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For more information or to register, please visit http://www.workplacebenefits.org/doubleschedule.htm, or call 888-282-1765. 1. 2008: Highest levels of political and economic uncertainty for a decade Geneva, Switzerland, 9 January 2008 - The World Economic Forum released today its latest report, Global Risks 2008. The report highlights the need for new thinking and concerted action in a number of problem areas. It expresses fears that the current liquidity crunch will spark a US recession in the next 12 months and calls for new thinking on systemic financial risk in response to the revolution in financial markets over the last two decades. The report recommends a set of principles for country risk management and examines how the financial sector might take on an increasingly important role in risk transfer in the future. The report also warns that food security will become an increasingly complex political and economic problem over the next few years, with issues of equity and trade offs between security and other issues making the design of global policy both difficult and necessary. Greater co-operation on managing vulnerabilities associated with cross-border supply chains and concentrations of production may also be needed. Finally, with the dollar price of oil at record highs, the report recommends an improved approach to securing viable energy supplies in the years ahead. Global Risks 2008, published by the World Economic Forum in co-operation with Citigroup, Marsh & McLennan Companies, Swiss Re, the Wharton School Risk Center and Zurich Financial Services highlights key areas of risk that will be a focus of discussions by business leaders and public policymakers at the Annual Meeting of the World Economic Forum in Davos later this month. The report is based on input from a network of more than 100 top business leaders, decision-makers, scientists and other leading academics convened throughout 2007 as part of the World Economic Forum’s Global Risk Network. The topics identified in the report will be at the core of the agenda for the annual meeting of the World Economic Forum taking place later this month in Davos, Switzerland. Emerging issues in global risk Global Risks 2008 focuses on four emerging issues which will impact the world economy and society in the decade ahead. While many of the risks cannot be avoided, they can be better understood, managed and mitigated. · Systemic financial risk A re-pricing of risk in financial markets was predicted by some observers at the beginning of 2007 – including by the Global Risk Network – but the scale and nature of the systemic financial crisis of 2007-2008 has raised fundamental questions as to the vulnerabilities within the current model of financial markets. Diversification of risk may have strengthened stability in good times, but systemic financial risk remains acute. Looking at the year ahead, a US recession is possible and economists are divided on whether consumption-led growth in Asia can drive the global economy. In Europe, the prominence of the UK’s financial sector makes it vulnerable, while large current account deficits in some central and eastern European economies may prove increasingly unsustainable in 2008. Changes in the financial markets over the past two decades have led to the ownership of risks being decentralised, along with greater opportunities for risks to transmit between individual firms and markets – making effective risk management all the more critical. Under normal market conditions, the financial system has improved its capacity to assume and distribute risk, and has become more stable. But to mitigate the impact of the types of challenges seen in 2007, the report calls for increased public and private sector collaboration on stress testing, liquidity management, risk assessment and prevention in order to address what it describes as the “fragmentation of ownership of global risks”. · Food security In 2007, prices for many staple foods reached record highs and global food reserves are at a 25-year low, making world food supply vulnerable to an international crisis or natural disaster – in some cases giving rise to political instability with “food riots” observed in 2007. Looking ahead, Global Risks 2008 suggests that the drivers of global food insecurity – population growth, lifestyle changes, use of crops to manufacture bio-fuels, climate change – are likely to sharpen over the coming decade, setting the world for a potential long-term trend reversal in food prices and leading to a set of complex challenges to global equity. · Supply chain vulnerability Improvements in technology and global logistics, along with reduced trade barriers, have led to a historic expansion of international and intra-regional trade over the past twenty years. These improvements have generally led to increased efficiency and global prosperity. However, hyper-optimisation of supply chains may also increase vulnerabilities to disruption and concentrations of risk. Moreover, these are often not fully understood. Though supply chains can share risk between many parties, they can also cause risks to be aggregated. All companies and governments who depend on external suppliers face disruptions to their supply chain, and building a new culture in this area, along with an international approach to supply-chain risk management across private and public sectors, are key among the first steps to broader risk mitigation. · Energy The availability of energy resources is key to the global economy, but guaranteeing a safe, secure and sustainable supply – and doing so in line with global commitments to reduce greenhouse gas emissions – is increasingly problematic. With predictions of a 37% increase in oil demand over current levels by 2030, the report sees limited scope for a fall in energy prices over the next decade. This may be good news for oil and gas producers but it creates an inherent mismatch between those who bear risk and reward, which should be addressed through better dialogue at all levels. “Global Risks 2008 points to a future of tremendous challenges, but also opportunities for business and government decision-makers to demonstrate their leadership” said Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum. “The interconnectedness of global risks discussed in this report reflects the need for a collaborative framework for response. The upcoming Annual Meeting of the World Economic Forum will provide a focus for those discussions.” David Nadler, Vice Chairman, Office of the CEO, of MMC (Marsh & McLennan Companies), said: “As the report says, systemic financial risk is the most immediate and, from the point of view of economic cost, most severe risk facing the global economy. With so many potential consequences of the 2007 liquidity crunch unresolved, the outlook at the beginning of 2008 is more uncertain than it was a year ago. The US Federal Reserve has projected direct losses related to sub-prime of US$150bn; non-subprime financial losses may be considerably greater. Addressing the systemic financial risk identified in this report will be a key topic for business and political leaders in Davos this year. “Energy supply is also a crucial issue. The global economy has demonstrated remarkable resilience to increases in energy prices since 2004. But the limits of resilience may be close to being reached. Over the next two decades the supply of primary fossil fuel will become tighter with the world economy becoming much more vulnerable to price shocks as a result. The report urges better dialogue at all levels; between emerging and developed countries and between the corporate sector and the government and regulators. A move toward a forward looking regulatory framework is needed in order to ensure long term economic viability. This framework should seek to unlock investment and innovation in cleaner energy and, ultimately, deliver an economic price for carbon.” Risk mitigation: increasing role of financial markets and better country co-ordination are key Despite the financial turmoil of 2007, the financial markets are seen as an increasingly important tool to transfer and mitigate an increasing variety of global risks. The growth of financial markets has opened up new possibilities to help mitigate risks, including the rapid emergence of a new market in insurance-linked securities (ILS), which help provide additional capital to the insurance industry to protect against major catastrophe losses. While the early “cat bonds” were issued into the capital markets to help mitigate losses from wind damage and earthquakes, the ILS market has grown considerably in recent years in the range of risks covered, with total bonds outstanding now at more than USD 34 billion. Christian Mumenthaler, a member of Swiss Re’s executive board who served for three years as the group’s Chief Risk Officer, said: “The development of the ILS market has increased the ability of insurers and reinsurers to accept peak risks such as US hurricanes. This has become increasingly important because climate change has elevated the frequency and severity of tropical cyclones. The extra insurance capacity available through these instruments helps private companies and governments mitigate and manage these peak risks.” Besides ILS, a wide variety of other financial instruments are now being developed to transfer insurance risks, including weather derivatives. Mr Mumenthaler added: “The weather derivatives market has grown at an explosive rate in recent years. For example, these instruments can provide rapid payments to governments and farmers who can use them to hedge against too little rainfall and excessive heat in the growing season, along with too much rain in the harvesting season. In this way, both the state and commercial growers can invest in crop production with a greater degree of confidence, helping to optimise food production and security.” In Global Risks 2007, the Global Risk Network of the World Economic Forum warned of a growing under-appreciation of risk in financial markets, provided a snapshot assessment of a range of global risks for the decade ahead and recommended the institution of Country Risk Officers and flexible issue-based international coalitions to manage the complexity of the global risk environment. Country Risk Officer: Establishing principles for country risk management “In order to maintain the benefits of globalisation, improved governance of globalisation is vital,” said Charles Emmerson, Associate Director of the World Economic Forum and Editor of the report. “In all the focus areas of this year’s report, principles of equity, management of trade offs and long-term global cooperation will be necessary. The short-term outlook is highly uncertain in 2008, but we must not lose sight of longer-term challenges.” In Global Risks 2007, the establishment of Country Risk Officers was recommended to help improve risk management at the national level. In Global Risks 2008 the report looks at the specific example of the United Kingdom’s Civil Contingencies Secretariat and establishes a set of principles for country risk management which may apply across different institutional arrangements. An international forum of Country Risk Officers could potentially offer a much-improved capacity to exchange information about inherently cross-border global risks, but also improve the global ability to anticipate and respond to risk. · The entire report can be downloaded here: www.weforum.org/pdf/globalrisk/report2008.pdf Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Merrill seen suffering $15 billion loss: report Fri Jan 11, 2008 7:35am EST TOKYO (Reuters) - Merrill Lynch (MER.N: ) is expected to suffer $15 billion in losses stemming from soured mortgage investments, almost twice the company's original estimate, the New York Times reported on Friday. The losses were prompting the company to raise additional capital from an outside investor, the newspaper said in a report on its Web site. Merrill is expected to disclose the huge write-down when it reports earnings next week, the New York Times said, citing people who had been briefed on the company's plans. The loss exceeds the $12 billion hit that many Wall Street analysts had forecast, the newspaper said. Merrill is now in talks with investors in the United States, Asia and the Middle East, including U.S. private equity firms to raise around $4 billion in coming days, the daily quoted the sources as saying. (Reporting by Masayuki Kitano) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Bank of America to buy Countrywide for $4 billion Fri Jan 11, 2008 10:49am By Jonathan Stempel and Joseph A. Giannone NEW YORK (Reuters) - Bank of America Corp said on Friday it agreed to acquire battered mortgage lender Countrywide Financial Corp in a $4 billion transaction that could help avert one of the biggest collapses from the U.S. housing crisis. The purchase marks another major but risky acquisition for Bank of America Chief Executive Kenneth Lewis, who has spent more than $100 billion since 2004 to create the nation's second-largest bank, and by far its largest consumer bank. It would provide a lifeline for Countrywide. The largest U.S. mortgage lender has been convulsed by mounting losses and defaults, a loss of access to credit markets, and a slew of lawsuits and regulatory probes into its lending practices and Chief Executive Angelo Mozilo's pay. On Tuesday, it rejected rumors it might go bankrupt. Before Friday, Bank of America had a roughly $1.3 billion paper loss on the $2 billion it injected into Countrywide in August as the global credit crisis deepened. Countrywide's market value has slid about $22 billion in the last year. (Additional reporting by Mark McSherry, Christian Plumb and Caroline Valetkevitch; Editing by Derek Caney and Dave Zimmerman) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Health Care M&A Dollars Reach Second Highest Level Ever in 2007 According to New Report from Irving Levin Associates, Inc. NORWALK, Conn.--(BUSINESS WIRE)--During 2007 and based on preliminary results, a total of 1,051 mergers and acquisitions were announced in 13 sectors of the health care industry, a 4% increase over the 1,009 transactions announced in 2006. Based on prices revealed to date, a combined total of $226.5 billion was committed to finance the year’s 1,051 deals. This is a 16% decrease from the $268.4 billion in 2006, the largest year ever in health care M&A, but still a 38% increase over the $164.3 billion in 2004, now the third-largest year in terms of dollars spent. For more information on The Health Care M&A Information Service, The Health Care Acquisition Report or for a subscription to any Irving Levin publication, call 800-248-1668. Irving Levin Associates, Inc., established in 1948, has headquarters in Norwalk, CT and is online at www.levinassociates.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Ingersoll-Rand records charge for asbestos claims Fri Jan 11, 2008 9:33am EST CHICAGO, Jan 11 (Reuters) - Diversified manufacturer Ingersoll-Rand Co Ltd (IR.N: ) said on Friday it has taken a noncash pretax charge of $449 million for pending and estimated future asbestos claims through 2053. The fourth-quarter charge, which will be $277 million after tax, results from a $538 million increase in recorded liability for asbestos claims to $755 million. The claims are offset by an $89 million increase in assets for probable insurance recoveries, to $250 million, Ingersoll-Rand said. The company had previously estimated those costs seven years in the future and determined in the fourth quarter that it could make a reasonable estimate for its total liability. Ingersoll-Rand faces asbestos-related lawsuits in state and federal courts, primarily related to the production of pumps and compressors that used asbestos-containing products such as gaskets and packings bought from suppliers. The company has resolved about 208,000 claims over the last quarter century, with settlements totaling $308 million, excluding insurance recoveries, and its insurance carriers, it said in a federal regulatory filing. More than 100,000 claims were open at the end of 2007, over 90 percent related to nonmalignancy claims, the vast majority of which have little or no settlement value, it said. The company's analysis took into account a substantial and continuing decline in new nonmalignancy claims and an increased focus on claims involving mesothelioma, a cancer with predictable future incidence rates, and its experiences dealing with those claims. (Reporting by David Bailey; editing by Mark Porter/John Wallace) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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6. NAMIC Urges NAIC to Re-focus its Examination of the Impact of Climate Change on Insurance INDIANAPOLIS (Jan. 10, 2008) – The National Association of Mutual Insurance Companies (NAMIC) today expressed concerns about a draft white paper exploring the impact of climate change on insurance. In its comments to the National Association of Insurance Commissioners, NAMIC criticized the document for recommending that insurance commissioners take steps to lessen the effects global warming will have on insurance. “For the most part, we believe the white paper’s discussion of natural disaster-related issues such as building codes, land-use planning, and flood insurance reform is thoughtful and constructive,” wrote Robert Detlefsen, NAMIC’s vice president for public policy. “However, the white paper is far more than a discussion of disaster mitigation.” Of particular concern to NAMIC was the paper’s insinuation that global warming will increase the frequency and severity of all types of natural disasters, and that regulators should, therefore, respond by requiring insurers to engage in a formal process of climate risk disclosure. “In our view, using disclosure requirements to pressure insurance companies into adopting a particular agenda for combating global warming is a flawed approach to addressing the challenges proposed by large-scale catastrophe risk,” Detlefsen wrote. “Instead, the white paper should examine the role that regulation often plays in distorting insurance markets and thereby increasing the risk of property loss and human suffering in disaster-prone regions.” The paper urges the NAIC to “consider creating under the Financial Condition (E) Committee a working group to develop interrogatories and other tools to evaluate” risks allegedly related to climate change. “It is difficult to imagine how forcing insurers to respond to such questions would reduce the regulatory burden they face,” Detlefsen wrote. NAMIC’s primary objection to these interrogatories is that their ultimate purpose is to change behavior. “It is, in other words, a tactic designed to ‘cajole or require insurers to take climate change risks seriously,’ which they can only demonstrate by altering their business practices to conform to the policy agenda embedded in the questions,” Detlefsen wrote. A more effective approach, Detlefsen suggested, would be to examine insurance regulation in catastrophe-prone regions by analyzing particular rules and regulatory practices “to determine whether they are facilitating or hindering the ability of private insurance markets to play a constructive role in mitigating the effects of large-scale natural disasters.” www.namic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Moody's: US insurers welcome extended terrorism risk insurance New York, January 10, 2008 -- In a new report, Moody's Investors Service says that the Terrorism Risk Insurance Program Reauthorization Act of 2007 ("TRIPRA") provides solvency protection for property and casualty ("P&C") insurers exposed to losses from catastrophic terrorist events. "While the changes to the Terrorism Risk Insurance Program did not materially depart from the core provisions of the original program, the seven-year extension provides greater certainty to the insurance industry and certain business groups that rely on insurance policies that include coverage for terrorism", says the report's author, Associate Analyst Adim Offurum. In Moody's opinion, TRIPRA is not expected to have a significant impact on terrorism insurance pricing or on the credit profile of U.S. P&C insurers, and the legislation does not solve the financial risks posed by the specter of terrorism risk. Mr. Offurum states that "insurer deductibles under the federal backstop represent a significant portion of statutory capital for most insurers, and as a result, highly rated commercial lines insurers are expected to manage their aggregate terrorism exposures prudently." The report states that Congress has required a number of studies to be completed in 2008 that examine terrorism insurance capacity constraints, as well as the availability and affordability of terrorism insurance coverage for nuclear, biological, chemical and radiological ("NBCR") attacks in the United States. "Moody's continues to monitor the development of terrorism insurance" the analyst says, "however, private reinsurers are unlikely to fill the reinsurance capacity void once TRIPRA expires." "Notwithstanding", Mr. Offurum concludes, "the seven-year extension will give the insurance industry the opportunity to potentially develop comprehensive terrorism insurance, or it may be that this risk remains with the federal government." The report is titled "U.S. Insurers Welcome Extension of Terrorism Risk Insurance Program." www.moodys.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Repeat of the 1998 Ice Storm Could Generate Up To $3 Billion in Insured Losses Newark, CA – January 10, 2008 – Risk Management Solutions (RMS), the world’s leading provider of products and services for catastrophe risk management, today released a 10-year retrospective report on the 1998 Ice Storm that devastated the Canadian provinces of Ontario and Québec, as well as portions of the northeastern U.S., in January 1998. Despite the positive advances made in the affected region since that time, a recurrence of the ice storm today would result in total insurance losses of between $1.0 and $3.0 billion ? potentially over twice the $1.3 billion cost incurred in 1998. “This storm demonstrates that direct physical damage from a catastrophic event may comprise only a minor percentage of the total insured losses,” said Robert Muir-Wood, Chief Research Officer at RMS. “Infrastructure disruptions such as power outages lead to costly business interruption losses for commercial and industrial properties, as well as additional living expenses for homeowners forced to evacuate their freezing homes.” Copies of the RMS special report ‘The 1998 Ice Storm: 10-Year Retrospective” will be available free of charge at www.rms.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. New York probes Wall St. banks over suprime data: report Sat Jan 12, 2008 12:41pm NEW YORK (Reuters) - New York prosecutors are investigating whether Wall Street banks withheld information about the risks stemming from subprime loan-linked investments, The New York Times reported on Saturday. Citing people with knowledge of the matter, the newspaper said the inquiry, begun last summer by state Attorney General Andrew Cuomo, was focusing on how banks bundled billions of dollars of exception loans and other subprime debt into complex mortgage investments. Charges could be filed as soon as the coming weeks, the Times said. Connecticut Attorney General Richard Blumenthal told the newspaper he was also conducting a review and cooperating with New York officials. The federal Securities and Exchange Commission is also investigating, the Times said. Reports commissioned by Wall Street banks raised alerts about the high-risk loans, known as exceptions, which fell short of even the lax credit standards of subprime mortgage companies and the Wall Street firms, the newspaper said, but the banks failed to disclose those details to credit-rating agencies or investors. The inquiries highlight Wall Street's leading role in igniting the mortgage boom that has imploded with a burst of defaults and foreclosures. The crisis is sending shock waves through the financial world, and several big banks are expected to disclose additional losses on mortgage-related investments when they report earnings next week. EXCEPTION LOANS Industry officials say the so-called exception loans make up anywhere from 25 percent to 80 percent of the $1 trillion subprime mortgage market among portfolios they had seen, the Times said. The banks also failed to disclose how many exception loans were backing the securities they sold, with underwriters using such words as "significant" or "substantial," securities law requires banks to disclose all pertinent facts about securities they underwrite, the report said. Blumenthal said the disclosures in the banks' securities filings appeared to be "overbroad, useless reminders of risks," the Times said. "They can't be disregarded as a potential defense," the newspaper quoted him as saying. "But a company that knows in effect that the disclosure is deceptive or misleading can't be shielded from accountability under many circumstances." New York state law would allow for criminal as well as civil charges, the Times said. Cuomo declined to comment, but the Times said he had subpoenaed Wall Street banks including Lehman Brothers (LEH.N: ) and Deutsche Bank (DBKGn.DE: ), as well as major credit-rating companies Moody's Investors Service, Standard & Poor's and Fitch Ratings. Mortgage consultants including Clayton Holdings (CLAY.O: ) in Connecticut and the Bohan Group, based in San Francisco, were also subpoenaed. Officials at Wall Street banks and the American Securitization Forum declined to comment, the Times said, while credit-rating firms would not say they had been subpoenaed, but that they were generally not provided due diligence reports even when they asked for them. (Writing by Chris Michaud, editing by Patricia Zengerle) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Court says San Francisco health plan can proceed Thu Jan 10, 2008 3:23pm EST SAN FRANCISCO (Reuters) - San Francisco's universal health-care plan, a first-of-its kind local program to be funded in part by fees from employers, may go forward while under appeal, a U.S. appeals court panel ruled on Wednesday. The decision by the three-judge panel of the U.S. Ninth Circuit Court of Appeals said San Francisco is likely to successfully defend a court challenge to its health plan, which aims to provide medical insurance to all adults residents of the city at an estimated annual cost of $200 million. The rising cost of health-care insurance is a top political issue amid the U.S. presidential primary season. Some local and state governments, including California's, are exploring the feasibility of new programs to provide medical insurance to those without private coverage and not in existing public health-care programs. A restaurant association had challenged San Francisco's plan and won an early round when a U.S. District Court judge ruled local governments could not compel employers to pay into medical insurance programs. The appeals court's decision, which stays the district court's ruling, may help California Gov. Arnold Schwarzenegger's effort to provide health insurance to state residents lacking it. The governor's plan, now with the state Senate after the state Assembly endorsed it, relies in part on employer payments to fund coverage for the uninsured. © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article Magnify Your Advertising Dollars 100 times with INSURANCE NEWSCAST
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INSURANCE NEWSCAST... For more information or to have a media kit e-mailed to you, call Tedd Isham at 888.282.1765, send an e-mail to tedd@insurancebroadcasting.com, or visit www.insurancebroadcasting.com. 11. JPMorgan, WaMu have held prelim merger talks: report Fri Jan 11, 2008 10:15am NEW YORK (Reuters) - JPMorgan Chase (JPM.N: ) and Washington Mutual (WM.N: ) have held "very preliminary" talks about a merger, CNBC's Charlie Gasparino said on Friday. Shares of Washington Mutual jumped more than 12 percent to $15.90 in pre-market trade following the report. (Reporting by Matt Daily) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Cleveland sues 21 banks over mortgage foreclosures Fri Jan 11, 2008 10:55am EST .CHICAGO, Jan 11 (Reuters) - The city of Cleveland has sued 21 banks involved in the subprime mortgage market, seeking millions of dollars in costs incurred due to foreclosures, a spokeswoman for Mayor Frank Jackson said on Friday. Banks sued in Cuyahoga County Common Pleas Court included Bank of America (BAC.N: ), Citigroup (C.N: ), Credit Suisse, Deutsche Bank Trust, J.P. Morgan Chase (JPM.N: ), Merrill Lynch (MER.N: ), Washington Mutual (WM.N: ), Countrywide Financial (CFC.N: ), Morgan Stanley (MS.N: ) and Well Fargo (WFC.N: ), according to spokeswoman Andrea Taylor. (Reporting by Karen Pierog; Editing by Tom Hals) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. MBIA's $1 Bln Debt Sale Stalls as Investors Balk Fri Jan 11, 2008 3:02am By Walden Siew NEW YORK (Reuters) - A planned $1 billion debt sale by MBIA Inc (MBI.N: ) may be delayed until next week, investors familiar with the offering said on Thursday, as the market demands higher concessions to help the world's largest bond insurer shore up its capital and defend its rating. The news came a day after MBIA slashed its dividend and said it would sell $1 billion of so-called surplus notes and buy reinsurance. The moves are part of an effort to preserve capital and the "triple-A" ratings the bond insurer needs to operate normally. The surplus note sale, which had been expected to price on Thursday, has a fixed coupon of between 9 percent and 12 percent, nearly double what similarly rated bonds offer, according to investors briefed by dealers on the transaction. Surplus notes are bonds specific to the insurance industry, but they can be classified as equity by some state insurance regulators. That allows ratings companies to count some of the securities as equity, bolstering the insurers' balance sheets. Pricing is not likely until next week, with investors haggling over increased protections, a source familiar with the deal said. The MBIA bond could carry a fixed coupon as high as 11 percent for five years, according to a second investor. An MBIA spokeswoman declined to comment. How the debt sale is received may be a test case for other bond insurers as they seek to shore up their capital base. Surplus notes are "not something you see that often, so some investors are wondering what they are again, and how does it work," said Cynthia Cole, a portfolio manager at Allegiant Asset Management in Cleveland, Ohio. According to Thomson Financial data, the last big surplus note sale came in May 2003, when New York Life Insurance Co. sold $1 billion of such debt. Mutual of Omaha Insurance Co. also sold $300 million of surplus notes in June 2006. "If it goes well, I'm sure the others will consider using this structure," Cole said. "The advantage is it gets them to the place where they can keep their triple A rating." Cole said she was considering participating if the debt offers double-digit yields. Also on Thursday, a filing showed that distressed debt investor Marty Whitman had doubled his stake in MBIA to almost 11 percent. Whitman is known for generating big returns on companies going through wrenching turnarounds. Whitman's Third Avenue Management LLC holds a 10.98 percent stake in bond insurer MBIA, the investment fund said in a filing with the U.S. Securities and Exchange Commission. MBIA said last month that private-equity firm Warburg Pincus agreed to inject $500 million and possibly an additional $500 million to help the transaction. Fitch Ratings and larger rival Standard & Poor's rated the new MBIA debt "AA," their third-highest grade. Moody's Investors Service rated it an equivalent "Aa2." The debt matures in 2033. (Additional reporting by Al Yoon; Editing by Dan Grebler) © Reuters 2008 All rights reservedReturn to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. RiskWatch, Inc. Announces Launch of New Consulting Service for Risk Assessments, Risk Analyses, Disaster Recovery Planning and Contingency Planning ANNAPOLIS, Md., Jan. 11 /PRNewswire/ -- RiskWatch, Inc. announced today the opening of a new division - RiskWatch Consulting Services. This division will provide the security and risk communities full-service risk assessment, risk analysis as well continuity planning to minimize IT and business outages. This consulting service includes compliance, risk and safety assessments along with business impact analysis to identify and prioritize your critical business functions and key resource dependencies that most affect your revenue, your customers and the survival of your business. RiskWatch, Inc. Consulting Services will develop a comprehensive continuity program designed to protect your business from events that are disruptive to your business. www.riskwatch.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Nurses Unveil New Advertising Campaign Against Schwarzenegger-Nunez ``Individual Mandate'' Plan The Words of Sen. Barack Obama Critique Concept of Forcing Patients to Buy Insurance OAKLAND, Calif.--(BUSINESS WIRE)--The California Nurses Association/National Nurses Organizing Committee today launched a new statewide media campaign featuring the voice of Sen. Barack Obama commenting on proposals to force individuals to buy insurance. Individual mandate schemes lie at the heart of the healthcare deal crafted by Gov. Arnold Schwarzenegger and Assembly Speaker Fabian Nunez—and endorsed by most California insurance corporations. The media campaign of radio spots will run in major media markets across California, coinciding with Senate hearings and a vote on the ABX1.1 bill. CNA/NNOC opposes the bill which would require all Californians to buy health insurance or face substantial penalties. As the ad puts it, “Don't let the politicians force you to buy insurance you can't afford and which won't help you when you're sick.” The ad also quotes Sen. Obama noting “some folks who said that it's not possible to provide universal healthcare coverage unless there's a mandate. Their essential argument is the only way to get everybody covered is if the government forces you to buy health insurance. If you don't buy it, then you’ll be penalized in some way….The reason people don't have health insurance is because they can't afford it.” Under the Schwarzenegger-Nunez deal, ABX1.1, insurers would gain millions of new customers and hundreds of millions in additional profits while failing in its promise of solving the state’s healthcare crisis, says CNA/NNOC. Supporters of the bill include seven of the state’s biggest insurers: Kaiser Permanente, Health Net, PacifiCare, Blue Shield, Cigna, and Molina Health Care. "Individual mandates are not a humane or sound health care policy. Californians desperately want real healthcare reform, but AB x1.1 is not it,” said Zenei Cortez, RN, a member of the CNA/NNOC Council of Presidents. “Sadly, AB x1.1 is a prescription for more financial risk, denial of care, and heartache for California patients. As patient advocates, RNs will continue working to defeat ABX1.1.” The ad also calls on Californians to join with nurses in working for genuine healthcare reform, such as SB 840, a bill that will be heard in the California Assembly later this year. The ad may also be heard at www.guaranteedhealthcare.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
16. AmCOMP Announces Definitive Agreement to be Acquired by Employers Holdings, Inc. NORTH PALM BEACH, Fla.--(BUSINESS WIRE)--AmCOMP Incorporated (Nasdaq:AMCP) today announced that it signed a definitive agreement to be acquired by Employers Holdings, Inc. (“EMPLOYERS®”) (NYSE:EIG). The definitive agreement is for EMPLOYERS to acquire 100% of AmCOMP’s outstanding stock and its subsidiaries for $194 million in cash. EMPLOYERS, headquartered in Reno, Nev., is a leading provider of workers’ compensation insurance to small U.S. businesses. With roots dating back to 1982, AmCOMP Incorporated is an insurance holding company whose wholly owned subsidiaries, AmCOMP Preferred and AmCOMP Assurance, are mono-line workers’ compensation insurers with products that focus on value-added services to policyholders. Currently marketing insurance policies in 17 core states and targeting small to mid-sized employers in a variety of industries, AmCOMP distributes its products through independent agencies. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. John C. Lincoln Health Network to Strengthen Financial Stability by Joining Premier Alliance as Performance Improvement Partner CHARLOTTE, N.C.--(BUSINESS WIRE)--The award-winning not-for-profit John C. Lincoln Health Network has taken steps to further strengthen its financial stability by becoming a member of the Premier alliance. It joins nearly 200 of the nation's leading hospital and healthcare systems who own Premier Inc. www.JCL.com www.premierinc.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Prudential Financial Enhances Its Universal Life Insurance Product NEWARK, N.J.--(BUSINESS WIRE)--Prudential Financial, Inc. (NYSE:PRU) announced today that it has improved its cash value accumulation universal life insurance product, PruLife® UL Plus. Enhancements to the product have also resulted in improved cash values and longer no-lapse guarantee periods. The Short-Term No-Lapse guarantee period is now 10 years for all ages. The Limited No-Lapse Guarantee Period is 25 years or age 75, whichever comes first, but never less than 10 years. www.prudential.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. IRMI Expert Commentary Library Surpasses 1,000 Articles DALLAS, TX—International Risk Management Institute, Inc. (IRMI), is pleased to announce the Expert Commentary online library has more than 1,000 articles, now available free of charge on IRMI.com. The IRMI.com Expert Commentary library, written by more than 100 carefully chosen risk and insurance professionals, provides weekly updates on the status of the industry, new products, problems, and issues. Most importantly, it offers practical strategies and solutions for dealing with the risk management and insurance challenges faced daily. IRMI President Jack Gibson said, “Eight years ago we set out to build one of the most useful free risk management resources available on the Web, and we may have achieved that goal when we hit this milestone. However, we won’t stop here. IRMI will continue building this library with new articles every week and we have plans to add some exciting new features and content in the near future.” www.IRMI.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
View INSURANCE NEWSCAST "Sports Pictures Of The Day" View INSURANCE NEWSCAST "Entertainment Pictures Of The Day"
21. Life Brokerage Partners Adds New Insurance Carriers OLDSMAR, Fla., Jan. 11 /PRNewswire/ -- Life Brokerage Partners announces three new carrier relationships with Midland National, National Life Group and Nationwide. With these new additions, Life Brokerage Partners provides their agents access to products at some of the most exclusive national insurance carriers and increases their strength as a national insurance brokerage agency. www.lifebrokeragepartners.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Insurance Educational Association Releases Online Personal Lines Prelicensing Course for California Santa Ana, CA January 8, 2008 The Insurance Educational Association announced the release of its newest online prelicensing course for individuals interested in sitting for the California State Personal Lines prelicensing exam for agents. t www.ieatraining.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. RMS Performs Analysis for French Windstorm Risk Securitization € 200 Million Series Issued for Coverage of French Windstorm Losses Newark, Calif. – January 11, 2008 – Risk Management Solutions, the world’s leading provider of products and services for catastrophe risk management, has performed the analysis for a securitization of windstorm risk in France. The securities were issued through Green Valley Ltd., a special purpose vehicle (SPV), and provide EUR 200 million of collateralized cover over three years for Swiss Reinsurance Company on behalf of Groupama S.A., as part of a program structured and placed by Swiss Re Capital Markets. The deal is the largest ever placement of French windstorm risk of its kind offered in the insurance-linked securities market. www.rms.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Best Selling Author Dr. Joseph Michelli To Speak At The 2008 Loma Customer Service Conference Atlanta, GA—January 10, 2008—Joseph Michelli, Ph.D., bestselling author of The Starbucks Experience will present "The Starbucks Way, Creating the Total Customer Experience" at the 2008 LOMA Customer Service Conference, March 3–5, 2008 at the Royal Pacific Resort at Universal Studios in Orlando, Florida. In addition to Dr. Michelli's session, the 2008 LOMA Customer Service Conference features breakout workshops which will discuss relevant topics including developing a customer-centric organization, generational differences in a service center, telecommuting and virtual workers, online service of award winning insurance companies, outsourcing, using call center analytics and much more! http://www.loma.org/customer.asp Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. OptumHealth Introduces Portable Lifetime Personal Health Record Enables Consumers to Retain Access to Their Own Health Information When They Change Employers, Health Plans or Doctors MINNEAPOLIS--(BUSINESS WIRE)--OptumHealth, one of the nation’s largest health and well-being companies, announces the availability of a portable, lifetime personal health record enabling individuals who change employers, health plan or doctors to easily retain access to their previous medical history based on their health insurance claims. A division of UnitedHealth Group, OptumHealth is providing this portability service through its free, secure consumer Internet portal, www.healthatoz.com, to more than 21 million consumers. These individuals already have personal health records established through sister-company, UnitedHealthcare or OptumHealth’s private employer or payer health portals. www.OptumHealth.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. JPMorgan talking to China securities JV partners Fri Jan 11, 2008 9:18am EST TIANJIN, China (Reuters) - JPMorgan Chase is talking to a number of potential partners about forming a securities joint venture in China, a senior executive said on Friday. JPMorgan (JPM.N: ) is one of several international banks looking to participate in the country's booming but restrictive domestic securities business after Beijing agreed last month to resume licensing joint ventures. (Reporting by Simon Rabinovitch; Editing by Alan Wheatley) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. UBS in shareholder plea as subprime fallout weighs Fri Jan 11, 2008 5:03am By Katie Reid ZURICH (Reuters) - UBS AG (UBSN.VX: ) said it cannot predict the final impact of the subprime crisis but that a new capital injection would strengthen its position as it called on shareholders to support its emergency capital hike. (Additional reporting by Sam Cage and Thomas Atkins; Editing by Richard Hubbard and David Holmes) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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