What’s new: In brief (March 10, 2005)

Moody’s has raised the outlook on Aon Corp. to “stable” from “negative” on the back of the broker’s announcement of a US$190 million settlement with five agencies in three states for alleged conflicts of interest. Moody’s says the settlement represents “resolution of a significant uncertainty around the company”, and is financially manageable. Moody’s also believes Aon will be able to handle the challenges which will come along with changing its business model and specifically the end of contingent commissions.

Odyssey Re Holdings Corp. has named Robert Giammarco as executive vice president and CFO as of March 31. Giammarco was formerly a managing director with Banc of America, where he focused on the insurance sector. In that position, he worked with Odyssey Re on its June 2001 initial public offering. Current CFO Charles Troiano will retire after a transition period.

California Insurance Commissioner John Garamendi has extended his investigation into title insurance. Garamendi says he has issued nine subpoenas covering six companies, in addition to earlier announced subpoenas against the state’s largest title insurers, LandAmerica and Fidelity National Title. Those two companies are expected to testify at an April 4 hearing called by the commissioner. Garamendi alleges title insurers set up phony reinsurance contracts with subsidiaries of realtors, developers and lenders, wherein the title insurer would give up half of the premium on title insurance policies to these captive reinsurers, on the condition the reinsurer’s parent would refer business back to the title insurer.