Florida Bill Could Leave Properties
Without Flood Coverage
A BILL PASSED by the Florida legisla- ture and awaiting action by Gov. Rick Scott has the potential to leave 2.06
million Florida property owners without flood
The bill bars counties and municipalities
from requiring any state or federal permits as
a precondition for processing a development
permit—which would run afoul of Federal
Emergency Management Agency (FEMA)
National Flood Insurance Program (NFIP)
2P&C Insurer Employment Continues Downward Trend in February
Employment for P&C insurers fell by 200 jobs in February compared
to January, continuing a trend that began in 2008 during which P&C
insurers have shed nearly 11,000 jobs. Agents and brokers gained 3,000
jobs during the month; the industry overall lost 100 jobs.
4Global Reinsurers’ Capital Drops 3% in 2011
Global-reinsurer capital declined 3 percent last year over 2010 due to
first-quarter catastrophes and reduction in capacity from government
programs. Capital dropped 6 percent in 2011’s first quarter, but rose
1 percent in the following three quarters of the year.
6Warren Buffett Has Prostate Cancer, Faces Good Odds
Berkshire Hathaway Inc. CEO Warren Buffett has stage 1 prostate
cancer but says his condition “is not remotely life-threatening or even
debilitating in any meaningful way.” Buffett, the world’s third-richest man,
will begin a two-month treatment consisting of daily radiation treatments
starting in July.
8State Auto, CinFin Report Q1 Estimated Catastrophe Losses
State Auto Financial Corp. says first-quarter results will include pre-tax
catastrophe losses of $19-$21 million. Cincinnati Financial Corp. says
it expects pre-tax catastrophe losses of between $85 million and $95
million, mostly from two storms in February and March.
Wisconsin Passes NRRA-Related
Wisconsin, which did not take action on implementing the federal
Nonadmitted and Reinsurance Reform Act last year, has now passed
such legislation, a NAPSLO bulletin states. The law, signed April 6, does
not authorize tax sharing with other states.
3GAO Says Government Should Cap Crop Insurance Premium Subsidies
The GAO says in a report that the government should consider capping Crop
Insurance premium subsidies for individual farmers, reducing subsidies for
all farmers, or both. PIA National, meanwhile, warns that the program has
already faced steep cuts since 2008.
5Fed Looks to Sell More Former AIG Assets
The Federal Reserve Bank of New York says it is exploring the sale
of collateralized-debt obligations originally owned by AIG’s troubled
Financial Products Group. The securities are currently held in the Fed’s
Maiden Lane III facility.
7Bernanke Blames ‘Shadow-Banking’ System for Financial Crisis; Ties It to AIG
Federal Reserve Board Chairman Ben Bernanke characterized AIG
as part of a “shadow banking” system that played a key role in the
devastating economic downturn of 2007-2009. He says AIG’s problems
in 2008 exposed regulatory-framework weaknesses in this shadow-banking sector.
9Pennsylvania Approves Nationwide, Harleysville Deal
Pennsylvania has become the first of four states needed to approve
a merger between Nationwide Mutual Insurance Co. and Harleysville
Mutual Insurance Co. The deal, said to be valued at about $800 million,
awaits approval from Michigan, Ohio and New Jersey.
Moody’s Approves of Radian
Guaranty’s Reinsurance Deal;
Downgrades Holding Company
Moody’s gave a thumbs-up to mortgage-insurer Radian Guaranty’s plan
to cede a 20-percent quota share of new production to an unnamed
reinsurer. But the ratings agency downgraded the issuer credit ratings of
the holding company, Radian Group, due to constrained liquidity.