The News Review:
- New AIG Unit Would Be World’s Largest Property/Casualty Insurer
- FDIC’s Bair warns on bank deposit insurance fund
- Hartford in talks to sell life insurance unit: report
- Missouri lawmakers seek to mandate autism coverage
- Failure worries drag down life insurers
New AIG Unit Would Be World’s Largest Property/Casualty Insurer
CNNMoney.com
which will “assist AIG inpreparing for the potential sale of a minority stake in the business whichultimately may include a public offering of shares depending on marketconditions” AIG’s Monday press release said. The news attracted little attention in light of AIG’s revamped bailout by thefederal government announced at the same time. But the restructuring of AIG’scommercial-insurance business could also have far-reaching consequences for thecompany. ne industry participant who took part in a client conference call onthe restructuring said the change seeks to free the company from AIG’s debt andbad investments and help retain key employees and customers. “No one will leave now” said Andrew Barile an insurance consultant in RanchoSanta Fe Calif. “This will create a bonanza for employees. If you get in at thebeginning you get shares at the book value of that company.
FDIC’s Bair warns on bank deposit insurance fund
The Associated Press
has warned that the fund insuring Americans’ bank deposits could be wiped out this year without the money the agency is seeking in new fees from U. FDIC Chairman Sheila Bair acknowledged in a letter to bank CEs that the new increased fees and hefty emergency premium the agency voted to levy last week will bring a “significant expense” to banks especially amid a recession and financial crisis when their earnings are under pressure.
Hartford in talks to sell life insurance unit: report
MarketWatch
is in talks to sell most of its life insurance subsidiary to Sun Life Financial Inc. of Canada Bloomberg reported Wednesday citing people familiar with the matter. Splitting Hartford in two and unloading most of the life division is among the options being discussed although a deal isn’t certain according to the story. The company has had separate negotiations with MetLife Inc. that ended last month Bloomberg reported.
Related from Auctionsmonster: AIG’s Auction of Asian Arm Failing: Report
Missouri lawmakers seek to mandate autism coverage
The Associated Press
(AP) — Tom and Jenny Whitty have cashed out their children’s college funds maxed out several credit cards and taken out a second mortgage on their house — all to pay for therapy for their two autistic children. They are running out of money. And their private insurance won’t cover the autism treatments. This isn’t Viagra or a tummy tuck; this is my child’s whole future” Jenny Witty said recently while pleading with lawmakers to mandate that insurers cover autism. Missouri lawmakers have taken a first step toward a mandate which insurance companies claim could have a side effect of driving up insurance costs for everyone. A House committee on Wednesday endorsed legislation requiring group health insurance plans to cover up to $72000 annually of autism services for children younger than 11.
Failure worries drag down life insurers
The Associated Press
But there’s good reason for consumers to keep an eye on their insurers’ financial standing. Life insurers lost billions of dollars during the last three months of 2008. Prudential Financial Inc. Hartford Financial Services Group Inc.