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health care reformSome amazing information has come to light regarding AT&T (ATT), Verizon (VZ), Caterpillar (CAT) and Deere & Co. (DE). It would seem that these companies (among a host of others, I’m sure) have initially determined that dropping health coverage for employees could significantly benefit their bottom lines, and thus benefit investors.

No Surprise Here

As reported by CNNMoney.com, when the health reform bill finally received the president’s signature, many large companies began to assess the potential costs of the legislation. At the same time, much was made of the large write-downs that companies took in reaction to changes brought on by the new law.

Continue reading AT&T, Caterpillar, Verizon, and Deere Considered Dropping Health Coverage

AT&T, Caterpillar, Verizon, and Deere Considered Dropping Health Coverage originally appeared on BloggingStocks on Sat, 08 May 2010 13:40:00 EST. Please see our terms for use of feeds.

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Catastrophe bond capacity is maturing, and not much of it is coming back. In the first quarter, $1.8 billion in cat bond risk capital matured, and only $508 million returned in the form of new issuances, according to Thomson Reuters. This quarter, $2.77 billion is maturing, and the absence of first-time issuers makes it unlikely that the market will replace it all. More than a billion of it was from State Farm’s Merna Re transaction. The successor to it has already been issued, cleverly named Merna Re II, at only a fraction of the previous bond.

So far, only three cat bonds have closed this year, with The Hartford (HIG) and Swiss Re (SWCEY) joining State Farm. Of course, we’re only two weeks into Q2 and Q1 is normally quiet. Nonetheless, analysts expect action of around $5 billion for the year, which would make 2010 the second most active cat bond issuance year in the history of the market, after 2007, in which close to $7 billion in capital came to market. Meanwhile, there are plenty of bonds maturing in the next few months, including those from, USAA, Allstate (ALL) and Swiss Re.

Continue reading Catastrophe Bond Issuance Gap Is Upon Us

Catastrophe Bond Issuance Gap Is Upon Us originally appeared on BloggingStocks on Mon, 12 Apr 2010 17:00:00 EST. Please see our terms for use of feeds.

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All we can do is wait for Alex.

Hurricane season start June 1, 2010
, with Alex chosen as the first name, and it’s expected to be above average. The Colorado State University forecast released on Wednesday predicts 15 named storms in the Atlantic basin, due partly to record warm water. Eight of them are expected to reach hurricane status, with sustained winds of 74 mph, and four are forecasted to become Category 3, 4 or 5 storms, with sustained winds of 111 mph. Typically, there are only 10 named storms, with six becoming hurricanes (two of them major), based on data going back to 1950.

William Gray, a member of the CSU Tropical Meteorology Project, told USA Today, “The probability of a major hurricane making landfall along the U.S. coastline is 69%, compared with the last-century average of 52%.”

Continue reading Insurers Ready for Above-Average Hurricane Season

Insurers Ready for Above-Average Hurricane Season originally appeared on BloggingStocks on Thu, 08 Apr 2010 15:40:00 EST. Please see our terms for use of feeds.

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The first quarter of 2010 will probably go down in history as the worst ever for catastrophe losses.

According to global reinsurance broker Willis Re (WSH), the insurance industry recorded $16 billion in insured losses, from the Chile earthquake and Windstorm Xynthia in Europe, but the largest losses occurred in smaller markets, where it premium volumes aren’t as large. Since the third and fourth quarters tend to be the most loss-prone of the year, a quarter that is normally quiet could set the stage for outsized losses.

Continue reading Q1 Catastrophes May Hit Earnings, Won’t Change Market

Q1 Catastrophes May Hit Earnings, Won’t Change Market originally appeared on BloggingStocks on Thu, 01 Apr 2010 14:20:00 EST. Please see our terms for use of feeds.

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