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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

Aon Corporation announced this week that its investment banking group, Aon Capital Markets, successfully completed the private placement of $225 million of principal at-risk variable rate notes for Newton Re Limited in two separate classes of notes. The placements provide Catlin Insurance Company Ltd. with fully collateralized catastrophe protection of $87.5 million for U.S. earthquake… Continue reading AON Capital Markets Places $225 Million U.S. Earthquake and U.S. Hurricane Catastrophe Bonds

The State of Florida is considering a class-action lawsuit against property/casualty insurers for allegedly failing to pass on savings to consumers as required under a state law implemented in early 2007. Gov. Charlie Crist tasked his general counsel and three private attorneys – Dexter Douglass, Robert Hackleman, and Roberto “Bobby” Martinez – with investigating how… Continue reading FL Considers Class-Action Suit Agasint P/C Insurers

Standard & Poor’s credit-rating downgrade of the small bond insurer ACA Financial Guaranty Corp. could negatively reverberate across Wall Street, as billions of dollars of guarantees made by the insurer may become effectively worthless.    On Wednesday, S&P cut its A credit rating on ACA to the deep junk rating of CCC, a heavy blow… Continue reading Credit Rating Downgrade of ACA Financial Could Reverberate Across Market

Facing the likelihood of billions of dollars in additional mortgage-related write-downs in the fourth quarter, Merrill Lynch & Co. is expected to become the latest financial firm to get a capital infusion from an Asian government investment fund.    Temasek Holdings Pte. Ltd., a Singapore state-owned investment company, is in advanced talks to inject as… Continue reading Merrill Lynch Expecting Capital Infusion After Facing Billions of Mortgage-Related Write-downs

Today New York-based insurance brokerage firm Marsh & McLennan Cos. Inc. announced that it will be replacing its chief executive Michael Cherkasky following a year of disappointing results.     A search is underway for a replacement after the company’s board determined that a change in leadership would best enable it to move forward.  … Continue reading Marsh & McLennan to Replace CEO Cherkasky

Standard & Poor’s Ratings Services joined A.M. Best in lowering its senior unsecured and long-term counterparty credit ratings on Toronto?based Kingsway Financial Services Inc. to ‘BB+’ from ‘BBB-‘. S&P also lowered the debt ratings on Kingsway’s subsidiaries to ‘BB+’ from ‘BBB-‘ and assigned a negative outlook.       “The downgrade follows Kingsway’s announcement that its… Continue reading S&P Lowers Kingsway Ratings to ‘BB+’; Outlook Negative

Bear Stearns Cos. posted its first quarterly loss in its 84-year history on higher-than-projected $1.9 billion in mortgage write-downs.For the quarter ended Nov. 30, the brokerage house recorded a net loss of $854 million, or $6.90 a share, versus net income of $563 million, or $4 a share. The company last month forecasted about $1.2… Continue reading Mortgage Writedowns Sting Bear Stearns as it Posts First Quarterly Loss in its History