Industry
As The Loyalist Insurance Co. wrote its last personal lines policy in December 2002, the market departure was too late to save yearend results, although the company sees promise for 2003.Overall, parent The Loyalist Insurance Group Ltd. (TSX: LOY) posted a net after-tax loss of $3.9 million, worse than the 2001 loss of $770,000. This […]
By Canadian Underwriter | May 26, 2003
2 min read
Kingsway Financial Services Inc. (TSX: KFS) has completed the second private placement of 30-year floating rate trust preferred securities amounting to US$15 million. The company will receive about US$14.5 million in proceeds from the placement. Kingsway recently made a similar placement which generated net proceeds of US$17 million.A statement released by Kingsway notes that, combining […]
1 min read
On the heels of a decision to limit civil judgements against State Farm, the U.S. Supreme Court has again declared two separate multi-million-dollar verdicts against Ford Motor Co. as excessive.This week, the Supreme Court said that judgements of $290 million in California and $18 million in Kentucky must be reconsidered by lower courts as they […]
By Canadian Underwriter | May 23, 2003
Claims
Co-operators General Insurance Company (TSX: CCS.PR.A) saw its after-tax net loss more than double in the first quarter ending March 31, 2003 to $5.9 million, after a loss of $2.2 million in the first quarter 2002. On a per-share basis, the loss is $0.36 versus $0.18 in the first quarter last year.This came despite rising […]
Fairfax Financial Holdings’ Northbridge Financial Corporation initial public offering (IPO) of 13,400,000 common shares will be priced at $15.00 per. The result would be gross proceeds of $201 million.Northbridge Financial combines Fairfax’s existing Canadian p&c companies, and is one of the country’s largest general insurers based on gross written premiums.Northbridge will keep about $19 million […]
Auto
Following a year-long investigation, Manitoba Public Insurance (MPI) has charged six people with insurance fraud. The six Winnipeg men face 15 charges stemming from six incidents that allegedly occurred between November 1998 and February 2003. The charges relate to incidents including staged car accidents to vehicle arson and auto theft, according to allegations by MPI’s […]
Insurers writing directors’ & officers’ (D&O) coverage will not expect substantially improved underwriting results in that line, predicts a new report by A.M. Best. In “The Directors & Officers Market: A Crisis in Remediation”, the rating agency notes that deterioration in the market over the last several years should carry into this year, despite continued […]
By Canadian Underwriter | May 22, 2003
The issuance of US$200 million in senior notes by Fairfax Financial subsidiary Crum & Forster Holdings Corp. should help the parent improve its liquidity.Rating agency A.M. Best has placed a “bb+” senior unsecured debt rating on the notes, which mature in 2013. Assessing the offering, Best says that along with an IPO on Fairfax’s Canadian […]
Rating agency Standard & Poor’s is predicting little good news in the near term for insurers in Europe and Japan.In a report on the European insurance sector, S&P says that continued pressure on credit quality, despite some signs of stability, should lead to further downgrades.In reviewing the fortunes of 34 debt-issuing insurers, S&P says that […]
Risk
A new study shows that “fronting” arrangements are becoming less attractive, and less available, for captives. The 2002 survey by the Captive Insurers Companies Association (CICA) and the Vermont Captive Insurance Association (VCIA) shows that a growing number of captives are avoiding fronting arrangements due to cost concerns, amongst other reasons.Fronting is a process whereby […]
By Canadian Underwriter | May 21, 2003
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