FORMER EXECS INDICTED
On Sept. 20, the U.S. Attorney's office in Connecticut indicted four former executives of General Re Corp. and one former AIG official for allegedly manipulating AIG's financial statements. The indictment contained charges of conspiracy to violate federal securities laws, mail fraud, securities fraud, and making false statements to the Securities and Exchange Commission.
Robert Willumstad assumed the post of AIG chairman on Nov. 1. Willumstad, who retired as president of Citigroup last year, had been elected to the AIG board of directors in January 2006. He takes over for interim chairman Frank Zarb, who assumed that post after Maurice Greenberg was ousted.
ALLSTATE'S CEO RETIRES
Allstate CEO, Edward M. Liddy, will retire at the end of the year, to be succeeded by Thomas J. Wilson, the company's president and chief operating officer. Liddy will remain as chairman until spring 2008.
EMPLOYEES TRAVEL SAFER
Wal-Mart has enlisted the services of the Safe Travel Institute to produce a customized DVD for educating its employees on how to conduct safe business travel. The DVD instructs the company's corporate associates to be less vulnerable while traveling by researching foreign cities, choosing safe hotel rooms and knowing whether they're being observed.
LIBERTY MUTUAL NETS LESS
Liberty Mutual Group reported net income of $615 million for the six-month period ending June 30, 2006, down $281 million from the same period in 2005. The decrease reflects lower realized capital gains and higher federal and foreign income taxes.
Hannover Re has issued a $150 million CAT bond for windstorm protection in seven European countries for three years. Issued by Eurus Ltd., the bond was purchased by institutional investors in Europe and North America.
ENVIRO CLAIMS BOOMING
The increase in the frequency of environmental claims and the greater magnitude of their losses looks set to continue, according to insurers surveyed in the latest Willis Index for Environmental Insurance. The index indicated that the pace of claims seen recently is higher than in previous years due to changing environmental law and more public awareness of environmental issues.
HURRICANE MODELS HELP
Insurers should be able to model the impact of natural disasters with some degree of accuracy so that exposures can be managed and the risks spread over a wider net, said Wendy Baker, president of Lloyd's America. Lloyd's currently models for a $65 billion industry loss from a hurricane making landfall in New York, a figure in line with costs of hurricanes Katrina, Wilma and Rita.
EVEREST CFO CLIMBS DOWN
Everest Re Group Ltd. has announced its chief financial officer, Stephen L. Limauro, plans to retire at the end of the year. Limauro served as CFO for eight years. In a statement, he claimed to be stepping down to spend more time with his family and to pursue "personal interests." The Bermuda-based company said that it has started an outside search for a replacement for Limauro.
--Compiled by staff from news and wire reports
November 1, 2006
Copyright 2006© LRP Publications