American International Group’s (AIG) financial results took a sharp turn for the worse in the first quarter and sent a shock wave through the equity markets, renewing concerns that there’s likely to be more fallout from the credit crisis.

After the market close on May 8, the world’s largest insurance company reported a net loss of $7.81 billion, or $3.09 per share, in the first quarter, vs. a profit of $4.13 billion, or $1.58 per share, in the year-earlier period. Excluding mark-to-market writedowns and other asset impairment charges, the company had an operating loss of $3.56 billion, or $1.41 per share, in the latest quarter, compared with adjusted net income of $4.39 billion, or $1.68 per share, a year ago.

The bulk of those writedowns was related to credit default swaps, the complex credit derivatives used either by debt owners to hedge against credit events or by speculators to bet on changes in credit spreads. New York-based AIG said the loss included the impact of successful hedging activities that didn’t qualify for hedge accounting treatment or for which hedge accounting wasn’t used, including related foreign exchange gains and losses.

Seeking Fresh Capital
AIG also said it plans to raise about $12.5 billion in capital to shore up its balance sheet and provide greater financial flexibility to be able to respond to future events in the turbulent financial markets. First, it will raise roughly $7.5 billion through a common stock offering and an equity-linked offering, to be followed later by an offering of hybrid securities made up of debt and equity.

The loss far surpassed the per-share loss of 76¢ that analysts had expected, prompting AIG shares to tumble 8.8% to close at 40.28 on May 9.

Hank Greenberg, AIG’s former chief executive, who has been very vocal in his public criticism of AIG’s current management in recent months, told BusinessWeek that he was “stunned as a shareholder, and very disappointed and very upset” at the extent of the losses in the latest quarter.

He says he was surprised by the size of the impairment charges not only in AIG’s Financial Products business but also in its partnership and equity investments, as well as how funds were allocated to various asset classes, which he wouldn’t elaborate on. The increase in the expense ratio from about 19% a few years ago to the current 26% is also distressing to him.

Downbeat Assessment from Analysts
An AIG spokesperson wouldn’t respond to Greenberg’s remarks except to say that the motivation behind them should be considered given the multiple lawsuits Greenberg is facing. Among those, AIG is seeking to recover losses that resulted from writedowns and settlements due to accounting irregularities under Greenberg, and the insurer has also sued Greenberg and six other former AIG executives, claiming that after they left AIG in 2005 they illegally seized control of Starr International, an affiliated company that owns $20 billion in AIG shares.

Analyst Cathy Seifert at Standard & Poor’s Equity Research said she expected to see weakness in AIG’s “outsized” mortgage-related exposures but was “troubled by what we view as a pretty significant deterioration in a number of core insurance underwriting lines.” She reaffirmed her hold rating on the stock and stuck to her 2008 earnings estimate of $2.50 per share, but said this forecast assumes underwriting results improve. She also said she believes the company is long overdue for a major restructuring. (Like BusinessWeek, S&P is a division of the The McGraw-Hill Companies

BEIJING, May 11 (UPI) — China Sunday inaugurated its first jumbo passenger aircraft company, Commercial Aircraft Corp. of China Ltd., officials said.

The company will be responsible for researching, developing, manufacturing and marketing large passenger aircraft with more than 150 seats, the state-run Xinhua news agency reported.

CACC has registered capital of $2.7 billion, the report said. The state-owned Assets Supervision and Administration Commission is the fledgling company’s biggest shareholder.

Other shareholders include China Aviation Industry Corp. I, the country’s largest aircraft producer, and China Aviation Industry Corp. II.

The company will be chaired by Zhang Qingwei, a former minister of the State Commission of Science, Technology and Industry for National Defense.

Government officials approved the creation of the company in February 2007.

Local letter carriers went door to door Saturday, collecting donations for the largest one-day food drive in the nation.

The National Association of Letter Carriers hosted 16th annual “Stamp Out Hunger” food drive to benefit local food banks.

“I still got a long time four or five hours to go ill still end up filing up the truck more than likely,” said Socorro Vega, a local letter carrier.

They had hoped to collect more than 75,000 pounds of donations for local food banks. Final counts won’t arrive until Monday. However, letter carriers say the community is responding this year.

“We’ve been getting the word out dropping off pamphlets, bags, a lot of people don’t use bags they use their own bags, cardboard boxes, I see them all,” said Vega.

Officials say it’s all coming at an important time.

Food bank stock has been at an all time low with a decrease in USDA commodities and supply from the Oregon Food Bank.

They say in the summer, fewer people donate meaning all the donations collected through this food drive, will have to last through the fall.

“It’s a message we have to keep putting out in front of people we always think of that when situation we think about holidays its heard around the need is year round,” said Philip Yates, of Access Incorporated.

It’s a time when many people need help.

“A lot of people think food bank people are ones not working unemployment far from truth a lot of people work 40 hours a week, and those are the ones I see in line at the food banks,” Vega said.

Neighborhoods throughout Medford, White City, Central Point and Ashland participate every year. This is the first year neighborhoods in Talent, Gold Hill and Shady Cove are also taking part.

Food bank officials say they’re optimistic about this year’s food drive. Last year more than 40,000 pounds of food was collected in Southern Oregon, on Saturday afternoon, more than 40,000 had already been collected, and there was more coming in.

“This community is amazing come throughout every year if they know the need is they’ll respond,” said Yates.

If you missed Saturday’s food drive.

News10 has teamed up with the CBS Early Show for the “Facing Hunger” project.

You can drop off your non-perishable food items here at the NEWS10 studios on Monday until 5 p.m. At 1440 Rossanley Drive or you can stop by Access Incorporated on Aviation Way behind Costco in Medford.

May 11 (Bloomberg) — The price of a first-class stamp will increase one penny to 42 cents tomorrow, the U.S. Postal Service said in a reminder on its Web site.

Prices for other mailing services, including standard mail, periodicals, package services and special services, will also increase tomorrow, the Postal Service, an independent federal agency, said. The agency first announced the price increase on Feb. 11.

Forty-two-cent stamps will be required on first-class mail weighing an ounce (0.02 kilograms) or less, while first-class mail weighing as much as two ounces will increase 1 cent to 59 cents, the Postal Service said.

The last first-class mail increase was in May 2007, to 41 cents from 39 cents.

NEW YORK (Reuters) – Tribune Co is close to a deal to sell Newsday to Cablevision Systems Corp for $650 million, the Long Island paper reported on its website on Sunday, citing people familiar with the negotiations.

The report comes a day after Rupert Murdoch’s News Corp said it was backing out of its $580 million bid for Newsday. The paper said a deal could be announced as early as Monday.

A Tribune spokesman declined to comment. Cablevision was not immediately available for comment and the company’s outside adviser on the deal declined to comment.

It is unknown whether New York Daily News owner Mortimer Zuckerman, who also bid $580 million for Newsday, plans a last-minute higher bid. A Daily News official had no comment.

(Reporting by Robert MacMillan, Yinka Adegoke and Kenneth Li; Editing by Maureen Bavdek)

Ohio has slipped a bit in the ranking of the health of its residents. In 2007 Ohio was the 29th healthiest state in which to live, but it fell slightly from 2006 when it was the 24th healthiest state. Based on 20 different criteria, Ohio made it to the top ten only in one category. Ohio is 8th in the nation for the percentage of citizens that are covered by health insurance.

Other areas where Ohio shines include a high percentage of women receiving prenatal care, a solid high school graduation rate, a significant decrease in the rate of infectious disease, and a drop in the death rate from cardiovascular disease.

All these great strides and still a fall in the overall rankings, means Ohio still struggles in some areas. Ohio ranks 43rd for cancer deaths, 43rd for obesity, 41st for infant mortality rates, and 40th in the nation for preventable hospitalizations.

Weight gain is an epidemic nationwide with Ohio at the forefront. In 1990 the obesity rate was 11% amongst Ohio residents. By 2000 the obesity rate had almost doubled to over 20% of Ohio’s population. The current number of obese Ohio citizens is over 28 percent.

Other health challenges for Ohio include the high rate of cancer deaths, and the fact that 22 percent of the population are smokers.

With these challenges for Ohio residents it is important that if to be covered by health insurance. If you live in Ohio, you can find an online health insurance quote provider for your health insurance. These services are usually free and may also offer the backup of experienced health insurance Advisors to help you make sense of the options for you as an individual or for family health insurance. Talk with an Experienced Health Insurance Advisor. Affordable health insurance options are out there for you and your family.

In today’s growing risky market place, several forms of commercial insurance have been developed that offer valuable protection to a business entity which is directly indulged in manufacturing or industrial products in a factory, plant or workshop environment.

Insurance for Manufacturers and Factory Property Factory insurance is indispensable for any factory owner or a company that involved in direct manufacturing of goods. It covers each and every aspect of production or industrial production going within a manufacturing processing area. The features of factory insurance can save from damages caused by fire, lightning, explosion of gas and boilers used for domestic purposes. It also extends to the special circumstances such as explosion, riot, malicious damage, storm, flood, impact by aircraft, road and rail vehicles, escape of water from tanks or pipes and sprinkler leakage.

The factory insurance is better known as the broad channel that summarize all other risks including any accidental damage or loss not specifically excluded. Any such happening that can affect the production or causes wear & tear, electrical or mechanical breakdown and impediments in production process is a subject matter of the factory insurance.

Factory Insurance: What to Cover? Factory insurance can be taken in different arrangements. Choose a useful combination so as to save the interests of a company’s needs.

Buildings The factory insurance includes the insurance against any kind of damage and loss of the building where the actual manufacturing process takes place. It includes full rebuilding cost irrespective of their market value.

Contents A company can ensure its contents in the form of available raw material, finished goods, and stocks.

Business Interruption Factory insurance can be taken against any kind of business interruption caused due to wear & tear to the property or machinery, or loss of stock, or for many other reasons which can hamper the smooth production inflow.

Theft Many a times, a company faces financial losses due to theft of cash in hand, stock or any thing prominent for the production of goods in normal circumstances. It also includes covers for damages caused due to the building resulting from theft or attempted theft will also normally be covered.

From January 1, 2009 some major changes will take place in the way Travel Insurance is sold. Companies which are solely in business to sell travel insurance (known as stand-alone companies) have been regulated by the Financial Services Authority (FSA) since 2005 and will not be affected.

The change will hit the companies that have been selling travel insurance as an element of a holiday package, such as travel agents, tour operators, coach companies, and airlines. Although these travel companies may already be regulated as far as selling their other travel products, there has been a double standard regarding the sale of travel insurance. In other words, the stand-alone companies have been required to be FSA regulated in order to sell travel insurance, while those selling travel insurance as part of a travel package have not. Non-regulated travel insurance has also been widely available at retail stores, supermarkets, chemists and through the Post Office. It has also been offered alongside other insurance products such as house insurance or when opening a bank account, or as part of an employee benefit package.

The debate about this matter has been going on for a while and the Treasury has been very concerned about the way travel insurance has been sold by many travel companies. As travel insurance is a complicated product compared to many other types of insurance this has led to a lot of confusion and misunderstanding among consumers. The new FSA regulations will mean that the sale of all travel insurance will be subject to its strict standards and rules.

Because of the potential harm to consumers who may not be properly advised of the policies they are purchasing, the government requested that the FSA (the UK’s financial watchdog) take over regulation of all types of travel insurance sold in the United Kingdom. The result is that after the deadline of January 1, 2009, travel insurance will only be available through FSA-regulated agents

Smaller travel agencies or tour operators may not want the bother and expense of going though the complicated and costly process of applying for and complying with FSA regulations. Therefore, they may have no choice but to refer their clients to travel insurance brokers or agents who are already FSA regulated.

The news has not been well received by many of the big package holiday operators. Many believe that their travel agents are already well trained to sell travel insurance. However, other companies may not have done such a good job in training their staff to advise customers of the actual terms and conditions of the travel insurance, for example exclusions for pre-existing conditions. There have also been concerns that when travel insurance is sold as part of a holiday package, customers may focus on the excitement of the holiday and not pay attention to the small print of the insurance they are purchasing. The Association of British Travel Agents (ABTA) has expressed concern about the prospect of its members losing income and business from the loss of travel insurance sales. They lobbied for self-regulation of the sale of travel insurance by travel agents rather than going the FSA route, but without success.

One benefit to customers under the FSA regulations will be more efficient service regarding the way they are sold travel insurance. The seller will be bound by the strict FSA principles and guidelines that customers must be treated fairly. They will also have the benefit of the services of the Financial Ombudsman should any disputes arise. One other major change, which is part of the regulation process, is the requirement for implementation of an efficient complaints handling procedure by those selling travel insurance.

It is estimated that anything from ten to fifteen percent of travellers leave home to go on trips each year without any travel insurance. This translates into millions of people travelling uninsured. Perhaps consumer confidence and awareness about the importance of travel insurance will be given a boost by the impressive footprint of the FSA!

The world of insurance is a complicated one. It sometimes seems impossible to know when a policy is a wise investment or a total rip-off. When it comes to insuring a mortgage with a mortgage payoff policy it gets very complicated because there are so many different policies around.

Is it better to buy an insurance policy from a lender or from an insurance company? Should you have an accidental death policy? Or would a decreasing term insurance be best? This article will examine the two most popular types of mortgage payoff policies and shine some light on the subject of taking out an insurance policy that will pay off your mortgage in the case of a tragic event.

Accidental death policies

If you are paying a mortgage, it gives you a lot of peace of mind to know your mortgage will be paid off if you should pass away. Because of this, many mortgage lenders offer their own insurance policies. You should look closely at their policies, however because many times they are accidental death policies. This means, if you should let your cholesterol get high (even if this is done totally by accident) and because of this you have a heart attack and die, the insurance policy will not pay off the mortgage.

For your family to collect on an accidental death policy you would have to die via some unexpected event. Such an event could be as in the case of Mr. Gianelli who was one of Dr. Robert Hartly’s patients on the old “Bob Newhart Show.”

Mr. Gianelli was unloading a truck full of zucchinis, after he pulled the first zucchini off of the truck; an avalanche of zucchinis fell from the truck and thus, killed poor Mr. Gianelli! He was “zucchinied to death” and if he had accidental death coverage his family probably would have collected.

Watch for the fine print

There isn’t too many other ways to collect on an accidental death policy. If your plane comes down, but flying is part of your job, this type of policy will not pay. If you drive your car as part of your job, a death by car accident may be considered an occupational hazard and would not be covered.

In short, accidental insurance is like playing the lottery and you may want a more stable type of policy to protect your family than they can provide you. That brings us to the ever popular, “decreasing term insurance.” This type of policy is built on solid ground, but it does have a couple of anomalies you should look for.

Decreasing term

With a decreasing term policy, the face value of the policy decreases over time. This makes sense because your mortgage principal will decrease over time. So, an insurance company can sell these policies inexpensively because it is more likely they will be paying off late in the term, when the face value is little, than earlier in the term when the face value is high.

This usually makes a decreasing term policy a good buy, but here’s what to look for. Trace the face values of the policy throughout its history, usually 30 years. Then compare these figures with an amortization schedule of your mortgage. In many cases you will find periods within this insured term where you will be under insured.

Decreasing term vs. amortization

For instance, many times a $300,000 decreasing term policy will have a face value which will become lower by $10,000 a year. So, after 5 years the face value of the policy will be $250,000. However, on a $300,000 mortgage at 7% for 30 years, after 5 years $282,394.77 will still be owed.

Also remember, if all goes well and you live to pay off your mortgage in full, you will be left with no life insurance. So, the moral of the story is, make sure you have ample insurance, period. You should have enough to pay for all your post death expenses, not just your mortgage.

This is one of the cruel realities of life. Life insurance gets more expensive as we get older so the sooner we deal with the matter, the better. Yes, a decreasing term policy might be the answer. Certainly, it is far superior to accidental insurance, but make sure you use it as a supplement to another more well-rounded policy.

“What are home insurance discounts and how can I get them?” Insurance discounts seem to be shrouded in mystery- oftentimes homeowners don’t even know about them until they find out that they qualify. Home insurance discounts are credits given to a homeowner that may actually lower their rate because their home is safer, or less prone to accidents and damage.

Here at homeinsurance.com, we believe you should know how to make your home safer and less prone to damage. So we are going to spill the beans- give you tips to make your home safer, and possibly even help you save even more money on your home insurance.

1. Lump it Together- Multi-policy discounts are an EASY way to reduce home insurance costs. (At homeinsurance.com you can save up to 15%!) Ask your home insurance agent about combining your auto and home insurance and see what type of rate you can get.

2. Drop the Habit- Cigarette smokers pay a higher home insurance premium because their bad habit has the potential to start a house fire. According to the U.S. Fire Administration, about 1,000 smokers and non-smokers are killed each year in home fires caused by cigarettes. With the hundreds of other reasons you should quit- add saving money on your home insurance to the list.

3. Update! If you live in an older home, think about updating the electrical, plumbing, heating and/or roof. The cost of preventative maintenance is always lower than the cost of increased home insurance premiums after a house fire or flood from a burst pipe. Home Insurance companies smile upon updated mechanical systems as they are safer, and make your home less prone to damage.

4. Alarms- Install a security alarm system. Home Insurance companies like to know that your home is protected from burglary and you may qualify for a lower premium because of this upgrade.

5. Another way to save money by making your home safer? Of course, in the case of serious damage to your home or an accident on your property- you should file a claim because that’s what your policy is there for! However, be mindful of filing claims for smaller problems. Paying the repairs out-of-pocket might be less expensive than a potential increase in premium. Also, many home insurance companies offer a No Claim discount for homeowners who have never filed a home insurance claim. Preventative maintenance can really pay off!

For more information Read our full article on How to Save Money on Your Home Insurance.

Actual Article: See Home Insurance Blog