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Study questions mold as cause of serious health problems

May 27, 2004 by Canadian Underwriter

No link can be found between the presence of dampness and mold in homes and the variety of serious health problems being claimed in court cases, suggests a new report by the Institute of Medicine (IOM) of the National Academies,…

News Insurance

Northbridge sells life unit to Western Financial

May 27, 2004 by Canadian Underwriter

Northbridge Financial the combined Canadian entities of Fairfax Financial Holdings announces it has sold its life operation, Federated Life Insurance Co. of Canada, to Western Financial Group. The $56.9 million transaction includes $20 million for Western to purchase all outstanding…

News Climate ChangeInsurance

What’s new: In brief (May 27, 2004)

May 27, 2004 by Canadian Underwriter

Swiss Re has seen its financial strength and long-term debt ratings cut by Moody’s to “Aa2”, although the reinsurer’s short-term rating was affirmed at “prime-1”. Among the conditions cited in the downgrade are possible further adverse development for the years…

News InsuranceMergers and Aqcuisitions

Facility N.B. depopulation ahead of schedule

May 26, 2004 by Canadian Underwriter

The Facility Association (FA) is celebrating early success in its goal to depopulate the New Brunswick pool for high-risk drivers, having reduced market share to 2.5% in just two months.“While the May numbers are early projections, I’m thrilled to see…

News Insurance

Risk managers see conflict in contingent commissions: survey

May 26, 2004 by Canadian Underwriter

Despite risk managers and brokers shrugging off investigations of contingent commission arrangements, a new survey suggests commercial insurance buyers do see such payments as a conflict of interest.The study, “A Season of Discontent” by Advisen, shows 69% of the 331…

News Insurance

Fairfax credit facility increased

May 26, 2004 by Canadian Underwriter

Toronto-based Fairfax Financial Holdings is increasing the syndicated secured revolving letter of credit facility it entered into late last year by US$150 million.The facility, which now stands at US$450 million, was entered into last December to provide letters of credit…

News Climate ChangeInsurance

What’s new: In brief (May 26, 2004)

May 26, 2004 by Canadian Underwriter

GE has priced the IPO of its investment/life insurance spin-off, Genworth Financial (NYSE: GNW), which could net US$2.5-2.9 billion. After the offering, GE will own about 70% of the company. More than 500 people have been killed by flooding in…

News Insurance

Impairment trends highlight perils of mismanaged reserves

May 25, 2004 by Canadian Underwriter

A new study by A.M. Best gives ample evidence to the perils of mismanaged reserves for p&c insurers. The study, which covers U.S. insurers from 1969-2004, shows that most impairments when an insurer has their ability to write business limited…

News Insurance

Moody’s withdraws ratings on Symons International Group

May 25, 2004 by Canadian Underwriter

Rating agency Moody’s Investors Service has withdrawn its ratings on Symons International Group Inc. and its subsidiaries. The rater notes that interest payments on the company’s trust preferred securities have been in deferral since February, 2000. Those securities had been…

News Insurance

26% of companies target of employee lawsuit: Chubb

May 25, 2004 by Canadian Underwriter

One-in-four privately held companies has been the target of an employee lawsuit in the past few years, according to a new study by New Jersey-based Chubb Group.In fact, 44% of the companies surveyed said they expect to be the target…

News Climate ChangeInsuranceMergers and Aqcuisitions

What’s new: In brief (May 25, 2004)

May 25, 2004 by Canadian Underwriter

Saskatchewan Government Insurance (SGI) has introduced a new deductible payment plan which allows claimants to finance the payment of their deductible after an accident over a period of 10 months. While SGI does not charge interest, it will charge claimants…

News Insurance

“Corporate cholesterol” costing insurers billions

May 24, 2004 by Canadian Underwriter

Inefficient business processes are costing insurers as much as US$10 per policy in waste, says a new report by Exigen Group. In the U.S., so-called “corporate cholesterol” amounts to more than US$2 billion, with insurers spending up to 30% more…