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December 2, 2008 10:19:46 PM CST


insurance industry

insurance industry news stories

6 Stories

Bailout Expands to Include Big Insurers

Feds look beyond AIG and banking industry
to MetLife, others

(Newser) - The Treasury’s bailout is moving beyond banks to include major insurance firms hurt by bad investments, the Washington Post reports. Companies such as MetLife, the Hartford, and Prudential hope to be covered in the plan, under which the government would provide money in exchange for ownership stakes. Big insurers provide a safety net for a variety of transactions, so the consequence would be far-reaching if one collapsed. More »

More about:  Financial Crisis bailout AIG Treasury Department insurance companies insurance industry

Insurance Guzzles Savings From Fuel-Efficient Cars

Trading down to save money on gas results in higher premiums

(Newser) - Think you’re saving money by driving that small, fuel-efficient car you traded in your SUV for? Maybe, but you’re probably paying more for your insurance—a lot more, reports the Wall Street Journal . In accidents, small cars tend to sustain more damage, and occupants more injures, than larger vehicles. Hence a Honda Civic, for example, incurs higher premiums than the company’s larger SUV CR-V. More »

More about:  gas prices fuel efficiency Honda auto insurance insurance industry Honda Civic Insurance Institute of Highway Safety Honda CR-V

(Newser) - AIG today defended the $440,000 luxury retreat it held on the heels of an $85 billion federal bailout, the Wall Street Journal reports. In a letter explaining its actions to the US Treasury, CEO Edward Liddy explained that the event—which racked up a $23,000 spa bill— was planned months ago and attended almost entirely by top-producing independent agents, not corporate execs. More »

More about:  Financial Crisis bailout AIG insurance insurance industry

 AIG Seeks $40B Fed Loan 
 in Bid to Prevent Collapse 

Insurance giant tries to stave off credit downgrade, aims to sell assets

(Newser) - In yet another Wall Street meltdown, floundering insurance giant American International Group has turned to the federal government in a bid to stave off a threatened credit-rating downgrade that could trigger the firm’s immediate collapse, reports the New York Times . AIG has requested a $40 billion bridge loan from the Federal Reserve and is trying to sell off its most valuable assets—including its domestic automotive business and its annuities unit. More »

More about:  Financial Crisis credit crisis Federal Reserve Lehman Brothers AIG federal loans insurance industry J.C. Flowers and Co

 Embattled AIG CEO Steps Down 

Board replaces Sullivan with Citi exec Willumstad

(Newser) - Martin Sullivan has stepped down as AIG's CEO, and the company's board named chairman Maurice Willumstad his successor, insiders tell the Wall Street Journal . The insurance giant's stock has plummeted more than 50% since October due to subprime writedowns, and Sullivan is still embroiled in legal battles with his former boss. The new chief may start with a clean slate, but the state of American real estate remains daunting. More »

US in Recession Now: Buffett

Billionaire says crisis is already here

(Newser) - The US is already in a recession for all practical purposes, even if economic conditions haven't yet met the technical definition of at least two consecutive quarters of negative growth. That's the verdict of billionaire investor Warren Buffett, who tells CNBC that a serious economic slowdown is obvious in reports from retail businesses owned by his holding company. More »

More about:  credit crisis recession Warren Buffett GDP Berkshire Hathaway Commerce Department trade deficit insurance industry

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