PMI Group Inc. shares dropped by up to 41 percent on August 22st, following an announcement that two of the units of this mortgage insurance company were forced to stop writing new business because they had fallen short of meeting their capital requirements. Just before this announcement was made, PMI had stated that both PMI Mortgage Insurance Co. (MIC) and PMI Insurance Co. had been placed under regulatory supervision by the Arizona Department of Insurance. Since then, PMI has also revealed that the MIC subsidiary, PMI Mortgage Assurance Co., was…
Read MoreTag: financial news for insurance
Nationwide posts first quarter profits for 2011, says major storm cut into earnings
Nationwide Mutual Insurance Co. has released their earnings for the first half of 2011. The acclaimed insurance company posted profits just shy of $400 million, a marked decline from last year in which the company earned over a billion. Profit diminished by 48% in just the first quarter, a fact the insurer is quick to blame on the violent storms and other natural disasters wreaking havoc earlier this year. The company has also released its earnings for the second quarter, reporting further losses due to weather related issues. The previous…
Read MoreTaking a look at the reinsurance market pulse as we head into hurricane season
We are now on the cusp of hurricane season. Storm predictions have called for “above average” activity this year; just as we roll out of record setting tornado activity over the last two months. The cushion of excess capacity is gone or nearly gone for most insurers and reinsurers. One more natural disaster could be the tipping point that leads to the turn in the (insurance) pricing cycle. We know capacity is just a part of the many aspects to take into account when evaluating the reinsurance sector. However, the…
Read MoreLiberty Mutual eyeballing Irish company
The United States isn’t the only place where business investing went sour because of the economy and poor investing choices. A successful Irish business man has lost his entire enterprise of very thriving businesses. Now U.S. insurance company Liberty-Mutual may be expanding into Ireland, to own and operate one of those businesses; Quinn-direct insurance. Sean Quinn grew up poor on a farm in the UK (the Northern border of Ireland). However, he was an innovative young man and started his first business at age 25. From there he built…
Read More