AIG TO REPAY TAXPAYERS, U.S. TREASURY
American International Group Inc. entered into an agreement-in-principle with the U.S. Department of the Treasury, the Federal Reserve Bank of New York and the AIG Credit Facility Trust to repay all its obligations to American taxpayers, the company said.
MARSH TO PAY OHIO $4.75 MILLION SETTLEMENT
Marsh & McLennan Cos. Inc. has settled for $4.75 million a lawsuit filed in Cuyahoga County Common Pleas Court accusing brokerage subsidiary Marsh of "conspiring with various insurers to eliminate competition in the commercial casualty insurance industry," Ohio Attorney General Richard Cordray said. The suit accused Marsh of conspiring to provide customers with fictitious quotes during the years 2001 to 2004.
REINSURANCE CREDIT OUTLOOK NEGATIVE
The credit outlook on the reinsurance industry remains negative, Moody's Investors Service said. In a September report titled "Global Reinsurance Outlook," Moody's said that fundamentals are more likely to weaken than improve in the next 12 to 18 months. The ratings service also said the reinsurance sector will be challenged by soft pricing, overcapacity and low investment yields. In 2009, reinsurers' book value increased due to the recovery in the capital markets and low catastrophe losses, Moody's said. Balance sheets have remained strong despite much higher losses this year related to events such as the Chilean earthquake and the Deepwater Horizon oil rig disaster.
TITLE INSURERS TO SEE HIGHER 3Q VOLUME
Low interest rates and a longer underwriting cycle have increased refinancing activity and extended the time it takes to close orders, according to a report by Keefe, Bruyette & Woods. As a result, order volumes have seen an upward trend. In addition, the title companies most likely didn't start to trim headcount in the quarter given the importance of having staffing on board to close orders, analysts said.
--Compiled by staff from news and wire reports.
November 1, 2010
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