Insurance News

What Happens When Life Insurance Companies Falter

Many insurers are feeling a financial squeeze, and you’re worried that your life insurance policy or annuity isn’t safe.

What should you do?

Let concern, not panic, be your guide, experts say… Anxious consumers have been peppering regulators and financial counselors with questions because they’re worried by news of plunging insurance stocks and financial ratings and of rising investment losses…

…Seven life or health insurers became “impaired” last year — that is, they failed or weakened to the point that regulators stepped in, and a larger number is expected to do so this year…

Courant.com: What Happens When Life Insurance Companies Falter

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AIG, Former CEO Greenberg, CFO Smith Agree to Binding Arbitration

American International Group, Inc., its former Chairman and Chief Executive Officer Maurice R. Greenberg, and its former Chief Financial Officer Howard I. Smith jointly announced today that they have agreed on terms for binding arbitration of various legal disputes between AIG, on the one hand, and Greenberg and Smith, on the other
Full News

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Hard Hit Advisors Look for New Solutions

Many financial advisors are feeling extremely guilty for failing to protect their customers from the 30% equity drop in 2008, but it will take more than remorse to earn clients’ forgiveness.

Hard Hit Advisors Look for New Solutions
Source: Financial-Planning.com

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F.D.I.C. Seeks to Attract More Buyers of Banks

Faced with a growing wave of bank failures, the Federal Deposit Insurance Corporation is taking extraordinary steps to attract buyers for troubled institutions to keep the fund that makes depositors whole from being drained.

Federal regulators are planning next week to make it easier for private equity firms to buy insolvent lenders, according to people briefed on the situation, a move that would reduce the number of failed banks that the fund would have to support…

NYT: F.D.I.C. Seeks to Attract More Buyers of Banks

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Life insurance stocks fall as investors fret over Q1

Shares of U.S. life insurers, including Lincoln National (LNC.N) and Prudential Financial (PRU.N), fell on Monday as investors grew concerned that the sector will report that it took another beating in the first quarter.

Investors in life insurers, which report quarterly results in a few weeks, “should brace for another highly challenging earnings season,” said Morgan Stanley analyst Nigel Dally, in a research note issued Monday titled “Earnings Outlook: More tough times…”

Reuters: Life insurance stocks fall as investors fret over Q1

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Afternoon Links: Bernanke’s Economic Forecasting Record

.subtle { color: #888888; }
> The Wackiest Chinese Knock-Offs - businessinsider
> Producer Prices Rose Less Than Expected in October - online.wsj
> Robeco Investment Management’s Feeny still bullish on stocks despite S&P 500’s 60% run-up - investmentnews

> Who Pays the Taxes in the USA ? - ritholtz
> Bernanke’s Economic Forecasting Record - ritholtz
> Financial planning advocate: Mortgage advice should not fall under proposed regulations - investmentnews

> China Grapples With Pressure Over Currency Controls - online.wsj
> Fed’s Lacker: Fed Can’t be “paralyzed by patches of lingering weakness” - calculatedriskblog
> Industrial Production, Capacity Utilization Increase Slightly in October - calculatedriskblog

> Ten Questions on the Volatile Housing Market - online.wsj
> 5% Of U.S. Taxpayers Account For 60.6% Of All Tax Revenue, 47% Will Pay No Federal Tax In 2009 - zerohedge
> Is Gold Really in a Bubble? - ritholtz

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Breakfast Briefing Personal Finance Edition: Nurse outduels IRS… How to Invest in REITs… What type of Bear are you? …

.subtle { color: #888888; } • Nurse outduels IRS over MBA tuition - finance.yahoo
• How to invest in REITs - money.cnn
• What Type of Bear Are You ? - ritholtz
• AOL To Fire ~1,400 This Week - businessinsider
• Google Is Already the New Microsoft (GOOG) - fool

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Heads Of Insurance Cos Criticize Use Of TARP Funds

Chief executives of the U.S. property-casualty insurance sector rejected proposals for the industry to receive federal bailout funds, a stark contrast to lobbying efforts by life insurance carriers to obtain access.

Liberty Mutual Chairman and Chief Executive Ted Kelly said receiving funds from the Troubled Asset Relief Program is a slippery slope that could potentially lead to strict government regulation and control.

Kelly spoke Friday in Washington at a conference hosted by a trade group, the Independent Insurance Brokers and Agents of America. Other chief executives on the conference panel included Mike McGavick of XL Capital Ltd.(XL), Glenn Renwick of Progressive Corp. (PGR) and Robert Restrepo of State Auto Financial Corp. (STFC).

While it’s understandable that life insurance providers would want access to TARP funds, Kelly said, government bailouts of companies don’t coincide with capitalist market philosophy. “Capitalism without failure is like religion without sin, it doesn’t work,” Kelly said, drawing laughs from the audience…

WSJ: Heads Of Insurance Cos Criticize Use Of TARP Funds

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Head of L.A.’s largest city pension agency resigns

The president of Los Angeles’ largest employee retirement system has resigned, becoming the sixth pension appointee of Mayor Antonio Villaraigosa to quit over the last six months…

LA Times: Head of L.A.’s largest city pension agency resigns

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Piracy Causes Changes in Routes, Insurance

Piracy in the waters off the coast of Somalia — particularly in the critical Gulf of Aden, connecting the Red Sea to the Indian Ocean — soared last year. Amid the rash of attacks, some lines have stopped transiting the area altogether, and shipping-insurance rates have jumped….

…The change in route also has dented revenues from the Suez Canal, which account for between 10% and 20% of the Egyptian government’s annual budget. The Suez Canal Authority charges between a few thousand dollars for a small ship to $600,000 for major container vessels.

Shipping insurance firms, mostly based in London, have been charging premiums to go through the Gulf of Aden and Suez since last spring. Big oil and chemical tankers, several football fields long, are especially vulnerable. They must pay tens of thousands of dollars a day in extra “war zone” insurance to cross the Gulf…

WSJ: Piracy Causes Changes in Routes, Insurance

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