Storms and taxes

By Robert C. Powell
Virginia Business
December 2005

The insurance industry is assessing the damage after being buffeted by a series of storms, three that were caused by nature and one that was manmade. Contributing writer Jack Milligan of Charlottesville takes a look at the metaphorical storm begun last year by a lawsuit filed by Eliot Spitzer, New York’s attorney general, against Marsh & McLennan Cos., the world’s largest insurance broker. The Spitzer investigation prompted the resignation of top industry executives and a reshaping of the way brokers do business. Milligan looks at the effect of the controversy on Marsh’s Virginia operations.

Meanwhile contributing writer Joan Tupponce of Richmond examines the effects of three hurricanes, Katrina, Rita and Wilma, on the insurance industry. Insurance executives around the state say that the losses absorbed by reinsurers could eventually be felt by commercial clients.

A regular feature of our December issue is the Legal Elite, a list of lawyers recognized by their peers as the best in 12 categories. In covering the state’s best lawyers, the magazine has tracked trends in the legal profession. This year contributing writer Heather Hayes of Clifford reports on the growth of elder law, a specialty catering to the legal needs of seniors.

This issue also takes a look at the growing reputation of the Charlottesville area as a great place to live. Contributing writer Timothy Sprinkle, who lives in Charlottesville, reports that the area’s attractiveness is raising its cost of living, including home prices, but the economy continues to prosper.

Finally, our Commercial Real Estate Quarterly delves into the deal that revitalized Gordonsville, a town not far from Charlottesville. Contributing writer Donna C. Gregory of Richmond reports that PBM Products renovated many downtown buildings in setting up its headquarters there. PBM’s efforts breathed new life into the historic town, like a hurricane that builds rather than destroys.