What’s new: In brief (April 07, 2005)

A.M. Best has taken a positive view of GE Insurance Solutions capital restoration plan, affirming the company’s financial strength rating at “A”, and affirming the “a” issuer credit rating of Employers Reinsurance Corp. and GE Re. The rater did lower the issuer credit rating of GE Insurance Solutions itself to “bbb” from “bbb+”, with all ratings assigned a stable outlook. The ratings move followed announcement of a fourth-quarter 2004 US$472 million charge for adverse reserve development. GE Insurance Solutions provided the rater with a multi-pronged plan for restoring capital, including a cash capital increase of US$350 million from GE Capital Services and the explicit expression of support from parent General Electric.

Transatlantic Reinsurance Holdings has announced that former executives of AIG, including retired CEO and chairman Maurice Greenberg, has resigned from its board of directors. Departing with Greenberg, who was non-executive chairman of the board, are Edward E. Matthews and former AIG CFO Howard Smith. In the interim, Transatlantic CEO Robert Orlich will serve as chairman. New members will be elected at the May 19 shareholders’ meeting. Transatlantic is a subsidiary of AIG, and notes that it is cooperating with current investigations into the parent company, but stresses no improper conduct has been uncovered at Transatlantic Re itself.

The Ontario Insurance Adjusters Association “Out of Town” meeting is set for May 26-27 at the Rim Park and the Waterloo Inn. Hosted by the Kitchener-Waterloo chapter, the event will include a kick-off party, trade show, seminars, a tour and closing dinner. For more information or to register, visit www.oiaa.com or contact Elizabeth Stotts at 519-570-8322 ext.3259.