AIG, Starr Begin $4.3 Billion Court Fight Over Shares
U.S. District Judge Jed Rakoff ruled that speeches by Maurice "Hank" Greenberg, former head of American International Group Inc., aren’t hearsay and can be heard in a $4.3 billion lawsuit between AIG and a private investment firm Greenberg runs, Starr International Co.
The ruling may help AIG support its claims that Greenberg, after being ousted from the company in 2005, improperly took, or converted, 290 million AIG shares worth $4.3 billion that Starr held for decades to fund a deferred compensation program for AIG workers. (Read more!)
Court orders $507.5 million damages in Exxon Valdez spill
A federal appeals court on Monday ordered Exxon Mobil Corp to pay $507.5 million in punitive damages stemming from the 1989 Exxon Valdez oil spill off Alaska, plus 5.9 percent interest running from the 1996 trial judgment, the opinion said.
The amount is a fraction of the $5 billion in punitive damages originally awarded to fishermen, Alaska natives, business owners and other litigants by a jury in 1996, and equals the compensatory damages agreed to in a subsequent settlement, the opinion said. (Read more!)
Market Barometer Report: Three Major Insurers Are Prolonging The Soft Market
Richard Kerr, CEO of MarketScout summed up the April rate by stating, "Every sensible economic indicator tells us rates should be increasing, yet there are still three large, admitted, publicly traded insurers clamoring for premium, seemingly at any rate and continuing to prolong the soft market. Historically, the end of the soft market is punctuated with last gasp deep rate reductions by a few desperate insurers, signaling either the end of the soft market or the end of an irresponsible insurer.
Either way, once these irresponsible underwriters are reined in we should be on the way to rate increases. Until that occurs, the soft market will continue. We project the turn will come by year-end because all but the terrible trio are making appropriate underwriting decisions. Even the E&S market is refusing to chase rates down, sitting on the sideline as the terrible trio slash each other to bits. Our guess is prudent insurers are waiting to pick up the fallout when the terrible trio have their day of reckoning. (Read more!)
EXCLUSIVE: Value Proposition... Your Meal Ticket to an Amazing Career
We again welcome Scott Addis, exclusive to MarketScout's Insurance Voice Newsletter, for a look at how to transform your agency.
How do you create value? This apparently simple question may well be the most important one you will ever be asked. Your ability to clearly articulate your value proposition will separate you from the pack, elevate your performance and offer direction as you move ahead with your career.
Your value proposition is the reason for your professional existence. It describes how you create value for others. It makes you stand out in a crowded marketplace. Without a compelling value proposition you are ordinary and disposable -- a commodity. With a distinguished value proposition you are unique and indispensable. (Read more!)
Restaurant held liable for unintentional ADA violation: Calif. high court
Companies can be found liable for discrimination against disabled people under state civil rights law even if the discrimination is unintentional, says the California Supreme Court in a decision issued Thursday.
The case involved Kenneth Munson, who has a physical disability that requires the use of a wheelchair, according to the decision in Kenneth Munson vs. Del Taco Inc. Mr. Munson charged that when he visited the San Bernardino, Calif., restaurant operated by Lake Forest, Calif.-based Del Taco Inc., he "encountered architectural barriers that denied him legally required access to the parking area and rest rooms," according to the opinion. (Read more!)
Chinese Drywall Victims Finding Homeowners Insurance Won’t Help
Homeowners plagued by Chinese drywall are finding that their insurance policies won’t cover the damage caused by the material’s fumes. According to BradentonHerald.com, insurance companies are citing provisions in homeowners policies that exclude coverage for damages caused by pollution and construction defects. (Read more!)
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Swiss Re America issues $100 million catastrophe bond
Swiss Reinsurance America Corp. Ltd. has issued a $100 million, three-year catastrophe bond to provide capacity for a reinsurance agreement with ACE American Insurance Co. and its affiliates, Swiss Re said Friday.
The bond, which was issued through Cayman Islands-based Calabash Re III Ltd., has two tranches, one covering U.S. hurricane and earthquake risk and the second covering only U.S. earthquake risk.
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Analysts: P/C Insurers' Hopes for Hard Market Undercutting Reserves
Some property/casualty insurers might be in for a rude awakening with respect to their reserve practices, according to industry experts.
The property/casualty insurance sector's ability to properly estimate its loss and loss-adjustment expense reserves directly affects its financial strength, noted actuaries and analysts at a recent Standard & Poor's Ratings Services insurance conference.
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New York Investment Firm, South Korean Bank to Buy AIG Buildings
A consortium including a New York investment firm and a Korean bank agreed to buy American International Group Inc.'s New York headquarters, the broker, CB Richard Ellis, said Tuesday.
Youngwoo & Associates and Kumho Investment Bank agreed to buy the two buildings, which are located at 70 Pine Street and 72 Wall Street in downtown Manhattan. The terms of the deal were not disclosed.
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Arch Insurance launches 2 principal underwriting groups
Arch Insurance Group, a division of Arch Capital Group Ltd., on Monday said it has formed two new principal underwriting groups—Arch Property & Casualty Group and the Arch Financial & Professional Liability Group—in its U.S.-based operations.
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