News
What’s new: In brief (May 27, 2004)
May 27, 2004 by Canadian UnderwriterSwiss 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…
Northbridge sells life unit to Western Financial
May 27, 2004 by Canadian UnderwriterNorthbridge 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…
Study questions mold as cause of serious health problems
May 27, 2004 by Canadian UnderwriterNo 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,…
Organized groups responsible for 1/5 of car thefts
May 27, 2004 by Canadian UnderwriterAbout one in every five motor vehicle thefts in Canada are committed by organized groups, suggests StatsCan.Statscan bases this figure on the number of vehicles reported stolen but never recovered, with the government statistics collector citing law enforcement use of…
What’s new: In brief (May 26, 2004)
May 26, 2004 by Canadian UnderwriterGE 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…
Fairfax credit facility increased
May 26, 2004 by Canadian UnderwriterToronto-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…
Risk managers see conflict in contingent commissions: survey
May 26, 2004 by Canadian UnderwriterDespite 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…
Facility N.B. depopulation ahead of schedule
May 26, 2004 by Canadian UnderwriterThe 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…
What’s new: In brief (May 25, 2004)
May 25, 2004 by Canadian UnderwriterSaskatchewan 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…
26% of companies target of employee lawsuit: Chubb
May 25, 2004 by Canadian UnderwriterOne-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…
Moody’s withdraws ratings on Symons International Group
May 25, 2004 by Canadian UnderwriterRating 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…
Impairment trends highlight perils of mismanaged reserves
May 25, 2004 by Canadian UnderwriterA 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…