Corporate Refuses

Sources said that possibility of dismissing Sidhu has been under consideration for at least a month. Citing people familiar with the matter, WSJ reported that before the annual meeting last month, company officials and board members discussed the possibility of elevating Campanelli to defuse frustration with Sidhu's leadership. AP reported that Sidhu resigned under pressure from unhappy investors for negotiating the sale of a one-fifth stake to Spain's Banco Santander Central Hispano SA without seeking shareholder approval. Sovereign's three-way deal with Independence Community Bank and Banco Santander was reported a year ago. Santander currently owns almost 25% of Sovereign's stock and has three board seats. Meanwhile, Sovereign said that Sidhu was stepping down "for family health-related reasons."

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Insurance Company Profit

Sales Finance, based in Kettering, Ohio, is part of GE Money, formerly GE Consumer Finance. The company provides private label credit card programs, marketing, installment lending and financial services for national and regional retailers in more than 20 industries including powersports, sporting goods, home improvement, outdoor power equipment, automotive, recreational vehicles, marine, consumer electronics and appliances, furniture, floor coverings, music jewelry and health care. With $163 billion in assets, GE Money, a unit of General Electric Company (NYSE: GE), is a leading provider of credit services to consumers, retailers and auto dealers in approximately 50 countries around the world. GE Money, based in Stamford, Connecticut, offers a range of financial products including credit cards, personal loans, bank cards, auto loans and leases, mortgages, corporate travel and purchasing cards, debt consolidation and home equity loans and credit insurance

Global reinsurance companies scoff at this suggestion. They question whether the Cat Fund will have sufficient capital to pay off billions in claims from a really catastrophic hurricane without having to attract private investors who will want the same deal that reinsurance companies will offer them.

Profit in Insurance

High Premium Insurance - Why?

Take the example of Nationwide Insurance Co. of Florida's recent proposed increase, submitted in July and revised last month. The company wants to raise rates by an average of 71.4 percent statewide, but is calling for even larger increases in South Florida -- as high as 82.1 percent in Broward and 105.8 percent in Palm Beach County -- where there's a high risk of storms. Other parts of Florida, such as the Panhandle, are facing significant price increases, too, to bring homeowners prices in line with storm risk.

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