Daily Quote: "I know we are not wrong, we are just not right yet." - - Bo Sacks
XL Capital Names McGavick to Replace CEO O'Hara Mon Mar 17, 2008 1:01pm EDT NEW YORK (Reuters) - XL Capital Ltd (XL.N: ) on Monday said Michael McGavick will succeed Brian O'Hara as chief executive, effective May 1. O'Hara, who has been XL chief executive for 13 years and is currently acting chairman, is expected to serve as chairman of the board until April 2009, Hamilton, Bermuda-based XL said in a statement. McGavick was formerly CEO of Seattle-based insurer Safeco Corp (SAF.N: ) from 2001 through 2005. Prior to that, he held a number of positions at CNA Financial Corp (CNA.N: ), according to XL's statement. In 2006, McGavick unsuccessfully ran for a seat in the U.S. Senate for the state of Washington. XL said it chose an outside candidate for its top spot as it felt it would be best to have an "external perspective." Henry Keeling, XL's chief operating officer, had widely been seen as in line to replace O'Hara. XL shares in early trading were down about 5.88 percent at $29.62. (Reporting by Lilla Zuill, editing by Gerald E. McCormick and Dave Zimmerman) © Reuters 2008 All rights reserved 1. A Letter From Walt Podgurski To All Insurance Newscast Subscribers Dear INSURANCE NEWSCAST Subscriber, 03/17/08 - Cleveland, OH - For over 10 years we have published INSURANCE NEWSCAST without any subscription fees or charges. During that period it has grown to become the largest and I feel the best insurance industry newsletter. There is still, however, a higher level of service that we want to achieve; making it absolutely indispensable for someone seeking insurance industry news and information. We want to deliver an insurance newsletter that readers can’t wait to open up and view each morning. We don’t think we can get to the newsletter content and format possibilities solely with the advertising revenue model that has sustained us for 10 years. Therefore we have decided to add a subscription revenue model for those that want the ultimate experience in insurance news and information. This is a major decision that has been carefully considered to support the vision we have for INSURANCE NEWSCAST. The changes will be phased in over the next few months, but you will see many of them starting with Wednesday’s newsletter. The new format will be sent to all INSURANCE NEWSCAST subscribers several times in March for your review and assessment. We intend to continue to send out the headlines version of our newsletter (which is also being revised and improved) without any charges or fees. We are excited, however, about delivering content using the newest technologies to advance the communication process for those who are interested. To receive the new version of INSURANCE NEWSCAST after March, it will be necessary to register for an annual subscription at the rate of $119.00 at www.insurancebroadcasting.com. That is about $2.25 a week for what I hope you will find to be an outstanding value. To receive the free headlines version of INSURANCE NEWSCAST after March, no action is required. I want you to know that we have truly considered it a privilege to serve you over the years. Creating the newsletter has been very personally satisfying and I hope that it has helped you, your organization, or your career in some way. Sincerely
Walt
Podgurski
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As Credit Crisis Loomed, Insurance Industry Executives Among The Most
Confident In Their Ability To Manage Risks And Opportunities, According
To Towers Perrin/EIU Study
Executives See Both Sides of the Risk Coin; ``Excellent'' ERM-Rated
Firms Tend to Be Less Overconfident in Ability to Manage Risk
STAMFORD, Conn.--(BUSINESS WIRE)--Insurance executives were feeling very
confident about their ability to manage risks and opportunities at the
onset of the credit crisis, mirroring their counterparts in other
industries, according to a new global study conducted by Towers Perrin
in conjunction with the Economist Intelligence Unit. In fact, insurance
executives were among the most confident, which is not surprising, given
that they are in the business of risk.
Interestingly however, leaders of companies having “Excellent”
enterprise risk management (ERM) ratings from Standard & Poor's tend to
be significantly less overconfident in their overall ability to manage
risks and opportunities, compared with industry peers with lesser ERM
ratings.
“The findings and timing of this study – especially within the context
of the onset of the current credit market woes and broader economic
landscape – underscore the challenges the insurance industry faces in
managing risk and opportunity,” said Patricia Guinn, managing director
of Towers Perrin’s Risk and Financial Services segment. “Through the
20/20 vision provided by hindsight, we can say that many organizations
in all business sectors underestimated risks or completely missed
emerging risks, and that the levels of optimism and confidence the study
revealed in the third quarter of 2007, as the current credit crisis and
related economic issues were beginning to emerge, were not justified.”
Insurance executives see several industry dynamics as potentially
greater risks than a year ago, including “business development” (71%),
“customer demand” (62%) and “competition” (50%). Those same executives
indicated the biggest opportunity, according to the survey, is in the
area of “technology.” Seventy-one percent of executives said that
industry dynamic represents a greater opportunity versus a year ago.
Executives said “technology” is seen as an opportunity both in
back-office (e.g. claims processing and claims management) and
front-office applications (e.g. predictive modeling and strategic
pricing). In
all four business force categories, insurance industry respondents see
more opportunities than risks:
Financial issues, including cost of capital, interest rates, credit (76%
vs. 66%)
People/Workforce issues, including skills, attraction, engagement (74%
vs. 61%)
Strategic issues, including business model, strategy, execution (72% vs.
60%)
Operational issues, including business processes and infrastructure (69%
vs. 56%)
Other key findings include differences in perspectives on risks and
opportunities between life insurance and property/casualty firms:
The risk appetite of P&C companies appears to be higher than that in
life companies, with 42% saying they are willing to accept risk than
industry peers, versus 21%.
People/Workforce presents the most significant risks to P&C companies,
with 58% of respondents indicating they see the issue as either
potentially or very damaging.
Financial risks (72% potentially/very damaging) represent the most
significant risks to life companies, the survey said.
“New risks and opportunities will continue to emerge,” said Ms. Guinn.
“The challenge for all business leaders – whether they are in the
insurance arena or in other industries – is to maintain a consistent
approach to risk and opportunity management in both prosperous and
challenging economic climates.” www.towersperrin.com Return to
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Bear Stearns Takeover Sparks Fresh Financials Rout
Mon Mar 17, 2008 10:29am EDT
HONG KONG/LONDON (Reuters) - An emergency rescue of Bear Stearns Co Inc
stunned the Wall Street bank's staff and pummeled financial stocks on
Monday amid fears that few banks are safe from deepening financial
market turmoil.
Bear Stearns staff turning up for work found the value of their stock
options in tatters and the future of their jobs up in the air.
But the grim mood spread further than Wall Street's fifth biggest bank
as shares in European banks including UBS in Switzerland, HBOS in
Britain and SocGen in France fell over 10 percent as concern swept
markets that the value of risky assets needs to be marked down even
further. In
Asia some of Japan's biggest banks also fell, with Mitsubishi UFJ
Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial
Group down 3 percent or more.
JPMorgan Chase said late on Sunday it would buy Bear Stearns for just $2
a share -- more than 90 percent below its price at Friday's close.
The deal underlined the risks banks are facing as the U.S. mortgage
crisis deepens and the rock-bottom price raised questions over
valuations across the industry. To read more please double click on.
(Reporting by Umesh Desai in Hong Kong; Steve Slater, Olesya Dmitracova
and Mathieu Robbins in London; Herb Lash and Kristina Cooke in New York;
Editing by David Holmes) ©
Reuters 2008 All rights reserved Return to
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Bear execs lack golden parachutes as stock plan crunched
Mon Mar 17, 2008 12:39am EDT
NEW YORK (Reuters) - Barring some unexpected boardroom generosity by
JPMorgan Chase & Co, executives at Bear Stearns Cos may find that their
walking away money has been crunched by the credit crisis.
Bear stock soared to a record high of $172.61 in January last year as
Wall Street's mortgage and buyout booms peaked, but those shares have
plunged as the bank played a leading role in fueling a subprime mortgage
crisis that continues to inflict damage on financial markets.
Bear Stearns' shares, which sank to $30.85 Friday on worries the bank
was quickly running out of cash and needed a Federal Reserve bailout,
now fetch just $2 each under JPMorgan's bailout late on Sunday.
The plunging shares, plus a lack of the normal payout expected when a
company is taken over, known as 'golden parachutes', delivers a serious
blow to the bankers, traders and other executives worldwide at a firm
that has long encouraged its above-average levels of inside ownership.
"The current stock ownership by executive officers reflects a
significant personal investment in the company by those who are most
responsible for the company's future success," the bank said in a proxy
statement.
Employees own around 30 percent of the bank.
Yet loyalty to the firm has cost employees as Bear's fortunes turned
south.
According to Bear's recent proxy statement, the executive committee
members at the fifth-largest U.S. investment bank owned about 9 percent
of the firm's outstanding stock at the end of January.
Based on shares outstanding in January, shares held by the top handful
of executive officers plunged in value from about $1.8 billion 14 months
ago to just $22 million today.
Bear Stearns officials were not immediately available for comment on
compensation related to the JPMorgan takeover. NO
PARACHUTES
The proxy also revealed that Bear does not offer golden parachutes for
executive officers in the event of it being taken over.
Bear offers a Capital Accumulation Plan and a Stock Award Plan, yet both
possess a "double-trigger provision," which means awards and all
benefits are not accelerated unless the participant is fired without
cause by the new company or resigns for a good reason.
These plans also suffered from Bear's plunging market value. Back in
November, when Bear's shares traded at around $153, the market value of
unvested equity awarded to Chairman James "Jimmy" Cayne was $47.5
million, while shares awarded to CEO Alan Schwartz were valued at $44.9
million, the proxy said.
Schwartz replaced Cayne as CEO in January as shareholders, upset by
Cayne's hands-off approach during a serious financial crisis, pushed the
long-time chief to step aside.
That said, JPMorgan Chief Financial Officer Mike Cavanagh late Sunday
said taking over Bear would generate about $6 billion in merger-related
costs.
JPMorgan has not broken down those figures, but much of that will be
earmarked for severance pay and potential exit packages for top
executives like Schwartz. A
person familiar with the transaction told Reuters that roughly $1
billion of those costs would be earmarked for severance and retention.
(For all the news on JPMorgan's planned acquisition of Bear Stearns,
click on
(Reporting by Joseph A. Giannone; editing by Louise Heavens) ©
Reuters 2008 All rights reserved Return to
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Carlyle Capital bankrupt, to wind up fund
Mon Mar 17, 2008 8:11am EDT
NEW YORK/AMSTERDAM (Reuters) - Investment company Carlyle Capital Corp (CARC.AS: ) said on Sunday its shareholders have voted
unanimously in favor of a compulsory winding up.
The company said it will now start winding up and sell its remaining
assets under Guernsey law, and NYSE Euronext said that the fund's shares
would trade under a separate category as it goes through the process.
Carlyle Capital Corp (CCC) is a separate legal and business entity from
U.S. private equity firm Carlyle Group, and the group said last week
that the listed fund would not have a measurable impact on Carlyle's
other funds, investments and portfolio companies. The fund is 15
percent-owned by Carlyle Group executives.
Caryle Capital's share price plunged 58 percent on Monday in light trade
to $0.30. The initial public offer price 10 months ago was $20.
(Reporting by Yinka Adegoke in New York and Reed Stevenson in Amsterdam;
Editing by Jan Dahinten and Greg Mahlich) Return to
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INSURANCE NEWSLINK Articles
Recent articles added to INSURANCE NEWSLINK, the worldwide, strategic
concise intelligence database of over 30,000 articles including
interviews, uniquely analysed by company, market, research, regulatory,
and IT topics.
Please click here for a content overview and a 15-day
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THE TIME EFFECTIVE WAY TO STAY AHEAD
No
Asian spin-off planned say Prudential
Groupama reports on manager self-discovery programme
Ping An in talks with Fortis on asset management stake
Novae pre-tax profit improves
Underwriting income down at Paris Re
New ceo at Montpelier Re
US
reinsurers improve combined ratio slightly
CCV moves for Berkeley Alexander
Rockhampton starts off successfully in Gibraltar
UK
Life Insurance Company Profiles and Financial Strengths 2006
UK
motor sector could move into profit says Datamonitor but report is
challenged
Prudential chooses Exony to improve performance of contact centres
Guillaume takes over at Open GI
Skywire chosen by Montpelier US for policy production
IAG moves for UK broker
Generali to advise on Chinese pensions
Taiwan likely to change to principles-based regulation
Major European shake-out through Solvency II says S & P
LexisNexis launches claims validation and insurance fraud tool
Benfield to cut jobs
Pre-tax up at Omega
Fitch negative on German life market
Wind damage to cost more than UK floods? Return to
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Bank Insurance News In Brief - March 17, 2008
TODAY'S BANK INSURANCE IN BRIEF" is provided each week courtesy of
Michael White Associates @www.bankinsurance.com. To read these stories
, visit
http://www.bankinsurance.com/editorial/news/default.htm
WHITE MOUNTAINS INSURANCE GROUP MAKES TRADE FOR ITS BERKSHIRE
HATHAWAY-OWNED STOCK
LARGE EMPLOYERS MOVE TOWARD DEFINED CONTRIBUTION PLANS
HANA FINANCIAL AND HSBC INSURANCE TO INJECT $20.64 MILLION INTO SOUTH
KOREAN JOINT VENTURE
INSURANCE BROKERAGE FEE INCOME COMPRISES 68.7% OF NONINTEREST INCOME AT
ONEIDA FINANCIAL
FEES DRIVE RESULTS AT UMB FINANCIAL Return to
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Fed Wades Further Into Risky Waters
Mon Mar 17, 2008 1:32am EDT
WASHINGTON/ CHICAGO (Reuters) - The U.S. Federal Reserve is taking a
risk by opening up its own balance sheet to the same poisonous
securities that have strained banks to the limit. But the risk of doing
nothing is far greater.
The central bank seems to be wading further into shark-infested waters
by the day as it looks to shore up a blighted credit market that
threatens to prolong the pain for a U.S. economy that many analysts fear
is already in recession.
The Fed had little choice but to act after investment bank Bear Stearns
(BSC.N: ) became the biggest casualty to date of
the seven-month-long credit crisis, analysts said.
The firm agreed to a $2 per share buyout from JPMorgan Chase & Co (JPM.N: ) on Sunday. Its shares had traded around $60 on
Thursday and $160 last April. In
a surprise move, also on Sunday, the central bank made an emergency
quarter-percentage point cut it its discount rate that it charges on
loans to banks, and announced a central role in the Bear Stearns deal.
The discount rate was dropped to 3.25 percent.
Analysts said risks to the U.S. financial system approaching those seen
during the Great Depression forced the Fed's hand.
"The U.S. financial system probably is under more strain now than for at
least several decades. Let's hope (the Fed's) determined efforts
eventually get 'traction,'" said Rory Robertson, analyst at Macquarie
Bank in Sydney.
"The threat of contagion and wholesale breakdown on a scale of 1929 is
real," said Peter Morici, economics professor at the University of
Maryland.
(Editing by Neil Fullick) ©
Reuters 2008 All rights reserved Return to
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Greenspan Sees Many Casualties From Crisis: Report
Mon Mar 17, 2008 5:07am EDT
LONDON (Reuters) - There will be many casualties from the unfolding
financial market crisis, which will lead to a large-scale overhaul of
international banking regulations, codes and risk management, former
Federal Reserve Chairman Alan Greenspan said.
Writing in the Financial Times, the former Fed chief said much of the
financial system's risk-valuation models failed, not because they were
too complex but because they were "too simple to capture the full array
of variables governing that drive global economic reality".
"The crisis will leave many casualties. Particularly hard hit will be
much of today's financial risk-valuation system," he wrote.
While insisting that current risk management models and econometric
forecasting methods remain "soundly rooted in the real world," he said
risk management can never be perfect.
"It will eventually fail and a disturbing reality will be laid bare,
prompting an unexpected and sharp discontinuous response," Greenspan
said. He
added, however, that he hoped one of the casualties from the worst U.S.
financial crisis since World War Two would not be the spirit of broad
self-regulation within financial markets.
Although he said the Basel II international banking regulatory framework
would almost definitely be revamped and financial institutions'
financial models would need to be re-drafted, Greenspan warnedagainst
over-regulation.
"It is important, indeed crucial, that any reforms in, and adjustments
to, the structure of markets and regulation not inhibit our most
reliable and effective safeguards against cumulative economic failure:
market flexibility and open competition," he said.
(Reporting by Jamie McGeever and Ian Chua; editing by Mike Peacock) ©
Reuters 2008 All rights reserved Return to
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PMI Posts $1 Billion Quarterly Loss, Slashes Dividend
(Reuters) - Mortgage insurer PMI Group Inc (PMI.N: ) reported its biggest ever quarterly loss, primarily due to
losses from its investment in bond insurer FGIC Corp, and slashed its
quarterly dividend by over 70 percent.
PMI , which had rescheduled its quarterly results , said fourth-quarter
net loss was $1.0 billion, or $12.51 a share, compared with net income
of $100.5 million, or $1.19 a share, in the year ago period.
(Reporting by Sweta Singh; Editing by Dinesh Nair) Return to
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Spanish Broker Gaesco Sells Stake In Fund Manager
MADRID, March 17 (Reuters) - Spanish brokerage Gaesco (GAES.BC: ), which has put itself up for sale, said on Monday it
had agreed to sell its 37.5 percent stake in fund manager Gesiuris SA
for 4 million euros ($5.3 million).
Gaesco is courting takeover offers after two derivative traders racked
up losses of as much as 40.6 million euros, most of them linked to a
collapse in the share price in real estate company Colonial (COL.MC:
), a source close to the sale has said. In
a statement on Monday, Gaesco said it was selling 25 percent of Gesiuris
to insurance firm Seguros Catalana Occidente (GCO.MC: ) while it would sell the rest of its stake to other current
shareholders in the fund manager. (Reporting by Jane Barrett)
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US
FDIC Leaves Bank Insurance Fees Rate Unchanged
Fri Mar 14, 2008 4:08pm EDT WASHINGTON, March 14 (Reuters) - The Federal
Deposit Insurance Corp on Friday said it voted to keep the rates its
charges banks and savings associations for deposit insurance unchanged
for 2008, saying it needs to build up its fund for possible future bank
failures.
"Because we are anticipating more difficult times, it would be prudent
to continue to build the deposit insurance fund," FDIC Chairman Sheila
Bair told an FDIC board meeting.
"As we build up the insurance fund, banks and thrifts should be taking
steps to bolster their capital and reserves," she said.
The fund can be used to insure up to $100,000 in each account and up to
$250,000 in certain retirement accounts in the event of a bank failure.
The FDIC is trying to build up its fund to 1.25 percent of estimated
insured deposits. The ratio at the end of 2007 was 1.22 percent, up from
1.21 percent in 2006.
The FDIC said it thinks the fund could reach 1.25 percent at the end of
the year or in early 2009.
The vote allows assessments for banks and thrifts to remain at between 5
cents and 43 cents for every $100 in deposits, but most institutions
will be charged between 5 cents and 7 cents, the FDIC said.
Last year, the deposit insurance fund grew by 4.5 percent to $52.4
billion.
Banks were hoping for the board to ease assessments, which reflect risk
at each of the more than 8,500 institutions that have FDIC insurance.
The American Bankers Association trade group expressed disappointment
with the FDIC vote, which it said actually accelerates premiums because
banks were given off-setting credits for 2007 made in previous years.
"This transfer of funds from local communities to Washington could not
come at a worse time," Wayne Abernathy, ABA executive vice president for
financial institutions policy, said in a statement. At
the end of 2007, the FDIC had 76 institutions on its "problem list,"
totaling $22 billion in assets. Bair has said the figure is well within
historic norms for potential bank failures.
The FDIC said difficulties stemming from the decline in housing prices,
mortgage sector problems and a slowdown in the U.S. economy raise the
likelihood of more bank failures.
Three banks failed in 2007. So far this year two banks have failed:
Douglass National Bank of Kansas City, Missouri, which had about $58.5
million in assets, and Hume Bank, also in Missouri, with about $18.7
million in assets.
The federal agency's insurance loss provisions for 2008 are projected to
be $1.06 billion and $450 million in 2009.
Congress created the FDIC in 1933 to restore public confidence in the
nation's banking system. (Reporting by John Poirier, Editing by Tim
Dobbyn and Carol Bishopric) Return to
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Annuity Suitability Summit Explores How To Best Serve Consumers In A
Well-Regulated Marketplace -
IMSA Addresses Key Issues Associated with Suitable Annuity Sales -
Washington, D.C. (March 13, 2008) – Yesterday a Summit Meeting in
Washington, D.C. of state and federal regulators, consumer advocacy
groups, life insurance companies, and those who sell and distribute
products gathered to address the critical issues regarding the
suitability of annuity sales to consumers and the challenges of
coordinating regulatory approaches to best serve consumers. The Summit
was convened by the Insurance Marketplace Standards Association (IMSA).
The topics discussed included how state and federal regulators can work
collaboratively and efficiently to provide greater clarity and
predictability for companies and producers who are expected to comply
with an array of inconsistent and overlapping state and federal
requirements. “I
applaud IMSA’s initiative and effort to address suitability,” said Roger
Sevigny, New Hampshire Insurance Commissioner and National Association
of Insurance Commissioners (NAIC) President-Elect. “This issue gains
importance everyday, not only for baby boomers and other consumers, but
also for the insurance and regulatory communities. My hope is that from
this forum comes a uniform approach to suitability and suitability
oversight.”
“AARP was pleased to participate in this unique forum that will
hopefully lead to the development of concrete steps to promote greater
consistency and predictability in the regulation and sales of annuity
products,” said Ryan Wilson, AARP Strategic Policy Advisor. “These
strides can benefit both the industry and the consumers who purchase
annuities.”
“The time to address these issues is now, and the organization to help
us get it done is IMSA,” said Doug Ommen, Missouri Insurance
Commissioner. “In a well-regulated environment, consistency and
uniformity is critical to protecting consumers."
“This important dialogue addressed suitable annuity sales for consumers
throughout the United States, so that companies and distributors might
better understand both state and federal regulations,” said James
Mumford, First Deputy Insurance Commissioner of Iowa. “This Summit can
effect positive change for not only consumers and regulators, but also
for those that market and sell annuity products and their current
policyholders.” Return to
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RIMS Media Advisory: RIMS Comments on Standards & Poor's ERM Analysis
Proposal
Media Advisory
March 14, 2008 In
November 2007, Standard & Poor's (S&P) issued a request for comment from
the risk community on plans for an Enterprise Risk Management Analysis
for Credit Ratings of Nonfinancial Companies. On February 29, the Risk
and Insurance Management Society (RIMS) provided feedback to Standard &
Poor’s expressing conceptual support of the proposed ERM analysis, while
providing concerns and recommendations regarding potential
implementation and resource issues in applying the proposed framework.
Overall, RIMS commends Standard & Poor’s work over the past few years
for the positive effect it has had on the risk management discipline by
raising the visibility of ERM within businesses. While RIMS does not
advocate the use of one ERM framework over another, the Society
congratulates S&P in its work to date and its forward-thinking approach
for recognizing the value of ERM in evaluating the credit quality of a
broad cross-section of companies.
www.RIMS.org
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RAA Releases Year-End 2007 Reinsurance Underwriting Results
WASHINGTON, D.C. – In an analysis of reinsurers’ statutory underwriting
results conducted by the Reinsurance Association of America (RAA), a
group of 20 U. S. property casualty reinsurers wrote $22.7 billion of
net premiums during the twelve-months ended December 31, 2007, a
decrease of $3.1 billion from the same period in 2006. The combined
ratio for the group was 94.7%, a slight improvement over the 94.9%
combined ratio reported for the same period in 2006. The combined ratio
is attributable to a 65.0% loss ratio and an expense ratio of 29.7 %.
For the same period in 2006, the loss ratio was 67.1% and the expense
ratio was 27.8%. Policyholders’ surplus at December 31, 2007 was $75.9
billion, compared to $74.5 billion for the same period in 2006.
The underwriting report is available on the RAA website at
http://www.reinsurance.org.
An
annual subscription to the RAA’s quarterly Reinsurance Underwriting
Report is available from the RAA. Contact
orders@reinsurance.org to
subscribe. If you have questions about a subscription, contact Kaitlin
Hocutt at 1.800.570.1806. Return to
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Article / Read Entire Article / E-Mail Article 16.
ING Leads Firms Offering Annuities in Marketing of Products to Financial
Advisors Says New Report from Corporate Insight
NEW YORK--(BUSINESS WIRE)--Corporate Insight, the leader in competitive
intelligence research for the financial services industry, recently
examined the methods that ten firms offering annuities use to market
products and product-related content to advisors online. The research
focused on the two most-trafficked areas of a firm’s advisor site – the
advisor homepage and annuity section. Collectively, the firms featured
average product marketing content on the advisor website, leaving plenty
of room for improvement.
“The firms’ largest shortcoming was in the lack of promotional content
positioned within the annuity sections of their Websites,” said Ben
Pousty, Senior Analyst at Corporate Insight. “Only four firms offered
promotional images on the annuity overview or product pages while just
one firm provided a Flash promotional video. By neglecting the annuity
section, firms are throwing away an excellent opportunity to market
their annuity product and living benefit riders.” In
this 53-page report entitled, “Product Marketing: The Advisor
Experience” (http://www.corporateinsight.com/advisorprodmarketing),
the New York-based firm evaluates each firm using a set of 10 specific
attributes and examines the advisor homepage, advisor site annuity
section, and advanced product marketing features. Research found that
only one firm - ING - performed well overall, and no firm excelled in
all criteria. The report also contains detailed findings, a summary
matrix, and specific recommendations on what firms can do to improve
their product marketing efforts.
Key findings include:
90% of firms offer linked promotional images on the advisor homepage
70% of homepage promotions include literature/marketing materials
Only one firm promotes a sales tool on the homepage
40% of firms offer Flash-based promotions on the homepage
More than half the firms ignore the potential for promotions within the
annuity section
Sales campaigns are featured online by 70% of firms
For more information on this research and related services, please
visit:
www.corporateinsight.com. Return to
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Article / Read Entire Article / E-Mail Article 17.
Milliman Announces New Long Term Care Claims Management Initiative
SEATTLE, March 17 /PRNewswire/ -- Milliman, Inc., the international firm
of consultants and actuaries announced today that its STEP Solutions(R)
team is working with STA Group LLC (STA) to offer customers the ability
to design, build and implement a next generation Long Term Care Claims
processing platform. Milliman and STA will leverage the STEP-FAST
technology developed by Milliman to provide a straight-through solution
for the origination, issue, underwriting, claims and policy
administration of insurance products. STEP- FAST is a unique technology
platform that incorporates Milliman's deep product and industry
knowledge into its core architecture.
Milliman and STA will target the growing need for more efficient Long
Term Care (LTC) claims processing. Increased LTC product complexity, a
rapidly changing regulatory environment, inefficient claims processes,
poor data and ineffective service have contributed to customer
dissatisfaction and claims overpayment. Milliman and STA offer a
solution that can be designed and implemented in large, complex,
enterprise scale environments. http://www.stagrp.com
http://www.milliman.com Return to
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Article / Read Entire Article / E-Mail Article 18.
BestWeek: Privatizing Publicly Traded Affiliates Offers New Way to
Manage Capital, Add Flexibility for Insurers
OLDWICK, N.J.--(BUSINESS WIRE)--In the last year, some insurance holding
companies, including mutual insurer Nationwide Mutual, have opted to
privatize their publicly held affiliates. These defections from the
public market may be motivated by a general sense among the companies
that they can manage capital, integrate operations and reduce regulatory
reporting requirements better by being a private entity, experts told
BestWeek U.S./Canada.
Cost reduction is an important issue here, said Jason Croft, a financial
analyst in the life/health division of A.M. Best Co. “There are
operating expense savings and integration savings that can be achieved
by purchasing back the publicly traded company. Some of these companies
believe the costs just outweigh the benefits of having those entities
traded publicly,” Croft said. He
said the benefit might even outweigh the risk of unanticipated or
greater-than-expected operational disruptions and expenses—as seen in
the fourth quarter earnings report of Alfa Mutual Group, another entity
that is close to privatizing its publicly traded subsidiary.
Like Alfa 10 months ago, Nationwide Mutual announced in the past week it
made an offer to buy subsidiary Nationwide Financial (NYSE: NFS) for
$2.2 billion. The property/casualty insurer listed among anticipated
benefits: better alignment and flexibility around serving customers;
enhanced ability to meet the needs of combined customers; opportunities
for stronger top line growth for financial services by better leveraging
its large property/casualty customer base; and a simpler ownership
structure.
Also, in BestWeek Europe:
For the two largest reinsurers in the world, Swiss Re and Munich Re, the
year 2007 brought markedly differing results stemming from differences
of emphasis in the business mix.
Also, in BestWeek U.S./Canada:
Joe Finnegan’s work can be seen in many movies and television shows.
He’s the vice president in charge of Fireman’s Fund Insurance Co.’s
entertainment division, an operation that provides cover for the
production of 75% of films made in the United States.
And in both editions of BestWeek:
The Best’s Global Insurance Composite Index finished the week of March
13 down 11.28% from a year ago. The composite index reflects the
performance of 170 insurance stocks. The week’s top stocks were
Nationwide Financial Services, EMC Insurance Group, National Atlantic
Holdings, National Western Life Insurance Co., and Kansas City Life
Insurance Co.
The bottom five stocks were Humana, WellPoint, UnitedHealth Group,
Health Net, and Benfield Group. Return to
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Article / Read Entire Article / E-Mail Article 19.
Travelers Commercial Property Coverage Goes Green
New Endorsement Supports Travelers Efforts to Encourage Environmentally
Responsible Behavior
HARTFORD, Conn.--(BUSINESS WIRE)--In support of the growing trend toward
more efficient and environmentally friendly building practices,
Travelers (NYSE:TRV) Commercial Property Division today launched its
Green Building Coverage Enhancements for mid-sized businesses. An
endorsement to the standard Deluxe Property Coverage, this new product
highlights Travelers' ability to keep pace with the evolving sustainable
building practices.
"Travelers is pleased to note that a number of federal, state and local
agencies across the country are instituting programs that encourage, or
require, environmentally friendly building practices,” said Rich
Waskiewicz, senior vice president, Travelers Property. “Today’s
announcement supports those efforts and our company-wide initiatives to
encourage environmentally responsible behavior.”
Travelers' Green Building Coverage Enhancements for mid-sized businesses
promote the use of environmentally friendly building materials as
replacement components following a covered cause or type of loss.
Travelers’ Deluxe Property forms are amended to provide the following
additional coverages:
Green Building Alternatives – Increased Cost
Green Buildings Reengineering and Recertification Expense
Vegetative Roofs
Green Building Alternatives – Increased Period of Restoration
www.travelers.com.
Return to
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Article / Read Entire Article / E-Mail Article 20.
INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
View
INSURANCE NEWSCAST "Sports Pictures Of The Day"
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INSURANCE NEWSCAST "Entertainment Pictures Of The Day" 21.
Greater New York Insurance Group to Offer Excess and Surplus Lines
Coverage Through GNY Custom Insurance Company
NEW YORK--(BUSINESS WIRE)--Warren Heck, Chairman and Chief Executive
Officer of GNY Insurance Companies, announced today that GNY Insurance
Group’s newly formed GNY Custom Insurance Company will begin writing
Surplus Lines Property & Casualty business. GNY Custom has an A.M. Best
rating of A+IX.
According to Mr. Heck, “GNY Custom is licensed in the state of Arizona
and at present, is approved to write excess and surplus lines business
in the states of New York and Illinois, as well as in Washington D.C.
Expansion plans into seventeen states are targeted for completion by the
end of 2008.” Return to
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Article / Read Entire Article / E-Mail Article 22.
Population Growth in Small Florida Markets Poses Opportunity for Health
Plans
Health Plan Market Becomes More Competitive as Local and National
Insurers Target Growing Communities, According to a New Report from
HealthLeaders-InterStudy
NASHVILLE, Tenn., March 17 /PRNewswire/ -- HealthLeaders-InterStudy, a
leading provider of managed care market intelligence, reports that
population growth in several smaller Florida markets is creating
opportunity for local and national health plans. According to the latest
Florida Health Plan Analysis, Aetna and Humana, along with the dominant
Blue Cross and Blue Shield of Florida, have developed strategies to
capitalize on the population growth in these up-and-coming markets.
According to data from the U.S. Census Bureau, five of the nation's 15
fastest-growing metropolitan areas (by percentage increase) were in
Florida and include Palm Coast, the fastest-growing MSA in the country,
Ocala, Port St. Lucie-Fort Pierce, Cape Coral and Naples.
HealthLeaders-InterStudy, a company of Decision Resources, Inc., is the
authoritative source for managed care data and analysis. For more
information, please visit
http://www.HealthLeaders-InterStudy.com. Return to
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Article / Read Entire Article / E-Mail Article 23.
EquaTerra and Human Resource Executive® Magazine Study Addresses the “Is
HR Strategic?” Question
HOUSTON & LONDON--(BUSINESS WIRE)--EquaTerra and Human Resource
Executive® magazine today announced they have completed a comprehensive
study that assesses what “strategic HR” actually means to HR executives,
and explores how talent management and alternative service delivery
models such as outsourcing can enable strategic HR. The study surveyed
approximately 450 HR leaders, primarily based in North America, 29
percent of whom were vice presidents of HR and 53 percent of whom were
HR directors or managers. The two organizations jointly conducted a
similar study in 2005.
Key study focuses and findings include: HR
as a Strategic Corporate Asset
Outsourcing’s Role in Making HR More Strategic
Total Talent Management
One sub-set of study results – published in the March 17, 2008 edition
of Human Resource Executive® magazine – is available by going to:
www.hreonline.com, or sending an
e-mail to:
research@equaterra.com. An EquaTerra podcast focusing on
Outsourcing’s Role in Making HR More Strategic can be accessed by going
to:
http://equaterra.com/KR/podcasts/
outsourcings-role-in-making-hr-strategic.mp3 Return to
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Article / Read Entire Article / E-Mail Article 24.
Eric Raymond, CLU, Corporate Synergies Contributed to Inside the
MindsTM “Employee Benefits Best Practices”
MT. LAUREL, N.J.--(BUSINESS WIRE)--Corporate Synergies, a full-service
independent employee benefits consultant and brokerage firm, today
announced Eric Raymond, CLU, CEO of Corporate Synergies, wrote a chapter
for the new book, “Inside the Minds: Employee Benefits Best Practices”
published this month by Boston-based Aspatore Books, America’s largest
publisher for C-level corporate executives.
How to Beat Your competition on the Inside and on the Outside, is
available as a free download at
http://www.corpsyn.com/myrc1.aspx. The white paper provides key
strategies for offering secure, affordable coverage, while continuing to
attract, retain, and award employees. Mr. Raymond reveals techniques for
understanding state mandates, analyzing inconsistencies in the employer
market, and overcoming challenges in this rapidly-changing industry.
www.CorpSyn.com Return to
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Article / Read Entire Article / E-Mail Article 25.
Harmonic Announces Tentative Agreement to Settle Shareholder Class
Action
SUNNYVALE, Calif.--(BUSINESS WIRE)--Harmonic Inc. (NASDAQ:HLIT), a
leading provider of broadcast and on-demand video delivery solutions,
today announced that it had reached a tentative agreement for the
settlement of a securities class action filed against the Company and
certain of its officers and directors in 2000. The Company believes that
it is in its best interests to avoid the cost, management distraction
and risk associated with a trial, currently scheduled for August 2008.
The tentative agreement is subject to certain contingencies, including
execution of a definitive agreement and court approval. The agreement
will provide a full release of Harmonic and the other named defendants
in connection with the allegations in the lawsuit without any admission
of fault on the part of Harmonic or its officers and directors. The cost
of the settlement is $15 million, plus an estimated aggregate of $1.4
million in related legal fees and expenses in connection with
proceedings in the securities class action and derivative lawsuits.
Of
this aggregate cost of settlement, Harmonic will pay $6.4 million and
the Company’s insurance carriers, having funded most litigation costs to
date, will contribute the remaining $10 million. As a result of this
tentative agreement, the Company will record a charge of $6.4 million in
its financial statements for the year ended December 31, 2007 to be
included in its Annual Report on Form 10-K to be filed with the SEC
later today. Return to
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Article / Read Entire Article / E-Mail Article 26.
UnitedHealthcare Named Health Plan of Choice by The National Black
Chamber of Commerce
WASHINGTON--(BUSINESS WIRE)--The National Black Chamber of Commerce (NBCC)
has named UnitedHealthcare, a UnitedHealth Group (NYSE:UNH) company, as
the first-ever health benefit provider of choice for its nearly 100,000
member businesses. www.uhcgenerations.com Return to
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Article / Read Entire Article / E-Mail Article 27.
Allianz Life Introduces New MasterDex Plus Annuity Series; Offers
Guarantees, Potential Interest and Control
MINNEAPOLIS--(BUSINESS WIRE)--Allianz Life Insurance Company of North
America (Allianz Life) has announced the launch of the new Allianz
MasterDex PlusSM annuity series. The new, fixed-index, deferred annuity
series revamps the existing MasterDex portfolio by adding new options –
including the Income Plus Benefit rider on the Allianz MasterDex 5
PlusSM for an additional cost, giving the opportunity for consumers to
receive lifetime payments that can grow every year with indexed
interest. Return to
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Article / Read Entire Article / E-Mail Article 28.
Conseco Declines Partnership's Request for Board Seats; Review of
Strategic Alternatives Underway
CARMEL, Ind., March 17 /PRNewswire-FirstCall/ -- Conseco, Inc. (NYSE:
CNO) today announced that it is declining a request from Steel Partners
II, L.P. to nominate two of its representatives to Conseco's board of
directors. Conseco also announced that it has been reviewing strategic
alternatives and has engaged the investment banking firm of Morgan
Stanley as its strategic advisor.
http://www.conseco.com.
Return to
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Article / Read Entire Article / E-Mail Article 29.
Builders Insurance Group Declares 12th Consecutive Dividend
ATLANTA, March 17 /PRNewswire/ -- Builders Insurance Group today
announced that member company Builders Insurance (A Mutual Captive
Company) will distribute a dividend of approximately $1.6 million to its
qualifying Georgia policyholders in the second quarter of 2008. This
payout marks the Company's 12th consecutive dividend since 1997 and will
bring the total amount of dividends paid to more than $42 million.
http://www.bldrs.com Return to
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Article / Read Entire Article / E-Mail Article 30.
Horizon NJ Health Chooses HealthTrans To Provide Pharmacy Claims
Processing And Adjudication Services
GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--Horizon NJ Health has
contracted with HealthTrans, a national pharmacy benefits administrator,
to provide pharmacy claims management and reporting services for its
more than 300,000 members, effective May 1. HealthTrans expects to
process nearly three million claims annually.
http://www.healthtrans.com
www.horizonNJhealth.com Return to
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Article / Read Entire Article / E-Mail Article 31.
NAMIC Members Prepare to Descend on Capitol Hill Armed with 2008
Legislative Agenda
WASHINGTON (March 17, 2008) – Hundreds of members of the U.S. Senate and
House of Representatives will meet with their constituents in the
insurance industry, as the National Association of Mutual Insurance
Companies’ (NAMIC) Congressional Contact Program gets underway next
month. Representatives of NAMIC member companies from New York will be
the first delegation on Capitol Hill this year.” Return to
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