What’s New: In brief (June 10, 2005)

FGIC Corp. recently appointed Eric Rosensweig to the position of managing director, international finance. Offering seven years of experience with MBIA, Rosensweig will be responsible for new business opportunities in the emerging markets and Canada. Most recently, he served as managing director, global corporate structured finance where he managed future flow and corporate products, as well as operated asset and whole company securitizations. Prior to MBIA, Rosensweig was at CapMAC, where he transacted future flow securitizations and managed one of the Company’s conduits. Rosensweig began his career with The Travelers in its insurance and annuity group. He received a BA in mathematics from Wesleyan University and an MBa in finance from the Haas School of Business at the University of California, Berkeley.

Standard & Poor’s has revised its outlooks on U.S. commercial lines, according to a recently published report card. “Industry Report Card: North American Insurance Holding Companies,” says that the commercial lines outlook has been revised to stable from negative. It further states that companies in the commercial lines segment are now making an underwriting profit and many have reported GAAP combined ratios of 90% or better compared with 1999-2002, when this measure of underwriting profitability was well over 100%. Standard & Poor’s says profitability will peak in 2005, if no major catastrophes occur. A strong operating performance of property & casualty insurers contributed to the revision of the sector outlook. Net income for the property/casualty sector totaled US$38.7 billion in 2004, up from US$30 billion in 2003 and only US$2 billion the year before that.

The Atlantic hurricane recently saw the first named tropical storm Arlene of the season. Forecasters reported it centered 10 miles south-southeast of the western tip of Cuba and initially anticipated it would cause flooding in western Cuba. The storm gained strength and had the potential of becoming a weak hurricane before making landfall on the Gulf Coast. Hurricane watches were posted from Florida to the Louisiana-Mississippi border. Mississippi Gulf Coast residents in flood-prone areas were directed to move to higher ground before the storm approached.