Mon Mar 24, 2008 10:14am EDT 

NEW YORK (Reuters) - JPMorgan Chase & Co said on Monday that it raised its all-stock offer for Bear Stearns Cos to about $10 a share, roughly five times its original offer.

Under the revised terms of the deal, each share of Bear Stearns common stock will be exchanged for 0.21753 shares of JPMorgan common stock.

JPMorgan will also purchase 95 million new Bear Stearns shares, representing 39.5 percent of the investment bank's outstanding common stock. JPMorgan is buying the shares at the same price as its takeover offer and expects to complete the deal by April 8.

The boards of both companies have approved the revised takeover offer and the share purchase agreement.

JPMorgan's original agreement on March 16 to pay $2 per share in stock for Bear was widely considered a fire-sale price for the 85-year-old Wall Street investment bank. Bear collapsed as large subprime mortgage losses and falling confidence in the company prompted a run on the bank.

Bear shares surged more than 65 percent to $10.60 on the news of the higher bid.

(Reporting by Chris Reiter; editing by John Wallace)

Mon Mar 24, 2008 12:35am EDT 

By Jonathan Stempel

NEW YORK (Reuters) - Bank of America Corp (BAC.N: ), the largest U.S. retail bank, may set aside a record $6.5 billion in the first quarter to cover possible future loan losses, including in its mortgage and home equity portfolios, according to a banking analyst.

Richard Bove of Punk Ziegel & Co also slashed his earnings forecasts for the bank through 2010, though he still expects a first-quarter profit.

He said actual losses in the portfolios should be "somewhat less" than the amount he expects set aside, suggesting the bank would be conservative in its forecast of future credit trends.

"I do not foresee the economy plunging to a level that will substantiate this reserve build," wrote Bove, who has a "buy" rating on the bank, in a report dated March 24. "It is my impression that the management has made a decision to try to take, upfront, the potential losses that it believes may be nascent."

Bove cut his profit per share forecast to $2.98 from $3.81 for 2008, to $3.96 from $4.30 for 2009, and to $4.78 from $4.93 for 2010. He sees first-quarter profit of 37 cents per share.

Bank of America was not immediately available for comment.

In January, Chief Executive Kenneth Lewis said he expected full-year profit would top $4 per share. He predicted credit costs would rise by more than 20 percent, largely in consumer portfolios, but that such an increase would be manageable.

The Charlotte, North Carolina-based bank set aside $3.31 billion for credit losses in the fourth quarter, and $8.39 billion for all of 2007, up 67 percent from a year earlier.

Bank of America agreed in January to buy Countrywide Financial Corp (CFC.N: ), the largest U.S. mortgage lender, in a transaction now valued at about $4.4 billion.

The all-stock transaction values Countrywide at $7.63 per share, which is 32 percent above Countrywide's Thursday closing price of $5.78. The gap reflects some investors' expectations that Bank of America might at least try to renegotiate the merger terms because the housing market has weakened.

Bank of America shares closed Thursday at $41.86 on the New York Stock Exchange. They rose 17 percent last week, a strong week for bank stocks, and are up a little more than 1 percent this year.

(Editing by Richard Chang)

© Reuters 2008 All rights reserved

Mon Mar 24, 2008 6:47am EDT 

BEIJING (Reuters) - China Life Insurance Co (601628.SS: ) (2628.HK: ), the country's biggest life insurer, said on Monday that it had invested $300 million in Visa Inc's (V.N: ) initial public offering in its maiden overseas investment.

A day after Visa's record $17.9 billion IPO last Tuesday, Ping An Insurance Co Ltd (2318.HK: ) (601318.SS: ), China's No.2 life insurer, paid 2.15 billion euros ($3.4 billion) for half of the investment arm of Belgian-Dutch financial group Fortis NV (FOR.BR: ).

Chinese financial institutions are actively exploring overseas markets in search of new profit streams.

China Life Chairman Yang Chao has said that he was interested in taking a stake in China Development Bank and Agricultural Bank of China as well as in buying into foreign banks.

At Visa's closing share price last Thursday of $64.35, China Life noted that it was enjoying paper gains of about 50 percent from the credit card company's IPO price of $44.

(Reporting by Eadie Chen; Editing by Alan Wheatley and Edmund Klamann)

© Reuters 2008 All rights reserved

Wednesday, March 19, 2008

TALLAHASSEE, Fla. - Florida Insurance Commissioner Kevin McCarty today announced that the Office of Insurance Regulation (Office) has filed an administrative complaint against the American General Life Insurance Co. (American General) seeking to suspend or revoke its certificate of authority to write insurance policies in Florida and requiring the company to cease and desist from unfair trade practices as defined in the Freedom to Travel Act, Section 626.9541(1)(dd), Florida Statutes.

The complaint specifically cites multiple counts of American General refusing to provide policies or limiting the amount, extent or kind of life insurance based solely on the individual's future lawful travel plans.

"When assessing their life insurance needs, consumers should not have to worry about how their travel plans might affect their ability to get insurance," said General Counsel Steve Parton.  "Seeking to suspend a company's license is not something we take lightly; however, given that these actions are in clear violation of the law, the Office is left with little choice. The Office has warned American General in the past, but they have refused to change their practices."

The most high-profile incident involved U.S. Rep. Debbie Wasserman Schultz, (D-FL), who in 2005 submitted a life insurance application to American General seeking to increase her current life insurance policy. She had indicated on her application that she had future plans for international travel. While Wasserman Schultz did not address specifics in the application, American General later called and spoke with her husband who indicated that there was a possibility that she may plan future travel to Israel. 

"Having personally experienced this kind of discriminatory behavior, I am glad to see that the Florida Office of Insurance Regulation is taking this extreme action against American General," said Wasserman Schultz. "As Americans, the ability to travel freely is a right we cherish. Our legal travel choices should not adversely impact our ability to purchase life insurance."

This is the first time the Office has sought to suspend or revoke a life insurance company's license for violating the Freedom to Travel Act.  www.floir.com

Attracting and Retaining Top Talent Also Emerging as a Major Issue, Towers Perrin Survey Finds

STAMFORD, Conn.--(BUSINESS WIRE)--Nine out of 10 property/casualty claim officers said increased competition, consolidation and convergence are among the leading challenges facing their industry in 2008, according to a recent Towers Perrin survey conducted by the firm’s claim management practice.

The claim officer survey also reported on key trends that are reshaping the industry, citing the rapidly growing importance of data analysis and technology, along with recruitment and retention of top talent, as key determinants of meeting business goals. In fact, attracting and retaining top talent is cited as the top priority for 82% of companies surveyed.

“Claim officers are all too familiar with the challenges of competitive pressures,” said Kathleen Cullen, Towers Perrin’s claim management practice leader. “Our survey looks beyond traditional competition and provides excellent insight into the emerging issues that are transforming the industry. The way the industry traditionally looked at itself has shifted from budgets and operational controls to a need for more sophisticated approaches regarding managing claim performance and results.”

In all, 62 claim officers from property/casualty insurance companies of various sizes were surveyed in late 2007: 37% from companies with less than $200 million in written premiums, 31% from companies with written premiums of between $200 million and $750 million, and 32% from firms with more than $750 million in written premiums. www.towersperrin.com

Role Limited and Need for Better Communication of Results

NEW YORK, March 20, 2008 –  The Insurance Advisory Services (IAS) practice of Ernst & Young LLP today announced highlights from a recent roundtable of senior insurance executives where preliminary findings from its 2008 Insurance Risk Leadership Survey were shared.

The survey of Chief Risk Officers (CROs) revealed insurers are optimistic about the future role of enterprise risk management (ERM). However, while the ERM building blocks are in place, the industry faces significant challenges as it prepares to move to the next level.

“Insurance CROs recognize the next era of enterprise risk management is upon them and are making basic progress in policies, measurement and reporting,” explained Doug French, Managing Principal and FSO Insurance Advisory Services Leader, Ernst & Young LLP. “However, there are significant gaps that must be filled in order to achieve the end goal of ERM that adds meaningful value to the organization.” 

Building on the initial survey findings, the roundtable included a facilitated discussion of ERM progress and the challenges and opportunities for integrating risk into the strategic business decision making process.

A full report of the survey findings and executive roundtable highlights will be published next month. To receive a copy, please contact Deanna Decker at 212-752-8338 or ddecker@psbpr.com. www.ey.com/us/actuarial

Critical Illness and Short-Term Disability Products Expand Conseco's Worksite Product Portfolio

Carmel, Ind. March 21, 2008—Conseco Worksite has introduced two new supplemental health insurance products for the employer group market: Conseco Worksite Critical Illness and Conseco Wage GuardSM. Both products are issued by Conseco Insurance Company.

Dan Bardin, president of the Conseco insurance companies, said, "We are excited to enhance our worksite product portfolio with these two new products. Conseco Worksite Critical Illness and Conseco Wage Guard present an opportunity for brokers to approach new and existing employer groups, while earning competitive commissions and enjoying easy-to-quote shelf rates.”

• Conseco Worksite Critical Illness offers lump-sum benefits for today's most common critical illnesses, including cancer, cardiovascular disease and major organ transplants. The product is available in three simple plan designs:  cancer-only coverage, a critical illness without cancer coverage, and a critical illness with cancer coverage.

Conseco Worksite Critical Illness offers benefit amounts up to $75,000 (in $5,000 increments,) and guaranteed issue for coverage up to $20,000. Benefits are paid for diagnoses in three Health Diagnosis Categories (HDCs):  heart attack, stroke; end-stage renal failure, major organ transplant and loss of sight; and cancer. The coverage pays first diagnosis and recurrence benefits in each HDC. A return-of-premium or cash-value rider is available in certain states, and guaranteed issue is available for employer groups that meet minimum participation levels.

• Conseco Wage Guard is a voluntary short-term disability product that pays weekly income benefits in the event of total disability caused by qualified sickness or injury. This product provides two plan choices offering both nonoccupational and 24-hour coverage, allowing employers to tailor coverage to meet employee needs and budgets.

Conseco Wage Guard pays benefit amounts of $70 – $1,700 per week, purchased in $10 increments. Guaranteed issue is available for groups that meet the participation requirement of 25% of eligible employees, with a maximum $700 weekly benefit amount. In many cases, underwriting pre-approval is not required for guaranteed-issue groups of fewer than 500 employees. Initial rates are guaranteed for two years.

For convenience and streamlined enrollment, Conseco has created a single application that allows agents and brokers to enroll both products – critical illness and short-term disability – at the same time.

Conseco Worksite is a dedicated sales division of the Conseco insurance companies, specializing in workplace-related insurance products. Agents who are interested in partnering with Conseco Worksite or learning more about Conseco's supplemental health products should visit www.PartnerWith.com/worksite/. 

OREM, Utah--(BUSINESS WIRE)--iMergent, Inc. (AMEX:IIG), a leading provider of eCommerce software for small businesses and entrepreneurs, announced the U.S. District Court for the District of Utah approved the settlement of all claims related to a consolidated class action litigation against the company filed on March 8, 2005 and subsequently certified a class action by the U.S. District Court for the District of Utah. The Court approved the terms of a memorandum of understanding entered on September 19, 2007.

The Order of Approval of Plans of Allocation of Settlement Proceeds and Final Approval Order and Judgment settlement provide for the following:

(i)     iMergent, through its directors and officers (D&O) insurance policy, will pay $2.8 million to the class plaintiffs;  

Enhanced website to make it easier to form and join carpools and vanpools

ARLINGTON HEIGHTS, Ill.--(BUSINESS WIRE)--Adding another method to fight high gas prices and commuting costs, Pace has launched PaceRideShare.com, a new web resource for commuters looking to form or join carpools or vanpools. Pace Board Chairman Richard Kwasneski said, “This website is one-stop shopping for people looking to cut their commuting costs. We wanted this to be a simple way for people to find others who have similar commuting patterns so they can form their own carpool or join Pace’s Vanpool Incentive Program.”

Foundation One Finds a Solution to Growing Problem of Uninsured Americans

March 24, 2008, Frisco, Texas – Foundation One Insurance Services, Ltd. announced today that they have developed an affordable group health insurance plan for dependents.

Employers have a distinct advantage in attracting and retaining quality employees if they offer a quality group health program. However, most employers do not contribute to the cost of dependent coverage, and, for many employees, due to the rising cost of group health insurance, it is not an affordable option. Thus, dependent participation in health care plans is often notably low, leaving a large population of Americans vulnerable and uninsured.

Many employers have had few options to offer employees and their dependents. Foundation One has created a flexible three-tiered plan that provides meaningful benefits for employees’ dependents, at rates they can afford.

“We think this is going to open a lot of new doors for brokers, and at the same time, provide a valuable benefit for employers and their employees,” said Keith Appleton, Managing Director of Foundation One.

The plans are payroll deducted from the employee, and all actively at work employees age 18 or older are eligible to enroll their dependents. American Fidelity Assurance Company provides underwriting. Policy limitations and exclusions apply.  www.found1ins.com

NEW CASTLE, Ind.--(BUSINESS WIRE)--Jerome J. Gassen, President and Chief Executive of Ameriana Bank, today announced a new mortgage initiative, HomeRetain, to assist families with modifying or refinancing their existing mortgages to more favorable terms and potentially avoid foreclosure.

HomeRetain is a part of the Community Investment Program of the Federal Home Loan Bank of Indianapolis, a source of wholesale funds for member institutions involved in housing or community economic development activities that benefit low- and moderate-income families or neighborhoods.

The FHLBI announced the HomeRetain initiative in late December 2007, which offered member institutions a $100 million split between the states of Indiana and Michigan and which may be used to modify or refinance mortgages for primary residences in any state in which a member does business.  www.Ameriana.com  www.fhlbi.com

NEW YORK, March 24 /PRNewswire/ -- Tokio Marine Management, Inc. ("TMM"), U.S. Manager for Tokio Marine & Nichido Fire Insurance Co., Ltd. (U.S. Branch) ("TMNF U.S.") and American Wholesalers Underwriting Ltd. ("AWUL") expand the Wholesalers Insurance Plan(R) ("WIP(R)") to include fresh and frozen food wholesalers/distributors in the U.S. 

WIP(R) offers over 50 insurance programs designed specifically to service the commercial insurance needs of the durable & non-durable goods wholesale distribution industry. Underwritings include virtually all Standard Industrial Code Classifications (5000-5199) for wholesalers/distributors.

Program classes for goods such as fresh meats, sea food, poultry, dairy, fruits and vegetables and frozen package foods will include spoilage cover and ISO Form "Limited Product Withdrawal Expense" as standard coverages to adequately protect wholesalers/distributors. All WIP(R) programs include broad limits and coverages for lines such as commercial property (including inland marine and boiler and machinery), general liability, automobile and umbrella liability.

For a complete list of programs available under WIP(R) please visit http://www.awul.com.

Landmark Study Cites 12-to-1 Return on Investment

MINNEAPOLIS, March 21 /PRNewswire/ -- ClearScript today announced that it is introducing Medication Therapy Management (MTM) as a benefit option to employer health plans across the US. A landmark study published in the Journal of the American Pharmacists Association cites a 12-to-1 return on investment for patients receiving MTM services through improved health outcomes and lower total health care expenditures. http://www.clearscript.org.

AUSTIN, Texas--(BUSINESS WIRE)--The Fringe Benefit Group, an industry leader in group benefit plans designed specifically for hourly and part-time workers, today announced it has launched a branding campaign to support the new name of its limited medical insurance policy, the Framework Health Plan.

“The name Framework really appealed to us because we are providing the framework of benefits from which companies can build out their health plan. We have been providing and administering limited medical plans for 20 years and today our clients include many of the nation’s leading retail, hospitality and staffing companies. We have been one of the leaders in this business for a pretty long time, and it was time for a new look and name that more closely relates to how we help people,” said Brian Robertson, executive vice president of Fringe Benefit Group.

The Framework Health Plan is specifically designed for employers looking for a health plan that is affordable, flexible, and easily administered. Some of the limited benefit health plan’s attractive features include: guaranteed issue (employees and their eligible dependents will not be denied coverage during open enrollment periods), no pre-existing condition limitations, customized enrollment forms, flexible billing technology that corresponds with an employer’s existing payroll cycle, and experienced “live” customer service representatives. Framework Health Plan also offers network re-pricing through First Health Network and Beechstreet Corporation, which makes available benefit dollars go further and expedites the claims process. When an insured visits an in-network doctor, for example, they are eligible to pay the price that network has negotiated with the particular physician.

The Framework Health Plan is underwritten by A rated carrier Nationwide Specialty Health, which is part of Nationwide Insurance, and A- rated Standard Security Life Insurance Company of New York, a wholly owned subsidiary of Independence Holding Company (NYSE: IHC). Information about the Framework Health Plan is available on the company’s new Website: www.frameworkhealthplan.com. 

CLAYMONT, Del.--(BUSINESS WIRE)--CIGNA International Expatriate Benefits (CIEB) has expanded its international network through three direct settlement arrangements with hospitals in Turkey. These arrangements will provide access to more hospitals and physicians, at a lower cost, for the growing number of expatriates in Turkey with CIEB coverage.

Insurer Announces the “Progressive Pumps up the Savings Free Fuel Giveaway”

MAYFIELD VILLAGE, Ohio--(BUSINESS WIRE)--It’s no secret that rising fuel costs are a big stress on business owners and truckers. In fact a recent survey by leading commercial auto insurer, Progressive, found that 69 percent of truckers say fuel costs are their most concerning business expense.

To relieve some of that stress, the insurer is giving away more than $150,000 in free fuel with the “Progressive Pumps Up the Savings Free Fuel Giveaway,” including three $25,000 grand prizes.

There are two ways to win:

In person - Progressive will give away thousands of $25 fuel cards at commercial auto tradeshows throughout the year, including the Mid America Truck Show, Great American Truck Show, Great West Truck Show and America Towman Exposition. For a complete list of shows, go to www.progressivecommercial.com.