President Barack Obama said the bailout of American International Group was necessary to prevent an economic meltdown of the financial system but added he shared the exasperation many feel over the move.

A new firm that says it aims to help insurance agents and agency owners with a distinctive sales strategy that leads with workers' compensation announced it has commenced operations.

Moody's Investors Service said it has downgraded loss-battered New York-based bond insurer Ambac Assurance Corp. and Ambac Assurance UK Ltd., dropping "Adequate" ratings for both to "Ba3" from "Baa1."

In spite of the impact of an economic recession and the unraveling of one major competitor, the property-casualty insurance business--and the specialty insurance market, in particular--remain strong, according a specialty carrier executive.