Category: Show on Homepage

The world’s largest insurance company, American International Group, told investors that housing market values would have to decline levels not seen since the Great Depression before the insurer would be harmed by its exposure to the residential mortgage market. AIG’s exposure to subprime loans (those extended to consumers with less than stellar credit) exists on… Continue reading AIG Seeks to Reassure Investors About its Exposure in Subprime Market

According to Citigroup analyst Colin Devine, among life insurance companies, Prudential Financial Inc. has the riskiest investment portfolio, including subprime exposure, and MetLife Inc. and Genworth Financial Inc. also deserve close attention. Devine defined high risk as below investment grade bonds, equities, real estate and other partnerships and joint ventures.    Says Devine, at 13.8… Continue reading Prudential’s Subprime Exposure Warrants Watch

Despite the crisis under way in the subprime mortgage market, spokespersons for insurance broker Aon Corp. says the cost of corporate board insurance is likely to continue declining. According to a survey by the broker, the average price in the second quarter for all sectors was down 18 percent from last year. While mortgage lenders… Continue reading Subprime Market Woes Don’t Upset Board Insurance Market, Says Insurer

According to Goldman Sachs Group, Inc., many funds employing quantitative strategies are currently under pressure as recent conditions have resulted in significant market dislocation. Across most sectors, there has been an increase in overlapping trades, a surge in volatility and an increase in correlations. These factors have combined to challenge many of the trading algorithms… Continue reading Goldman Sachs Hedge Fund Includes C.V. Starr and Others

The U.S. Justice Department has filed a civil lawsuit in which it says it is considering a criminal probe of some of the largest and most well known insurance companies, contending that they allegedly shifted damages sustained in Hurricane Katrina to the National Flood Insurance Program. Named in the civil suit are Allstate Corp., State… Continue reading Justice Department May Launch Criminal Probe

In a move applauded by the Independent Insurance Agents & Brokers of America (the Big “I”), the National Conference of State Legislatures (NCSL) has passed a resolution supporting the preservation of the McCarran-Ferguson Act’s limited anti-trust exemption and opposing congressional proposals to revise the law. Saying that repeal of the anti-trust exemption would not benefit… Continue reading Legislators Supporting McCarran-Ferguson Are Lauded by IIAA

Merrill Lynch Life Insurance Co. and ML Life Insurance Co. of New York are being purchased by Aegon NV for $1.3 billion in cash to boost the Dutch insurer’s sales of variable annuities and distribution in the United States. According to Aegon, the Merrill Lynch acquisitions produced $800 million in variable annuity sales last year,… Continue reading Merrill Lynch Units Purchased by Dutch Insurer

In a report issued by London-based A.M. Best Europe, the company calls the outlook for the global reinsurance sector “stable.” The current outlook implies that A.M. Best Co. Inc., whose headquarters are in New Jersey, is anticipating that most of this year’s rating actions will be affirmations with stable outlooks, the report stated. According to… Continue reading Global Outlook Stable for Reinsurance Sector, Finds Report

State-run Citizens Property Insurance Corp. in Florida has delayed the date it will begin offering property insurance with wind coverage to commercial building owners who are hoping to purchase the protection next month. Thus far, Citizens Property Insurance has yet to file its requested multi-peril commercial line rates with state regulators.

The assets of The Combined Group of Cos. of Carrollton, Texas have been acquired by Florida-based Brown & Brown Inc., according to a spokesperson for the brokerage. The Combined Group of Cos. posted aggregate annualized revenues of $12.6 million, operating primarily as a collection of managing general agencies focusing on non-subscriber workers compensation insurance in… Continue reading MGA Group Purchased by Brown & Brown