Moody's: Marsh allegations serious

Moody's Investors Service commented on allegations made within a lawsuit filed by the New York attorney general's office against Marsh & McLennan Cos. Inc. that numerous large insurance companies participated with the insurance broker in a scheme to rig bids for placement of their customers' insurance business.

While not named as defendants, a number of insurers are cited in the complaint as participants in this alleged practice, including divisions or subsidiaries of American International Group Inc., ACE Ltd., The Hartford Financial Service Group Inc., and Munich Reinsurance Co.

Moody's stated that it considers the allegations to be serious, and that the filing of the Marsh suit may represent the beginning of a process whose outcome could have a negative impact on the credit profile of these, or other insurers.

However, Moody's cautioned that it is not possible, based on the information available to date, to determine whether, or how severely, the ongoing investigations of the New York attorney general, will affect the business and financial fortunes of affected insurers.

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