Daily Quote: "How far you go in life depends on your being tender with the young, compassionate with the aged, sympathetic with the striving, and tolerant of the weak and the strong. Because someday in life you will have been all of those." --- George Washington Carver
1. Swiss Re Stock Still Tarnished By Subprime Exposure Tue Jan 15, 2008 8:49am EST By Douwe Miedema - Analysis ZURICH (Reuters) - Swiss Re's (RUKN.VX: ) vow to stay the course after subprime-related losses blew up in its face last year has done little to convince investors the stock is worth buying. Some analysts say Swiss Re looks a bargain, trading well below their price targets, yet its shares have failed to recover much of the ground lost after November 19 when it revealed a 1.2 billion Swiss franc ($1.1 billion) writedown. The world's largest reinsurer spent a day in December defending its financial services unit -- the source of its woes -- but investors fear the credit crisis may smother the elite operations prematurely. "Nobody is buying the stock for the time being. When you talk about Swiss Re they're not that interested," said Rene Locher, an insurance analyst at Sal. Oppenheim. "When you have (other) stocks where visibility and credibility are higher, people will say, yes, it's cheap, but there are other cheap stocks," Locher said. The financial services unit designs flashy securitization tools to shift insurance risks to capital markets and plays a pivotal role in former investment banker and Chief Executive Officer Jacques Aigrain's grand plans to reinvent Swiss Re. But last year's loss from credit underwriting activities is still unnerving analysts, who say the hit may signal greater trouble than just the fledgling unit's teething problems. "The company may continue to dabble in areas where it is far from a market leader, with a consequence that what should be a positive feature of the Swiss Re investment case becomes a negative," Citigroup said in a research note. Such doubts may help explain why the stock looks undervalued. Swiss Re is trading at around 6 times forecast 2008 earnings, well below the 8.3 times multiple of its rival Munich Re (MUVGn.DE: ) according to Reuters estimates. The stock, up 1.4 percent at 83.40 francs by 1202 GMT on Tuesday, has lost 30 percent of its value since hitting a 2007 peak of 119.4 francs in June and has lagged the Swiss market .SSMI by some 14 percent through the past six months. MORE WRITE-OFFS? Swiss Re might even face further writedowns, analysts say, and its shares have hit levels last seen in May 2005, before its $7.6 billion purchase of the reinsurance operations of U.S. conglomerate General Electric (GE.N: ). In a worst-case scenario, it might need to write down a further 7.25 billion francs from its balance sheets, Citigroup said. Yet some say the stock is undervalued even assuming substantial further losses. Swiss Re is trading well below JP Morgan's target of 130 francs, Citigroup's target of 120 francs and the 110 francs level seen as fair by KBW. Full-year results due February 29, when Swiss Re will also reveal how insurance premiums held up in its annual round of contract renewals, could trigger a recovery. "I could well imagine that with the publication of the 2007 results, we should get a better feeling where we stand with the company," said Oppenheim's Locher, who rates the stock "neutral" with a price target of 100 francs. A JP Morgan note has helped the stock in the last few days, saying newsflow was bound to improve. The shares have added 7 percent in the last three trading sessions. Yet the outlook for reinsurers is unexciting, as reinsurance premiums are set to head down after two years without major hurricanes that could have boosted the prices for catastrophe coverage, just as fears rise of a possible U.S. recession. In theory Swiss Re' financial services unit offers an escape from the boom-and-bust cycles that have characterized the reinsurance industry in the past. The market for disaster insurance bonds -- one of the financial services unit's three main business areas -- seems to be holding up well despite turbulence elsewhere in credit markets, with prices in the secondary market stable. But visibility in the unit's proprietary trading remains low, analysts said, even after an exhaustive list of assets and credit exposure the group gave at its investor day. Despite its positive view on the stock, JP Morgan said Swiss Re might dissolve the unit in a drastic cosmetic measure, and regroup the activities in other parts of the business. "The Financial Services unit is likely to disappear in name in our view. At December 11, Swiss Re said it was looking at options," JP Morgan said in a note. Whether such a move would improve Swiss Re's long-term prospects is another matter. (Editing by David Holmes) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Citigroup To Raise $14.5 Billion After Historic Loss Tue Jan 15, 2008 9:51am EST By Jonathan Stempel and Dan Wilchins NEW YORK (Reuters) - Citigroup Inc on Tuesday said it is raising at least $14.5 billion and cutting its quarterly dividend 41 percent to help shore up a capital base depleted by losses on subprime mortgages and consumer credit. The largest U.S. bank also posted its first quarterly loss since Citigroup's creation in 1998, hurt by $18.1 billion of write-downs and related expenses for exposure to subprime debt, plus a $4.1 billion increase in U.S. credit costs. The net loss was $9.83 billion, or $1.99 per share, roughly twice as large as analysts expected. Citigroup cut its quarterly dividend to 32 cents per share from 54 cents, a move that could save it more than $4 billion a year. "You expected the figures to be shocking," said Simon Maughan, an analyst at MF Global in London. "You cannot say it's definitively over but you have got to say this is probably the big one." Among the investors injecting new capital are Singapore's government, former Citigroup Chief Executive Sanford "Sandy" Weill and Saudi Prince Alwaleed bin Talal, Citigroup's largest individual investor. Analysts and investors said the New York-based bank's attempt to preserve capital will help it steer through the credit market and housing crises, but that Citigroup still faces a tough road. "People knew it would be a kitchen-sink quarter," said Matt McCormick, portfolio manager and banking analyst at Bahl & Gaynor Investment Counsel in Cincinnati. "I don't think they're out of the woods yet. Some people see tremendous value in this stock, but I think there will be more pain to come." Citigroup shares fell 71 cents, or 2.4 percent, to $28.35 in pre-market trading. The shares have fallen 47 percent in the last year, compared with a 28 percent drop in the Philadelphia KBW Bank Index. ALWALEED, WEILL Citigroup said it is raising $12.5 billion from a private sale of convertible preferred securities. It said this includes $6.88 billion from a Singapore-affiliated fund, and investments from Weill and his family foundation, Alwaleed, the Kuwait Investment Authority, the money manager firm Capital Research & Management, and the state of New Jersey. The bank also plans to sell $2 billion of convertible preferred securities to other investors, and sell additional preferred securities. "We are taking comprehensive action to position Citi for the future with the capital strength that will allow us to refocus on earnings and earnings growth," Vikram Pandit, who became chief executive in December, said in a statement. Pandit also called fourth-quarter results "clearly unacceptable." Tony Tan Keng Yam, deputy chairman of the Singapore fund, said the fund's investment "will meet our long-term investment objective in terms of risk and return." Meanwhile, Alwaleed in a statement said his investment reflects his "strong support of Citigroup, and belief in its long-term success and profitability." BIG WRITE-DOWN Mounting credit losses and a failure to consistently boost revenue faster than costs led to the November departure of Charles Prince as chief executive, and Pandit's elevation the following month. Pandit joined Citigroup in July when the bank bought his hedge fund firm, Old Lane Partners LP, for $800 million. The $18.1 billion write-down includes $17.4 billion related to collateralized debt obligations, roughly twice the $8 billion to $11 billion that Citigroup had estimated on Nov 4. Citigroup also in December brought billions of dollars of debt-laden structured investment vehicles onto its balance sheet, after an attempt to create a "super-SIV" to help sell those securities foundered after a lack of investor demand. The bank ended the year with a Tier-1 capital ratio of 7.1 percent, down from 7.32 percent on September 30, though above the 6 percent that regulators say indicates a "well-capitalized" bank. The ratio measures a bank's ability to cover losses. Citigroup said that if it completes the $12.5 billion offering and its planned purchase of Japanese brokerage Nikko Cordial Corp, its Tier-1 ratio would be about 8.2 percent, above its 7.5 percent target. "What Pandit's doing here is setting the table for 2008," said William Smith, chief executive of Smith Asset Management in New York. "The investment from Sandy Weill is a huge vote of confidence on his part. I'm surprised to see his name there." (Additional Reporting by Andrew Hurst in Zurich and Christian Plumb in New York; Editing by Derek Caney) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Merrill To Issue $6.6 Billion In Preferred Shares Tue Jan 15, 2008 7:10am By David Dolan TOKYO (Reuters) - Merrill Lynch (MER.N: ) said on Tuesday that it would issue $6.6 billion in preferred shares to investors, including the Kuwait Investment Authority, as the subprime-hit bank continues to look overseas to boost its capital. Merrill, which is due to report earnings on Thursday, secured as much as $7.5 billion last month by selling a stake in itself to Singapore's government and an asset manager. The latest deal would amount to about a 14 percent stake in the bank, based on its current market capitalization. Merrill said it would also issue shares to the Korean Investment Corp and a unit of Mizuho Financial Group Inc (8411.T: ), Japan's second-largest bank. Merrill Chief Executive John Thain said in a statement that the deal would help shore up the company's capital base. "These transactions make certain that Merrill Lynch is well-capitalized," Thain said. He also said the investment would increase the bank's strategic opportunities overseas. The stock has a reference price of $52.40 and a maturity of 2 3/4 years. It will pay a yearly dividend of 9 percent. Merrill also said the stock would have a lock-up period of one year, where investors would not be permitted to sell, transfer or hedge it, directly or indirectly. TABLES TURNED The deal also underscores the growing importance of Asian financial institutions. "How the times have changed. It's a mere five years since Merrill was investing in Mizuho," said David Threadgold, a banking analyst at Fox-Pitt, Kelton, in Tokyo. "The people with money are the people who haven't been dragged down themselves by the subprime," Threadgold said. "And those tend to be sovereign funds and Asian financial institutions." Merrill is likely to see losses of around $15 billion on its subprime-related investments, almost twice its original estimate, The New York Times said on Friday. In October, the company booked a third-quarter net loss of $2.3 billion on subprime investments. By contrast, Tokyo's big banks have avoided the worst of the credit crisis, due to smaller investments in subprime-related products. Mizuho has about $7.4 billion invested in products related to residential mortgage-backed securities, with $982 million of that exposed to subprime mortgages. (Editing by Lisa Von Ahn) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Advisen Report: $170 Billion in Subprime Writedowns Trigger Avalanche of Lawsuits New Report Tracks Potential Impact on D&O and E&O Insurers NEW YORK--(BUSINESS WIRE)--Advisen Ltd., the leading provider of technology and data to the global commercial insurance industry, today reported that more than $170 billion has evaporated from the balance sheets of companies around the world as the result of the meltdown of the U.S. subprime mortgage market. However, the $170 billion of writedowns may be only the tip of the iceberg. Advisen estimates the 112 companies reporting writedowns may have as much as $1.2 trillion in collateralized debt obligations and other securities backed by subprime mortgages on their balance sheets. The crisis in the subprime mortgage market also has triggered an avalanche of lawsuits. According to Advisen's MSCAd™ large loss database, 113 lawsuits -- encompassing securities class action suits, derivative actions, fiduciary liability suits, underwriting malpractice suits and other related suits -- have been filed to date. Of the 112 companies reporting writedowns, 24 have been sued. A number of those companies have experienced multiple suits. Advisen's special report, Subprime-related Writedowns: Potential Exposure to D&O and E&O Insurers, tracks writedowns reported to date and the related lawsuits filed against those companies. The report is available in the Advisen information platform to subscribers, or can be purchased by contacting Advisen at 212-897-4800 or support@advisen.com. www.advisen.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Pension Governance, LLC and The Michel-Shaked Group Launch Pension Litigation Database as Lawsuits Surge January 14, 2008 10:00 AM Eastern Time TRUMBULL, Conn.--(BUSINESS WIRE)--PensionLitigationData.com debuts with over 1,500 retirement plan legal actions, each classified by nearly 100 fields, including court circuit, type of allegation, plaintiff, defendant and date. A joint venture of Pension Governance, LLC and The Michel-Shaked Group, this continuously updated and searchable database reflects the dramatic rise in pension lawsuits. Market volatility, complex investment strategies, new accounting rules, federal regulations and heightened scrutiny of financial decision-making are a few of the many reasons that explain the addition of hundreds more cases each quarter. www.pensionlitigationdata.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
The validation of voluntary benefits as a mainstream distribution system has been proven in the marketplace.Year after year of impressive growth and increased acceptance by both employers and employees has created an environment for carriers and producers to capitalize on this expanding market. www.workplacebenefits.org 6. Metavante to Acquire BenSoft, Enhancing Consumer-Driven Healthcare Payment Solutions Leading provider of solutions for third-party administrators, health plans and self-administrating employers to become part of Metavante Healthcare Payment Solutions January 15, 2008 08:00 AM Eastern Time MILWAUKEE--(BUSINESS WIRE)--Metavante (NYSE:MV), a leading provider of banking and payments technology, today announced its plans to acquire BenSoft Incorporated, of San Diego, Calif., and its product, RepayMe. Metavante will integrate RepayMe into its existing Healthcare Payment Solutions suite of products. RepayMe software provides a Web-based tool for individuals who participate in various benefit programs to easily obtain reimbursement for eligible expenses that are covered by their benefit plans. BenSoft’s RepayMe solution is designed specifically for third-party administrators (TPA), health plans and self-administrating employers seeking a cost-effective solution for flexible spending accounts (FSA), health reimbursement accounts (HRA), health savings accounts (HSA), and transportation (parking) accounts. “As the healthcare market moves toward more consumer-driven healthcare plans, the marketplace is demanding a single integrated benefit administration solution for FSAs, HRAs, HSAs, transportation spending accounts and related benefit services,” said Frank D’Angelo, president, Metavante Payment Solutions Group. “The acquisition of a leading Web-based, easy-to-use and cost-effective flexible benefit system expands Metavante’s current consumer-driven healthcare and benefit account processing services and represents our continuing investment in single-source solutions for consumer, provider and payer healthcare payments.” www.metavante.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Alan Greenspan To Join Hedge Fund Tue Jan 15, 2008 9:35am EST BOSTON (Reuters) - Hedge fund manager John Paulson, who earned billions of dollars last year by betting against the housing market, said on Tuesday that former Federal Reserve board chairman Alan Greenspan will advise his firm. Greenspan, whose words can still move financial markets, will advise Paulson on the global economy for an undisclosed amount of money, the hedge fund said in a statement. By joining the New York-based fund, Greenspan becomes the latest former Washington insider to work in the fast growing $2 trillion hedge fund industry. Former Treasury Secretaries Lawrence Summers and John Snow provide advice to D.E. Shaw and Cerberus. (Reporting by Svea Herbst-Bayliss; Editing by Derek Caney) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Insure.com Reveals Top Ten Most & Least Expensive 2008 Vehicles to Insure Dodge Ram Pickup, Chevy Silverado C/K Pickup, and Toyota Prius top list of most expensive vehicles to insure; Chrysler Town & Country named least expensive Consumers urged to avoid costly surprises, weigh car insurance prices before purchase DARIEN, Ill., Jan. 15 /PRNewswire-FirstCall/ -- Insure.com, Inc., (Nasdaq: NSUR) today released the 2008 Insure.com Car Insurance Ranking Report, its fourth annual listing of the most and least expensive vehicles to insure in the coming year. Culled from a list of the 20 best-selling cars and small trucks in the U.S., Insure.com determined that the three most expensive autos to insure are the Dodge Ram, Chevrolet Silverado C/K Pickup and Toyota Prius. The three least expensive autos to insure for the 2008 model year are the Chrysler Town & Country, Ford Escape, and GMC Sierra Pickup. Based on a list of the 20 top-selling vehicles in the nation, Insure.com calculated average car insurance premiums across three states and multiple insurers to put together the 2008 report. Top 10 Least Expensive Top 10 Most Expensive Vehicles to Insure Vehicles to Insure 1. Chrysler Town & Country 1. Dodge Ram pickup 2. Ford Escape 2. Chevy Silverado C/K pickup 3. GMC Sierra pickup 3. Toyota Prius 4. Chevrolet Impala 4. Honda Accord 5. Ford Econoline Club Wagon 5. Nissan Altima 6. Ford Fusion 6. Toyota Corolla 7. Ford F-series pickup 7. Ford Focus 8. Honda Civic 8. Chevrolet Cobalt 9. Toyota Camry 9. Honda CR-V 10. Toyota RAV-4 10. Dodge Caravan Vehicles can land on the most expensive list for numerous reasons. They may be targets of theft, which can increase comprehensive premiums for all owners of that model; they may have high repair costs, which can increase collision premiums; or passengers may suffer more injuries in accidents, which can affect personal injury protection premiums. Insure.com's 2007 report named the Chevy Cobalt, Dodge Ram Pickup, and Ford Focus as the most expensive vehicles on the list. The Chevrolet Silverado, GMC Sierra Pickup, and Chrysler Town & Country were named the least expensive cars to insure in 2007, showing a substantial increase in insurance cost for the 2008 Chevrolet Silverado. Insure.com has compiled and published its annual Car Insurance Ranking Report for the past four years. Individuals can view the previous reports online at http://www.insure.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Emergency Waits Get Dangerously Long In U.S.: Study Tue Jan 15, 2008 11:06am EST WASHINGTON (Reuters) - Patients seeking urgent care in U.S. emergency rooms are waiting longer than in the 1990s, especially people with heart attacks, U.S. researchers reported on Tuesday. They found a quarter of heart attack victims waited 50 minutes or more before seeing a doctor in 2004. Waits for all types of emergency department visits became 36 percent longer between 1997 and 2004, the team at Harvard Medical School reported. Especially unsettling, people who had seen a triage nurse and been designated as needing immediate attention waited 40 percent longer -- from an average of 10 minutes in 1997 to an average 14 minutes in 2004, the researchers report in the journal Health Affairs. Heart attack patients waited eight minutes in 1997 but 20 minutes in 2004, Dr. Andrew Wilper and colleagues found. "If a loved one has a heart attack, it doesn't matter whether he is well insured. He still has a one-in-four chance of waiting over 50 minutes, because of ED (emergency department) overcrowding, and this wait will only increase," Dr. Robert Lowe, an emergency medicine expert at Oregon Health and Science University who did not work on the study, said in a statement. Wilper's team used U.S. Census survey and National Center for Health Statistics data for their study, which covered more than 92,000 emergency department visits. The study is available online at http://content.healthaffairs.org/cgi/content/abstract/hlthaff.27.2.w84 (Reporting by Maggie Fox, editing by Will Dunham and Philip Barbara) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Lou Dobbs providing keynote at TMPAA Mid Year Meeting Target Markets Program Administrators Association Wilmington, DE January 2008 The Target Markets Program Administrators Association announced today that Lou Dobbs, anchor and managing editor of CNN’s Lou Dobbs Tonight, and The Lou Dobbs Financial Report, will be presenting the keynote address at the Association’s Mid Year Meeting in Atlanta, GA. “Our industry is significantly affected by changing political and financial climates”, said Greg Thompson, TMPAA Association President. “We look forward to hearing what Mr. Dobbs has to say about the current business/political landscape and the possible implications for the insurance industry, and the businesses of Association members.” The keynote address by Mr. Dobbs is being sponsored by TMPAA Vendor Member, Wilson Elser. Tom Wilson Jr, Partner at Wilson Elser stated, “The TMPAA provides important opportunities for program administrators to improve their operations and their agency’s profitability. Wilson Elser is very pleased to support Target Markets by helping to bring an acclaimed speaker of Mr. Dobbs influence to the group”. The TMPAA Mid Year Meeting is scheduled for April 7 to 9, 2008 at the InterContinental Buckhead Hotel in Atlanta, Georgia. In addition to Lou Dobbs, decision makers from over 40 Program carriers will be meeting with attendees to discuss program business opportunities. The Association also plans a “TPA Forum” featuring risk management and claim handling solutions, and a panel discussion to address strategies to survive a soft market. Program Specialists / MGA’s interested in learning more about the TMPAA, can visit the Association website at www.targetmarkets.com, or by calling 888-347-5700. For additional information, contact Ray Scotto – Executive Director - at (877) 347 - 5700. E-mail address: ray.scotto@targetmkts.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
11. NCOIL Investigates Ltc Partnership Programs As States Rush To Implement Troy, New York, January 14, 2008 – As states rush to implement new long-term care partnership programs, the National Conference of Insurance Legislators (NCOIL) will host a special February 28 meeting to evaluate the suitability of new state systems and to discuss whether legislative adjustments are necessary. The session, scheduled from 2:00 to 3:00 p.m. during the February 28 through March 2 NCOIL Spring Meeting in Washington, DC, will also examine ongoing federal efforts now that a 2006 Deficit Reduction Act (DRA) has given all states a green light to get in to the partnership game. Rep. Carl Epps (GA), co-chair of the Health, Long-Term Care, and Health Retirement Issues Committee holding the meeting, said, “The DRA gave all states a chance to implement partnership programs that help consumers purchase critical long-term care coverage. People can keep some of their assets—such as life- long savings and long-time homes—even when their policies are exhausted and Medicaid takes over. But with states moving so quickly, we have to make sure that the partnerships fully protect consumers.” www.ncoil.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Sedgwick CMS Expands Healthcare Professional Liability Claims Services In Investigations, Risk Management, Audit & Consulting Memphis, Tenn., January 15, 2008 – Sedgwick Claims Management Services, Inc. (Sedgwick CMS) announced expanded national specialty capabilities in its healthcare professional liability claims administration practice in the areas of investigations, risk management and auditing. Sedgwick CMS in its professional liability practice provides malpractice and other complex claims administration services for healthcare organizations such as hospitals, medical practice groups, extended care facilities, research and teaching institutions, medical device and pharmaceutical companies, and others. www.sedgwickcms.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. AIG Executive LiabilitySM to Provide Market Leading e-Discovery Services New Approach Provides Unique e-Discovery Benefits to Insureds NEW YORK--(BUSINESS WIRE)--AIG Executive Liability, a division of the property-casualty insurance subsidiaries of American International Group, Inc. (AIG), today announced AIG e-Discovery SolutionsSM, a program of e-discovery-related products and services to help all of AIG Executive Liability’s clients, including the division’s directors and officers (D&O) and errors and omissions (E&O) insureds, more effectively manage the e-discovery process. AIG e-Discovery Solutions is a unique claims service offered exclusively by AIG Executive Liability to their clients. In the event of a claim, implementing AIG e-Discovery Solutions will assist clients and their defense counsel in effectively constructing a strategy for handling the arduous and expensive practice of collecting electronically stored information, and will supervise that strategy throughout litigation. www.aigexecutiveliability.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. The Hanover Insurance Group to Acquire Verlan Holdings, Inc. - Purchase Adds to The Hanover's Specialty Lines Capabilities - - Will Provide More Growth Opportunities for Company's Agent Partners - WORCESTER, Mass., Jan 14, 2008 /PRNewswire -- The Hanover Insurance Group, Inc. (THG) today announced that it has entered into a definitive agreement through which it will acquire Verlan Holdings, Inc. Verlan Holdings, Inc. is the Silver Spring, Maryland-based holding company that provides insurance to manufacturers and distributors of chemical-related products. Its primary business, Verlan Fire Insurance Company, offers property coverage to small and medium-sized companies that manufacture, store, transport and use chemicals such as paints and solvents. Verlan Fire has served this segment for nearly 40 years and is recognized for its expertise in providing insurance to companies that are classified as highly protected risks. Verlan Fire is rated A (Excellent) by A.M. Best Company, and is licensed to do business in 27 states. A second Verlan Holdings subsidiary, Coatings Industry Services, is a program manager and wholesale agency serving independent agents and brokers whose industrial customers require access to specialized general liability, pollution, umbrella, property, and commercial auto coverages. Coatings Industry Services specializes in chemical and environmental exposures, and places business with admitted and non-admitted carriers that are rated "Excellent" or better by A.M. Best Company. www.hanover.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Two Mutual Fund Firms Stand Out in Helping Their Advisors Explain Market Volatility, Says New Report from Corporate Insight January 14, 2008 09:00 AM Eastern Time NEW YORK--(BUSINESS WIRE)--Corporate Insight, the leader in competitive intelligence research for the financial services industry, recently assessed the methods mutual fund firms are using to prepare advisors for wary clients during unstable market conditions. Each firm was evaluated using the following criteria: accessibility, usability, and content. Researchers analyzed marketing materials, including brochures, prospecting products, and PowerPoint presentations. The pieces were reviewed not just in terms of how effective they are at quelling client concerns about volatility, but their ability to provide portfolio reallocation advice, alternative strategy proposals, and stable fund recommendations. “Of the fund companies we follow, two major firms stood out from the competition in providing a variety of quality materials that can be utilized by a financial advisor to help deal with client concerns about market volatility: American Funds and Van Kampen,” said Lauren Wistrom, Senior Analyst at Corporate Insight and author of Mutual Fund Monitor - Advisor reports. “American Funds offers advisors a well-rounded variety of resources aimed at helping clients deal with market instability. In addition to prospecting tools, client education pieces and a multilateral sales idea, the company offers four pre-arranged hypothetical illustrations intended to address client concerns about the economy.” In this 38 page report entitled, “Reacting to Market Volatility: Calming Clients in Uncertain Times” (http://www.corporateinsight.com/volatility), the New York-based firm evaluated each institution using a set of 23 attributes in 4 categories: basic offerings, accessibility, available formats, and tactics used. The report also contains detailed findings, a summary, and recommendations on what firms can do to improve their materials to support advisor communications with investors concerned about market volatility. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Conning Research: Medical Malpractice Poised for Long-Term Stability HARTFORD, Conn., Jan 14, 2008 -- Medical Malpractice insurance has been stable since its last market disruption in the early 2000s and is now poised for continued profitable growth, according to a new study by Conning Research and Consulting, Inc. "The medical malpractice industry has changed structurally since the market crisis of the early 2000s, and is poised for long-term profitable growth," said Mark Jablonowski, analyst at Conning Research & Consulting. "Yet the industry has been here before, with brief episodes of profitability that disintegrate into severe unprofitability. Achieving long-term growth will depend on insurers' ability to maintain a commitment to adequate pricing and careful underwriting of this highly specialized line." The Conning Research study, "Medical Malpractice: Getting Ahead of the Curve" reviews the industry's financial results, structural shifts, management issues and projections. "Medical malpractice insurance is now an industry dominated by specialist companies, often in the form of physician-owned mutuals," said Stephan Christiansen, director of research at Conning. "This emphasis on specialization allows insurers to control losses better, identify loss trends, and moderate market swings. Yet this specialization also increases state concentration, and the potential for more dramatic competitive interactions- both positive and negative." "Medical Malpractice: Getting Ahead of the Curve" is available for purchase from Conning Research & Consulting, by calling (888) 707-1177 or by visiting the company's web site at www.conningresearch.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. CPCU Society Leadership Summit Coming To Orlando, Florida April 2-5, 2008 MALVERN, PA, JANUARY 15, 2008—The annual CPCU Society’s Leadership Summit will be held April 2–5, 2008, in Orlando, Fla., at the Rosen Shingle Creek Hotel. The Leadership Summit is an all-inclusive leadership and career development event for the Society’s volunteer leaders. The CPCU Society, the premier association for more than 28,000 CPCU-credentialed insurance industry professionals who hold the CPCU (chartered property casualty underwriter) designation. The organization is dedicated to providing its members many opportunities to participate in leadership, career, and technical educational activities throughout the year. www.cpcusociety.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. As The New Year Begins, Remember That Changes In Your Life May Require Changes In Your Insurance The I.I.I. Provides 10 Questions to Determine Whether You Need to Update Your Coverage NEW YORK, January 15, 2008 — Major purchases and lifestyle changes such as marriage, divorce or retirement can have a profound effect on your insurance needs, according to the Insurance Information Institute (I.I.I.) “To make the most of your insurance dollars, it is very important that you let your insurance agent or company representative know about alterations to your home and other major events in your life,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “A great way to start the New Year off on a firm financial footing is to discuss your current insurance needs with your agent, broker or company representative to make sure that it is up-to-date.” At least 32 million U.S. households own insurance policies that aren’t right for them, according to a survey by the Independent Insurance Agents and Brokers of America, Inc. To ensure that yours is not one of those households, the I.I.I. recommends asking the following 10 questions: 1. Have you gotten married or divorced? 2. Have you had a baby? 3. Has your teenager gotten a drivers license? 4. Have you switched jobs or experienced a significant change in your salary? 5. Have you done extensive renovations on your home? 6. Have you decided to buy a retirement or vacation home? 7. Have you acquired any new valuables—jewelry, electronic equipment, fine art, antiques? 8. Have you signed a lease on a house or apartment? 9. Have you joined a carpool? 10. Have you retired? www.iii.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Enwisen Continues Momentum – Finishes Record Year with 80 New Customers NOVATO, Calif. – January 15, 2008 – Enwisen, the leader in on-demand workforce communications, today announced that it has completed another record year, with 80 new employers in 2007 that selected Enwisen’s AnswerSource™ Workforce Communications suite for onboarding, total rewards statements, benefits decision support, employee portal knowledgebase, work/life events, manager effectiveness, HR compliance and/or HR shared service center. www.enwisen.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
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21. The First American Corporation Announces Plan to Separate Its Financial Services and Information Solutions Companies -Creates Two Pure Play Companies- -Board of Directors Also Authorizes Repurchase of an Additional $300 Million in Shares- -Plan Will Enhance Value for Shareholders- SANTA ANA, Calif., Jan 15, 2008 /PRNewswire -- The First American Corporation (FAF) ("First American"), America's largest provider of business information, today announced that its board of directors has approved a plan to spin-off its Financial Services companies, consisting primarily of its Title Insurance and Specialty Insurance reporting segments, into a separate public company to be called First American Financial Corporation. The Information Solutions company, which will consist primarily of the current Property Information and Mortgage Information segments, as well as First American's 75 percent interest in First Advantage Corporation (FADV) , will remain at the existing holding company, which will be renamed prior to the separation. The transaction, which the company anticipates will be tax-free to shareholders, is expected to close in the third quarter. http://www.firstam.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. P&R Dental Strategies Signs Deal with Delta Dental of Arkansas NEW YORK, Jan. 14 /PRNewswire/ -- P&R Dental Strategies, Inc. recently signed Delta Dental of Arkansas, Inc. as a licensee of its Claim Review Management System and its DentSource profiling application. The Claim Review Management System was designed and built by P&R Dental Strategies to automate the claim review process, enabling dental consultants to spend more time focused on the actual claim review rather than the process itself and remain compliant with all state utilization review laws. DentSource, P&R's new online provider profiling application helps payers identify providers with unusual practice patterns. www.pandrdental.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Experienced Regulators Join Insurance Compact WASHINGTON, D.C. (Jan. 14, 2008) — The Interstate Insurance Product Regulation Commission (IIPRC) announced today that two experienced insurance regulators have signed on to work with the organization. Charles Rapacciuolo, former assistant deputy superintendent of the New York State Insurance Department, and David Morris, former life and health analyst for the Nebraska Department of Insurance will bring their regulatory expertise to the IIPRC's product filing and review operations. www.insurancecompact.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Big “I” Recognizes Best Practices Study’s Top Performers Grand Bahama Island, The Bahamas, Jan. 14, 2008— Six insurance firms from across the country have been recognized as “Top Performing Agencies” and enjoy the distinction of being included in the recently released Best Practices Study, a prestigious report from the Independent Insurance Agents & Brokers of America (the Big “I”) and Reagan Consulting, an Atlanta-based management consulting firm. The six agencies were singled out for their operational excellence, financial results, and overall management achievement in their respective revenue-size categories. “These agencies should serve as models for agencies and brokerages who want to take their business to the next level and experience significant gains in sales, reputation and customer appreciation,” says Madelyn Flannagan, Big “I” vice president of education and research. www.independentagent.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. NAIC Triples Web Traffic In 2007 www.naic.org Receives 3.5 Million Visits KANSAS CITY, Mo. (Jan. 14, 2008) — The National Association of Insurance Commissioners’ (NAIC) Web site received more than 3.5 million visits in 2007, tripling the previous year’s total. The domain, www.naic.org, logged a total of 3,643,571 visits from more than 850,000 unique users, marking a dramatic increase from the 1 million visits received in 2006 — and an exponential increase from the 480,000 visits received just two years ago. “Providing consumers with a credible, unbiased source of insurance information is one of our top priorities,” said NAIC Executive Vice President and CEO Catherine J. Weatherford. “We’ve worked hard to create a Web presence that provides assistance to consumers, state insurance regulators and the industry. These growing numbers indicate the NAIC is a trusted, authoritative source of insurance information.” Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. The Amacore Group, Inc. Signs Five Year Marketing Agreement with Quality Resources January 14, 2008 10:34 AM Eastern Time Call-Center to Offer Custom-Designed Discount Medical/Dental Program LAKE MARY, Fla.--(BUSINESS WIRE)--The Amacore Group, Inc., (OTC BB: ACGI), a leader in providing health-related membership benefit programs, insurance programs, and other innovative and high-quality solutions to individuals and families nationwide, today announced that it has signed a five (5) year marketing agreement with Quality Resources of Clearwater, Florida, to market one of Amacore’s brands, Lifeguard Health Options, a discount medical plan custom-designed for Quality. Quality Resources will offer these products through its Clearwater call-center with plans to expand its marketing efforts to Amacore’s vast array of other insurance and non-insurance benefit offerings. www.amacoregroup.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. CUSO Financial Services, LP Adds Three New Fee-Based Account Products to Broaden Offerings for Credit Union Investment Programs – CAM Offerings Support High-Touch Client Relationships for Financial Advisors – January 14, 2008 12:00 PM Eastern Time SAN DIEGO--(BUSINESS WIRE)--CUSO Financial Services, LP (CFS), a full-service broker dealer and Registered Investment Adviser that provides customized investment and insurance solutions exclusively to the credit union industry, has added three new fee-based accounts to the platform of products offered by its investment advisors to their credit union member clients. The leading edge, fully managed options, available as part of the CAM (CUSO Asset Management) suite, include CAM ETF (Exchange Traded Funds), Index Plus (Index Mutual Funds) and UMA (Unified Management Account). The new offerings complement asset management products already offered by the company and bring to ten the number of fee-based options available for CFS advisors and their clients. www.cusonet.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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