Daily Quote: "No wind favors he who has no destined port." - - Montaigne
Can't make the Atlanta Seminar and/or optional CNN tour? 11 others seminars are scheduled! The Workplace Benefits Association has announced a training and educational campaign for 2008 built around the concept of “doubling your voluntary benefits revenue stream.” There will be no cost to attend these seminars for attendees who pre-register. “The concept is for a broker to be able to walk out of the meeting room and have in hand everything they need to immediately start the process of doubling their voluntary benefits income when they return to their office (product sources, scripts, & forms).
1. State Insurance Regulators Act Quickly To Address Bond Market Concerns KANSAS CITY, Mo. (Jan. 28, 2008) — Members of the National Association of Insurance Commissioners (NAIC) met recently to discuss regulatory solutions to ensure the continued strength and stability of the financial guaranty insurance market. "State insurance regulators are working together so that all states and municipalities will have continued access to highly rated financial guaranty insurers," said NAIC President and Kansas Insurance Commissioner Sandy Praeger. "New York and Wisconsin have brought leadership to this issue, in a way that will help us quickly and effectively enact proactive solutions to protect America's insurance consumers." New York State Insurance Superintendent Eric Dinallo of the New York Department of Insurance recently facilitated an accelerated licensure approval of Berkshire Hathaway Assurance Corporation to write financial guaranty insurance in New York state. Wisconsin Insurance Commissioner Sean Dilweg has been working closely with Ambac Financial, the largest writer of financial guaranty insurance, to confirm that the company remains stable and well-capitalized. "In order to create market demand for their issues, states and municipalities need access to financial guaranty insurance from a triple A-rated insurer," Praeger said. "We are taking any and all necessary steps - including the expedited licensure of companies like Berkshire - to ensure a healthy and competitive insurance market." As part of a three-part plan to address this issue, state insurance regulators will continue to closely monitor financial guaranty insurers to assess their potential for distress. They will also be assessing the need for new laws or regulations and they will be facilitating the speedy entrance of well-capitalized companies into the bond insurance marketplace. In fact, the NAIC is currently working with Berkshire Hathaway Assurance Corporation to submit an Expansion Application using the NAIC's Uniform Certificate of Authority Application (UCAA). The UCAA provides a streamlined, uniform application process for insurers seeking to do business in multiple states. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Milliman Survey Confirms Continued Dominance of Guarantees in Variable Annuity Retirement Income Products SEATTLE, Jan. 28 /PRNewswire/ -- Results from Milliman's third annual Guaranteed Living Benefits (GLB) survey of leading U.S. variable annuity (VA) carriers indicate that nearly 95% of variable annuities offered include some form of GLB. Total sales of VAs that offered a GLB during calendar year 2005 averaged 87% of total VA sales, stable relative to 2004 results. This figure increased to 93% during 2006, and then up to 95% during the first half of 2007, demonstrating the continued popularity of such benefits. The purchase of GLBs by policyholders also continued to increase from 2005 to the first half of 2007. On average, during calendar year 2005, the election rate of GLBs was 68% of total VAs that offer any GLB, up from 56% in 2004. The comparable figures for 2006 and the first half of 2007 are 73% and 74%, respectively. A small percentage of VA sales (less than 5%) offer a GLB that is automatically included in the product design. A more recent trend is that nearly 20% of VA sales involve an offer of a "hybrid" GLB. (A hybrid GLB refers to multiple GLBs packaged together, such as a GMAB/GMIB, or GMAB/GMWB.) The VA marketplace generally offers three types of GLBs. Election rates of the Guaranteed Minimum Withdrawal Benefit and Guaranteed Lifetime Withdrawal Benefit (GMWB/GLWB) increased, on average, from 24% in 2004 to 29% in 2005, to 40% in 2006, and to 43% during the first six months of 2007, according to survey participants (relative to total sales of VAs that offered a GMWB/GLWB). Guaranteed Lifetime Withdrawal Benefits continue to be the most popular GLB in the current VA market. GMWB/GLWBs captured some of the market share from the Guaranteed Minimum Income Benefit (GMIB) whose election rates decreased from 24% in calendar year 2005 to 23% in 2006 and then to 22% during the first six months of 2007. Although election rates for GMIBs have been falling steadily, there is still a strong core of companies and producers that remain committed to this feature. Average election rates of the Guaranteed Minimum Accumulation Benefit (GMAB) decreased from 7% in 2005 to 5% in 2006 and then to 4.2% during the first half of 2007. The portion of total VA sales in which no GLB was elected dropped from 44% during 2004 to 40% during 2005, to 33% during 2006, and to 31% during the first six months of 2007. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. New lawsuit hits SocGen over fraud scandal Mon Jan 28, 2008 8:20am EST PARIS (Reuters) - A French lawyer acting for 100 small shareholders said on Monday he had sued French Societe Generale (SOGN.PA: ) over the way it unbundled billions of dollars in allegedly fraudulent share deals earlier this week. Frederik-Karel Canoy said the bank should have informed markets about its pending losses before embarking on a massive selling spree on Monday to Wednesday to unwind the 50 billion euros of uncovered futures positions built up by trader Jerome Kerviel. Canoy told Reuters he had also filed a separate complaint about the sale of a million shares by a SocGen director of shares on January 9 and 10, disclosed in a filing. Both complaints allege insider dealing and market manipulation, he said. A SocGen spokeswoman said the director, Robert A. Day, had sold shares "well before" the bank became aware of alleged fraud carried out by one of its traders, leading to heavy losses. Canoy is already suing SocGen for negligence over the fraud. (Reporting by Tim Hepher) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article Fri Jan 25, 2008 5:44pm EST LOS ANGELES, Jan 25 (Reuters) - Todd Farha said on Friday that he is resigning as chairman, president, and chief executive officer of WellCare Health Plans Inc. (WCG.N: ) in order to pursue other entrepreneurial interests. The resignation comes nearly three months after more than 200 federal and state agents raided the managed-care provider's Tampa, Florida, headquarters. WellCare, which provides Medicare and Medicaid plans to about 2.3 million members, has seen its shares plunge nearly 60 percent from about $115 a share since the raid. To assist with the leadership transition, Farha said he will remain with the company through March 31 and will be available to consult for the company through June 30. © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Countrywide CEO to give up $37.5 million in payments Mon Jan 28, 2008 4:00am EST 18 Dec 2007 NEW YORK (Reuters) - Countrywide Financial Corp (CFC.N: ) CEO Angelo Mozilo said on Monday that he would give up $37.5 million in severance pay and other fees he stood to gain from the mortgage lender's sale to Bank of America Corp (BAC.N: ), amid criticism over his role in the U.S. mortgage meltdown. Countrywide has been convulsed by mounting losses and defaults, a loss of access to credit markets and a slew of lawsuits. Democrats, including U.S. presidential candidate Sen. Hillary Clinton, have questioned Mozilo's pay. Clinton recently said his pay was outrageous, calling him "one of the principal architects of this whole house of cards." "I believe this decision is the right thing to do as Countrywide works toward the successful completion of the merger with Bank of America," Mozilo said in a statement. He ranks as one of the top-paid U.S. executives, getting about $387 million from pay and stock option gains from 2002 to 2006, according to U.S. regulatory filings. Countrywide said Mozilo remains a substantial stockholder and an employee, and that his shares and equity awards will still be treated in the merger in the same manner as those of all other shareholders and employees. (Reporting by Ritsuko Ando; Editing by Valerie Lee/Elizabeth( © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. NY Expands Countrywide Suit With More Defendants NEW YORK, Jan 25 (Reuters) -New York City and state on Friday expanded a shareholder class-action law suit filed against top U.S. mortgage lender Countrywide Financial Corp (CFC.N: ), naming additional company officers and directors, 26 underwriters and two accounting firms as defendants. "We will pursue every avenue to ensure that those who defrauded investors are held accountable for their actions," said New York City Comptroller William Thompson, who helps run the New York City Pension Funds. Executives of Countrywide "cashed out to the tune of almost $700 million" while borrowers lost homes and the value of investors' shares fell sharply, Thompson said in a statement. Thompson and New York state Comptroller Thomas DiNapoli, who oversees the New York State Common Retirement Fund, jointly announced the expansion of the lawsuit. The New York City and state pensions in November were named as co-lead plaintiffs for the five class-action suits accusing Countrywide of inflating earnings and overstating its ability to weather the housing slump. The two accounting firms added to the suit, which seeks to recover millions of dollars, are Grant Thornton LLP and KPMG LLP. A Countrywide spokeswoman had no immediate comment. The names of the Countrywide officers and directors added to the defendants' list were not released on Friday. The list of underwriters named as defendants includes some of the world's largest investment banks. "Countrywide's underwriters had a duty to investigate whether Countrywide was acting honestly," DiNapoli said. "Instead, the underwriters and accountants enabled Countrywide to release false statements." The underwriters sued were: ABN Amro Inc (ABNA.KA: ), AG Edwards & Sons, Inc. AGE.N, Banc of America Securities LLC (BAC.N: ), Barclays Capital Inc. (BARC.L: ), BNP Paribas Securities, (BNPP.PA: ), BNY Capital Markets, Inc. (BK.N: ), Citigroup Global Markets Inc. (C.N: ), Countrywide Securities Corporation, Deutsche Bank Securities Inc. (DBKGn.DE: ), Dresdner Kleinwort Wasserstein Securities Inc (DRSDgd.F: ), Goldman, Sachs & Co. (GS.N: ), Greenwich Capital Markets, Inc., HSBC Securities (USA) Inc. (HSBA.L: ), J.P. Morgan Securities Inc. (JPM.N: ), Lehman Brothers Inc. (LEH.N: ), Merrill, Lynch, Pierce, Fenner & Smith Inc. (MER.N: ), Morgan Stanley & Co. Inc. (MS.N: ), RBC Capital Markets Corporation RYTntp.TO, RBC Dominion Securities Inc., RBC Dain Rauscher Inc., Scotia Capital Inc., SG Americas Securities, TD Securities Inc. (TD.TO: ), UBS Securities LLC (UBSN.VX: ), Wachovia Capital Markets LLC and Wachovia Securities, Inc. (WB.N: ). (Reporting by Joan Gralla; Editing by Leslie Adler) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. 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, IL – January 16, 2008 – 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 the biggest issues in this year’s upcoming election. The Election 2008 website features: An overview of the health care reform debate Profiles of each candidate’s health care platform An interactive tool to compare the candidate’s views on health care head-to-head “There are still so many undecided voters, and health care is one of their big issues,” said Clint Jones, CEO of Norvax, Inc., the parent company of GoHealth Insurance. “There’s a lot of heated debate right now. Our goal is to help people understand the candidate’s plans, making it easier to decide where they stand on this important issue.” Visit Election 2008: Reforming Health Care at http://www.gohealthinsurance.com/politics/ Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Merrill Lynch co-president to resign: report Mon Jan 28, 2008 9:27am EST NEW YORK (Reuters) - Merrill Lynch & Co (MER.N: ) Co-President Ahmass Fakahany is set to resign on Monday, CNBC television reported, without citing sources. Fakahany oversaw Merrill's market risk management from March 2005 until May 2007, when he was named co-president with Greg Fleming, a star investment banker at the company. Merrill Lynch was not available for comment. Analysts and investors blame poor risk management for Merrill's exposure to securities underpinned by risky subprime mortgages. Merrill recorded about $24 billion in write-downs during the second half of last year, mostly because of its exposure to subprime mortgage-related assets. (Reporting by Christian Plumb; editing) Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. FEMA’s Kempf: CRS underutilized, asks PIA members’ assistance in educating public BROOKLYN, N.Y.—Speaking in his keynote address to the Professional Insurance Agents of New York State Inc. at it’s annual Metropolitan Regional Awareness Program yesterday, Stephen Kempf Jr., regional administrator of the Federal Emergency Management Agency noted that, as ombudsmen to the industry, both FEMA and professional insurance agents have the similar goal of educating their mutual customers. He also said he would like to work with the association to raise awareness about the benefits FEMA’s flood insurance Program can bring to communities. www.pia.org/NY Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Moody's buys BQuotes, provide securities pricing Mon Jan 28, 2008 9:22am EST NEW YORK, Jan 28 (Reuters) - Moody's Corp (MCO.N: ), the parent of credit rating agency Moody's Investors Service, on Monday said it acquired BQuotes to provide better price quotations for fixed-income securities, especially complex structured products and derivatives. Terms of the deal were not disclosed. The purchase comes after credit market turmoil in recent months left it difficult for investors to value a wide array of securities, including collateralized debt obligations, for which there is little or no demand. Many of these securities are backed by subprime and other mortgages once thought safe. "This acquisition significantly enhances our ability to provide greater transparency to the structured finance market, which is a key objective for Moody's," Raymond McDaniel, Moody's chief executive, said in a statement. "Moody's is responding aggressively to market demand for alternative independent sources of fixed-income valuation." Established in 2004, BQuotes said it provides more than 5 million price quotations a day. Both Moody's and BQuotes are based in New York. Moody's and rivals including McGraw-Hill Cos' (MHP.N: ) Standard & Poor's and Fimalac SA's (LBCP.PA: ) Fitch Ratings have in the last few months downgraded tens of billions of dollars of mortgage-related securities after investors and analysts criticized them for being slow to recognize deterioration. Moody's said it will integrate BQuotes into the pricing and valuation products offered by Moody's Analytics. It said the acquisition should not materially affect results. Shares of Moody's closed Friday at $36.01. They closed one year ago at $71.24. (Reporting by Jonathan Stempel; Editing by Mark Porter/Gerald E. McCormick) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Election Year Topics Highlight Talks Between Legislators & Members of Independent Insurance Agents, Brokers of NY IIABNY’s “L”-Day attracts insurance professionals from Lake Erie to Long Island Sound. (DeWitt, New York, Jan. 25, 2008)— Nearly 200 members of the Independent Insurance Agents & Brokers of New York, Inc. met with state lawmakers on Jan. 23 to advocate for change on issues affecting business and consumers across the Empire State. The 38th Legislative or “L” Day discussions took place in Albany over lunch and scheduled office meetings, and involved such topics as the homeowners insurance markets in coastal areas, late notice of claims and workers’ compensation. www.iiabny.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Transamerica Launches Revolutionary Retirement Plan Product With Unique Online TPA Solution Technology ''Transamerica Partner iSeries'' Sets the Standard for Plan Administration With Online Installation and Maintenance, Providing Superior Value to Plan Sponsors LOS ANGELES--(BUSINESS WIRE)--New technology is helping increase the efficiency of how Third Party Administrators (TPAs) do business with retirement plan providers and plan sponsors. Transamerica Retirement Services (“Transamerica”) launched the industry’s first, all-inclusive Web-based, virtually paperless, plan administration tool for TPAs. This technology is part of a new product1 called “Transamerica Partner iSeries,” that will enable TPAs to perform all functions of plan administration more efficiently and securely than previously made available to them by retirement providers. www.TA-Retirement.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Assurant Says Reinstates CEO Mon Jan 28, 2008 9:42am EST (Reuters) - Assurant Inc (AIZ.N: ), a U.S. specialty insurer, said it reinstated Robert Pollock, who had been placed on administrative leave after he received a regulatory notice, as chief executive and president, effective Jan. 28. The decision comes after a special board committee, following an investigation into the events that had resulted in Pollock's receipt of the "Wells notice," recommended his reinstatement, Assurant said in a statement. The New York-based company said it cannot predict the duration or outcome of the investigation by the U.S. Securities and Exchange Commission. (Reporting by John Tilak in Bangalore; Editing by Gopakumar Warrier) © Reuters 2008 All rights reservedReturn to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. The Hartford and AARP Seek Greater Partnership with Other Non-Government Organizations to Help Educate Baby Boomers, Older Adults about Retirement Readiness Research from The Hartford shows Boomers and older adults around the globe are unprepared for retirement and uncertain about where to turn for help HONOLULU, Hawaii--(BUSINESS WIRE)--This island paradise in the middle of the Pacific Ocean is used to waves reaching its beaches from every direction on the compass. Similarly, waves of Baby Boomers reaching retirement are starting to crash down around the globe in search of their own post-career paradise as demographic shifts and increased longevity create greater financial obligations for government and private corporations alike. With reduced pension benefits for retirees a growing reality, those who leave the workforce today and in the future can expect to shoulder more responsibility for their own financial security. Many Boomers and others are still clinging to the notion that public and private pensions will remain largely unchanged when they retire, according to Greg Boyko, a senior vice president who leads the global retirement initiative for The Hartford Financial Services Group, Inc. (NYSE: HIG). At the AARP’s 50+ Asia Conference in Honolulu, held Jan. 23-25, Boyko and the AARP called on other non-government organizations (NGOs) that support older adults to partner with the financial services industry in helping educate people about the need to prepare for retirement in the face of dwindling public and private support. “Like a tidal wave that grows in size without notice, a crisis looms for many people around the world who expect to rely on their government or employer to support them during a comfortable retirement,” Boyko said in remarks at the 50+ Asia Conference, which was attended by executives of NGOs and other organizations. “Unfortunately, the retirement envisioned by many people may prove more myth than reality. Demographic, financial and health issues are combining to potentially overwhelm many people as they begin retirement or what the Japanese refer to as their ‘Second Life.’” Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. CNinsure to Acquire Majority Interests in Three Insurance Agencies GUANGZHOU, China, Jan. 28 /Xinhua-PRNewswire-FirstCall/ -- CNinsure Inc. (Nasdaq: CISG), a leading independent insurance agency and brokerage company operating in China, today announced the acquisitions of majority interests in three insurance agencies: Tianjin Xianghe Insurance Agency Co., Ltd. (''Tianjin Xianghe''), Hebei Lianda Insurance Agency Co., Ltd. (''Hebei Lianda'') and Beijing Xinyue Insurance Agency Co., Ltd. (''Beijing Xinyue''). The transactions are expected to close in the first quarter of 2008. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Norvax Announces Webinar That Reveals Strategies to Capture More Online Insurance Buyers Norvax, the leading provider of technology solutions for insurance marketing and sales, presents a free webinar on best practices for marketing to online individual insurance shoppers, on Tuesday, Jan. 29, 12:00 PM CST. CHICAGO, IL – January 24, 2008 – Norvax is presenting a free one-hour webinar on Tuesday, Jan. 29, 12:00 PM CST, for insurance professionals who want to better understand online insurance shoppers—and how to market to them. The need to develop effective marketing strategies for online consumers is reinforced by a recent Celent Research report that found that more than 50% of 2007 health insurance sales involved the internet. By 2011, it is anticipated that more 90% of all individual health insurance buyers will use the internet for part or all of their policy purchase. The webinar, “PROVEN INTERNET-DRIVEN MARKETING PRACTICES: Keys to Finding and Selling to Online Insurance Shoppers,” teaches agents and brokers how to succeed in this new marketplace. The co-presenters for the webinar are Jeremiah Desmarais, vice president of marketing for Norvax, and Delfin Paris III, Norvax manager of the UnitedHealthcare Select Producers Club (USPC) program. This webinar is not a conference call; participants will need internet access to watch and join in the presentation. Insurance professionals who wish to attend this free webinar or receive more information should go to the following link: http://www.norvax.com/promotions/webinar-01-08.html?release=012508 Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Norvax Launches Industry's Most Comprehensive Insurance Conference Directory Health Insurance Brokers and Agents to Benefit from New Online Resource CHICAGO--(BUSINESS WIRE)--With the launch of the Norvax Insurance Conference Directory, health insurance agents and brokers now have one convenient location to learn about upcoming industry seminars and conferences. This comprehensive directory is the first to track and provide detailed information about major insurance industry events, so insurance professionals will always know about all available opportunities for continuing education, industry training and networking. “Agents and brokers can read all the industry journals and blogs they can find, but there’s still no substitute for the face-to-face contact these events offer,” said Jeremiah Desmarais, vice president of marketing for Norvax. “Too many agents miss out on these local, regional and nationwide opportunities simply because they never hear or find out about these events.” In addition to being posted in the conference directory, key events will also be listed in the Norvax newsletter, a free resource distributed to more than 15,000 insurance professionals. The directory already contains information on conferences scheduled through 2011, but will continue to grow as new information becomes available. Insurance agents and brokers interested in Norvax’ Insurance Conference Directory or other insurance tools can call 1-866-466-7829 or visit www.norvax.com. Associations can request the addition of their conference to the Norvax Conference Directory by completing the submission form on the site. The form will require a conference website URL, physical location and scheduled date. All requests are subject to review for inclusion by the directory maintenance team. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. The Lungen Group Orchestrates Business Development Contract Between Industry Leaders Medical Mutual of Ohio and Nationwide Insurance to Support Members of Ohio Farm Bureau TAMPA, FL/CLEVELAND, OH — January 28, 2008 — Solidifying its position as a market leader in healthcare business development, The Lungen Group today announced it has successfully facilitated a market-changing health care partnership between the two largest Ohio-based insurance carriers — Medical Mutual of Ohio and Nationwide Insurance — in support of Ohio Farm Bureau members. Individuals throughout Ohio who are members of the Farm Bureau, will now obtain quality, cost effective insurance solutions beginning in 2008. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. PAULA Financial Enters into an Agreement to Sell Assets of Pan American Underwriters PASADENA, Calif.--(BUSINESS WIRE)--PAULA Financial (Pink Sheets: PFCO) today announced it has entered into a definitive agreement to sell the assets of its California-based insurance agency, Pan American Underwriters, to Ascension Insurance, Inc. (“Ascension”) of Kansas City, Missouri. Details of the transaction were not immediately released. 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. Nurtur Acquires Work/Life Innovations FARMINGTON, Conn.--(BUSINESS WIRE)--Nurtur, the health and wellness company formerly known as Cardium Health and AirLogix, today announced it has acquired Work/Life Innovations, a Connecticut-based national provider of work/life management programs, employee assistance programs and concierge services. Specific financial terms of the transaction were not disclosed. www.nurturhealth.com www.worklifeinnovations.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Great American Insurance Offers New Program For Youth Organizations CINCINNATI--(BUSINESS WIRE)--The Specialty Human Services Division (SHS) of Great American Insurance Group is pleased to announce the formation of a new program of customized coverages for Youth Organizations. One of only a few national carriers who insure these organizations, Great American’s expertise in supporting the Non-Profit and For-Profit Human Services niche prompted the development of this specialized program. The company will also maintain a dedicated claims unit for Youth Organization customers. www.greatamericaninsurance.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Phoenix Cos shareholder seeks 3 board seats Mon Jan 28, 2008 9:07am EST NEW YORK, Jan 28 (Reuters) - A shareholder of Phoenix Cos (PNX.N: ) said on Monday that it was seeking three board seats and wanted the provider of insurance, annuity and asset management products to sell some assets, cut costs and lower executive pay. Oliver Press Partners LLC, which said it owned about 5 percent of Phoenix's shares, wrote in a Jan. 25 letter to Chief Executive Dona Young that "strategic and operational changes" were needed to boost the Hartford, Connecticut-based company's stock price and protect the long-term interest of policyholders. The firm said shares of Phoenix had underperformed its peers and were 40 percent below where they were in 2001 when Phoenix converted to a stock company from a mutual company. It called on Phoenix to consider selling noninsurance businesses, lowering expenses, restructuring its balance sheet, and more closely tying executive pay to performance. In particular, the firm faulted what it called a $30 million "golden parachute" that Young would receive if she left the company. Young, in a statement, said Phoenix was confident it could deliver value to shareholders and remained committed to "constructive dialogue" with its shareholders. Phoenix has 13 people on its board, according to its Web site. Oliver Press said its director nominees were founder Augustus Oliver, 58; Carl Santillo, 58, a consultant and former insurance executive with American International Group Inc (AIG.N: ); and John Clinton, 54, a principal at banking and financial advisory firm Farmington Capital Partners in Hartford. Phoenix shares closed Friday at $10.32 on the New York Stock Exchange. They closed one year ago at $14.59. (Reporting by Jonathan Stempel; Editing by Lisa Von Ahn) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. HSBC might be interested in SocGen: Citi research Mon Jan 28, 2008 7:50am EST PARIS (Reuters) - Citigroup said in a research note that British-based bank HSBC (HSBA.L: ) might be interested in bidding for Societe Generale (SOGN.PA: ), the French bank hit by a rogue-trading scandal. "Overall, we think HSBC would be among the most convincing bidders for SG (SocGen)," Citigroup said in the research note. The note was dated January 25 but received on Monday. "The emerging Europe focused international retail unit and the CIB (corporate and investment banking)/derivatives unit would fill two holes in the HSBC footprint." "Also, the acquisition would be manageable (HSBC market capitalization is around 3.3 times that of SG today) and given SG's low valuation the goodwill/capital impact would be relatively small," added Citigroup. HSBC bought French CCF in 2000, and Citigroup said a SocGen acquisition could fit well with HSBC's existing French operations. (Reporting by Sudip Kar-Gupta; Editing by Quentin Bryar) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. India regulator OKs HDFC stake sale to Munich Re arm Mon Jan 28, 2008 2:53am EST MUMBAI, Jan 28 (Reuters) - India's Housing Development Finance Corp (HDFC.BO: ) said on Monday it had got "in principle" approval for a previously agreed stake sale in its insurance arm to Munich Re (MUVGn.DE: ) subsidiary ERGO International (ERGG.DE: ). The sale of 26 percent in HDFC General Insurance Co Ltd, its non-life insurance unit, which was agreed to last October, is for 2.35 billion rupees ($60 million), HDFC said in a statement. The deal, approved by the Insurance Regulatory Development Authority, is likely to be completed this month, it said, and the venture will be named HDFC ERGO General Insurance Co Ltd. "General insurance has been one area where we have lagged," Deepak Parekh, chairman of HDFC, said. "There are huge opportunities... we need to gear up and focus our energies to become one of the prominent players of this fast growing industry." HDFC, India's top mortgage firm, last October said it would sell 32.5 million shares, or 26 percent, the maximum permissible stake of foreign insurance ownership allowed under Indian law. HDFC last year bought its partner Chubb Corp's (CB.N: ) 26 percent stake in their general insurance venture. It also has a life insurance venture with UK's Standard Life (SL.L: ). ($1=39.5 rupees) (Reporting by Rina Chandran; Editing by Ranjit Gangadharan) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Envestnet Announces a Partnership with H&R Block Financial Advisors Partnership Gives H&R Block Financial Advisors the Ability to Access a Wide Range of Customized Portfolio Solutions, Investment Research and Reporting Capabilities on a Single Unified Platform CHICAGO--(BUSINESS WIRE)--Envestnet Asset Management, a leading provider of wealth advisory solutions to more than 10,000 financial advisors, has announced an alliance with H&R Block Financial Advisors that will allow their advisors to provide personalized investment solutions and services to their clients. “Envestnet marries leading technology and proven investment management tools into a customized solution that can help financial advisors better serve their clients,” said Bill Crager, President of Envestnet Asset Management. “Our web-based unified platform is easily adaptable and customizable to suit the needs of H&R Block Financial Advisors and their clients.” Envestnet’s unified platform is the advisor’s gateway to best-of-breed investment managers, unparalleled practice management tools, and comprehensive portfolio management options. The web-based interface integrates together a complementary package of investment programs ranging from unified managed accounts to mutual funds to alternative investments to fixed income solutions and more. The platform also delivers intuitive proposal generation tools and account management resources that make the advisor’s job measurably easier. www.hrblock.com Envestnet has more than $45 billion in assets under management and administration with over 440,000 investor accounts.* Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Lloyd's Of London Trims 2008 Capacity Jan 28 (Reuters) - The Lloyd's of London insurance market [LOL.UL] said on Monday it was to trim its underwriting capacity this year to 15.95 billion pounds ($31.6 billion). This year's figure is down slightly on 2007's record initial capacity of 16.1 billion. A number of Lloyd's insurers, including Amlin (AML.L: ), Hiscox (HSX.L: ) and Kiln (KIN.L: ), have returned capital to shareholders and several others have said they plan to cut their underwriting capacity in the market to maintain underwriting discipline as risk prices come down. But new underwriting entities, known as syndicates, have set up in the 300-year old market in recent months, drawn to Lloyd's by their ability to begin competing for business immediately in the global insurance market, thanks to Lloyd's worldwide operating licences and strong credit agency ratings. Lloyd's said it would no longer provide details of its annual underwriting capacity, which measures how much business the market could underwrite if it choses to do so, and would switch to reporting how much business it had written in the previous year, bringing it into line with rivals. (Reporting by Simon Challis; Editing by David Holmes) © Reuters 2008 All rights reservedReturn to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Swedish court rules SSAB to get insurance payment STOCKHOLM, Jan 25 (Reuters) - Steel maker SSAB (SSABa.ST: ) said on Friday it had been awarded insurance compensation by a Swedish court for a 1997 breakdown of a blast furnace. The Sweden-based firm said in a statement the Svea Court of Appeal had ordered insurance company Zurich Insurance (ZURN.VX: ) to pay it additional compensation of 302 million Swedish crowns ($46.6 million). The sum, which included accrued interest but not compensation for legal expenses, would boost SSAB's earnings by about 250 million crowns if it was finalised, the firm said. Rulings by Sweden's courts of appeal can be sent back for renewed scrutiny only if the Nordic country's top court deems that it is warranted by extraordinary circumstances, a relatively rare occurrence. (Reporting by Niklas Pollard) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. Ex-UK PM Blair to advise insurer Zurich Financial LONDON, Jan 28 (Reuters) - Insurer Zurich Financial Services (ZURN.VX: ) said on Monday it had hired former British Prime Minister Tony Blair to advise CEO Jim Schiro on the international political environment. The regulatory statement also said Blair would work closely with Zurich's recently-launched climate change initiative, which will research global warming and look to develop insurance products to help mitigate its effect. Blair, British Prime Minister from 1997 to 2007, signed a deal earlier this month to act as an adviser to international investment bank JP Morgan Chase (JPM.N: ). (Reporting by Simon Challis; Editing by David Cowell) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. Fortis Shares Strongly Higher After Subprime Relief BRUSSELS, Jan 28 (Reuters) - Shares in Fortis (FOR.BR: ) (FOR.AS: ) opened strongly higher on Euronext Brussels and Amsterdam on Monday after the Belgian-Dutch financial services group issued a reassuring profit warning on its subprime exposure. Fortis said on Sunday its 2007 profit could be hit by 1 billion euros ($1.47 billion), depending on the valuation models it will choose to assess the value of its subprime portfolio. © Reuters 2008 All rights reserveReturn to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. Fortis subprime impact estimate boosts shares Mon Jan 28, 2008 5:05am EST (Reuters)- Fortis sought to reassure investors in its Sunday statement and said its capital and solvency position were sound that it planned to maintain its dividend at last year's level and ruled out it was considering issuing new shares. Fortis also said it was on track to complete its 24 billion-euro financing plan for the acquisition of the Dutch activities of ABN AMRO. Financial markets remain nervous after last week when stocks plummeted on fears of a U.S. recession and investors saw both a massive rate cut by the U.S. Federal Reserve and the biggest trading scandal in banking history after a junior trader at France's Societe Generale (SOGN.PA: ) was accused of secretly amassing a $7 billion loss in bad bets. (Reporting by Julien Ponthus; Editing by Jason © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. Singapore Puts Onus On Banks To Avert Fraud SINGAPORE, Jan 28 (Reuters) - Singapore's central bank said on Monday that it was not possible to eliminate fraud in the financial sector completely, but stressed that the boards and managements of banks are responsible for averting such incidents. It made the statement after Societe Generale (SOGN.PA: ) last week said it had discovered fraud by one of its traders that led to 4.9 billion euros ($7.18 billion) of losses. (Reporting by Saeed Azhar and Kevin Lim; Editing by Paul Bolding) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 33. Voluntary Benefits Forum Meeting Date Announced Windsor, CT, January 29, 2008—Ron Neyer, President of the Voluntary Benefits Forum (VBF) has announced that the organization’s next meeting will take place March 4, 2008. The meeting is being hosted by LIMRA International and will be held at the LIMRA International offices, 300 Day Hill Road, Windsor, CT. The VBF, which meets twice annually, was established over twenty-five years ago for the express purpose of bringing together insurance professionals who are focused primarily on the voluntary benefits marketplace to study specific voluntary benefits issues, products, and processes, as well as to exchange information through an inter-company sharing of ideas. The VBF’s mission is to promote professionalism in the marketing and administration of voluntary benefits with a focus on achieving the best possible way to serve the buying public. At all times the VBF is sensitive to proprietary issues. “This will be one our best meetings ever,” said Mr. Neyer, “with the focus on HRA’s and HSA’s. Rob Thurston, President of HR Consulting Group, will examine statistical trends of HRA’s and HAS’s, as well as strategies to market traditional worksite offerings with Consumer Driven Plans, and ways to use technology in education, enrollment, and promotion. He will also review case studies from IBM, Zions Bank, Sky West Airlines, and Baccou Dalloz of Rhode Island.” In addition to Mr. Thurston, scheduled speakers include: Jennifer Parmelee-Witt, Assistant Research Director, LIMRA International, Ronald Neyer, VBF President and Senior Analyst, LIMRA International, and Fred Townsend, President, Townsend & Schupp and Principal, Sage Scholars. The fee for this half-day meeting, which includes lunch, is $95 (Check or credit card only). Seating is limited. To register, contact Jim Ouimet at jimouimet@comcast.net or at 703 862 5715. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 34. Inverness to buy Matria Healthcare Mon Jan 28, 2008 9:10am EST (Reuters) - Inverness Medical Innovations Inc (IMA.A: ) said on Monday it would buy Matria Healthcare Inc (MATR.O: ) for $900 million to expand its disease management business and focus on bringing diagnostics into the home. The deal is the latest in a string of acquisitions for Inverness, a maker of home pregnancy tests and fertility monitoring kits. It acquired heart disease diagnostics company Biosite Inc last June for $1.67 billion following a bidding war with Beckman Coulter Inc. (BEC.N: ) Inverness in November bought disease management company Alere Medical Inc for $302 million and in September purchased diagnostic tools provider Cholestech Corp. for $326 million. © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 35. Investors seek best strategies to short credit Mon Jan 28, 2008 4:59am EST LONDON (Reuters) - Many investors in derivatives are now hunting the best way to go short on credit based on the expectation that corporate defaults will rise this year. "This year the story will be about default risk and recovery risk more than volatility," said Albert Gallo, managing director for credit derivatives strategy at Bear Stearns. "This is what investors told us in a (December) survey", with 88 percent saying they were concerned about defaults in 2008. (editing by Elizabeth Fullerton) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
|
