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Citigroup Inc., affected by mounting losses, announced its plans to bail out seven affiliated investment entities if necessary, bringing $49 billion in assets onto its balance sheet and further depleting its capital base. The big New York bank said it would provide emergency support to the entities — known as structured-investment vehicles — if it… Continue reading Citigroup Amid Mounting Losses to Provide Financial Support to Seven Affiliated SIVs

U.S. tort costs totaled $247 billion in 2006, which is approximately $825 per person and $57 less per person than in 2005, according to the 2007 Update on U.S. Tort Cost Trends from the Tillinghast insurance consulting practice of Towers Perrin. Tort costs declined by 5.5% in 2006, significantly lower than the growth rate of… Continue reading Study Reveals U.S. Tort Costs Down from 2007

Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist and part of the Marsh & McLennan Companies, announced that it had been selected “Best Overall” among all reinsurance brokers in the 2007 Flaspöhler Survey of Ceding Companies in North America.    The Flaspöhler Research Group is an independent research firm that specializes… Continue reading Guy Carpenter Selected Best Overall” Among Reinsurance Brokers In 2007 Flaspohler Survey of Ceding Company

Georgia Insurance Commissioner John Oxendine has proposed creating a new wind pool to make property/casualty coverage more affordable and available in the state’s coastal counties. The wind pool, which would be known as the Georgia Coastal Insurance Corp., would manage fair-share participation by admitted property/casualty insurers doing business in the state. It would be created… Continue reading GA Insuance Commissioner Proposes New Wind Pool

On Wednesday, the U.S. House of Representatives voted to approve a slimmed-down version of a bill that would extend and expand the government’s post-9/11 terrorism risk insurance program. However, the House bill is still more ambitious than an even narrower version favored by the Senate and the White House, ultimately doing very little to clarify… Continue reading House Approves Revised, Narrower Version of TRIA, Outlook for Veto Still on Horizon

Fitch Ratings announced on Wednesday that it has placed the top-tier ratings of bond insurer Security Capital Assurance and its financial guaranty insurance units on review for a possible ratings downgrade.      The Bermuda-based bond insurer, which holds top “AAA” ratings, has exposure to structured finance collateralized debt obligations that are now rated junk due… Continue reading Fitch May Downgrade Bond Insurer SCA

Nikolaus von Bomhard, Munich Re’s chief executive, in an investor conference over the Internet, relayed that he sees somewhat weaker prices and conditions in reinsurance ahead, giving added importance to the group’s primary insurance activities.     Mr. von Bomhard said that he expected primary insurance to grow faster than reinsurance and that the group’s… Continue reading Munich Re Sees Softer Reinsurance Market

On Thursday, the Lloyd’s of London insurance market announced it would focus on protecting its profitability in the face of falling risk prices and increasing competition.    In the latest version of its rolling three-year plan, aimed at improving its performance and countering the threat from rival insurance centres such as Bermuda, the 300-year-old market… Continue reading Lloyd’s Plans Three-Year Strategy for Soft Market

According to Insurance Commissioner Steve Poizner, as a result of an audit of California’s state-chartered workers’ compensation fund over several months, uncovered was “serious structural and operational issues” and questionable spending involving hundreds of millions of dollars.    The State Compensation Insurance Fund, which provides workers’ comp insurance to 220,000 employers in California, suffers from… Continue reading Audit Reveals Major Problems, Questionable Spending in CA Workers Comp Fund

Under a bill passed by the New Jersey state Legislature, insurance gents in New Jersey will no longer have to provide automobile insurance applicants with three scenarios and quotes from all of the companies they represent. The measure, A. 3863, will go to Gov. Jon Corzine for his signature, having unanimously cleared the state Assembly… Continue reading NJ Legislature Clears Bill Eliminating Quote Requirements for Agents