Investment banker Goldman Sachs & Co. was the target of a lawsuit by Liberty Mutual Insurance Co. and a number of its subsidiaries, for “making materially misleading statements and omissions” in November 2007, for Freddie Mac preferred stock offerings. According to the lawsuit which was filed at a Massachusetts U. S. District Court, Liberty Mutual and its subsidiaries – Employers of Wausau, Safeco, Liberty Life, and Peerless – had made investments of $37.5 million within the Freddie Mac (Federal Home Loan Mortgage Corp) Series Z offering, which was made up…
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Insurance companies hit hard by recent storm losses
The recent outbreak of severe storms last month has added up to a massive bill for insurers. The severe storms and tornado’s in April has been called the second deadliest outbreak in U.S. history; falling barely short of the record Tri-State tornado outbreak in 1925. Insurance companies across the board are reporting high losses, such as Allstate, with a whopping 1.4 billion dollar loss; just for the month of April. Several insurance companies are reporting big losses for April, due to the historic weather events all through the southern states.…
Read MoreFinancial News: Insurance industry becomes more attractive
The global economy is showing promising signs of recovery, but the recession took a heavy toll on nearly everyone. State governments, in particular, suffered in the wake of the economic calamity. In light of this, some are taking steps to remake themselves to be more attractive to businesses, specifically insurers. Vermont is the latest to join these ranks, joining Utah, South Carolina, Delaware and Hawaii, each making changes to their regulatory policies to bring in big insurers. Many insurance companies partake in a number of business transactions that they would…
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