What’s new: In brief (September 27, 2004)

Converium had a spot of good news Monday, learning it faces a possible upgrade by Standard & Poor’s. S&P says it will upgrade the reinsurer to “BBB+” if it can successfully complete its proposed US$420 capital-raising move. Converium says it will take the steps to raise the capital from shareholders, and adds that it is also looking into the possible sale of its existing U.S. business.

The U.S. Treasury is trying to put the brakes on a push by insurers to extend the Terrorism Risk Insurance Act (TRIA) beyond its 2005 sunset. The Treasury said last week that a decision should not be made on the need to extend the federal government’s terrorism insurance backstop until it conducts its own study, which the government wants to see before June, 2005. A vote is expected some time this week from the House Financial Services Committee following hearings on the need to extend TRIA until the end of 2007. Most recently the Council of Insurance Agents and Brokers (CIAB) weighed in, urging Congress to extend the program because it says the private market is not yet ready to accept the risk without assistance.

Researchers at the U.S. Geologic Survey and the University of Washington say tiny earthquakes point to a potential eruption of Oregon’s Mount St. Helens. The tremors began last Thursday and have been gaining strength on a positive note, the frequency of tremors had dropped over the weekend. Similar bursts of tremors have occurred as recently as 2001 without actual eruption taking place. However, in May, 1980 the mountain did erupt, leaving 57 people dead.