American insurance giant AIG will today (9 February) announce a settlement of $1.6bn, resolving deception and accounting fraud charges with federal and state authorities. The regulatory settlement is the largest by a single company in US history and would settle investigations by the Securities and Exchange Commission (SEC), New York State attorney general Eliot… Continue reading AIG in $1.6bn settlement with regulators
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Alea Heads Into Runoff as 2005 Loss Estimate Approaches $240 Million
Alea Group Holdings (Bermuda) Ltd. unveiled a runoff strategy for its insurance and reinsurance businesses as it estimated its after-tax losses were between $200 million and $240 million for 2005. The Bermuda-based group said it moved into runoff because it couldn’t attract a suitable volume of business after its ratings were downgraded in the… Continue reading Alea Heads Into Runoff as 2005 Loss Estimate Approaches $240 Million
Allstate Releasing 700 Employees
The Chicago Tribune reported today that Allstate Corp., the nation’s second-biggest auto and homeowner’s insurer after Bloomington-based State Farm Insurance Cos., will be offering a voluntary termination program to employees in its corporate office as a way to cut expenses. Northbrook, Illinois-based Allstate recently posted a record quarterly loss in the wake of Huricanes… Continue reading Allstate Releasing 700 Employees
Best Downgrades FSR for Louisiana Farm Bureau; Outlook Negative
A.M. Best Co. has downgraded the financial strength rating to B+ (Very Good) from A- (Excellent) of Louisiana Farm Bureau Mutual Insurance Company (LFB) (Baton Rouge, La.). The rating has been removed from under review and assigned a negative outlook. The downgrade is attributable to the deterioration in LFB’s risk-adjusted capitalization following losses from hurricanes… Continue reading Best Downgrades FSR for Louisiana Farm Bureau; Outlook Negative
Vesta Insurance Says NYSE to Suspends Its Shares
Vesta Insurance Group said on Wednesday it was told by the New York Stock Exchange that its common stock would be suspended from trade because its market value fell below $75 million. The insurer based in Birmingham, Alabama, said the exchange told Vesta that it no longer met minimum criteria for listing. The company had… Continue reading Vesta Insurance Says NYSE to Suspends Its Shares
GE’s sale of its insurance operations to Swiss Re
An excellent article regarding GE’s sale of its insurance operations to Swiss Re is in the current issue of Fortune at, http://www.fortune.com/fortune/articles/0,15114,1135407,00.html. I encourage everyone to think of how this applies to many other insurance companies because GE’s situation is not isolated by any means. Another way of thinking of this is that Swiss Re… Continue reading GE’s sale of its insurance operations to Swiss Re
A.M. Best Downgrades and Assigns Ratings to Crestbrook Insurance Co
A.M. Best Co. has downgraded the financial strength rating to A- (Excellent) from A+ (Superior) of Crestbrook Insurance Company (CIC) (Columbus, OH) and assigned an issuer credit rating of “a-“. Both ratings have been placed under review with negative implications. CIC is currently an inactive, fully reinsured subsidiary of Nationwide Mutual Insurance Company (Nationwide) (Columbus,… Continue reading A.M. Best Downgrades and Assigns Ratings to Crestbrook Insurance Co
A.M. Best Downgrades and Removes From Under Review Rating of NLC Mutual
OLDWICK, N.J. December 06 (BestWire) — A.M. Best Co. has downgraded the financial strength rating to C++ (Marginal) from B+ (Very Good) for NLC Mutual Insurance Co. (NLC) (South Burlington, Vt.). The rating has been removed from under review and assigned a negative outlook. The rating reflects NLC’s marginal capitalization, elevated underwriting leverage and history… Continue reading A.M. Best Downgrades and Removes From Under Review Rating of NLC Mutual
S&P Downgrades XL’s Ratings to ‘A+’
Standard & Poor’s Ratings Services announced that it has lowered its counterparty credit and financial strength ratings on XL Capital Ltd.’s core operating companies to “A+” from “AA-” and removed them from CreditWatch with negative implications, where they were placed on Sept. 20, 2005. S&P also lowered its counterparty credit ratings on XL… Continue reading S&P Downgrades XL’s Ratings to ‘A+’
Texas Man Charged With Selling Thousands Of Fake Policies
Former Los Angeles Insurance Broker Collected $3.8 Million in Nationwide Bogus Insurance Program SANTA ANA – Insurance Commissioner John Garamendi announced Monday that a former California insurance broker has been arrested and charged with 63 felony counts related to the sale of thousands of fake insurance policies throughout the nation. San Antonio, Texas… Continue reading Texas Man Charged With Selling Thousands Of Fake Policies