Day: August 19, 2008

A Must Read Courtesy of Editilla

Let’s climb the Ladder and find out more about insurance linked securities European style and how Cat Bonds may be coming to a mutual fund near you soon.

Since its inception in 1996 the insurance-linked securities market has witnessed worldwide issuance of $38bn and has more than remained stable throughout the credit crunch. According to AM Best, the catastrophe bond market grew from $1.99bn to $4.69bn between 2005 and 2006, and Swiss Re predict that the wider ILS market will follow suit by growing to $1trln over the next decade.

Investors recently raced to buy a $260m catastrophe bond designed to protect East Japan Railway against earthquake damage. Rodrigo Araya of Moody’s Investors Service says, “The market has grown at a scorching pace in the last three years. We will probably see about $8bn in new issuance this year.”

At the end of August, catastrophe bonds returned 3.4 percent since May 31st according to data provided by Swiss Re, the world’s largest reinsurer and bigest underwriter of cat bonds. The average corporate bond declined 0.3 percent and asset-backed debt fell by 3.3 percent during the same period according to data provided by Merrill Lynch and Co. Continue reading “A Must Read Courtesy of Editilla”

Hurricane Charley – Case in point for wind damage

Grab some popcorn and watch what Charley does to the roof in this video – another anon reader thought readers would be interested in seeing how wind starts weakening a building to the point it becomes a loss whether it’s washed away or not. Thanks to both of you anons for thinking of us today. btw Charley video is from Port Charlotte, FL – August 13, 2004.

[youtube=http://www.youtube.com/watch?v=xDNUSJ5bXjA]

Hurricane Katrina wind blows motel wall out UPDATED

UPDATE: Point here is this video is from Kenner, LA – not the Coast.  Takes a pretty good wind to blow out a wall; but anon reader said State Farm experts were claiming Category 1 winds in this area…Sorry, I’m new to video posting, anon, and I missed the point.  Got it now…youtube post from anon reader to other Slabbed readers. Thanks.

[youtube=http://www.youtube.com/watch?v=GMcr0YURe-Q]

Fojas v Ackerman – Allstate stockholder files suit against Board members and All

Another tip-turned-post from reader CLS created the need for Legal 2, the new page in the left sidebar. Aside from the case itself, take note of the legal writing. Such a contrast to what we read and I’m curious about the difference and why we don’t see this “lean and clean” approach more often.

Sop’s put up two great post on all the fireworks in Florida and the settlement agreement with Allstate.

Fojas v Ackerman et al is a stockholder suit against the Allstate Board of Directors for the poor management – an overly, overly simple summary.

The major documents from the docket are posted under the new Legal 2 file, starting with the Complaint.

…To discharge their duties, the officers and directors of Allstate were required to exercise reasonable and prudent supervision over the management, policies, practices and controls of the financial affairs of the Company. By virtue of such duties, the officers and directors of Allstate were required to, among other things: Continue reading “Fojas v Ackerman – Allstate stockholder files suit against Board members and All”

Trip down memory lane connects Road Home with Duval's ruling in Louisana antitrust case (Corrected)

Louisiana Federal District Judge Stanwood Duval issued an attention grabbing ruling in an attention grabbing Katrina insurance case filed by former Louisiana Attorney General Charles Foti on his way out the door after losing his bid for re-election last year. The Sun Herald has the story.

A judge has asked a state official to review the validity of private attorneys’ contracts to represent Louisiana’s attorney general in a case over the state’s Road Home hurricane recovery program.

U.S. District Judge Stanwood Duval said insurance company attorneys “persuasively” raised questions Wednesday about whether former Attorney General Charles Foti followed state law when he hired the lawyers. Continue reading “Trip down memory lane connects Road Home with Duval's ruling in Louisana antitrust case (Corrected)”

See something new? Could it be Renfroe filing Thing 2?

Two things and I call them Thing 1 and Thing 2

Are trying to compel the Scruggses to do

Something they’ve already done.

It could have easy, it could have been fun

Except for the way the first one was done.

Now they can’t get to Dick.

They can’t get to Zach.

And the minute they try, Miss Tina is back.

Convinced the Scruggses have the cat in the hat and are keeping it there, Renfroe counsel from Howrey filed a Joinder with Defendant State Farm’s Motion to compel testimony of Dick and Zach Scruggs. Continue reading “See something new? Could it be Renfroe filing Thing 2?”