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June Holmes, interim CEO for the Property Casualty Insurers Association of America (PCI), issued the following statement today in response to the Department of Homeland Security (DHS) Inspector General’s interim report to Congress that there was “no evidence that wind damages were improperly attributed to flooding” after Hurricane Katrina struck the Gulf Coast in 2005:… Continue reading Homeland Security Report Finds Flood Insurance Program No Evidence of Shifting Wind Claims to National

A.M. Best Co. has placed the financial strength rating (FSR) of “A” (Excellent) and the issuer credit ratings (ICR) of “a” of the Irvine Calif.-based Balboa Insurance Group and Newport the E&S Insurance Company of Plano, Texas under review with negative implications. Best also placed the FSR of “A-” (Excellent) and the ICRs of “a-”… Continue reading Best Places Balboa Group Ratings under Review – Negative

In response to the Federal Reserve announcement that it was cutting the interest rate at which banks borrow money, Wall Street shares opened sharply higher. After an hour, the Dow Jones had fallen back and was only up 1.10% at 12,986.7. Analysts will continue to watch the market throughout the day.      The news also… Continue reading Wall Street, Global Markets Responding to Federal Reserve Announcement

In a stunning move, the Federal Reserve Open Market Committee made the following announcement concerning an interest rate cut intended to ameliorate financial market conditions:     Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward. In these circumstances, although recent data suggest… Continue reading Fed Makes Announcement Concerning Interest Rate Cut

In a move sending shockwaves throughout the financial marketplace, Countrywide Financial Corp., the leading US mortgage lender, announced it borrowed $11.5 billion dollars from 40 banks to boost its stressed finances and continue operations as the global financial crisis curbed access to short-term financing. Countrywide says the $11.5-billion line of credit was provided by a… Continue reading Countrywide Borrows Billions to Finance Operations

In a statement released yesterday, New York-based Bear Sterns Cos., the second-largest underwriter of mortgage bonds, announced it is eliminating jobs at two of its divisions. “In the normal course of business Bear Stearns Residential Mortgage Corp. and Encore Credit evaluate market conditions and staffing levels in an effort to identify areas where we can… Continue reading Jobs Cut at Beleaguered Bear Stearns

After U.S. stocks stopped their dramatic slide at the end of the trading day yesterday, the yen fell for the first day this week, giving rise to speculation that investors could gain confidence to take advantage of the drop in higher-yielding currencies to purchase them via loans from Japan. The yen also dropped after days… Continue reading Stock Market Slide Stops, Yen Drops

The no-fault insurance law currently in force in Florida will expire on October 1 after being in effect for 37 years. Unless legislators act quickly, state residents can expect to encounter a slew of uninsured drivers on the road, says the Florida Department of Highway Safety and Motor Vehicles.    Says Wayne NeSmith, president of… Continue reading Clock on Mandatory Personal Injury Auto Insurance Ticking Toward Expiration

The House Committee on Financial Services has taken a major step toward extending the federal terrorism insurance backstop by passing H.R. 2761, the Terrorism Risk Insurance Revision and Extension Act of 2007 (TRIREA). The Independent Insurance Agents & Brokers of America (the Big “I”) strongly supports the bill, sponsored by Rep. Michael Capuano (D-Mass.) and… Continue reading House Committee Takes Action on Terrorism Insurance Bill as Big “I” Says Bravo

Reinsurer Scottish Re reported investments with subprime exposure of about $2.1 billion, and of Alt-A about $1B, vs. shareholders’ equity of about $1.1 billion. Oppenheimer called the exposure “significant,” and noted that subprime, Alt-A portfolios have seen unrealized losses of about 6.6% of book value. Firm maintains neutral rating, forward estimates. Posted at 10:45 a.m.