What’s new: In brief (February 14, 2005)

AIG announced Monday it has received subpoenas from the U.S. Securities Exchange Commission (SEC) and the office of New York Attorney General Eliot Spitzer. In a statement, AIG says, “subsequent to the earnings conference call on Wednesday, February 9, AIG received subpoenas from the Office of the Attorney General for the State of New York and the Securities and Exchange Commission relating to investigations of non-traditional insurance products and certain assumed reinsurance transactions and AIG’s accounting for such transactions.” AIG had already agreed to a settlement with the SEC following investigations into one of its units. Investigations into non-traditional products, such as finite risk products, are centered on whether such mechanisms act to smooth earnings rather than transfer risk.

The insured loss tally from early February storms in Australia have risen dramatically to AU$245 million (Cdn$240 million), compared to early estimates of AU$120 million given just a week prior. The Insurance Disaster Response Organisation (IRDO) says the East coast storms wreaked AU$155 million in insured damage in New South Wales. Victoria sustained AU$85 million in insured losses, while AU$5 million of damage was seen in Tasmania.

Employees of Hub International have raised more than $100,000 for the Canadian and American Red Cross relief efforts in tsunami-affected regions. Funds were raised through payroll deductions, and other, innovative programs including a silent auction. The company has also added $10,000 to the donation.

The Ontario General Insurance Hockey Tournament is scheduled for April 1-3 in Waterloo, Ontario. The event is looking for sponsors in hopes of raising more than $25,000 this year for the Big Brothers-Big Sisters of Kitchener-Waterloo. More than 500 participants are expected, including adjusters, insurance company staff, brokers, contractors and repair facility staff. To learn about becoming a sponsor, contact Rick Webster at rick.webster@aon.ca.