Barclay’s Capital, a worldwide investment bank based in the UK, has launched a new initiative that is aimed at providing the insurance industry with added protections against natural disasters. The financial institution will begin supplying insurance-linked securities that will embolden the insurance industry against catastrophes. The new service will help placate the concerns of investors who are growing leery of the insurance industry’s constant struggle with disastrous storms and other events. Barclay’s believed that the insurance-linked security products will help the industry cope with any financial turbulence it may experience…
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Chubb Corp. reports losses verging on $500 million from natural disasters in the third quarter
The Chubb Corporation, a massive property insurance organization, has had a difficult time recovering from recent storms in the U.S. The occurrence of natural disasters in the U.S. has been unusually high this year, and the damage caused by these storms has been unprecedented. The storms have imposed gargantuan financial losses on the insurance industry and many companies are still sifting through claims from earlier in the year that are adding to total losses. Chubb officials have warned investors that the company’s third quarter losses may end up being higher…
Read MorePMI Group shares plummet following capital requirement misses
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 MoreCinven buys U.K. Guardian life and pension from Aegeon
Cinven Ltd. has announced that it has purchased the life and pension unit of U.K. Guardian from the Dutch insurance company which owns Scottish Equitable, Aegon NV, for $449 million, in the effort to reduce its expenses within the United Kingdom. According to Aegon, which is based in the Hague, by the end of June 2011, the U.K. Guardian unit had recorded a value of approximately $445 million. Its unit for asset management will still be responsible for Guardian’s approximately $12 billion in assets on Cinven’s behalf. By 2015, Aegon’s…
Read MoreKemper will be the new name for Unitrin
The Unitrin Inc. insurance company made the announcement that it will be changing its name before the end of the month, at which time it will be known as Kemper Corp. Unitrin is based in Chicago, and in 2002 it had purchased the personal lines business from Kemper, another insurer that was still operational at the time. Today Unitrin has announced that its purchase has become the largest unit in the company, having brought in slightly under $1 billion in premiums in 2010. According to Don Southwell, Chairman and CEO…
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