The property and casualty insurance industry is sending a letter to members of the House urging them to reject a flood-insurance bill amendment that would phase out the program as of January.

Rep. Barney Frank, D-Mass., says large financial institutions such as insurers are running away from being labeled “systemically significant” even though one benefit would likely be a reduced cost of capital.

Liberty Mutual Insurance Co. and several subsidiaries have filed a lawsuit against Goldman Sachs & Co. claiming the broker misled them in a preferred stock offering for Federal Home Loan Mortgage Corp. late in 2007.

With the onset of the hurricane season, the insurance industry is exhibiting signs of reaching its soft-market bottom as capacity is beginning to be reined in and some lines of business are seeing price increases, according to a report from insurance broker Marsh.