Full Business Insurance

Property/casualty sector recovering: Moody’s

December 29, 2009 – 1:19 pm

The recovery in 2009 “follows a very poor year in 2008, and it occurred in spite of a weak pricing environment for all insurance products,” New York-based Moody’s said in a statement.

The rating agency cautioned, however, that significant challenges exist for the industry as it moves into 2010.

There is little evidence of a potential turn in the pricing cycle, so revenue declines are highly likely while investment volatility remains high “in light of the fragile state of the economy and capital markets,” Moody’s said in the statement.

The report, Deterioration in U.S. P&C Insurance Seen in Key Financial Ratios, is available at www.moodys.com.

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System to keep air travel safe failed: Napolitano

December 27, 2009 – 1:50 pm

“It did,” Ms. Napolitano said in an interview on NBC’s Today Show, when asked if the system “failed miserably.”

“And that’s why we are asking—how did this individual get on the plane? Why wasn’t the explosive material detected? What do we need to do to change” the security watch list rules, she said.

Umar Farouk Abdulmutallab has been charged with trying to blow up Northwest Airlines flight 253 as it approached Detroit from Amsterdam on Christmas Day with almost 300 people on board. Passengers and crew overpowered him after he set alight an explosive device attached to his body.

On Sunday, Ms. N

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Senate Passes Health Care Reform Bill – A Look at Differences in Bills

December 25, 2009 – 5:30 am

The Senate has passed its version of health care reform. Now there are two bills and reconciliation must take place.

Let’s look at some key differences (to the extent time would allow I have garnered these differences directly from the legislation or from legislative summaries) between the Affordable Health Care for America Act (House) and the Patient Protection and Affordable Care Act:

• How Will Effect Employers? – Larger employers will be mandated to provide coverage by both versions. The Senate Bill requires coverage for employers with more than 50 employees and will penalize the employer at $750 per employee if the employee is receiving subsidized coverage.

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Senate passes broad health reform bill

December 23, 2009 – 4:47 pm

“This is a victory for the American people,” Senate Democratic leader Harry Reid of Nevada told reporters afterward.

The vote clears the way for tough negotiations in January with the House of Representatives, which approved its own version on Nov. 7 that features different approaches on taxes, abortion and a proposed new government-run insurance program.

Once House-Senate negotiators agree on a single bill, each chamber must approve it again before sending it to Obama to sign into law. Democrats hope to finish work before Obama’s State of the Union address in late January.

“This fight is long from over,” said Republican Senate leader Mitch McConnell of Kentucky “My colleagues and I will work to stop this bill from becoming law.”

The Christmas Eve Senate session–the first since 1895–fulfilled a pledge by Sen.

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AIG puts Chartis spinoff on hold: Report

December 21, 2009 – 8:57 pm

In a report Tuesday, Bloomberg, citing people familiar with the situation, reported that AIG Chief Executive Officer Robert Benmosche has signaled that he wants to hold on to the unit, telling employees he considers Chartis a core holding.

A spokesman for AIG declined to comment on AIG’s plans for Chartis.

Chartis, formerly known as AIU Holdings, was formed earlier this year through the combination of AIG’s domestic and foreign property/casualty insurance businesses. AIG’s previous CEO, Edward Liddy, had announced in April that the insurer was accelerating the separation of the unit to prepare for a sale or public offering of a minority stake, although no date had been set.

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White House urges support for reform bill ahead of votes

December 21, 2009 – 9:12 am

“While it is not perfect, the bill pending in the Senate today is not just good enough — it is very good,” Vice President Joe Biden wrote in a New York Times opinion piece.

Democratic holdout Ben Nelson announced his support for the legislation on Saturday after securing language ensuring that federal funds would not be used to pay for abortions and winning extra health care funds for his state of Nebraska.

Sen. Nelson’s support gives Sen. Reid the 60 votes he needs in the 100-seat Senate to pass Obama’s top domestic priority by Christmas.

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