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New York To Revive Insurance Exchange NEW YORK, Feb 27 (Reuters) - New York
plans to revive an insurance exchange similar to Lloyds of London, the
state's insurance regulator said on Wednesday. 1. Swiss Re Q4 Profit Seen Evaporating, Subprime Eyed Wed Feb 27, 2008 1:05am EST ZURICH (Reuters) - Net profit at Swiss Re (RUKN.VX: ) is expected to all but disappear in the fourth quarter after its writedowns last year, and markets are keen to see whether the credit crisis will further hurt the world's largest reinsurer. It will also be asked to explain its decision to cede 20 percent of its non-life business to billionaire Warren Buffett's Berkshire Hathaway (BRKa.N: ) investment vehicle. The so-called quota share treaty, in which the two companies share premiums and claims payouts, has raised the question why Swiss Re is ceding so much of its business to a rival with a reputation for spending his money wisely. Swiss Re shocked with a 1.2 billion Swiss franc ($1.1 billion) writedown on two credit default swaps in November, becoming the sector's first major victim of the credit crisis, and analysts are wondering whether more will follow. "Swiss Re made clear that further downgrades in the client portfolio are possible," WestLB said in a recent note. "(It) has a large structured product and corporate bond exposure as proprietary investments with additional writedown potential," the bank added. The writedowns hit Swiss Re's financial services unit, which plays a pivotal role in Chief Executive Jacques Aigrain's plans to broaden the reinsurer's business outside its bread-and-butter selling of life and non-life reinsurance policies. The average expectation in a Reuters poll of 15 analysts was for net profit of 2 million francs, almost entirely eroding its 1.3 billion francs gains in the year-ago period. Swiss Re shares have held up after a trough at 63.75 francs -- their lowest in almost five years -- only one day before news of the deal with Buffett, who also bought a 3 percent stake in Swiss Re. Insurance shares have rallied in recent weeks, helped by hopes of a rescue plan for U.S. bond insurer Ambac (ABK.N: ), which landed in trouble when the value of many of the complex credit instruments it guarantees collapsed. For full details of the poll, click on [nL25442646] (Reporting by Douwe Miedema; Editing by David Hulmes) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Buffett's New Insurer Deals To Get "AAA" - S&P Tue Feb 26, 2008 2:27pm EST NEW YORK (Reuters) - Standard & Poor's said on Tuesday it stands ready to begin assigning the top "AAA" rating to transactions insured by a new unit of Warren Buffett's Berkshire Hathaway Inc (BRKa.N: ). Berkshire's new insurance arm is one of the few bond insurers that can offer borrowers and investors an unblemished top "AAA" rating, and market participants have been eagerly waiting to see how rapidly it will expand into munis. One of the new businesses Berkshire Hathaway is winning is from tender option bond trusts, some of which are eager to replace troubled insurers, Jeffrey Previdi, a Standard & Poor's analyst, told Reuters. These leveraged trusts earn high returns by selling lower-yielding floating-rate paper to money market funds and investing the proceeds in higher-yielding long-term munis, which are often insured. Money market funds fear that these tender option bonds will not be eligible for their portfolios if bond insurers are downgraded, so trusts are looking for solutions, including solid insurers. The new insurer, Berkshire Hathaway Assurance Corp., only started insuring municipal bonds in January. Moody's Investors Service on Friday said it has rated 120 secondary market muni bond transactions backed by Berkshire in the last two weeks. Berkshire so far has not insured any bonds in the primary market, but that could change, Damien Magarelli, Standard & Poor's analyst, told Reuters. "It's a very active situation. There are a lot of potentials out there," Magarelli said, adding the agency has not yet rated any Berkshire-insured transactions. The new insurer is not rated. The top rating on the deals it guarantees is justified by "significant contractual commitments including a contingent payment insurance policy and a financial enhancement letter from NICO," Standard & Poor's said in a statement. The rating agency also said in a statement that top shelf ratings of Berkshire Hathaway and its subsidiary National Indemnity Co. (NICO) will not be affected by the new bond insurance business. (Reporting by Anastasija Johnson and Joan Gralla; Editing by James Dalgleish) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. U.S. SEC Watching Soft Dollar Deals "Like A Hawk" WASHINGTON, Feb 26 (Reuters) - The U.S. Securities and Exchange Commission is watching "soft dollar" transactions like a hawk because of the potential for conflicts of interest and abuse, agency Chairman Christopher Cox said on Tuesday. In soft dollar transactions, money managers pay inflated commissions to get favors such as free stock research from brokerages. In some cases, soft dollars have been used to pay for entertainment and college tuition for the children of money managers. "We will use the full extent of our authority at the SEC to ensure that the potential for abuse is minimized," Cox told reporters after a Congressional hearing. Last year, Cox asked Congress to reform the laws that allow soft dollar transactions, but his appeal has not gained much traction among lawmakers. "I have inferred that Congress is not going to legislate on this topic this year," Cox said. Earlier this month, the SEC floated a proposal that would require investment advisers to provide clients with online brochures describing their services, fees and conflicts of interest in a simple readable format. The proposed rule would require more than 10,000 advisers to provide clear and "meaningful disclosure," including information about soft dollar deals. (Reporting by Rachelle Younglai, editing by Richard Chang) © Reuters 2008 All rights reservedReturn to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Pension Funds Have Seen Fees Spiral Since 2002 Wed Feb 27, 2008 8:37am EST LONDON, Feb 27 (Reuters) - Pension funds are paying higher fees than five years ago to outside investment managers, but are not necessarily getting market-beating performance, according to research on Wednesday from consulting firm Watson Wyatt. Fees now average 110 basis points a year, compared with 65 basis points in 2002, Watson Wyatt said. Much of this rise is due to high fees paid to investment managers of alternative assets such as hedge funds, private equity and real estate, as pension funds look for market-beating "alpha" returns. But pension funds are often not getting value for money, Watson Wyatt said. "Investors have naturally assumed that they are paying these fees to reward manager skills, but in many cases they are wrong," said Paul Trickett, European head of investment consulting at Watson Wyatt. Instead of market-beating performance, many funds have simply got "leveraged beta" performance, where investment managers have geared up their portfolios to boost what are simply market-average returns when markets have been strong. Worse, many pensions funds have unwittingly paid away much of the excess return they have earned in higher management fees, said Watson Wyatt. Investment management fee agreements, which are generally poorly designed and tipped in managers' favour, should be changed, Watson Wyatt said. "Annual performance fees can amount to a free option for the manager," it said, "as the upside is uncapped, but the downside is limited to the base fee." An ideal fee structure should have a low base fee, be calculated over three to five years rather than annually and should include hurdles, such as beating Treasury bills by a certain percentage, Watson Wyatt said. (Reporting by Simon Challis, editing by Will Waterman) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Insurance costs for financial execs rising-Aon Wed Feb 27, 2008 10:26am EST NEW YORK, Feb 27 (Reuters) - Aon Corp (AOC.N: ), one of the world's largest insurance brokers, said on Wednesday the cost of directors and officers insurance for financial institutions rose dramatically in the fourth quarter, driven higher by concerns over the subprime mortgage crisis. Measured on a price-per-million basis, directors and officers insurance costs for banks and securities firms increased 18.66 percent in the quarter versus a year earlier, Aon said. In comparison, firms operating outside the financial services sector experienced an 18.99 percent decrease in the costs during the same period. Financial institutions were hit particularly hard because of the subprime crisis, Aon said. Directors and officers liability insurance -- referred to in the industry as D&O -- is a type of coverage bought by corporations to protect executives in the case of suits against the company. Aon said during the fourth quarter, the S&P 500 financial sector saw a 21.62 percent drop in the value of a broad index of financial institutions, leading D&O underwriters to view the sector as a riskier bet, pushing rates higher. Insurers typically raise rates for policies when there is indication that losses could rise. (Reporting by Lilla Zuill; editing by Jeffrey Benkoe) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. AIG Seen Posting Loss On Write-Down Wed Feb 27, 2008 9:51am EST By Lilla Zuill NEW YORK (Reuters) - American International Group (AIG.N: ), the world's largest insurer, is expected to report a quarterly loss on Thursday, with crippled mortgage investments taking a $5 billion bite out of its derivatives portfolio. Analysts' average forecast is a loss of 18 cents a share, according to Reuters Estimates. A quarterly loss -- which would be only the second since the 1970s for AIG -- would follow the insurer's disclosure earlier this month that its auditors had found a "material weakness" in the way it accounted for some financial instruments tied to mortgages. As a result, AIG slashed the value of a credit default swap portfolio by $4.88 billion through November. The move rattled investor confidence in Chief Executive Martin Sullivan, who was brought in about three years ago after an accounting scandal unseated CEO Maurice "Hank" Greenberg, who had steered the insurer for nearly four decades. (Editing by John Wallace) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Old Mutual Sees No Losses From U.S. Monoline Exposure Wed Feb 27, 2008 3:38am EST LONDON (Reuters) - Insurer Old Mutual (OML.L: ) had $583 million of exposure to U.S. bond insurers at the end of last year, around 2.3 percent of the investment portfolio of its U.S. life division, but its finance director said he did not expect losses. "We have $90 million (of) direct exposure, the vast majority of that (relates) to the two largest insurers which had their ratings confirmed on Monday," finance director Jonathan Nicholls told reporters on a conference call after the group reported 2007 earnings. "If you want to be very pessimistic, you could say the whole lot will go bust for $583 million, but the vast majority is still rated AAA and the underlying bonds themselves are investment grade," he said. "We are watching it, but we are not anticipating any losses." Separately, Chief Executive Jim Sutcliffe confirmed that the proceeds from a planned sale of its majority stake in general insurer Mutual & Federal (MAFJ.J: ) would be handed back to shareholders via a buyback. (Reporting by Clara Ferreira-Marques) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. UK Financial Watchdog Says Cheap Credit Era Is Over Wed Feb 27, 2008 4:36am EST LONDON (Reuters) - The head of Britain's Financial Services authority warned on Wednesday that the age of cheap credit may be over. In an interview on BBC radio, Hector Sants said he did not think financial markets would return to where they were before the global credit crunch which has caused turmoil across world markets in recent months. "I don't think markets are ever going to return to the way they were," Sants said. "The idea that at some point they will go back to normal, I think, is a misnomer. "The new normal will be different from the way that markets behaved in the past." (Reporting by Kate Kelland; Editing by Ruth Pitchford) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Baby Boomers Confused About Medicare, According To NAIC Survey What Retirees Need to Know About Medicare, Health Insurance Options KANSAS CITY, Mo. (Feb. 26, 2008) — The first waves of baby boomers turn 62 this year and begin claiming Social Security benefits. And, according to new research from the National Association of Insurance Commissioners (NAIC), many are confused about their post-retirement health insurance options, including their Medicare eligibility. The NAIC’s national survey of 377 baby boomers — Americans born between 1946 and 1964 — found that only 36 percent correctly knew that Medicare eligibility begins at age 65. Twenty-one percent thought Medicare coverage began at age 62; 9 percent said age 67; 6 percent said age 59½; and 28 percent said they were unsure of the age. The NAIC survey also found: A large majority of baby boomers — 84 percent — said that access to health insurance was important when choosing a retirement date. However, only 43 percent said that Medicare eligibility was an important factor in determining when they would retire. But nearly half — 48 percent — said they expected to use Medicare to cover their healthcare needs during retirement. This number increased to 57 percent among older baby boomers, those 55–62 years of age. In addition to these findings, the NAIC survey also revealed a considerable lack of familiarity with Medicare’s coverage options. Sixty-six percent of respondents said they were “not very familiar” or “not at all familiar” with options such as Medicare Part B, Medicare Advantage plans, Medicare prescription drug coverage and Medicare supplement (Medigap) insurance. This number jumped to 72 percent among younger baby boomers, those 44–54 years of age. A high level of concern about Medicare’s viability also added to the confusion. Eighty-two percent of those surveyed said they were concerned that future funding for Medicare might not be sufficient to provide the healthcare services they anticipate needing throughout their retirement. “Clearly, there is much confusion and concern among baby boomers regarding their future access to Medicare,” said NAIC President and Kansas Insurance Commissioner Sandy Praeger. “Many boomers incorrectly think Medicare coverage is available at age 62, when they initially become eligible for Social Security benefits. With growing concerns about health insurance costs and access, these aging members of our society need to be better educated about Medicare’s timing and entitlements so that they can make informed retirement decisions.” The NAIC offers tips and considerations through its public education program, Insure U – Get Smart About Insurance, at www.insureUonline.org. “Baby boomers need to get smart about their health insurance needs when planning for retirement,” said NAIC Executive Vice President and CEO Catherine J. Weatherford. “Consumers should take the time to familiarize themselves with Medicare by visiting the federal government’s Web site, www.medicare.gov. We also encourage baby boomers to visit the NAIC’s Insure U Web site, www.insureUonline.org, to get additional information on their health insurance needs.” Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Success Metrics Sponsors LIMRA’s Distribution Conference Leader in Sales Productivity Solutions for Financial Services to Sponsor Leading Insurance Sales Conference SAN FRANCISCO--(BUSINESS WIRE)--Success Metrics, the leading provider of sales force productivity solutions to the Financial Services industry, today announced its sponsorship of LIMRA’s Distribution Conference in San Antonio. “This event is a great forum to engage with the leaders of the insurance industry,” said Joseph A. Murphy, Success Metrics’ Senior Vice President. “We are committed to helping financial services firms drive revenue, and our participation in this event will give us an even deeper understanding of the needs of the insurance industry.” Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Allstate Increases Quarterly Dividend, Announces New $2 Billion Stock Repurchase Program NORTHBROOK, Ill.--(BUSINESS WIRE)--The Allstate Corporation (NYSE: ALL) today announced a quarterly dividend of forty-one cents ($0.41) on each outstanding share of the Corporation’s common stock, payable in cash on April 1, 2008 to stockholders of record at the close of business on March 14, 2008. Today’s announcement represents a 7.9% increase over the first quarter 2007 dividend and marks the 14th consecutive year that Allstate has increased its dividend. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Aviva Delays Date for Response on Surplus Assets Wed Feb 27, 2008 1:05am EST LONDON (Reuters) - The UK arm of insurer Aviva (AV.L: ) has agreed to wait until early March for a response on a third cash offer of compensation made to policyholders to allow the group to reallocate surplus assets in two funds. The deadline, extended from late February, brings a fresh delay to already drawn-out negotiations between Aviva and an independent advocate hired to defend policyholder interests. (Reporting by Clara Ferreira-Marques; Editing by David Cowell) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Aegon Says to Acquire Turkish Insurer Ankara Tue Feb 26, 2008 3:01pm EST AMSTERDAM (Reuters) - Dutch insurer Aegon (AEGN.AS: ) said on Tuesday it had agreed to buy Turkish insurer Ankara Emeklilik from Polis Bakim ve Yardim Sandigi as it expands into the fast-growing Turkish life insurance and pension market. "The country, with its population of 74 million, has a low life insurance penetration and the private pensions market has an attractive growth potential," Aegon said in a statement. It did not provide financial details. Ankara Emeklilik, with more than 54,000 pension fund members, manages about 35 million euros ($51.87 million) in assets and has a distribution deal with Turkey's Sekerbank SKBNK.IS, Aegon said. Aegon, one of Europe's largest insurers, has been expanding into emerging markets to boost growth. It expects to more than double its number of pension fund members in central and eastern Europe to 2.5 million by 2010. Aegon said the Ankara Emeklilik transaction is subject to Turkish regulatory approval and is expected to close in the first half of 2008. (Reporting by Catherine Hornby and Foo Yun Chee; Editing by David Cowell) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Rating Firms Need More Robust Steps - EU's McCreevy Wed Feb 27, 2008 8:42am EST BRUSSELS, Feb 27 (Reuters) - Credit rating agencies must take stronger steps than they have proposed so far to help restore confidence in financial markets, the European Union's top market regulator, Charlie McCreevy, said on Wednesday. "Several proposals that I have seen in recent weeks from the credit rating agencies constitute worthwhile first steps towards addressing some of the issues that need addressing," McCreevy told a hearing in the European Parliament. "But some more robust steps than currently envisaged by the industry will be necessary to ensure confidence in the long term in the objectivity and independence of the credit rating process," he said. (Reporting by Huw Jones) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. TPG Sees Deal Drop Ahead, Months For Debt To Clear MUNICH, Feb 27 (Reuters) - Private equity firm TPG's [TPG.UL] founding partner David Bonderman predicted on Tuesday a 40 percent drop in deals as the credit crunch hits, and said he thought it would take the rest of the year for banks to clear their backlog of debt. The forecast comes after two bumper years for private equity deals, which halted abruptly in the summer when the credit crunch made large leveraged buyouts near impossible to finance. "You can kiss goodbye to the big publics-to-privates in the United States," said Bonderman, at a private equity conference in Munich, adding he predicted a 40 percent fall from the $900 billion or so of deals done last year. (Reporting by Megan Davies; editing by Dave Zimmerman) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. A.M. Best Maintains Stable Outlook on Reinsurance Sector - Solid Earnings, Healthy Balance Sheets and Enhanced ERM Are Key Drivers OLDWICK, N.J., Feb. 27, 2008—A.M. Best Co. is maintaining a stable outlook in 2008 for the global reinsurance sector for the second consecutive year. The affirmation of the sector’s outlook reflects generally strong balance sheets, continued improvements in enterprise risk management (ERM) and general earnings momentum through 2007. This current outlook implies that the majority of 2008 reinsurer rating actions are likely to be affirmations with stable outlooks and only a modest amount of anticipated rating or outlook changes. However, as assessed at the January 1, 2008 renewal, price deterioration, competition and increased cedant retentions are drivers of concern relating to the sustainability of the sector’s long-term operating performance. The global reinsurance sector has benefited from two years of moderate catastrophe losses and solid operating earnings. The capitalization of the sector and the majority of its participants are currently healthy when just a few years back, many reinsurers were struggling to find capital. In large part, improved loss reserve adequacy is apparent for several companies benefiting from the hard market years and intensified risk management strategies. Though still nagging a handful ofcompanies, legacy issues from soft market years continue to subside. Nonetheless, with rate declines in both property and casualty business lines, it is unlikely that current reserving levels can be maintained or be relied upon to boost earnings in outward years. Depending on catastrophe activity, it is A.M. Best’s expectation that the sector is poised for a profitable 2008 given that technical rates of most major lines of business are still profitable to this point. Investment income fueled by strong cash flow should also support earnings. A.M. Best believes that 2008 results will reflect more accurately current market trends as margins are expected to moderate. Barring a mega-catastrophe that removes enormous amounts of industry surplus from the market, A.M. Best does not expect an improvement in pricing levels for some time. The success factors for navigating these rough waters are for reinsurers to maintain underwriting controls and standards to determine pricing adequacy and maintain discipline in a challenging environment. History indicates these are not easy tasks to accomplish. A critical factor of managing the market cycle is capital management. While share repurchase programs and increased dividends have given a sizeable portion of accumulated earnings back to stakeholders, there is considerable pressure on reinsurers to achieve targeted return on equity. Many carriers since have established diversified operating platforms, while newer formations have looked to build underlying capabilities to manage the cycle and deploy capital. A.M. Best expects that the merger and acquisition buzz will continue through 2008 with the possibility of more deals. Despite the improved position of the reinsurance sector, challenges remain in light of the increased capacity of industry participants, new entrants and forms of capital. It is no longer easy to ignore the reality of the capital markets as an alternative solution for primary markets. After paying high reinsurance costs over many years, financially improved cedants are more sophisticated and are assessing how much reinsurance coverage to buy in more economic terms. Although the reinsurance sector’s capital position is strong, recent history indicates the pain that soft casualty markets can inflict on required capital year after year, and how large-scale catastrophes can remove massive amounts of capital from the market in the blink of an eye. A.M. Best believes that 2008 will be an important year for the global reinsurance industry, as it can influence the direction of the market for years to come. A.M. Best has witnessed the reinsurance sector’s embracement of ERM practices and the subsequent improvement of data capture risk modeling and correlation analysis. However, it is important to note that ERM enhancements have not been tested by a mega-catastrophic event as two category five hurricanes did strike landfall in 2007, but the dynamics of these storms—to a great extent—limited insured losses. The true success of reinsurers achieving value through ERM is the ability to adhere to its role through all phases of the pricing cycle. If this can be achieved, perhaps this soft market will not be as painful as the previous one. www.ambest.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. A.M. Best Maintains Stable Outlook on U.S. Commercial Lines Market OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has completed its assessment of the U.S. commercial market and continues to view the outlook as stable for 2008 despite the ongoing soft period in the cycle. Commercial lines carriers have bolstered their positions after robust earnings in recent years by investing in price monitoring tools, predictive modeling, distribution channels and claims systems. Additionally, the segment has embraced enterprise risk management, and the extension and permanency of the federal terrorism backstop have removed uncertainty regarding this exposure. While profits likely will deteriorate in the coming years, the commercial lines segment generally has positioned itself to meet the challenges of changing market conditions throughout the cycle. Those companies that are able to execute their business plans by adhering to underwriting fundamentals and placing profit first rather than giving in to the demands of the market will thrive in 2008 and beyond. The veterans of the industry have had plenty of experience operating during soft market conditions, which appear to have become the norm rather than a bump in the cycle. www.ambest.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. U.S. gives Blackstone OK to acquire GSO Capital Tue Feb 26, 2008 11:21am EST WASHINGTON (Reuters) - U.S. antitrust authorities have given private equity firm Blackstone Group LP (BX.N: ) approval to buy hedge fund GSO Capital Partners LP for up to $930 million in cash and stock, the Federal Trade Commission said on Tuesday. Approval of the deal between Blackstone, which says it manages $98 billion in assets, and GSO, was announced in a periodic listing of approvals issued by the FTC. GSO runs a hedge fund, mezzanine fund and senior debt fund and has about $10 billion in assets under management. Blackstone said last month that it would initially pay $620 million in cash and stock for GSO, plus up to $310 million over the next five years if GSO hit specified earnings targets. Blackstone went public in June at $31 a share and peaked at $38 last year, but its shares suffered when the credit crunch hit. It up 3 percent to $16.43 in late Tuesday morning trading on the New York Stock Exchange. GSO has been involved with a number of recent deals. It was among the lenders for Hellman & Friedman's $1.8 billion leveraged buyout of Goodman Global Inc in October. The hedge fund also sold a minority stake to Merrill Lynch & Co Inc (MER.N: ) last May. A source familiar with the situation said the stake Merrill took was about 20 percent. Assuming a $930 million price for GSO, Merrill could reap about $186 million through Blackstone's acquisition of GSO. Merrill is selling its stake through the deal. (Reporting by Diane Bartz; Editing by Tim Dobbyn) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Blue Shield of California Foundation Awards $13.1 Million to Improve Patient Safety and Access to Health Care Across California Nearly $6 Million for Major Statewide Initiative to Fight Hospital Acquired Infections; More than $6 Million Will Provide Premium Support for 8,300 Children SAN FRANCISCO--(BUSINESS WIRE)--Setting a record for its quarterly giving, Blue Shield of California Foundation (BSCF) today announced the award of $13.1 million in grants to nonprofit organizations and programs to improve the quality of patient care through health technology and to expand health insurance for children who do not qualify for public programs. Nearly half of the money, $5.75 million, will be used to expand the foundation’s groundbreaking program to dramatically reduce the number of hospital-acquired infections (HAIs). After seeing remarkable success in its nine-hospital pilot project, BSCF will use the grant announced today to expand its innovative California Healthcare-Associated Infection Prevention Initiative (CHAIPI) to at least 100 hospitals. www.blueshieldcafoundation.org www.mylifepath.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. AR Growth Finance Corp. Acquires 95% of Probenefit S.A., an Argentine Pension, Insurance and Credit Card Company MIAMI--(BUSINESS WIRE)--AR Growth Finance Corp. (“AR Growth”) (Pink Sheets:ARGW) announced today that it has acquired 95% of Probenefit S.A. (“Probenefit”) (the “Acquisition”). Probenefit is a privately owned Argentine based holding company comprised of pension and insurance companies as well as a consumer credit card company. Probenefit had approximately $19.2 million in revenue and $3.2 million in profits for the year ended December 31, 2007, operating as a holding company for the following Argentine companies: (1) Unidos S.A. AFJP, a private pension plan management company, (2) Trayectoria Compañía De Seguros De Vida S.A., a life insurance company and (3) Nexo Emprendimientos S.A., a consumer credit card company. Probenefit has just acquired control of additional pension and insurance companies during February 2008. After these acquisitions, its pension related companies will have approximately $800 million in assets under management and its insurance companies approximately $250 million in assets under management. Further, it provides its financial services through 1,000 employees in 50 offices to over 500,000 clients across Argentina. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. LifeLock Campaign Targeted to Bring Awareness to Identity Theft Issues Campaign Tour SpendsThe Day in Florida’s Capital TEMPE, Ariz.--(BUSINESS WIRE)--LifeLock®, the first U.S. identity theft protection company and the recognized industry leader in the prevention of identity theft, is initiating the first ever “Strike Back - Defeat Identity Theft Now,” a grass roots campaign to bring attention to the serious issues that affect consumers as a result of identity theft. The campaign tour will make stops in Tallahassee including: the Florida State University College of Business and the Oglesby Union at Florida State University. LifeLock will travel for two weeks and log 6,620 miles stopping in numerous markets along the East Coast. Along the campaign trail, LifeLock CEO Todd Davis, accompanied by identity theft prevention ambassadors and former victims, will host events and seminars to shed light on the growing crime of identity theft. Attendees will have the opportunity to sign a petition requesting Congress to enact more stringent laws to protect consumers from losses of data, problems of identity theft, and prosecute the perpetrators of the crime. Signatures will be delivered to congressional leaders in Washington, DC on Thursday, March 6. “Identity theft is the fastest growing crime in the U.S. and it’s crucial that it be taken seriously by both consumers and government alike. This campaign is LifeLock’s way of getting the word out about this crime in order to make a difference,” said LifeLock CEO Todd Davis. This mobile tour will travel the Southeast making stops in Miami, Hollywood (FL), Delray Beach (FL), Orlando, The Villages (FL), Jacksonville, Tallahassee, Atlanta, Columbia (SC), Charlotte, Winston-Salem, Richmond, Annapolis and Washington DC. Tour stops will incorporate a wide variety of locations from college campuses, corporate headquarters and senior living facilities to festivals, financial institutions and elementary schools. www.lifelock.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Zynex Announces Its Plan to Become Listed on the American Stock Exchange LITTLETON, Colo.--(BUSINESS WIRE)--Zynex Medical Holdings, Inc. (OTCBB:ZYNX), a provider of pain management systems and electrotherapy products for medical patients with functional disability, announces its plan to obtain a listing on the American Stock Exchange (AMEX). Zynex hopes to meet the listing requirements of AMEX during 2008. Thomas Sandgaard, CEO, commented: "We believe it will be in the interest of all our shareholders to have the stock traded on a stock exchange, such as the AMEX. Such listing allows for the opportunity to attract the attention of more potential investors, analysts and brokers. There are brokers and bankers who have policies currently preventing them from dealing with a stock unless listed on a stock exchange such as the AMEX.” www.zynexmed.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. INSURANCE NEWSLINK Articles Recent articles added to INSURANCE NEWSLINK, the worldwide, strategic concise intelligence database of over 30,000 articles including interviews, uniquely analyzed by company, market, research, regulatory, and IT topics. Please click here for a content overview and a 15-day free review. THE TIME EFFECTIVE WAY TO STAY AHEAD
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. UBS Head Asks Shareholders To Okay Cap Injection Wed Feb 27, 2008 8:43am EST BASEL (Reuters) - UBS chairman Marcel Ospel, braving investor fury over huge subprime losses, said it was "absolutely necessary" for shareholders to back a 13 billion Swiss franc ($11.94 billion) capital injection from Singapore and an unidentified Middle East investor. "Today we need your backing for a massive strengthening of our capital base," Ospel told an extraordinary shareholders' meeting. "We believe that this measure is absolutely necessary." Ospel has survived at the helm of the giant Swiss bank after culling top managers over the past year as UBS chalked up $18 billion in charges following disastrous investments in U.S. subprime mortgages. The writedowns, which led the bank to unveil its first full-year loss in 2007 in more than a decade, have forced UBS to seek the emergency injection to repair its severely depleted capital ratios. Despite facing calls for his resignation, Ospel said he would not "thoughtlessly relinquish" his responsibilities. "I intend to ensure that UBS gets back on the road to success." He also said UBS would redouble efforts to cuts it exposures to mortgage-backed securities and derivatives. The bank had misjudged market trends in subprime and had then failed to react adequately, said Ospel. "We judged certain markets wrongly. We subsequently noticed this error, but due to the rapid evolution of events were unable to react in time." Earlier Thousands of shareholders converged on a sports arena in Basel for an emergency assembly which started at 0900 GMT. The city's green trams were packed as shareholders, many of them former employees of Switzerland's largest financial institution, made the trip to what is being billed as one of the most important shareholder gatherings in UBS's history. Shareholders will be asked to approve the issue of 11 billion francs in notes, convertible into UBS stock, to Singapore's Government Investment Corporation (GIC). The gathering could last for most of the day if many shareholders put their names down to speak at the assembly. A further 2 billion francs of mandatory convertible notes are also to be placed with an unidentified Middle East investor, subject to shareholder approval. But Ospel faces a stormy reception from shareholders who have seen shares in the bank slide from a high of 80.45 francs in early June last year to a close of 37.10 francs on Tuesday. Investors fear there may be billions of dollars in fresh writedowns to come after the bank earlier this month revealed exposures to risky U.S. residential mortgages other than subprime, which were much higher than previously thought. Shareholder advocacy group Ethos has put forward a request for a special audit at the bank to establish how UBS, which was reputed to have one of the best risk management systems in the financial industry, got bogged down in the subprime quagmire. Adding to the bank's woes, Germany HSH Nordbank HSH.UL has started legal proceedings against UBS to recover steep losses on a $500 million portfolio of collateralized debt obligations (CDOs), linked to the fortunes of the U.S. mortgage market, which it bought from the Swiss bank in 2002. Some investors are surprised that Ospel has not already been forced out. UBS last week said it would propose re-electing Ospel but reducing his term of office to one year. The proposal will be put to shareholders at an annual assembly in April. "I was a bit astonished by the fact that he will stay for a year. Ospel has been too weakened to remain for long. I think they are already looking for a successor," said Schupp. Many shareholders are expected to register their names on Wednesday morning so they can address the meeting. "I am sure Ospel will take some flak at the meeting but I don't think people will shoot at his heart," said one London-based analyst with a European bank who asked not to be identified. (Editing by David Cowell) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. WealthCraft to Sell 60% Stake to EAB Systems (Australia) Limited in Exchange for License to Sell EAB Systems Products HONG KONG--(BUSINESS WIRE)--WealthCraft Systems Inc. (OTCBB:WCSY), has announced the signing of a Heads of Agreement with EAB Systems (Australia) Limited (EABA), pursuant to which WealthCraft has been granted a license to exclusively sell EABA products in Australia and New Zealand and to exclusively sell EABA products worldwide to clients introduced by EABA or WealthCraft. The EABA products are licensed by EABA from EAB Systems (Hong Kong) Limited (EAB). EABA is jointly owned and controlled by EAB and Raw Capital Partners Limited (RCA). In consideration for the license, WealthCraft has agreed to issue to EABA common shares representing 60% of the outstanding stock of WealthCraft. By entering into the agreement, WealthCraft and EABA seek to establish an organization to develop Asia's leading provider of technology and information services in the life insurance and wealth management industry in the Asia Pacific region (the business). www.eabsystems.com www.rawcapitalpartners.com www.wealthcraft.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Lexington Insurance Company Introduces LexElite Eco-Homeowner Insurance Covers Unique Risks Faced by Homeowners Generating Their Own Power Provides Added Layer of Protection for Eco-Landscaping NEW YORK--(BUSINESS WIRE)--Lexington Insurance Company, an American International Group company, today announced LexElite Eco-Homeownersm, insurance for homeowners generating their own power using geothermal, solar or wind systems. LexElite Eco-Homeowner also provides industry-leading coverage for eco-landscaping, plantings used to provide shade or influence wind movement to reduce heating and cooling expenses. For more information on LexElite Eco-Homeowner, contact David Valzania, Vice President of Personal Lines, Lexington Insurance Company, at (617) 330-4419 or David.Valzania@aig.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Bird Flu Can Strike Again In India: FAO Wed Feb 27, 2008 5:56am EST MILAN (Reuters) - Bird flu can strike again in high-risk areas of India although the country reined in the recent outbreak of highly pathogenic avian influenza in West Bengal, the United Nations' food agency FAO said. Avian influenza's deadly H5N1 strain hit India in January. More than 3.9 million chickens and ducks were culled to prevent the spread of the virus across the country, Food and Agriculture Organisations said in a statement on Wednesday. "Intensive culling in the predominantly backyard poultry sector appears to have stopped the disease in its tracks," said FAO veterinary expert Mohinder Oberoi after a recent field trip to the affected areas. No new disease outbreaks have been discovered since February 2, FAO said. (Reporting by Svetlana Kovalyova; editing by Michael Roddy) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. Aetna Enhances Secure Provider Website with NaviMedix NaviNet® provides multi-payer access, increased security options and improved electronic administrative transactions HARTFORD, Conn.--(BUSINESS WIRE)--Aetna (NYSE:AET) announced today that it has launched a new secure provider website with NaviMedix, a leading innovator in automating health care provider communications. Through NaviNet, NaviMedix’s multi-sponsor health care communication platform, health care providers have easy, one-stop access to most major payers and select regional carriers, improved security options and improved electronic administrative transaction capabilities. https://navinet.navimedix.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. Governor Rendell Tells Congress 'Prescription for Pennsylvania' Will Improve Health Care Climate for Small Businesses WASHINGTON, Feb 26, 2008 /PRNewswire -- WASHINGTON, Feb. 26 /PRNewswire-USNewswire/ -- Governor Edward G. Rendell today told U.S. lawmakers that small businesses struggle under a health care system that fosters spiraling costs, uneven and inadequate quality and little or no coverage for millions of Americans - and states cannot afford to wait for Congress to act. Speaking before the U.S. House of Representatives Committee on Small Business, the Governor said he firmly believes the health care crisis is a national problem. However, in the absence of a federal solution, governors have been forced to develop their own plans. In Pennsylvania, that plan is called Prescription for Pennsylvania. Governor Rendell's written testimony to the House Small Business Committee, as well as more information on the Prescription for Pennsylvania, can be found at http://www.rxforpa.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. Pennsylvania Surplus Lines Association 26th Annual Meeting All members of the insurance community are invited to attend the Pennsylvania Surplus Lines Association’s 26th Annual Membership Meeting on April 9-10, 2008 at the Pittsburgh Marriott City Center Hotel in Pittsburgh, PA. The theme of the meeting is “Strategies For Success: New Opportunities For The Insurance Marketplace.” More information about the Annual Meeting and a registration form are found at http://www.pasla.org/Documents/PSLA_AnnualMeetingBrochure.pdf Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. War Zone Life Coverages Added to AD&D at Petersen International Underwriters Petersen International Underwriters announces that they have recently been successful in placing natural causes life insurance in conjunction with their Accidental Death coverages on a case by case basis, making for full comprehensive life insurance coverage in War Zone areas. War Zone coverage has been typically limited to Accidental Death and Dismemberment (AD&D) states Kurt Petersen, specialist in AD&D for Petersen International. With this new offering PIU continues to provide expanded product lines for the consumer in War Zones including Kidnap & Ransom, Medical Insurance, Evacuation Insurance, and Disability Insurance. Kurt Petersen can be reached at kurt@piu.org or 1-800-345-8816.Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 33. CompPharma Welcomes ScripNet Madison, Conn. (Feb. 27, 2008) - ScripNet has joined CompPharma, a consortium of Pharmacy Benefit Management (PBM) firms that specialize in workers’ compensation. CompPharma provides a vehicle for member PBMs to share the cost of researching and developing solutions for industry-wide challenges. www.scripnet.com www.comppharma.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 34. Life Insurance Direct Marketing Association Announces 2008 Fall Meeting & Showcase 5th Annual LIDMA Fall Meeting & Showcase to be held in New Orleans October 6th thru 9th ATLANTA, GA – (February 27, 2008) -- Top life insurance executives will gather at the 5th annual Fall Meeting & Showcase of the Life Insurance Direct Marketing Association (LIDMA) to be held October 6th through October 9th at the Hilton Riverfront Hotel in New Orleans. The announcement was made by Pat Wedeking, president of LIDMA. “LIDMA serves as a catalyst in the industry for the evolution and growth of direct sales of life insurance to consumers,” says Pat Wedeking, president of LIDMA. “As a result, our Fall Meeting & Showcase has grown into the premier event for the marketing and sale of life insurance to the vast middle market.” www.lidma.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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