News
What’s new: In brief (February 01, 2005)
February 1, 2005 by Canadian UnderwriterStandard & Poor’s has assigned the following ratings to Fairfax Financial Holdings’ US$750 universal shelf, registered with Canadian and U.S. regulators: “BB” senior debt; “BB-” subordinated debt; and “B+” preferred stock. S&P does not expect significant amounts of incremental debt…
FSCO updates guidance on territorial rating
January 31, 2005 by Canadian UnderwriterOntario’s insurance regulator has posted a bulletin outlining rules for territorial rating for auto insurance.The Financial Services Commission of Ontario (FSCO) bulletin supercedes rules put in place in 2000, with the regulator noting, “there were concerns that there was a…
Tsunami insured losses estimated at US$4 billion
January 31, 2005 by Canadian UnderwriterInsured losses from the December 26, 2004 Asian tsunami have been estimated at less than US$4 billion by U.S. risk modeling firm Risk Management Solutions (RMS).The majority of claims will be for property damage, including homes, vehicles, boats and ships,…
MMC settles with Spitzer for US$850 million
January 31, 2005 by Canadian UnderwriterMarsh & McLennan Cos. Inc. has settled the civil charges filed by New York Attorney General Eliot Spitzer for US$850 million. The charges were filed in October, 2004, alleging misconduct at MMC’s insurance brokerage unit, Marsh Inc., in the U.S.…
What’s new: In brief (January 31, 2005)
January 31, 2005 by Canadian UnderwriterSt. Paul Travelers has added US$868 million to its prior year loss reserves. The newly combined companies completed an internal review which resulted in a reserve charge of US$922 million for adverse development on prior year asbestos losses, and US$84…
What’s new: In brief (January 30, 2005)
January 30, 2005 by Canadian UnderwriterStephen Mallory, former managing director of Marsh Canada, has been named president and CEO of Hub International Ontario Ltd. Mallory succeeds Nelson Tilander, who although leaving the CEOs role after six years for an indefinite medical leave, will remain as…
Canadian financial services outperform peers: study
January 30, 2005 by Canadian UnderwriterCanadian financial services companies outperformed their peers over the past five years, according to a new report by Mercer Oliver Wyman released at last week’s World Economic Forum.The study notes, “North America has outperformed the global SPI (shareholder performance index)…
Canadian market set for interesting year in 2005: Cook
January 30, 2005 by Canadian Underwriter2005 is shaping up to be an interesting year for Canada’s property & casualty insurance industry, says Omega Insurance Holdings CEO Philip Cook. Cook looked into his crystal ball to outline “33 trends” the industry may see this year, speaking…
Joint Forum releases intermediary sales practices paper
January 30, 2005 by Canadian UnderwriterThe Joint Forum of Financial Market Regulators (JFFMR) has released its “Principles and Practices for the Sale of Products and Services in the Financial Sector”.The new document suggests principles for the sale of a wide array of products, including p&c…
Allianz Insurance Co. and Trafalgar ratings cut
January 27, 2005 by Canadian UnderwriterStandard & Poor’s has lowered the counterparty credit and financial strength ratings of Allianz Insurance Co. of Canada and Trafalgar Insurance Co. of Canada to “BBB” from “BBB+”. The downgrade follows a review which began last October when it was…
Colorado probe of title insurers could have significant impact on sector: Fitch
January 27, 2005 by Canadian UnderwriterNews that the Colorado Insurance Department may sanction nine unnamed title insurers for allegedly paying kickbacks to homebuilders could have far-reaching implications for the entire title insurance industry, says Fitch Ratings.The rating agencies says it believes that along with Colorado,…
New accounting standards for financial instruments released
January 27, 2005 by Canadian UnderwriterNew standards for reporting financial instruments in corporate financial results have been officially released by Canada’s Accounting Standards Board (AcSB). The board says the standards are “a hybrid of U.S. GAAP and international standards”. “The new standards close a lot…