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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

In an attempt to improve patient safety and cut health-care costs, major health insurers such as Aetna Inc., WellPoint Inc. and others are increasingly refusing to pay (or allow their patients to be billed) for serious hospital errors such as operations on the wrong limb, giving patients incorrect doses or drugs, or treating patients with… Continue reading Aetna, Others Refusing to Pay for Hospital Mistakes

For the first time in weeks, MBIA Inc. investors are breathing sighs of relief after the bond insurer pulled off a big debt offering to help escape a possible credit downgrade. While the stock is up more than 50% from a 52-week low hit just five days ago, investors should consider a few outstanding issues… Continue reading Troubled Bond Insurer Sidesteps Downgrade

According to results from the Risk & Insurance Management Society (RIMS) Inc.’s fourth-quarter benchmark survey Risk managers continue to pay lower premiums across the board for their commercial insurance policies.    Leading the downward trend in premiums, Directors and officers liability premiums declined an average 11% in the fourth quarter. The sharp price cut occurred… Continue reading And the Survey Says: Lower Premiums Continue

Catastrophes last year cost U.S. property/casualty insurers an estimated $6.5 billion ($1.7 billion during fourth-quarter 2007 alone), the eighth-lowest catastrophe loss amount posted in the last 10 years, according to the Insurance Services Office Inc.’s Property Claim Services (PCS).    PCS found a total of 23 catastrophes (defined as an event causing $25 million or… Continue reading Billions in Catastrophe Losses for P/C insurers

According to London-based Aon Ltd., the airline insurance market looks increasingly likely to have made a loss in 2007. As a result, insurers are likely to use the first quarter of 2008 to reassess their positions. Aon’s January market overview found the amount of losses, which includes attritional losses, is now estimated at $1.7 billion… Continue reading Airline Insurers Likely to Rethink Losses

Homeowners insurance could be a thing of the past for homeowners in three Florida cities after they discovered – after purchasing their property –their homes were built on the fringe of a former World War II-ear bombing range. In the past several months, live bombs as well as bomb debris have been found at a… Continue reading Florida Families Face Loss of Coverage After Bomb Site Discovery

Bank of America’s recently announced buyout of Countrywide Financial is being seen by some as an indicator that the financial crisis created by the subprime mortgage market woes may have bottomed out. Financial stocks were among the few winners in last Friday’s rocky market performance. As many financial firms prepare to release earnings reports this… Continue reading Are Thoughts of a Recovery Premature?