August 2008 News

AIG Plummets as Insurer Won't Rule Out Capital Raise
American International Group Inc., the biggest U.S. insurer by assets, fell the most in at least 28 years of New York trading after writing down more than $11 billion of holdings and saying it won't rule out raising capital. (Read more!)

MMC to Cut 900 Positions as Net Income Drops 63%
Marsh & McLennan Cos. said it will lay off 900 employees as the giant broker's second-quarter profit fell by 63.3%. Net income fell to $65 million from $177 million. MMC said a $115 million noncash write-down in the value of its Kroll corporate security business impacted earnings, and reported that revenue for the quarter increased 10.7% to $3.1 billion. (Read more!)

AIG to unveil restructuring plan on September 25
American International Group, Inc. will unveil a sweeping plan for change at the giant insurer at a meeting on September 25, Chief Executive Robert Willumstad said on Thursday. (Read more!)

In Wake of Shipyard Fire Disaster, Aetna Waives Premium
The only thing tougher than a Washburn & Doughty Associates tugboat may be the company itself. Before the disastrous fire that destroyed its shipyard was even fully extinguished, Washburn & Doughty, one of the biggest commercial boat builders in Maine, began working on plans to rise from the ashes and rebuild.

Eager to help support this special Maine customer, Aetna, which provides health coverage for 57 of Washburn & Doughty's employees and their families, announced today that it will waive one month of premium payment and allow the company to defer payment of two additional months of premium for 60 days. (Read more!)

Market Barometer Report: July Rates Down 11%
Richard Kerr, Chairman and CEO of MarketScout noted, "The subprime crisis continues to create concerns despite massive equity write downs by major insurers. While these losses are not directly related to insurance underwriting results, they ultimately will impact insurer’s appetite to continue rate cuts." (Read more!)

Noted forecasters see nine hurricanes this year
The noted Colorado State University hurricane research team on Tuesday raised its forecast for the 2008 Atlantic hurricane season, saying it now expects 17 tropical storms to form, with nine of them to strengthen into hurricanes. (Read more!)

Allianz Struggles to Find Dresdner Buyer
The German insurance company Allianz has struggled to find a buyer for its banking unit, Dresdner, in the face of subprime write-downs and a tight credit market.

A sale is considered a crucial step in the consolidation of the German banking sector. (Read more!)

Market Updates

California Company Recalls Beef After E. Coli Outbreak
A California company is voluntarily recalling 153,630 pounds of frozen ground beef, some of which has been linked to an outbreak of E. coli bacteria that shut down a Boy Scout camp in Goshen, Va., this week, federal officials said.
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Aon Launches Industry's Most Comprehensive and Innovative Insurance Product to Support Green Building
Aon Corporation, the leading provider of global risk management and consulting services, launched the Aon Green Building Property Program, the industry's most comprehensive insurance solution to facilitate environmentally friendly and energy-efficient building efforts of commercial property owners and managers.
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2008 eInsurance Symposium Presented by MarketScout: THE TIME IS NOW!
The 2008 eInsurance Symposium will examine the entrepreneurialism, innovation and optimization that successful and proven industry leaders are utilizing to survive and thrive in the current economy.
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