BOSTON, Jan 6 (Reuters) – The U.S. office vacancy rate
fell in the fourth quarter of 2011 and rents rose for the fifth
straight period, signaling that a recovery is well under way,
real estate research firm Reis Inc said on Friday.

The vacancy rate dipped to 17.3 percent in the quarter from
17.4 percent in the third quarter and 17.6 percent at the end of
2010, Reis said.

BOSTON, Jan 3 (Reuters) – Shares in insurance
companies rallied on Tuesday, starting the year to the upside
after taking a beating in 2011 and defying new research that
suggests they could underperform in the short term.

The S&P insurance index rose 2.2 percent,
outperforming a 1.8 percent gain for the broader S&P 500. All
but one of the index’s 22 components were higher, led by
Genworth Financial (GNW.N: Quote, Profile, Research), Lincoln National (LNC.N: Quote, Profile, Research) and AIG
(AIG.N: Quote, Profile, Research), all more than 4.5 percent higher on the day.

BOSTON, Dec 30 (Reuters) – Mortgage insurer MGIC
Investment Corp (MTG.N: Quote, Profile, Research) on Friday said it has put another $200
million into its primary operating unit so that it meets certain
regulatory capital requirements and can keep writing new
business.

The company said it made the contribution to Mortgage
Guaranty Insurance Corp last week. That lets the unit meet
regulatory requirements in Wisconsin. The company said it
already meets the capital requirements in other states where it
does business without the need for any waivers.

NEW YORK (Reuters) – Despite more than $100 billion in disaster losses around the world this year, insurers are not yet experiencing a broad and sustained increase in pricing power, defying predictions from a year ago that even half those losses would be enough to turn the industry around.

For investors, that means picking winners in 2012 will be harder than expected. Analysts say the key is companies with healthy capital levels and reserve strength; those that have already shown some pricing leverage; and the brokers, who are usually first to benefit in a cycle turn.

NEW YORK, Dec 29 (Reuters) – Despite more than $100
billion in disaster losses around the world this year, insurers
are not yet experiencing a broad and sustained increase in
pricing power, defying predictions from a year ago that even
half those losses would be enough to turn the industry around.

For investors, that means picking winners in 2012 will be
harder than expected. Analysts say the key is companies with
healthy capital levels and reserve strength; those that have
already shown some pricing leverage; and the brokers, who are
usually first to benefit in a cycle turn.

BOSTON, Dec 29 (Reuters) – Tax authorities have ruled
that a January distribution of warrants by American
International Group (AIG.N: Quote, Profile, Research) was not tax free, the bailed-out
insurer said on Thursday.

But, AIG also said it was unlikely most recipients would
have to pay taxes on the distribution anyway.

BOSTON, Dec 28 (Reuters) – Allstate Corp (ALL.N: Quote, Profile, Research) will
pay out less to senior executives if the company is taken over,
under a revised compensation plan the country’s largest listed
home and auto insurer filed with securities regulators on
Wednesday.

Allstate, in a filing with the U.S. Securities and Exchange
Commission, said its old plan was terminated and the new plan
would take effect as of Dec. 30.

By Ben Berkowitz and Tanya Agrawal

(Reuters) – General Electric Co (GE.N: Quote, Profile, Research, Stock Buzz) jumped into the retail deposits business on Tuesday, buying the online bank from life insurer MetLife Inc (MET.N: Quote, Profile, Research, Stock Buzz) in a deal that will let GE’s capital arm expand its funding base and lessen reliance on wholesale markets.

The speed of the move took some analysts by surprise, as it has only been three weeks since GE said it wanted to start taking bank deposits from consumers.

NEW YORK (Reuters) – It’s rare for Warren Buffett to be challenged publicly, but one analyst — tongue planted firmly in cheek — took the “Oracle of Omaha” to task on Friday for a bit of perceived financial community favoritism.

For the first time ever, Buffett has invited three analysts who cover his conglomerate Berkshire Hathaway to ask him questions at Berkshire’s festival of an annual meeting next year in Omaha.

NEW YORK (Reuters) – Shares of Insurer Hartford Financial Services Group (HIG.N: Quote, Profile, Research, Stock Buzz) sank on Thursday after the company warned of difficult operating conditions next year and analysts said the company’s new 2012 outlook was already at risk.

The Hartford said persistently low interest rates and the unsettled European situation, among other issues, made turnaround conditions more difficult.