Daily Quote: "Do first things first, and second things not at all." - - Peter Drucker.
NY insurance regulator seeks capital for insurers Tue Jan 22, 2008 2:10pm EST NEW YORK, Jan 22 (Reuters) - New York's insurance regulator, which last month granted an expedited license for a new bond insurer owned by Warren Buffett's Berkshire Hathaway, on Tuesday said he was holding talks with "other parties about possible future capital investments" in troubled insurers. New York Insurance Superintendent Eric Dinallo said in a statement that the talks with unnamed parties are part of a three-part strategy to help battered bond insurers raise fresh capital and protect their policy holders in wake of the subprime-mortgage related write-downs. The list of insurers that might benefit includes Ambac Financial Group (ABK.N: Quote, Profile, Research) and MBIA Inc (MBI.N: Quote, Profile, Research), the top two U.S. bond insurers. Both have faced concern from investors that they might be unable to cover losses on investments they guarantee. Dinallo, who noted he had gotten Berkshire Hathaway (BRKa.N: Quote, Profile, Research) (BRKb.N: Quote, Profile, Research) to open a new bond insurance arm, said his department was monitoring developments. The department is also working with insurers, banks, financial advisers, credit agencies, regulators, government officials and other stakeholders to devise ways to "help stabilize" the market, he said. Dinallo said his department also is drafting new regulations for bond insurers that will "redefine" their future activities. Dinallo's spokesman said he could not comment beyond the statement. On Friday, Dinallo had said he would be willing to help broker cash infusions or deals to keep bond insurers afloat. Ambac on Tuesday announced a quarterly loss of $3.3 billion after recording massive credit derivative write-downs, but its shares surged after Ambac said it could be close to raising much-needed capital. Fitch Ratings on Friday cut its rating on Ambac's insurance arm to "AA" from "AAA." Financial analysts have repeatedly said it would be hard for any insurer to gain new business unless it has the top rating of "AAA." Standard & Poor's Ratings Service and Moody's Investors Service have both warned they also might cut Ambac from "AAA." MBIA could also lose its "AAA" rating from Moody's Investors Service and Standard & Poor's Ratings Service. Moody's, for example, has said it is concerned about "the potential volatility in ultimate performance of mortgage and mortgage-related credit default obligation risks, and the corresponding implications for MBIA's risk-adjusted capital adequacy." The insurer, which has raised new capital, plans to release its fourth-quarter results on Jan. 30 and hold a conference call on the results on Jan. 31. (Reporting by Joan Gralla; Editing by Leslie Adler) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article Tue Jan 22, 2008 By David Lawder WASHINGTON (Reuters) - The U.S. Federal Reserve on Tuesday slashed U.S. interest rates by a hefty three-quarters of a percentage point, the biggest rate cut in more than 23 years, in an emergency bid to lend support to a U.S. economy some fear is on the verge of recession. The action by the rate-setting Federal Open Market Committee took the key federal funds rate, which governs overnight lending between banks, down to 3.5 percent, its lowest level since September 2005. The Fed also lowered the discount rate it charges on direct loans to banks to 4 percent. The move comes amid a massive global stock sell-off brought on by deepening fears that a U.S. recession would drag the rest of the world economy down with it. U.S. stock markets, closed on Monday, appeared headed for a much lower open, although stock index futures pared some losses after the cut. "It is obviously a surprise but it seems the markets could not wait for the promised rate cut at the end of the month and neither could the Fed given the behavior of the markets over the last few days," said Kevin Logan, economist at Dresdner Kleinwort Wasserstein in New York. It was the largest single shift in interest rates since November 1994, when the Fed raised rates by three-quarters of a point, and it was the first rate cut in between regularly scheduled policy meetings since September 17, 2001, the first day U.S. financial markets reopened after the September 11 terror attacks. The last time there was a rate cut of at least three-quarters of a point was in October 1984. "The committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth," the Fed said in a statement. "While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households." "Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets," the central bank said. The Fed rarely cuts rates in between scheduled meetings, but stock markets around the globe had sold off heavily this week, posing another challenge to a U.S. economy already struggling under the weight of a deep housing slump and tight credit conditions. "Appreciable downside risks to growth remain," the Fed said. Fed policy-makers are scheduled to meet on January 29-30 and, in the wake of the central bank's bold rate cut on Tuesday, financial markets were expecting the Fed to again lower borrowing costs by at least a quarter of a point. ©
Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. FACTBOX - Fed Intermeeting Rate Changes Since 1994 Tue Jan 22, 2008 (Reuters) - The Federal Reserve on Tuesday slashed the benchmark federal funds target rate in a surprise intermeeting decision as it said the economic outlook was weakening and broader financial market conditions continued to deteriorate. Rate changes between regularly scheduled Federal Open Market Committee meetings are rare, but they have occurred in the past during market turmoil. The following is a chronology of the Fed rate changes that occurred during intermeeting periods since 1994. 2008 January 22 - The FOMC cut the federal funds target rate by 75 basis points to 3.5 percent, the lowest level since September 2005. It also cut the discount rate by three quarters percentage point to 4.00 percent. 2007 August 17 - The FOMC left the federal funds rate target unchanged, but cut the discount rate by 50 basis points to 5.75 percent in a bid to provide easier funding to banks. 2001 September 17 - The FOMC cut the federal funds rate target by 50 basis points to 3 percent. It also said the Fed would continue to supply "unusually large volumes of liquidity" as needed in wake of the financial fallout from the September 11 attacks. April 18 - The FOMC lowered the federal funds rate by 50 basis points to 4.5 percent and said risks were weighted toward economic weakness. January 3 - In the economic downturn following the bursting of the "dotcom" bubble in early 2000, the FOMC enacted an emergency rate cut of 50 basis points, bringing the federal funds rate to 6 percent. That came only seven weeks after the FOMC said risks were weighted mainly toward inflation, though it had shifted its view in December and said risks were weighted toward economic weakness, clearing the way for a near-term rate cut. The January emergency rate cut was the first rate reduction in a series that eventually brought the federal funds rate down to 1.75 percent by the end of the year. By June 2003, the federal funds rate was down to 1 percent, the lowest since 1958. 1998 October 15 - In the wake of the Russian financial crisis and the collapse of Long-Term Capital Management, the FOMC cut by 25 basis points, bringing the federal funds rate to 5 percent. It said "growing caution by lenders" and "unsettled conditions in financial markets" were likely to restrain growth. The intermeeting move was the second of three consecutive rate cuts that year. 1994 April 18 - In a telephone conference, the FOMC decided to tighten policy rather than wait until its next regular meeting in May as "financial markets now appeared to be less likely to overreact to adverse developments or to policy actions". It raised the federal funds rate by 25 basis points to 3.25 percent. The Fed kept raising rates until February 1995. © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Bank Of America Net Sinks 95 Percent Tue Jan 22, 2008 By Jonathan Stempel NEW YORK (Reuters) - Bank of America Corp said on Tuesday quarterly profit sank 95 percent, hurt by more than $7 billion of losses tied to write-downs, poor trading decisions and mounting credit woes. Fourth-quarter net income for the second-largest U.S. bank fell to $268 million, or 5 cents per share, from $5.26 billion, or $1.16, a year earlier. Analysts' average forecast was a profit of 19 cents per share, according to Reuters Estimates. Bank of America shares fell $2.46, or 6.8 percent, to $33.51 in pre-market trading. "This is a weak set of results, (and) rather disappointing if you look at the core numbers, especially credit quality deterioration," wrote Ed Najarian, an analyst at Merrill Lynch & Co in New York. Results reflected $5.44 billion of trading losses, compared with a year-earlier profit of $460 million. This reflected a $5.28 billion write-down related to collateralized debt obligations, which the bank said reduced trading profit by $4.5 billion and other income by about $750 million. Charlotte, North Carolina-based Bank of America also set aside $1.74 billion for credit losses, including a $1.33 billion addition to reserves. It also incurred $800 million of losses and write-downs to help some money market mutual funds exposed to risky debt maintain the $1 per share net asset value that all such funds try to keep. The bank's Tier-1 capital ratio, a measure of its ability to cover losses, fell to 6.87 percent in the fourth quarter from 8.22 percent in the third quarter. Regulators say a 6 percent ratio reflects a "well-capitalized" bank. (Additional reporting by Dan Wilchins; Editing by John Wallace) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. German Watchdog- No Rise In Insurers' Subprime Risk FRANKFURT, Jan 22 (Reuters) - German insurers face no increased risk stemming from the credit market turmoil linked to the market for risky mortgages in the United States, German financial watchdog BaFin told Reuters on Tuesday. "We see the financial effects of the 'subprime crisis' on insurers as limited," BaFin said.BaFin has been surveying insurance companies and the reinsurers that cover their risks about their investments in complex financial instruments called asset-backed securities, which have lost value in recent months, forcing many banks and insurers to write them down. It asked insurers not only about their exposure to the subprime mortgage market in the United States, but also about hedge funds, asset-backed securities and other structured financial products in a global context. "The surveys up to now have shown that there is no increased risk for the insurance sector," it added. Shares in European insurers such as Germany's Allianz (ALVG.DE:) have come under pressure in recent days as investors have worried that they might be affected by problems at some U.S.-based insurers that specialise in insuring bonds and other financial instruments. But the watchdog said dangers posed by these "monoline" bond insurers were also limited. "However, BaFin will continue to closely observe international contagion risks," it said. Allianz shares are down more than 21 percent so far this year, while the DJ Stoxx index of European insurers has fallen by more than 16 percent. (Reporting by Jonathan Gould; Editing by David Holmes) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Patriot Group Provides $45 Million Credit Facility to Peachtree Settlement Funding Patriot’s Custom-Tailored Secured Facility to Drive Growth of Premium Finance Business for Peachtree DARIEN, Conn.--(BUSINESS WIRE)--The Patriot Group, LLC, an emerging leader in specialty finance solutions for businesses at all growth stages, today announced that it has provided a $45 million, three-year, senior secured credit facility to Peachtree Settlement Funding. Peachtree Settlement Funding is a specialty finance company that purchases and finances life settlements, life insurance premiums, structured settlements, lottery awards and a variety of other annuity streams. The credit facility developed by Patriot will provide financing for life insurance premium finance loans made by Peachtree. “Patriot has the experience and resources to provide flexible capital solutions to businesses of every type and size, even in challenging credit environments,” said Charles A. Forbes, Jr., Managing Partner and President of Patriot's Asset Funding Solutions division. “We are very pleased to have the opportunity to work with Peachtree, an industry leader in the life insurance premium finance space. “The credit facility provided by Patriot will enable us to continue to grow Peachtree’s premium finance business into the next decade,” said James Terlizzi, CEO of Peachtree Settlement Funding. “We have known Patriot’s principals for over ten years and have enormous faith in their capabilities. We are heartened by the confidence they have demonstrated in Peachtree by choosing to work with us.” About The Patriot Group, LLC Founded in 2002, The Patriot Group, LLC is a leading specialty finance, investment, and asset management company that provides funding solutions to clients across a wide variety of asset types. With its streamlined infrastructure, Patriot provides flexible, custom-tailored capital that benefits clients that are underserved by traditional financing sources. Patriot serves clients with a broad range of products across the capital structure, including senior and mezzanine financing, asset purchase facilities, repurchase financing, working capital loans and equity financing. For more information on Patriot, please visit www.patriotgp.com. About Peachtree Settlement Funding Peachtree Settlement Funding, a subsidiary of Peach Holdings, Inc., is a specialty factoring company that purchases high-quality deferred payment obligations. Through its group of affiliated companies, Peachtree caters to clients seeking to sell structured legal settlements, life settlements, annuity payments, lottery prize payments, sweepstakes awards and sports contract payments. In addition, Peachtree provides cash advances to people with pending personal injury claims. Peachtree has purchased over $4 billion of specialty receivables and continues to expand into new areas by bringing institutional financing and professionalism to bear on underserved markets. To learn more about Peachtree, visit www.peachholdings.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. Internet Sale & Purchase of Health Insurance Is Focus of Upcoming ICMG Web Seminar The Inter-Company Marketing Group announces its first web seminar of 2008, “The Internet Sale and Purchase of Health Insurance,” to be presented by Mark Seghers, Senior VP, Business Development, Quotit Corporation, Friday, February 1, 12-12:45 pm Eastern time. More and more, consumers are turning to the Internet to research and even buy health insurance. Lead companies, as well as insurers and agents, are there to greet them. Yet as consumers become increasingly familiar with shopping online, and while the Internet holds great promise for the future marketing and sale of insurance, we see that today: (1) most consumers still do not understand health insurance or its terminology and (2) the current marketplace is a confusing, fragmented mess. This online seminar will: * Provide an overview of the current health insurance marketplace, * Examine the challenges faced by the online consumer, and * Offer lucid and actionable recommendations to insurance companies and agencies seeking to drive sales while also meeting the needs of the consumer. Mark Seghers has broad experience as an insurance executive and technology leader in the health insurance industry, as a carrier exec (IT, Sales and Operations), a self-employed consultant, and a vendor business development leader. He has helped many companies find the right marriage of ideas, people, process and technologies to meet many insurance business challenges, while at the same time meeting the needs of the end consumer. The Inter-Company Marketing Group is a national nonprofit association that provides a networking and educational forum for member insurance & financial services companies to develop strategic alliances and business relationships. To register for the program or for more information, visit www.icmg.org or call 703-729-7701. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Federal Grand Jury Issues Subpoenas for Criminal Investigation by IRS’ Major Fraud Division Regarding Emergen-C Vitamin Supplement Founder Alacer Corporation’s Estate Tax Return NEWPORT BEACH, Calif.--(BUSINESS WIRE)--The Justice Department recently issued grand jury subpoenas for a criminal investigation into the filing of the Estate Tax Return 706 for the Estate of Jay Patrick as filed by Ronald Patrick, Edward H. Stone, Esq. and Donald Sammons. This is the latest chapter in trust litigation that started when Alacer Corporation Founder Jay Patrick died in February 2003. The plaintiff in the litigation, Ymelda T. Patrick, is represented by Jillyn Hess-Verdon, of the Newport Beach law firm of Hess-Verdon & Associates, PLC. At the center of the litigation and investigation is the stock of Alacer Corporation. Alacer, located in Orange County, CA, is well known as the maker of Emergen-C Vitamin Supplements. The company was built from the ground up by Jay Patrick and his widow, Ymelda T. Patrick, starting out in their kitchen and ending up with several manufacturing and distribution plants in Orange County and an empire valued at over $85 million dollars. When Jay Patrick died, his Trust owned the stock of Alacer. Right after his death, his wife Ymelda was fired from her position as Vice President, all financial support she and her husband had received was terminated and she was ousted from the company by the other three Trustees (James D. Turner, Esq. – Jay’s attorney; Thaddeus Smith – Jay’s insurance agent; and Ronald Patrick – Ymelda’s stepson). Ymelda Patrick was also a co-trustee of the Trust and the largest single beneficiary and continued as a director of Alacer until early 2005. Mrs. Patrick had been with the company longer than anyone else in management at the company; yet when she was fired the other trustees elected themselves to corporate management positions at salaries higher than Jay or Ymelda Patrick had ever received over the almost thirty years they had run the company. James D. Turner, Esq. (of Palm Desert) had drafted Jay Patrick’s Will and Trust when Jay was almost 90 years old. Mr. Turner was named as the Executor in the Will and one of the co-trustees of the Trust. When Jay Patrick died, attorney Turner served as a co-trustee of the Trust. He also became a director of Alacer and the Chairman of the Board, appointed his own law firm as corporate counsel, and served on the compensation and litigation committees. At the end of 2003 Mrs. Patrick sued the directors (who were the same as the three trustees) in a shareholder derivative suit, asserting that they had breached their duties as directors of Alacer by hiring themselves as corporate officers and paying themselves excessive salaries when they had no experience running a company like Alacer. The lawsuit took three years to get to trial and the defendant directors used Alacer’s funds to defend themselves. They also continued to take salaries equivalent for full-time employment while Mrs. Patrick and the family members, who are beneficiaries of the Trust, have received nothing for almost five years. “I have been disappointed in the attorneys in this case,” said Mrs. Patrick’s attorney, Jillyn Hess-Verdon, of the Newport Beach law firm of Hess-Verdon & Associates, PLC. “In my 17 years of trust and business legal work the personal attacks against Mrs. Patrick, and the disregard for Jay Patrick’s express wishes, have been some of the worst I have ever seen. I expected a lot more from the large Orange County firms defending the trustees and have been disappointed.” “It has been almost five years since my husband died and none of them care about the business Jay and I poured our lives into,” said Mrs. Patrick. “Instead they just spent the last four years attacking me and preventing the family from inheriting….they even sued me for a portrait of my husband that I had commissioned after he died.” In 2004 Mrs. Patrick filed a lawsuit in the Probate Department of the Orange County Superior Court for failing to account to the beneficiaries and failing to administer the Trust to the beneficiaries. The other co-trustees refused to distribute the shares from the Trust to the family, claiming that the estate taxes had to be paid to the IRS first. The Estate Tax Return was filed by Ronald Patrick (Ymelda’s stepson), Edward H. Stone, Esq. (of Newport Beach) and Donald Sammons (a former IRS Gift & Estate Tax supervisor) in 2004. When Mrs. Patrick asked for a copy Ronald Patrick and his attorneys refused her request. When Mrs. Patrick obtained a copy of the Return 706 directly from the IRS she saw that the value of the Company reported to the IRS was only $2 million dollars and that zero taxes would be owed. Several offers had been presented to the trustees immediately following Jay Patrick’s death for at least $20 million dollars. Therefore, Mrs. Patrick also filed a Tax Petition with the Probate Court asking for the court to order the Trustees to obtain an independent appraisal of the Company’s date of death value and to amend the 706 Return, since the beneficiaries of the Trust would be the ones to eventually owe the estate taxes and additional penalties and interest for the delay. Both lawsuits were consolidated and went to trial in September 2006 before Judge David Thompson. David Baram, of VMG Equity (and also President of “The Firm,” the largest entertainment management company in the world) testified at trial that he had tried to make offers to purchase the company for a nine figure sum which was ignored by Attorney James D. Turner. At trial, one of Ronald Patrick’s attorneys Edward H. Stone, Esq. of Newport Beach – who also signed the tax return - told Judge Thompson that Mrs. Patrick’s request to amend the 706 Return, “can’t be done. There is no right to amend,” he said. (p. 517 court transcripts). Additionally, James Turner’s lawyer, Gary Lape, Esq. from Lewis, Brisbois, Bisgaard & Smith, LLP, Costa Mesa, stated at trial, “…without saying who is supposedly wrong or defrauded. I guess it was the Internal Revenue Service. One might say, ‘God Bless’.” (p. 586 court transcripts). James Turner, Esq. testified at trial that he and others knew the stated company value was incorrect. Judge Thompson ruled that: the 706 Return could not be amended; that Mrs. Patrick’s co-trustees had no duty to account; that co-trustees multiple roles and conflicts of interest were not a basis to remove them as trustees; that the beneficiaries were not entitled to know what the Trustees were being paid in their corporate capacities; and that Mrs. Patrick should be removed as a trustee because her interest as a beneficiary created a conflict with her role as a trustee. Mrs. Patrick’s derivative law suit was dismissed because Judge Thompson ruled that even though she is a trustee, spouse and beneficiary, she did not have standing to bring a derivative action against the directors. Mrs. Patrick has appealed Judge Thompson’s rulings on both lawsuits. Her appeal asserts among other things that his rulings are reversible error, because: IRS Estate Tax Form 706 (page 1 and page 2) expressly states that the tax return can be amended, and because the law requires a tax return to be amended when it states false information. Ms. Hess-Verdon commented on Judge Thompson’s rulings on the estate tax issues: “We believe the Appellate Court will see it the same way as the Department of Justice and the IRS see it.” “The law requires Trustees to account to a co-trustee and to beneficiaries,” explains Ms. Hess-Verdon. “The co-trustees’ conflicts of interest were overwhelming and actually caused financial profit to them at detriment to the Trust, which under California law requires their removal.” When Mrs. Patrick received notice of the Grand Jury Subpoenas investigating the Estate Tax Return for criminal fraud, she went to the Probate Court in Orange County seeking the suspension of the co-trustees during the investigation - asking for the protection of Alacer and Trust funds from being depleted by them during the criminal investigation. Judge Marjorie Laird Carter of the Orange County Probate Court denied the request for suspension at this stage, but granted the request for protection and ordered that the co-trustees could not use Alacer or Trust funds to pay for attorneys’ fees or trustee fees without prior court order. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Ambac Posts $3.3 Billion Loss Tue Jan 22, 2008 NEW YORK (Reuters) - Bond insurer Ambac Financial Group Inc (ABK.N:) on Tuesday reported a quarterly loss of $3.3 billion after recording massive credit derivative write-downs and setting aside more money for credit losses. The $3.3 billion loss comes as the company faces serious questions about its future profitability. Ambac, the second-largest bond insurer in the world, lost a crucial top credit rating from Fitch for its main insurance unit on Friday. The company also scrapped plans to raise $1 billion of capital, citing market conditions. (Reporting by Dan Wilchins and Christian Plumb; editing by John Wallace and Dave Zimmerman) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. BDO Consulting Advises on Surviving a Recession CHICAGO--(BUSINESS WIRE)--The weakest holiday sales season the retail industry has seen in years, the recent report on rising unemployment and a falling stock market may be the final blows to push the U.S. economy into a recession. Even before these events, the credit crunch, sub-prime crisis and record setting oil prices had slowed economic growth. Maintaining profitability, or in some cases viability, under these circumstances is a difficult challenge for businesses. To help weather the storm during this economic downturn, the financial advisors at BDO Consulting suggest: Taking Fast and Decisive Action. The administrative and operational cost structure of all companies tends to grow disproportionately in good times, without a corresponding reduction when the economy and business volume slows. In order to maintain liquidity and manage debt, management must quickly determine core needs and shed excess costs. Developing a Comprehensive Approach. A comprehensive plan will include, at a minimum, implementing a cost reduction program, improving inventory controls, enhancing purchasing procedures, accelerating cash flow and extending cash retention. Today’s business environment calls for fine tuning the entire business enterprise and making sure all the components work effectively together to maximize value. Managing Costs with Targeted and Timely Reporting. Too often, businesses react to information two to three weeks after month-end. Reacting to changes in this business environment requires timely information for gross margin management, product line profitability analysis and administrative cost controls. With today’s computer systems, data can be collected and reported on a daily basis, allowing management the ability to react in real-time to deteriorating gross margins and unexpected market changes. Managing Operating Results Proactively. Today’s management, more than ever, needs to proactively manage the operating results. Some unprofitable customers may need to be pruned or contracts renegotiated, certain low margin products may need to be shed or re-priced, and specific operating costs need to be closely monitored. Conducting an Internal Assessment for Possible Restructuring. Sometimes it is essential to step back from the day-to-day and ask what adjustments are needed to correspond to the changing business environment. Is it time to consolidate facilities, make the business more scalable through outsourcing of functions, eliminate redundancies in operations and headcount, close selected store locations, or sell off excess assets? Whatever the actions determined, you need to build a comprehensive work plan, establish accountabilities and set a timeline for implementation. Management should consider using an external financial advisor to assist them in this process. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. First-of-Kind Nationwide Survey Finds: Individual Investors See Major Opportunity to Put Some Green in Their Portfolios Investors Focusing on the Environment: 71% of investors classify environmental technology companies a “buy”1 When asked to rate various sectors, investors identified the environment as the most desirable of those surveyed2 17% of investors have already bought stocks or mutual funds to capitalize on environmental trends Nearly half say they will invest in the environment in ‘08 Social Responsibility and Investment Potential Seen As Compatible, Increasingly Linked Where Do Investors See the Most Opportunity? Solar Energy, Wind Power, Hybrid Vehicles and Water Purification Green a Primary Color: Two out of Three Investors Say Presidential Candidates’ Environmental Records Will Impact Their Vote NEW YORK--(BUSINESS WIRE)--Investors view the environment as a major long-term investing opportunity, according to the results of a groundbreaking survey of investors released here today by Allianz Global Investors, a leading global investment firm. Of the 1,003 investors surveyed, nearly half (49%) said that over the next 12 months they were likely to invest in a company or mutual fund looking to provide solutions for environmental problems; 17% reported having already made such an investment. “The environment is a fertile investment area at an early stage of growth,” said Bozena Jankowska, lead portfolio manager of the Allianz RCM Global EcoTrends Fund, a continuously offered closed-end interval fund, and head of the RCM Sustainability Research Team. “It is one of the few sectors where the public and politicians are in alignment and inclined to act. As popular sentiment grows and legislation continues to tighten, technological innovation will accelerate, laying the groundwork for great investment opportunities.” www.allianzinvestors.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Coverage of Health Care Issues in 2008 Presidential Election Unveiled by GoHealth Insurance A New Website Focusing on the Health Care Reform Platforms of Leading Candidates in the 2008 Presidential Primary Has Been Launched by Online Consumer Portal GoHealth Insurance CHICAGO--(BUSINESS WIRE)--With the presidential primary elections moving into full swing across the nation, GoHealth Insurance has announced the launch of a new website providing an overview of the candidates’ positions on health care. Election 2008: Reforming Health Care will give undecided voters a chance to learn more about one of the biggest issues in this year’s upcoming election. Visit Election 2008: Reforming Health Care at http://www.gohealthinsurance.com/politics/ Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Top Court Rejects Appeal By Enron Investors Tue Jan 22, 2008 (Reuters) - The Supreme Court on Tuesday rejected an appeal by Enron Corp investors seeking to proceed with a $40 billion class-action lawsuit against investment banks that put together financing deals for the energy trader, which collapsed in 2001. The rejection of the Enron appeal followed the Supreme Court's ruling in a similar case on January 15 that sharply limited the ability of shareholders to sue third parties, such as financial institutions, in securities fraud cases. The Supreme Court denied the appeal in a brief order, without any comment or recorded dissent. Outside lawyers have said a Supreme Court rejection of the appeal would mean an end to the lawsuit. In the Enron case, a U.S. appeals court ruled for Merrill Lynch and Co Inc (MER.N:), Credit Suisse Group (CSGN.VX:) and Barclays Plc (BARC.L:) and held the lawsuit could not go forward. Lawyers for both the Enron investors and the investment banks initially had urged that the Supreme Court to hold their case until it had ruled in the other one. Then late last week, lawyers for the banks urged that the appeal be denied, while attorneys for the investors urged the court to hear the appeal or send the case back to the appeals court for more proceedings in view of the high court's ruling. In last week's ruling, the top court held by a 5-3 vote that shareholders could not sue third parties such as suppliers and banks in securities fraud cases unless investors directly relied on the parties' statements or representations when making investment decisions. In the Enron case, the appeals court ruled that the banks did not play enough of a role in the company's deception for the court to determine that they manipulated the price of Enron securities, which meant investors could not sue jointly as a class. (Reporting by James Vicini, Editing by Lisa Von Ahn) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. China Allows Banks To Buy Into Insurers-Regulator Tue Jan 22, 2008 Reuters) - China's financial regulators have formally agreed to allow banks to invest in insurance firms, removing one of the barriers between the two sectors. The move, trailed by banking sources last week, would help to improve the overall competitiveness and risk management capacity of China's financial industry, the China Banking Regulatory Commission (CBRC) said in a statement on its Web site on Tuesday. Under a memorandum of understanding that the CBRC signed with the China Insurance Regulatory Commission on Jan. 16, insurers are also permitted to buy into banks. This merely formalises the existing state of affairs, as China Life Insurance Co (601628.SS:)(2628.HK:) and Ping An Insurance (Group) Co (601318.SS:) (2318.HK:) have already bought stakes in commercial banks. The CBRC did not give any details of the agreement, leaving unclear the maximum equity stake that a bank may take in an insurance firm. China keeps banks, insurers and securities firms separate, but the boundaries are blurring, requiring increased coordination among regulators. According to the CBRC, 19 percent of insurance sold in the first nine months of 2007 was through banks. (Reporting by Zhou Xin; Editing by Alan Wheatley) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Keller Rohrback L.L.P. Announces Ongoing ERISA Investigation of the MBIA Inc. 401(k) Plan SEATTLE, Jan 18, 2008 /PRNewswire -- Attorney Advertising. Keller Rohrback L.L.P. (http://www.erisafraud.com) announces an ongoing investigation into MBIA Inc. ("MBIA" or the "Company") (MBI) for potential violations of the Employee Retirement Income Security Act of 1974 ("ERISA"). In light of the Company's recent disclosures and the capital problems described therein, the investigation focuses on investments in MBIA stock by the MBIA Inc. 401(k) Plan (the "Plan"). Recently, MBIA announced that its subsidiary, MBIA Insurance Corporation, was offering $1 billion in Surplus Notes due in 2033 at an initial interest rate of 14 percent. The offering is a reaction to the capital crisis at the Company caused by increased risk of defaults in the subprime market. Moody's has placed the Company's credit ratings on review for a possible downgrade. Keller Rohrback's investigation involves concerns that MBIA and other administrators of the Plan may have breached their ERISA-mandated fiduciary duties of loyalty and prudence to participants and beneficiaries of the Plan. A breach may have occurred if the fiduciaries failed to manage the assets of the Plan prudently and loyally by investing the assets in Company stock when it was no longer a prudent investment for participants' retirement savings. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. AI Risk® Introduces LexExpressSM New Excess Auto Liability Coverage Addresses Trucking Industry Risks, a Key Component of AIG’s Transportation Solutions® Practice NEW YORK--(BUSINESS WIRE)--AI Risk Specialists Insurance, Inc. (AI Risk®), a wholly owned brokerage subsidiary of American International Group, Inc. (AIG), today announced LexExpressSM, excess auto liability insurance developed to address the needs of small to medium- sized fleets in the trucking industry. LexExpress is designed to provide limits of $1,000,000 in excess of a $1,000,000 primary placement. In addition to the standard excess auto liability coverage, the policy provides ancillary coverages such as pollution and accident & health coverage. AI Risk can address the exposures of long and short-haul truckers, flat bed haulers, dry bulk garbage, mix-in-transit, and moving and storage. http://www.programconnect.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Lexington Insurance Company Introduces Lex Infrastructure SolutionsSM New Suite of Products and Services Designed for Bridge, Street and Road Contractors, Part of AIG’s Construction Solutions® Practice NEW YORK--(BUSINESS WIRE)--Lexington Insurance Company, an American International Group company, today announced Lex Infrastructure Solutions, a suite of insurance coverages tailored for contractors performing bridge and road work in the United States. Lex Infrastructure Solutions is a modular suite of coverages designed for bridge, street and road contractors with annual revenues up to $150 million, or for projects with construction costs up to $150 million. The coverages, provided by Lexington and other member companies of AIG as part of AIG’s Construction Solutions Practice, can include primary and excess liability insurance as well as builder’s risk, architects and engineers professional liability, contractors professional liability, railroad protective liability, workers’ compensation and auto liability insurance. To learn more about Lex Infrastructure Solutions, contact Tom Grandmaison at 617-345-4130 or thomas.grandmaison@aig.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Willis Releases P&I Market Review -- Rising Claims Levels Define the Market-- London, UK, January 22, 2008 – Willis Group Holdings (NYSE: WSH), the global insurance broker, has released its Marine Protection & Indemnity (P&I) Market Review for 2007/2008. The annual report provides a succinct overview of the P&I marketplace and explores the themes witnessed over the past year and what key drivers may affect individual operators throughout the coming months in this constantly evolving arena. To read the report in full, please click on the link below: http://www.willis.com/news/Publications/MarketReview_PI_2007_2008.pdf Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. RMS Reaches Milestone of 100 Certified Catastrophe Risk Analysts (CCRA™) Winter 2008 Certification Programs Now Open Newark, Calif. – January 22, 2008 – Risk Management Solutions (RMS), the world's leading provider of products and services for catastrophe risk management, today announced that over 100 professionals have now earned their Certified Catastrophe Risk Analyst (CCRA™) designation through the company’s popular educational offerings: the Catastrophe Analysis Training (CAT) Program and the CCRA Exam Prep Program. www.rms.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. W&A Publishing Offers Trader Tax Guide CEDAR FALLS, Iowa--(BUSINESS WIRE)--W&A Publishing announces immediate availability of Green’s 2008 Trader Tax Guide – a terrific resource for active traders to prepare 2007 taxes and to plan for 2008. It is available online for US $17.95 at www.w-apublishing.com. Active traders and investors need to spend their time and energy studying the markets, not dissecting tax law. Green’s 2008 Trader Tax Guide shows how to lower their tax bill with up-to-date, complete information on the intricate details of the tax code that apply to a trading practice, whether the markets traded are futures, forex or securities. Taxes can be much more complicated for traders than for most Americans, who simply plug in wages from their W-2s. And getting taxes right can mean the difference between a year in the black and a year in the red. It’s critical to keep hard-earned profits as well as to get deserved refunds. 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. Taxes Don’t Have to be Taxing – Gilman Ciocia Presents Some Good News About Filing This Year Certain filers may benefit from recent tax breaks and relief Personal Finance I, Taxes POUGHKEEPSIE, N.Y.--(BUSINESS WIRE)--April 15 is just around the corner and Gilman Ciocia, a leading provider of federal, state and local tax planning and preparation services is encouraging filers to take full advantage of the new tax breaks and tax relief laws which may have a positive effect on their 2007 returns. “Since the biggest expense Americans face in their lifetime is income taxes, Gilman Ciocia’s aim this tax season is to inform and assist taxpayers to take full advantage of all tax savings opportunities which are now available to them,” said Michael Ryan, president and CEO of Gilman Ciocia. “Our tax team is geared up and ready to help taxpayers build a solid, tax-protected strategy designed to help them keep more of their hard-earned money.” Gilman Ciocia is pleased to inform the public of the following tax breaks available this filing season: The company’s philosophy is to look at the whole picture – taxes, investments, retirement, insurance, lending, and estate planning, which allows individuals to understand how wise decisions will let them keep more of their money, provide them with a healthy and solid financial outlook, and secure their family’s future. www.gilcio.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. MEDecision Introduces Alineo™ Collaborative Health Care Management Solution Simplified, Smart and State-of-the-Art Platform Designed to Help Health Plans Improve Quality, Safety and Affordability of Care WAYNE, Pa.--(BUSINESS WIRE)--MEDecision, Inc. (Nasdaq:MEDE), a provider of collaborative health care management solutions with 20 years of health care management experience, today introduced Alineo™, a collaborative health care management platform for addressing case management, disease management and utilization management. Alineo represents a re-architected solution that provides a simplified, smart and state-of-the-art model designed to help health plans improve quality, safety and affordability of care. “Health plans are under growing pressure to better align information technology resources with business and health care requirements,” said MEDecision Founder and CEO David St.Clair. “Alineo facilitates these efforts through an innovative, member-centric approach. It enables health plans to improve the quality and affordability of care by helping them optimally manage risk and compliance, increase efficiencies, enhance business agility and control costs. Alineo truly represents the next generation of care management.” MEDecision will host a complimentary web conference unveiling Alineo on January 30, 2008. To register for the event, please visit www.MEDecision.com/webinars.asp. www.MEDecision.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Transamerica Retirement Services Receives 17 “Best in Class” Ratings and Is Rated as the “Best Performer” in Chatham Partners’ 2007 Client Satisfaction Analysis Transamerica Exceeds the Proprietary Benchmark in 70 of the 73 Individual Attributes and All 20 Overall Attributes, Including “Overall Client Satisfaction” LOS ANGELES--(BUSINESS WIRE)--Capping a year highlighted by industry recognition of its outstanding customer service, Transamerica Retirement Services (“Transamerica”), a marketing unit of Transamerica Financial Life Insurance Company, today announced it has received a total of 17 “Best in Class” ratings from the Chatham Partners' (“Chatham”) December 2007 Client Satisfaction Analysis. www.TA-Retirement.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. TIAA-CREF Introduces Lifecycle Retirement Income Fund NEW YORK--(BUSINESS WIRE)--Building on ninety years of helping to meet the financial needs of clients to and through retirement, TIAA-CREF today introduced the Lifecycle Retirement Income Fund, a new low-cost, well-diversified mutual fund that seeks high total return over time primarily through income, with a secondary emphasis on capital appreciation. www.tiaa-cref.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Cincinnati Specialty Underwriters Issues Its First Excess and Surplus Lines Policies CINCINNATI, Jan. 21 /PRNewswire-FirstCall/ -- The Cincinnati Insurance Company today announced that its newest subsidiary, The Cincinnati Specialty Underwriters Insurance Company, now is accepting excess and surplus lines business. Executives highlighted Cincinnati's entry into the E&S market at a sales meeting with its independent agents in Charlottesville, Virginia, the first stop in their annual tour of 25 cities across Cincinnati's operating territories. http://www.cinfin.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. OnlineAutoInsurance.com Revolutionizing Auto Insurance LOS ANGELES, Jan. 21 /PRNewswire/ -- The Internet has given twenty-first century consumers efficiency when it comes to shopping for many of life's necessities. Online, one can complete research on any product and interact with information right from the comfort of their computer. The Internet has revolutionized the way consumers inquire, compare, purchase, and maintain the many products we are in need of today including auto insurance. http://www.OnlineAutoInsurance.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Hispanic Insure Offers Health Insurance Solutions for Hispanic Business Owners LOS ANGELES, Jan. 21 /PRNewswire/ -- Employer health insurance premiums increased by 7.7 percent, two times the rate of inflation. The annual premium for an employer health plan covering a family of four averaged nearly $11,500. The annual premium for single coverage averaged over $4,200. As we enter 2008, I encourage every single business owner to increase its bottom line by lowering Health Insurance Premiums. http://www.HispanicInsure.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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