JUDGE BLASTS COMPLIANCE LAW
Parts of the Sarbanes-Oxley Act prevent states from regulating corporations, according to a Delaware judge. Court of Chancery Vice Chancellor Judge Leo Strine called parts of the law "dubious." The law, designed to improve disclosure requirements, was implemented in the wake of the corporate scandals affecting investors who lost millions in companies like Enron and Worldcom. Companies have complained that the law is tooexpensive to comply with.
2Q P/C LOSSES DECLINE
U.S. property/casualty insurers are expected to pay homeowners and businesses an estimated $920 million for second-quarter insured property losses from four catastrophes in 25 states--the lowest tally among second quarters in the past 10 years, according to estimates by ISO's Property Claim Services (PCS) unit. This compares with insured losses of $2.3 billion in the second quarter of 2004 and $5.1 billion in the second quarter in 2003.
BUSH BACKS TRIA EXTENSION
Treasury Secretary John Snow told two separate congressional panels in July that the Bush administration would back an extension of the Terrorism Risk Insurance Act, but only if it means relying less on taxpayers and more on private insurance companies to pay for losses in the event of another terrorist attack.
AIG SELLS PIPELINE CO. TO GE UNIT
AIG Highstar Capital LP, a private equity fund sponsored by American International Group Inc., has agreed to sell the Southern Star Central Corp. gas pipeline system to GE Commercial Finance Energy Financial Services and Caisse de Dépôt et Placement du Québec, AIG has announced. The purchase price is $362 million, plus the assumption of $467 million in debt and preferred stock. The sale, subject to regulatory approvals, is expected to close in the third quarter. Southern Star owns an interstate natural gas pipeline spanning more than 6,000 miles across a total of seven states.
LEVITT TO ADVISE INSURANCE GIANT
Arthur Levitt, the former chairman of the U.S. Securities and Exchange Commission, has been named a special advisor to AIG's board of directors and the board's nominating and corporate governance committee, AIG has announced. The news comes in the wake of the resignation of former CEO and Chairman Maurice "Hank" Greenberg, who left after an investigation into the firm's accounting practices by New York Attorney General Eliot Spitzer.
INSURANCE EXEC WINS AWARD
Tom MacArthur, chairman and CEO of York Insurance Services Group Inc., has been named a winner of the Ernst & Young Entrepreneur of the Year Award 2005. The award, bestowed annually, honors young dynamic regional, national and international entrepreneurs in 35 countries. Since MacArthur's arrival in 1999, revenues and earnings at the company have more than tripled.
--Compiled by staff from news and wire reports.
September 1, 2005
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