Earlier this week, Warren Buffett Warren Buffett, the chairman of Berkshire Hathaway, proposed to re-insure $800 billion worth of municipal bond insurance written by Ambac, MBIA and FGIC at a steep premium.
Gather all the information possible about your agreements with other insurance companies, specifically, under what conditions do you re-insure (or retain) a policy, or how do you share that policy.
Buffett proposed the opposite: He would re-insure $800 million worth of municipal bonds backed by the three biggest bond insurers, but not take on any of the firms' exposure to credit derivatives, which have plummeted in value.
Not only are they perfectly positioned to capture coverage for new municipal bonds, they can also profit by re-insuring older debt.
State governments might elect to participate in this multi-state pool, which would perform many monitoring and information-gathering functions, and issue various financial instruments, including securities, linked to insured or re-insured catastrophe risks.
It is also re-insuring to observe that the value of ρ in the middle of the spectrum is just slightly below unity, the value that we expect in an idealized situation [see the rationale behind the preprocessing step in Huber et al. (2006)].
That's because Munich Re is insuring Fraugster's "Fraud Free" product, which takes on the full liability for each transaction to ensure retailers utilizing Fraugster's fraud detection technology never lose out — a sign that the company is pretty confident in its machine learning.
In an interview Thursday before the Moody's rating cut, Brown outlined several possibilities the company and its board are considering, including taking one of MBIA's inactive subsidiaries and turning it into a new operating company to write insurance or re-insure existing policies.
The most effective strategies make it standard practice to address radon when buildings are constructed, financed, re-financed, insured, retrofitted or sold.
Fed Chairman Ben Bernanke offered his thoughts on the FDIC program saying, "I agree that we need to do a lot more on foreclosure prevention," noting a concern that in some cases the cost of insuring the re-default could be hundreds of thousands of dollars for a single loan and that there may be alternative ways to subsidize the program.
After a rash of bombings in the early 1990s, global reinsurers (which insure insurance firms for extraordinary claims and bear most of the financial loss) like Munich Re and Swiss Re refused to fully cover the terrorist risk to commercial property.
