Litigation

A group of banks seeking to prevent guaranty insurer MBIA from splitting into two companies says the company underestimated its losses by as much as $10 billion to the New York Insurance Department.

Another chapter has closed on the contingent commission kickback saga with an agreement reached between nine insurers and insurance brokers and clients who alleged the industry tried to manipulate the business.

Railroad operator Norfolk Southern says it will record an expense of at least $58 million from a 2005 derailment after an arbitration panel ruled against it regarding an insurance claim.

While the Obama administration and several conservative organizations oppose climate litigation, feeling that the elected branches are better positioned to provide a sustainable national energy strategy, the U.S. Supreme Court will have its chance to make a mark on the discussion beginning in April.

Troubled New York-based bond insurer Ambac Financial Group said its Wisconsin subsidiary, Ambac Assurance, will begin paying policy claims out of its segregated account in May.

Banks fighting the split of MBIA Insurance Corp. into two companies said they submitted affidavits from four former New York insurance superintendents stating that the N.Y. State Insurance Dept. violated its duty by allowing the insurer to make the move.