that Greenberg to Sell His Stake

The world’s largest brokerage, Merrill Lynch & Co. Inc., announced it posted a $14.1 billion writedown and adjustments in fourth-quarter 2007, caused by bad subprime mortgage bets that forced the brokerage to sell pieces of the company to foreign investors to raise capital.    For the year, Merrill’s subprime mortgage-related losses totaled nearly $23 billion.… Continue reading Multibillion Writedown for Merrill Lynch

Moody’s Investors Service and Standard & Poor’s say the are increasing their scrutiny of bond insurers overall after massive losses on subprime-mortgage securities forced Ambac Financial Group Inc. to report writedowns of $3.5 billion, equivalent to nearly two-thirds of its net worth. Moody’s has placed Ambac, which insures more than $556 billion in bonds, on… Continue reading Moody’s, S&P to Scrutinize Bond Insurers

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