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The subprime crisis has affected the insurance stocks of carriers such as Genworth, Chubb, Ace, Hartford and Allstate. Genworth has been hit the hardest and is down about 20% while shares of Hartford and Chubb are trading at about 1.5 times book value and is Ace shares are trading at about 1.3 times, below their… Continue reading Genworth, Hartford, Chubb Among Insurers Whose Stocks Have Fallen

After a state inspector general report found Florida Insurance Commissioner Kevin McCarty had inappropriately used state resources by forwarding one e-mail related to a political campaign but did not pressure insurers to make contributions, the Commissioner announced the tightening of his office’s code of ethics. Chief Inspector General Melinda Miguel who issued the August 13… Continue reading Florida Insurance Department’s Code of Ethics

Last week North Carolina governor signed into law legislation that would limit the ability of mortgage brokers to charge customers above-market rates and prepayment penalties and to protect subprime borrowers from abusive adjustable rate mortgages. Referring to the mortgage meltdown a “wake-up” call, North Carolina Governor Michael Easley, stated, “If Washington isn’t going to act,… Continue reading States Look to Take the Subprime Mess into their Hands

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.