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Morgan Stanley took $9.4 billion in mortgage-related write-downs in fourth-quarter losses and announced a $5 billion investment from China’s sovereign wealth fund.    The second-largest brokerage firm by market value reported a net loss for the quarter ended Nov. 30 of $3.59 billion, or $3.61 a share, compared with a year-earlier net income of $1.54… Continue reading More Subprime Writedowns for Morgan Stanley as it Sells Stake to China

Allstate Corp. announced on Tuesday that its looses from the October and November California wildfires and other catastrophes would reach between $360 million and $400 million. Allstate, the largest publicly traded insurer in the United States, said in a statement it received over 7,000 claims from the southern California wildfires in October, which resulted in… Continue reading Allstate Losses from CA Wildfires, Catastrophes to Reach $400M

Yesterday the U.S. House of Representatives voted to extend the federal terrorism risk-insurance program for seven years, capitulating to the Senate who wanted to limit the length and scope of the program. The program set to expire on December 31 was passed by the House legislature by 360-53.The Senate last month passed a seven-year extension,… Continue reading House Extends Terrorism Program Along Senate’s Requirements

The following is excerpted from a special report performed by the Insurance Information Institute (III) — an “early-bird” forecast on the state of industry for 2008:    Each year the Insurance Information Institute invites a panel of Wall Street stock analysts and industry professionals to review the prospects for the industry in the year ahead.… Continue reading Early Study by III Sees Healthy Underwriting Profits, Zero Growth in 2008

The world’s largest reinsurer, Swiss Re, says that Insurers faced total claims from catastrophes of $25 billion in 2007, making it a comparatively inexpensive year despite warnings that global warming is causing more natural disasters.    European winter storm Kyrill was the costliest event, according to Swiss Re, causing insured losses of $5.9 billion, followed… Continue reading Swiss Re Says 2007 Comparatively Inexpensive Year in Catastrophic Claims

The European Central Bank has allocated 348.7 billion euros ($502 billion) to banks at a below-market rate in a refinancing move to ease tightened credit markets. It is one of five central banks that have injected billions in emergency cash into money markets.     The aim is to cut the cost of lending between… Continue reading ECB Lends $500B to Banks at Lower Rates

GlobalOptions Group, Inc., a leading provider of domestic and international risk mitigation and management services, today announced that its Fraud & SIU Services division has signed a five-year contract with York Insurance Services Group with a potential revenue value of up to $10 million. GlobalOptions Fraud & SIU unit will serve as a preferred provider… Continue reading GlobalOptions Group Signs Five-Year Contract with York ISG to Provide Investigative Services

Zurich Financial announced its agreement to purchase Italian life insurer DWS Vita SpA for $140 million from Deutsche Bank as part of its commitment to support growth by acquisitions. DWS Vita SpA had technical reserves of more than $1.4 billion and net written premiums of $50 million in the first six months of 2007, the… Continue reading Zurich Financial Buys Italian Life Insurer DWS

Munich Re has concluded an agreement with Aon Corporation to acquire 100% of Sterling Life Insurance Company, Bellingham, Washington, via subsidiary Munich-American Holding Corporation. The purchase price of US$ 352m (€243m) will be paid out through Munich Re’s own funds. The transaction is expected to be completed in the first quarter of 2008, subject to… Continue reading Munich Re Subsidiary Buys Aon’s Sterling Life Insurance Unit

State Insurance Commissioner Steve Poizner has filed an enforcement action against Blue Shield of California Life & Health Insurance Co on Thursday, accusing the company of illegal behavior toward policy holders and seeking a $12.6 million fine.    Mr. Poizner has asked an administrative law judge to fine Blue Shield $12.6 million after an investigation… Continue reading Insurance Regulator Files Action Against Blue Shield of CA, Seeks $12.6M Fine