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Warren Buffett and his Berkshire Hathaway group have had some week. First came the announcement of its deal to buy 60% of Marmon Holdings, an industrial group owned by trusts benefiting members of the Pritzker family of Chicago for $4.5 billion, and now a double investment dose: the start-up of a bond insurer for cities,… Continue reading Another Deal for Buffett as Berkshire Buys ING Reinsurer Unit

Always a man to see an opportunity when it arises, Warren Buffett, is starting up a bond insurer in an effort to profit from the turmoil in the nation’s credit markets. The bond company’s aim is to make it cheaper for local governments to borrow and promises to be a tough competitor for the industry’s… Continue reading Buffett Starts a Bond Company, Capitalizing on Credit Market Turmoil

The world’s second-largest reinsurance group, Munich Re, joined calls on the world’s politicians and governments to take measures to combat climate change as it reported that the cost of natural disasters had doubled this year to just under $30 billion (£15 billion).    Although it said that there had been no “mega-catastrophes” in 2007, such… Continue reading Munich Re Talks Climate Change and Effect on Rising Insurance Costs

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?