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Workplace Benefits Renaissance 2008
Can't Make Orlando? Attend a “Double Your Voluntary Benefits Revenue Stream©" Seminar in one of 10 cities - There will be no cost to attend these seminars for attendees who pre-register. (A complete schedule for the 2008 30-city tour will be released soon.) 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 Daily Quote: "Change is a dragon. You can ignore it, which is futile. You can fight it, in which case you will lose. Or you can ride it." - - Anonymous
1. AIG Discloses Hole in Derivatives Valuation Tue Feb 12, 2008 3:01am EST SphereBy Lilla Zuill NEW YORK (Reuters) - American International Group Inc (AIG.N: ) disclosed potential losses in its derivatives portfolio, raising fears it would become the latest casualty of the credit crisis and pushing its shares down almost 12 percent to a 5-year low. AIG's disclosure, in a regulatory filing on Monday, is the latest sign that credit worries sparked by the subprime mortgage crisis are feeding through to insurers. Swiss Re, the world's largest reinsurer, last November stunned markets with a 1.2 billion Swiss franc ($1.1 billion) write-down related to credit default swaps. AIG's mark-to-market unrealized loss on its credit default swap (CDS) portfolio is expected to result in a charge of roughly $4.88 billion based on October and November pricing, according to Morgan Stanley analyst Nigel Dally in an investor note. That is more than triple the decline in the value of the portfolio estimated by AIG in early December -- a figure that benefited from a spread differential offset that the insurer said it will no longer factor into its calculations. In December, AIG Chief Executive Martin Sullivan told investors it had "a high degree of certainty in what we have booked to date." AIG has not yet disclosed if its analysis of December data will lead to further deterioration in the value of the CDS portfolio. The company is expected to report its fourth-quarter results later this month. PricewaterhouseCoopers [PWC.UL], AIG's outside auditors, concluded that AIG had a material weakness in its internal controls over financial reporting as a result of how it was valuing the credit default swap portfolio obligations held by AIG Financial Products Corp., according to the company's filing with the U.S. Securities and Exchange Commission. While Morgan Stanley's Dally wrote that AIG could reap back some, if not all, of the write-down over time, the development will likely rattle investors. "It will leave (them) worrying about other skeletons in the closet, and accordingly we expect the stock to be weak," Dally said in his note. AIG shares closed down $5.94, or 11.7 percent, at $44.74 on the New York Stock Exchange. The stock was the top drag on bellwether indices such as the Dow Jones industrial average .DJI and the S&P 500 .SPX. AIG's new troubles seemed certain to remind investors of an accounting scandal that led to the ouster of former CEO Maurice "Hank" Greenberg in 2005. That accounting scandal was related to finite risk reinsurance contracts and led to a costly financial restatement. "(We) believe AIG management will have an extremely difficult time regaining investor confidence," Standard & Poor's said in a note to investors on Monday. S&P cut its price target on AIG shares by 38 percent to $43 and downgraded the shares to "sell" from "buy." It said the company's problems with valuing the derivatives portfolio were "very troubling" and that the lower price target -- a discount to AIG's peers -- was "warranted in light of these disclosures." A credit default swap is a type of guarantee on the credit worthiness of the underlying investment such as collateralized debt obligations (CDOs). CDOs are repackaged asset-backed securities that typically own pools of debt, including mortgage-backed securities. A rising number of CDOs have defaulted as credit deterioration in the market for subprime residential mortgage-backed securities has grown. SPREAD BENEFIT AIG, in a regulatory filing, said it has not yet determined how much the value of AIG Financial's super senior credit default swap portfolio had declined as of Dec. 31. Earlier valuation estimates had included a benefit from a spread differential. However, AIG said difficult market conditions mean it cannot reliably quantify the differential between spreads implied from CDO prices and credit spreads implied from the pricing of credit default swaps on the CDOs. As a result, AIG said it will not include the spread differential adjustment in its valuation of AIG Financial's super senior credit default swap portfolio as of Dec. 31. Stripping out the benefit puts the cumulative unrealized valuation loss on the CDS portfolio at nearly $4.9 billion through the first two months of the fourth quarter, compared with $1.6 billion if the benefit was factored in. (Additional reporting by Dan Wilchins; editing by Mark Porter, John Wallace, Gary Hill) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. AIG Says Potential Derivatives Loss Not Material Tue Feb 12, 2008 1:36pm EST By Lilla Zuill NEW YORK (Reuters) - American International Group Inc (AIG.N: ) on Tuesday moved to calm investors shaken by its earlier disclosure that derivatives losses could more than triple to about $5 billion, a development that earned it a rebuke from its auditor for a "material weakness" in internal controls. AIG, the world's largest insurer, said in a statement on Tuesday that the size of any write-down was not expected to be material to the company. AIG shares gained 4 percent to $46.60, after falling nearly 12 percent on Monday to the stock's lowest level in five years. Investors pushed the shares down on Monday, after AIG disclosed in a regulatory filing that its mark-to-market unrealized losses on a credit default swap portfolio within its AIG Financial Products unit were expected to be about $4.88 billion through November, compared with an earlier indication of a loss of up to $1.5 billion. The loss could wipe out AIG's fourth-quarter earnings, some analysts said. AIG, which is expected to release quarterly results later this month, has not yet disclosed whether it saw further deterioration in December. "The valuation adjustment as of December 31, 2007, is likely to be significant, and will likely cause AIG to report an accounting loss for the quarter," S&P credit analyst Rodney Clark said. AIG's larger estimate does not factor in a spread differential benefit that otherwise would have lowered the net unrealized loss to about $1.6 billion. While not alone in its troubles valuing securities that have nose-dived in value as a result of the subprime mortgage crisis, S&P said alarm bells were raised by AIG being the first to be cited with a material weakness in this area. S&P Rating Services on Tuesday chopped its outlook on AIG to "negative" from "stable," indicating the greater likelihood of a ratings downgrade. NEW SKELETON? The insurance giant's accounting woes served to remind investors of an earlier accounting scandal tied to its bookkeeping for some finite risk reinsurance contracts that led to the ouster of then-CEO Maurice "Hank" Greenberg, after almost four decades at AIG's helm. "Monday's market reaction seemed to be more based on a loss of management credibility than to any significant increase in loss estimates," Goldman Sachs' Tom Cholnoky said in an investor note. AIG Chief Executive Martin Sullivan, who replaced Greenberg in 2005, in December told investors the company's exposure to the U.S. residential housing market was "accurately identified." "We are confident in our marks and the reasonableness of our valuation methods," he said at the time. While the company has now back-peddled on how it values the risky derivatives, it assured investors that its business remains financially sound. The potential losses are "not indicative of the losses (AIG Financial Products) may realize over time," AIG said in its Tuesday statement. "Based upon its most current analyses, AIG believes that any losses AIGFP may realize over time as a result of meeting its obligations under these derivatives will not be material to AIG." (Editing by Maureen Bavdek) © Reuters 2008 All rights reservedReturn to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Buffett Offers To Help Bond Insurers Tue Feb 12, 2008 1:18pm EST By Dan Wilchins NEW YORK (Reuters) - Billionaire investor Warren Buffett said on Tuesday he has made an offer to the three top bond insurers to reinsure $800 billion in municipal bonds, but one of the struggling companies has rebuffed the plan while the other two have not yet responded. The move was well received by investors, who feared that the bond insurers' difficulties will weaken credit markets that are already limping. Stocks rose, and safe U.S. Treasuries dropped, implying that investors were more willing to buy risky assets. Analysts said there was a good chance that none of the bond insurers that received the offer -- including MBIA Inc (MBI.N: ), Ambac Financial Group Inc (ABK.N: ), and FGIC, which is owned by a consortium of investors -- will accept it, in part because Buffett said he would charge them 50 percent more than the premium they are receiving. "The cost is extremely high for the bond insurers," said Cynthia Cole, a portfolio manager at Allegiant Asset Management in Cleveland. Also, reinsuring their best assets could leave the bond insurers with fewer resources to deal with expected losses in the future. Buffett, chairman and chief executive of Berkshire Hathaway (BRKa.N: ) (BRKb.N: ), told CNBC television the move will shore up the municipal bonds, but said not much can be done to rescue the repackaged debt known as collateralized debt obligations (CDOs). "I'm not sure anything is going to do much for the CDOs," Buffett said. Expected losses on CDOs have forced bond insurers to write down billions of dollars of assets. Those write-downs have eaten into the insurers' capital and endangered the top credit ratings that are crucial for their business. Ratings downgrades are bad for bond insurers, but even worse for credit markets. If bond insurers lose their top ratings, the securities they guarantee are also downgraded, and investors that can only hold top-rated assets are forced to sell their insured holdings. That could result in billions of dollars of municipal bonds, CDOs, and other debt flooding bond markets, lifting borrowing costs for cities and consumers. Hopes that Buffett's offer would reduce downgrades lifted the Standard & Poor's 500 index .SPX by 1.6 percent to 1359.85. But analysts at Royal Bank of Scotland wrote that the bond insurers are still likely to face downgrades, even if they complete the deal with Buffett. MBIA shares fell 4.6 percent to $12.96, while Ambac rose 0.19 percent to $10.50, both on the New York Stock Exchange. Buffett declined to say which bond insurer had turned down his offer. MBIA, Ambac and FGIC did not return calls seeking comment. Buffett's plan includes a 30-day clause to allow the bond insurers to come up with a better deal. (Additional reporting by Lilla Zuill, Walden Siew, Anastasija Johnson, editing by Dave Zimmerman/Jeffrey Benkoe) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Lenders To Pause Delinquent Mortgage Foreclosures Tue Feb 12, 2008 1:43pm EST WASHINGTON (Reuters) - Six top mortgage companies on Tuesday launched a new program aimed at staving off foreclosure for seriously delinquent borrowers in the hopes that new, more affordable loan terms can be worked out. "Project Lifeline," backed by the U.S. Treasury and Department of Housing and Urban Development, would pause foreclosure proceedings for borrowers more than 90 days in arrears while servicers determine whether they could make payments under new terms, the lenders said in a statement. The effort would cover all types of home loans, unlike an earlier plan aimed at freezing interest rates for subprime mortgage holders who cannot afford rates that reset to higher levels. The plan is being undertaken by six mortgage lenders that said they service about 50 percent of U.S. mortgages -- Bank of America, JPMorgan Chase & Co, Citigroup, Countrywide Financial, Washington Mutual and Wells Fargo. Treasury Secretary Henry Paulson told a news conference that he was encouraging all mortgage servicers to adopt the program. It is the latest of several private-sector efforts backed by the Treasury to limit damage in the troubled housing sector by speeding the pace of refinancing and avoiding unnecessary foreclosures. "Project Lifeline has the potential to offer new solutions to responsible, able homeowners who want to keep their homes," Paulson said. The lenders said they would use the program to reach out to delinquent homeowners to keep them from losing their homes. "It's an effort to directly pause the foreclosure process, where appropriate, through a single call," they said in a joint statement. Homeowners who are already in active bankruptcy or face a foreclosure sale in less than 30 days will not qualify for a pause, nor will vacant homes and investment properties. (Reporting by Patrick Rucker and David Lawder; Editing by Andrea Ricci) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Access Is Not Enough: What It Will Take to Transform Health Care in the United States Aspen Institute Health Stewardship Project to Release Health Care Reform Principles and Announce Questionnaire Targeted at Presidential Candidates WASHINGTON--(BUSINESS WIRE)--The Aspen Institute Health Stewardship Project will announce comprehensive health care reform principles that will enrich the health care reform debate and questions to help evaluate the proposed policies as candidates and policymakers begin to craft reform proposals. Consistent with the Institute’s history and ideals, the project has convened a bipartisan group of thought leaders to inform the nation’s efforts to transform health care. WHO: Christine Todd Whitman, former governor of New Jersey and founder of the Whitman Strategy Group Mark Ganz, president and CEO of Regence Blue Cross Blue Shield Robert Honigberg, chief medical officer of GE Healthcare Elizabeth Teisberg, author and associate professor at the University of Virginia Darden School of Business WHEN: Wednesday, Feb. 13, at 9 a.m. WHERE: National Press Club, Holeman Lounge 529 14th Street NW, Washington, DC 20045 CALL INFORMATION: Journalists unable to attend the news conference are welcome to take part via teleconference by calling 800-954-0696. RSVP: Please contact Noah Bartolucci, project communications director, at noah.bartolucci@aspeninstitute.org. A continental breakfast will be served at 9 a.m., and opening remarks will begin at 9:30 a.m. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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For more information or to have a media kit e-mailed to you, call Tedd Isham at 888.282.1765, send an e-mail to tedd@insurancebroadcasting.com, or visit www.insurancebroadcasting.com. 6. AIG Issues Statement on Super Senior CDS Loss Risk NEW YORK--(BUSINESS WIRE)--American International Group, Inc. (AIG) issued the following statement today: AIG continues to believe that the mark-to-market unrealized losses on the super senior credit default swap portfolio of AIG Financial Products Corp. (AIGFP) are not indicative of the losses AIGFP may realize over time. Based upon its most current analyses, AIG believes that any losses AIGFP may realize over time as a result of meeting its obligations under these derivatives will not be material to AIG. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Prudential Capital Group Has Appetite for Nearly $10 Billion in Private Placements -- The Group Originated Investments of More Than $9.5 Billion in 2007 -- CHICAGO--(BUSINESS WIRE)--Prudential Capital Group announced today that it originated $9.5 billion in private capital investments on behalf of institutional investors in 2007. The company, a source of private debt and equity capital for public and private companies, has an appetite for nearly $10 billion in private placements for 2008. The company is an investment business of Prudential Financial Inc. (NYSE: PRU). www.prudentialcapitalgroup.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. BearingPoint Predicts Rapid Expansion of Health Savings Accounts if Universal Health Coverage Programs are Adopted With Universal Healthcare a Central Topic of Election-Year Debate, BearingPoint Outlines Impact to Health Banking Constituents – Including a Strong Up-Tick in HSAs MCLEAN, Va.--(BUSINESS WIRE)--BearingPoint, Inc. (NYSE:BE), one of the world’s largest management and technology consulting firms, today released projections for the impact of the most widely touted health proposal across the presidential candidates’ platforms - universal coverage - on multiple health constituents. Universal coverage as described in the presidential health platforms, is being applied in California and Massachusetts and requires coverage for all (or nearly all) residents through mandates or incentives, for insurance usually supplied through employers of all sizes. In application, this would increase the offering of high-deductible health plans (HDHPs) and their associated financial accounts. According to BearingPoint’s forecast, the implementation of universal healthcare in the U.S. could further impact all health constituents, including increasing HSA projections beyond the current 2012 estimates of more than 20 million new accounts with more than $200 billion in assets. Many of the presidential candidates are currently discussing the possibility of universal health coverage programs in some form. Most are mentioning plans that may parallel the state initiatives in California and Massachusetts, wherein the employer is required to offer coverage or pay into a pool for employees to secure such coverage. BearingPoint believes that this type of initiative would increase adoption of HDHPs (a.k.a. “low-premium” health plans) as a primary coverage vehicle, enabling more people to open accompanying save/spend/invest accounts - HSAs. The increase in individual HSA accounts to more than 20 million and the growing trend of consumers paying out-of-pocket for medical expenditures are driving financial institutions to evolve. Insurers, banks, investment managers and card companies are seeking out new platforms, systems, practices and strategies to serve employers and consumers in their new healthcare spend/save/invest needs. “Universal coverage programs could significantly change the way Americans navigate and manage healthcare, leading consumers to require new financial accounts and tools to effectively spend/save/invest funds related to healthcare services,” said Kirsten Trusko, practice lead of the BearingPoint’s Banking Insurance Group. “As they enter unfamiliar territory, financial institutions across the country will depend on new platforms and systems to support the products, services and tools developed for consumers.” The Company’s views on the potential impact of universal healthcare program adoption, and therefore, multiplied HDHPs and HSAs include the following: Insurance Companies: A high percentage of the approximately 40 million uninsured Americans could be added to the commercial health insurance infrastructure, which is currently spending 30 percent of its revenue on administration due to outdated systems, poor interoperability and manual processes. Health plan providers may need to invest in revamped systems and processes to support the potential growth from the addition of 20 to 40 million more currently uninsured consumers. Health Providers: Traffic flow in the emergency room (ER) could become more manageable as additional people become insured, thus seeking primary care through traditional options rather than overusing ERs for non-urgent care. This could result in a reduction of write-offs for accounts receivable by hospitals and other health providers. Additionally, the increased “out-of-pocket” payments associated with traditional and HDHP plans could raise the need for real-time access to eligibility, co-pay, deductible status and pricing at the point of care. Banks: HDHPs and HSAs are already experiencing growth among the insured and are estimated to reach more than 30 percent of the commercially insured population by 2012. Add to that the 20 to 40 million Americans who could be entering the healthcare system from the uninsured ranks and the number of HDHPs and HSAs could climb. Banks and/or investment managers could expect new deposits in HSAs to grow to more than $200 billion in the next five years, creating far greater consumer need for streamlined methods of information access, spending, saving and health financial planning. Card Networks: Current 2012 estimates for healthcare spending are $4 trillion each year, according to the National Coalition on Healthcare. The volume of data and money clearing HSAs and related accounts will raise new requirements for security, fraud, data types/formats, timing and access to effectively serve consumers, providers, carriers and other stakeholders. Networks may work to assure systems (current or new) can accommodate industry changes and growth. Investment Banks: Creators of HSAs have referred to them as 401(k)s or IRAs for health. With the potential for more than $200 billion in new consumer deposits by 2012, investment managers will be overseeing more money and customers. However, while investment managers handling retirement funds are typically managing funds held until a retirement date, HSA funds may need to be accessed regularly or early in the event of medical need. Therefore, investment banks will need transactional capabilities beyond traditional investment platforms and may seek partnerships or acquisitions to secure them. Consumers: 87 percent of employers will offer consumer-directed healthcare accounts in the next years (including HSAs) with 50 percent of the HSA employers contributing money into these accounts. In order to navigate these new products, consumers will need tools to: 1) understand and compare quality and costs for healthcare services and 2) plan what they will need to save/spend/invest on healthcare, now and into retirement. Along with its in-depth market forecasts, BearingPoint has also developed comprehensive financial and technology models to help financial services companies understand and prepare for the possible changes in the healthcare marketplace that could result from the implementation of universal health coverage. Additional information about BearingPoint’s services and perspectives is available at www.BearingPoint.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. CIGNA Enhances Suite of Online Tools for Members; Personalized Claim Information Now Available to Disability Claimants PHILADELPHIA--(BUSINESS WIRE)--When an unexpected illness or injury strikes, the ability to conveniently access information can be invaluable. That’s why CIGNA is now providing personalized claim information online for covered employees who are out of work due to a disability. The new online tool is the latest addition to the company’s suite of consumer-friendly, Web-based information and transaction capabilities. An online consumer education kit, available at http://www.cigna.com/diam, which includes multi-media information about the importance of disability coverage. For more information about CIGNA Group Insurance's disability programs and services, visit http://www.cigna.com/our_plans/disability/index.html. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Mitsui Life puts IPO on ice amid market slump-sources Tue Feb 12, 2008 10:30am EST .TOKYO, Feb 12 (Reuters) - Mitsui Life Insurance Co., one of Japan's largest insurers, has postponed plans to list its shares in Tokyo due to weak market conditions, two financial industry sources familiar with the matter said. Mitsui Life applied to list on the Tokyo Stock Exchange last year and was expected to go through with a public offering by the end of the current fiscal year to March 31 to help solidify its financial base. But the insurer has decided that it would not be able to secure a justifiable level of funds given the weak stock market conditions, said the sources, who spoke on condition of anonymity. (Reporting by Emi Emoto, Taro Fuse and Nathan Layne) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Watson Wyatt Worldwide Announces Authorization to Repurchase Shares ARLINGTON, Va.--(BUSINESS WIRE)--Watson Wyatt Worldwide, Inc. (NYSE, NASDAQ: WW) announced that its board of directors has approved the purchase of up to $100 million of the Company’s class A common stock. This stock repurchase is in addition to the ongoing stock repurchase program initiated by the Company to offset dilution from employee benefit plans, under which 908,534 shares may still be repurchased under previous authorizations. The Company is confident in its ability to sustain strong cash flows and the financial flexibility to continue to execute its current business strategy. www.watsonwyatt.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. AIG Companies Introduce AIG Passport for Fidelity Insurance New Service Streamlines Purchase of Global Fidelity Coverage NEW YORK--(BUSINESS WIRE)--The AIG Companies® today introduced AIG PassportSM for Fidelity, a service created for multinational companies to facilitate the purchase of locally admitted fidelity insurance to cover their international operations and subsidiaries against loss related to white-collar crime and financial losses resulting from employee theft. AIG Passport for Fidelity is available for U.S.- and foreign-based companies, with separate policies covering commercial crime and financial institutions’ fidelity exposures. Both policies cover a wide variety of white-collar crime including loss of money, securities or tangible property resulting from employee theft. AIG Passport for Fidelity is available for new and renewal business, and will initially be available in 77 countries. For more information on AIG Passport for Fidelity, please contact AIGPassport@aig.com or visit http://www.aigpassport.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Fitch Publishes New Ratings Methodology for Insurance-Linked Securities CHICAGO & LONDON--(BUSINESS WIRE)--Fitch Ratings has published its methodology for rating insurance linked securities (ILS). This methodology represents the final version of a methodology first published as an exposure draft. ILS are structured finance transactions that involve insurance risk, and include a variety of life and non-life risks, such as risk from natural catastrophes like hurricanes and earthquakes, life insurance reserve risk, long-term disability reserve risk, catastrophic mortality risk, life insurance value in force (present value of net cash flows) and reinsurance recoverable risk. This methodology presents Fitch's approach to rating ILS in broad terms. It describes the core principles Fitch applies to all ILS. www.fitchratings.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. A.M. Best Special Report: Upgrades Outweigh Downgrades With Strong P/C Industry Results OLDWICK, N.J.--(BUSINESS WIRE)--Rating trends in the U.S. property/casualty industry have improved steadily since earlier this decade, when nearly 10% of rating actions resulted in downgrades of rated entities. The P/C industry’s strong underwriting and operating results have allowed successful insurers to strengthen capitalization in the past two years, resulting in rating upgrades outpacing downgrades in 2006 and 2007. Only 3%, or 43 of A.M. Best Co.’s rating actions for P/C insurers in 2007 were downgrades, compared with 9%, or 167 rating actions in 2003. Rating actions in 2007 in the commercial lines segment resulted in 44 upgrades, compared with 20 downgrades. In the personal lines segment, 42 rating actions were upgrades, compared with 21 downgrades. One U.S.-based reinsurer was upgraded in 2007, while two were downgraded. Seventy-four percent of rating actions in 2007 were affirmations – 52% related to companies with letter ratings and 22% actions in which NR-1 (Insufficient Data) ratings were converted to NR-5 (Not Formally Followed) ratings. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. A.M. Best Special Report: Despite the Turmoil, Positive Rating Trends Continued in 2007 OLDWICK, N.J.--(BUSINESS WIRE)--For the fifth year in a row, health rating upgrades easily outpaced downgrades in 2007, and for the first time in recent memory, life rating upgrades also were higher than downgrades. These positive rating trends could be short-lived, however. A.M. Best Co. is more cautious in 2008 than it has been in recent years due to economic and financial market instability, tight margins, slow growth in revenues and ongoing regulatory restraints. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. MIB Life Index Reports North American Life Insurance Activity Up 1.4% in December Application volume off 2.5% in 2007 BRAINTREE, Mass., Feb. 12 /PRNewswire/ -- North American application activity for individually underwritten life insurance was up +1.4% in December, year-over-year. For the year, 2007 application activity lagged that of 2006 by -2.5%, according to the MIB Life Index(SM). Despite early year first quarter declines, the 60+ age demographic was the only age group to post 2007 year-to-date gains, up +1.8%. Consistent with the trend, strong fourth quarter gains (up +7.8% Q3/Q4 2007) drew 2007's Q4 activity level with 2006 -- off a modest -0.5%. http://www.mib.com/lifeindex. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Medco Launches Medicare Part D Initiative to Promote ePrescribing Medco's Medicare Plan is first PDP to conduct ePrescribing Pilot Study FRANKLIN LAKES, N.J., Feb. 12 /PRNewswire-FirstCall/ -- As Congress considers a bill that would tie physicians' Medicare payments to their use of ePrescribing technology, Medco Health Solutions, Inc. (NYSE: MHS) today announced the launch of a national initiative to assist physicians of Medicare Part D patients in switching from hand-written to electronically generated prescriptions. The pilot program will also be used to study the impact of ePrescribing on patient safety, increased generic drug use and formulary compliance on the Medicare population. "There is strong evidence that ePrescribing reduces medication errors and increases the use of generic drugs and other lower-cost medication options. We are proud that Medco will be the first Medicare prescription drug plan (PDP) to research its impact on the Medicare population," said John Driscoll, president of new markets at Medco. "The program is designed to overcome the cost barriers that have prevented widespread physician adoption of this technology and to verify the benefits of ePrescribing for Medicare Part D beneficiaries." http://www.medco.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. ACA Financial Guaranty Announces Letters of Intent to Sell U.S. Asset Management Businesses NEW YORK--(BUSINESS WIRE)--ACA Financial Guaranty Corporation, a subsidiary of ACA Capital Holdings, Inc. (OTC BB: ACAH.PK), announced today that it has entered into a letter of intent with FSI Capital, LLC (“FSI Capital”) to sell its U.S. ABS and Corporate Credit CDO asset management business. FSI Capital, through its affiliates and subsidiaries, manages 17 CDOs totaling approximately $7.5 billion. The Company also announced today that it has entered into a letter of intent with Resource Financial Fund Management, Inc. (“RFFM”), a wholly-owned subsidiary of Resource America, Inc., and the parent company of Apidos Capital Management, LLC, to sell its U.S. CLO asset management business. Apidos Capital Management has closed 8 CLOs with approximately $2.8 billion of assets under management. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Wolters Kluwer Financial Services Introduces Financial Services Authority Handbook Online Tool Offers Comprehensive Coverage of the FSA’s Regulatory Rules and Developments WALTHAM, Mass.--(BUSINESS WIRE)--Wolters Kluwer Financial Services today announced the availability of the Financial Services Authority (FSA) Handbook, which offers all of the United Kingdom’s FSA regulations and rules online via CCH® Wall Street’s Compliance Resource Network (CRN) and Wolters Kluwer Law & Business’ Internet Research NetWork (IRN). For more information on subscribing to the Financial Services Authority Handbook, visit www.cchwallstreet.com, call 866-220-0297 or e-mail cch-wallstreetinfo@wolterskluwer.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. Second MetLife Study of the American Dream Shows Individuals Working Harder to Make Ends Meet and Think Economy is Heading in the Wrong Direction,... NEW YORK--(BUSINESS WIRE)--February 4, 2008--Over the past year, the public’ s economic mood has darkened considerably, with 86% of individuals now reporting that the U.S. economy is headed in the wrong direction, up from 64% just one year ago, according to a new study by MetLife. More than nine in ten individuals (93%) believe that Americans have to work as hard as or harder than ever just to get by, up from 87%. Yet, an intriguing dichotomy is emerging. Despite this collective pessimism about the outlook for the country, the American spirit of personal optimism and self-reliance is holding strong; 85% of individuals expect their own financial situation to be about the same or even better this year, compared to last year. www.metlife.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Workscape Announces General Availability of Compensation Planner and Performance Manager 6.3 - New versions drive tighter integration with ERPs such as SAP, Oracle/PeopleSoft and Lawson by offering Workscape SmartSync for Dynamic Data Updates - MARLBOROUGH, Mass. (February 11, 2008) - Workscape, a proven provider of outsourced benefits, compensation and performance management solutions, today announced the general availability of the latest versions of its enterprise Compensation Planner and Performance Manager talent management solutions. www.workscape.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Swiss Re Introduces National Excess Liability Coverage for Insurance Agents Overland Park, 12 February 2008 –Swiss Re’s Commercial Insurance today announced the national launch of its Excess Liability coverage for Insurance Agents and Brokers Professional Liability. Eligible risks include agencies with primary coverage through various errors and omissions carriers. For those seeking to apply for this coverage, please refer to www.independentagent.com/eocontact for your local IIABA E&O contact. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Mizuho Financial Group Selects Fortent to Provide Anti-Money Laundering Solution Tokyo and New York – February 12, 2008 – Risk and compliance specialist Fortent announced today that Mizuho Financial Group will implement Fortent's anti-money laundering (AML) solution throughout the bank’s domestic Japanese operations. Mizuho Financial Group (TSE: 8411; NYSE: MFG) is one of the world’s largest banks, with assets of close to $1.3 trillion. www.fortent.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. BASIC and HRC join to provide expanded Human Resource Services to employers nationwide. Portage, Michigan, February 12, 2008 -- On January 1, 2008, BASIC and HRC ~ Employer Service Solutions (HRC) joined forces to provide a powerful range of benefits administration and Human Resource services for employers of all sizes. With this transition, BASIC welcomes the HRC employees including A. Joseph Aitchison as Vice President responsible for HR Services and BASIC Payroll Plus. www.basiconline.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Improved Progressiveagent.Com Makes It Even Easier For Independent Agents To Attract And Retain Customers Web site drives leads to agencies, provides self-service portal for Agency customers MAYFIELD VILLAGE, Ohio (Feb. 12, 2008) – Think of the new progressiveagent.com like a virtual traffic controller. It directs new customers to agents and helps existing customers make simple policy changes. www.progressiveagent.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Hedge Funds’ Biggest Decline Since July 2002 Greenwich, CT, USA, February, 2008 – The Greenwich Global Hedge Fund Index (“GGHFI”) fell -2.44% in January amid severe declines in global equity markets; the S&P 500, MSCI World Equity, and FTSE 100 indices fell by -6.0%, -7.71%, and -8.94%, respectively. During January, 79% of hedge funds outperformed the S&P 500, with 33% ending the month in positive territory. “Despite January being hedge funds’ weakest month since July 2002, hedge funds fell far less than equities,” notes Margaret Gilbert, Managing Director. “This ‘downside protection’ is particularly apparent over the last twelve months with hedge funds returning +7.14%, or outperformance of +9.45% over the S&P 500 which fell -2.31% during this period.” Past performance and indices construction rules for all Greenwich Hedge Fund Indices may be viewed at www.greenwichai.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Xtract Research Announces Credit Agreement Service as Subprime Crisis Spreads To Corporate Debt Ridgefield, CT -- February 11th 2008 -- Xtract Research LLC, www.xtractresearch.com , is pleased to announce the official launching of its Credit Agreement Service as a follow on to its widely used Indenture Service. This service provides access to a highly organized database of Credit Agreements, Amendments, Cross Collateral Agreements and other public loan documents. Xtract's analysts bookmark critical key terms of the loans, key covenants, default events, leverage ratios, liens, pledge agreements and more, to provide easy navigation and fast analysis. In addition, users have the ability to add notes, highlights or bookmarks to the document as well as upload additional documents to create their own virtual proprietary database. The investor can focus on the value added analytical process, not on searching for documents. Xtract's Indenture service is widely used by institutional investors in the fixed income markets, particularly convertible bonds. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. PIA Commissions Comparative Rating Guide GLENMONT, N.Y.—The Professional Insurance Agents of Connecticut, New Hampshire, New Jersey and New York State have commissioned a handbook to help independent agents navigate the myriad comparative-rating options for their businesses. The associations’ members now have free access to An Agency Guide to Comparative Rating, a 93-page guide written by automation and sales expert, Steve Anderson, of the Anderson Network, and executive editor of The Automated Agency Report (well-known as TAAR). For PIA-member access to the agency guide, visit PIA’s Web site at www.pia.org/IRC/qs/show.php?q=90545 or contact PIA’s Industry Resource Center at (800) 424-4244. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. 2008 ODG Product Line Released February 11, 2008 – Encinitas, CA – Work Loss Data Institute (WLDI) announces the release of the 2008 ODG product line, including the 13th annual edition of Official Disability Guidelines and the 6th annual edition of ODG Treatment in Workers’ Comp. www.worklossdata.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. MassMutual Demonstrates Commitment to Retirement Advisors with New Elite Advisor Program SPRINGFIELD, Mass., Feb. 11 /PRNewswire/ -- MassMutual's Retirement Services Division is introducing a new Elite Advisor Program that recognizes loyal retirement plan advisors who consistently strive to provide outstanding service to MassMutual retirement plans. http://www.massmutual.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. A 10-Year Bear Market Begins The Day You Retire. Would Your Money Last 30 Years? “The ultimate worst scenario, though unlikely, could happen,” says Lyn Dippel, CFP, a financial planner with Financial Advantage, Inc., a fee-only firm in Columbia, Md. Financial Advantage uses a “bear-market endurance model” to answer the question above. The model assumes a 2% annual rate of return on a balanced portfolio during the first ten 10 years of retirement. In contrast, its standard 30-year retirement cash-flow model uses a 7% return on investments and a 3% inflation rate. www.financialadvantageinc.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 33. And The Winners Are… The Top Ten Insurance Films The I.I.I. Creates Its Own Academy Awards NEW YORK, February 11, 2008 — An avaricious oil man. A drug deal gone bad. Teen age pregnancy. Ethically challenged attorneys. A tragedy of misunderstandings. All worthy subjects for the best picture at this year’s Academy Awards. But not one about insurance? The Insurance Information Institute (I.I.I.) has corrected this oversight with its own category: the top ten insurance films of all time. The films selected by the I.I.I. all feature the subject of insurance in a starring role. Some of the I.I.I.’s top insurance movies have even won or been nominated for an actual Academy Award or two. In order of the Institute’s personal preference, the winners are: Double Indemnity (1944) Memento (2000) The Fortune Cookie (1966) The Killers (1946) Save the Tiger (1973) The Rainmaker (1997) The Thomas Crown Affair (1968, 1999) Sicko (2007) To Catch a Thief (1955) Along Came Polly (2004) For the full list, including cast, description and quotes, go to Top 10 Insurance Films. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 34. E & K Continues Expansion – Opens Ocean County Office EATONTOWN, N.J. — E & K Agency, Inc., Eatontown, announces the opening of its new Ocean County location in LAKEWOOD. The opening of the Lakewood office in Leisure Center on the corner of Airport Road & Route 70 West advances E & K’s strategic vision of expanding consumer access to a wide selection of property and casualty insurance products. www.e-kinsurance.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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