What’s new: In brief (July 04, 2004)

President George W. Bush has signed into law the reauthorization of the U.S. National Flood Insurance Program (NFIP). The program will now run through 2008, with insurers saying they can now ensure flood coverage is available and affordable by spreading the risk across the country. About 95% of flood insurance is written through the NFIP.

The U.S. Senate is expected to take up a bill to reform class action litigation on Tuesday. The bill had been delayed when its sponsor, Sen. Bill Frist, agreed to put it aside to deal with defense appropriation bills on condition the class action legislation would go directly to the floor and bypass the lengthy committee stage. Insurers are pushing for the legislation which will put multi-state lawsuits into federal court and tighten controls on compensation to plaintiffs’ lawyers.

A.M. Best and Standard & Poor’s have assigned double-A ratings to the EUR 640 million securities issue by Swiss Re Germany or Swiss Re Treasury, backed by Swiss Reinsurance Co. The rating reflects the unconditional guarantee of the three-year mandatory convertible securities, given the reinsurer’s strong market position and capitalization.