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Two former governors urged the National Governors Association to back federal legislation that would enhance the competitiveness of the insurance industry and deliver greater choice and efficiency for consumers.    “The success of the insurance industry, a major revenue producer for state governments, depends on the existence of a modern and efficient regulatory system that… Continue reading Former Governor Urged to Back Enhanced Insurance Industry Competitiveness

For the first time in five years, specialists are predicting that Wall Street bonuses may be cut as a result of the credit market freeze that is paralyzing leveraged buyouts, merges and a variety of computer-driven trading strategies. According to an article published in the International Herald Tribune and Bloomberg, Gary Goldstein, chief executive of… Continue reading Wall Street Bonuses Likely to be Affected by Credit Market

Mortgage firms have announced more than 20,000 job cuts in the month ofAugust as the subprime-lending sector tumbles. The cuts equal about 15% of the new jobs the economy has been creating each month in 2007. By early September, jobless claims are expected to rise to reflect the trouble this sector is having. And the… Continue reading Mortgage Firms in Lay-Off Mode

The Aon Risk Services Unit of Aon Corp hired three former executives with Marsh Inc.’s aviation practice. Peter Schmitz, Robert Beyers and Tracy Toro have been named managing directors and will be based in Aon’s offices in New York.    Mr. Schmitz will lead Aon’s network of U.S. offices. The 22-year market veteran previously was… Continue reading New Hires at Aon; EPIC Adds to Its Staff

Investors have not shied way from securities linked to insurance policies as they have mortgage-backed securities in light of the subprime crisis.     The insurer-based securities are bonds tied to insurance poliies on people’s lives or property. The bonds can also be tied to the risk on an insured event such as a hurricane.… Continue reading Insurer-Based Securities, Cat Bonds Not Affected by Credit Debacle

The excess and surplus lines division of Bermuda-based Max Capital Group Ltd, Max Specialty Insurance Co., has launched a unit dedicated to U.S. marine risks. The unit which is based in New York, the unit will focus on inland marine and ocean marine products, and is expected to begin writing business effective October 1. Initially,… Continue reading Max Specialty Lanuches Marine Risk in US

Storm modeler Equecat stated on Wednesday that carriers may have to pay about $2 billion to cover losses stemming from Hurricane Dean.    The majority of the losses occurred in Jamaica. Insured losses from the storm’s two landfalls in Mexico will likely not exceed $250 million, it said.   

Citigroup Inc., J.P. Morgan Chase & Co., Bank of America, and Wachovia Corp all announced yesterday that they each have each borrowed $500 million from the Federal Reserve’s discount window, taking advantage of the central bank’s steps to open up the supply of cash to the nation’s banks at a time when some of the… Continue reading US Banks Borrow Money from the Fed’s Discount Window

In article in the on-line Wall Street Journal publication it was announced that Bank of America acquired a $2 billion equity stake in Countrywide Financial Corp., a strategy to boost confidence among creditors and investors in the nation’s largest mortgage company. According the Wall Street Journal, the acquisition deal received immediate approval from regulators and… Continue reading BofA Acquires Stake in Countrywide

Earlier today, Lehman Brothers announced that it will be closing down its subprime mortgage unit BNC Mortgage LLC. This is the latest casualty in the subprime crisis during the past month. BNC was a top-20 subprime mortgage lender in 2006, originating more than $14 billion worth of home loans, according to industry publication Inside B&C… Continue reading Lehman Brothers to Close Subprime Mortgage Unit