CHICAGO--(BUSINESS WIRE)--Fitch Ratings said today that, in spite of reform efforts enacted by the state of Florida in 2007 to improve the availability and affordability of homeowners insurance in the state, the Florida homeowners market continues to be unstable. Fitch added that additional reforms are being considered in the current state legislative session, the agency believes there is not an easy solution to solve this problem, and it does not expect the issues to be resolved in the near term.

In a special report released today, 'Fitch Comments on Florida Homeowners Insurance Market,' Fitch said that its main concern from a ratings perspective is that if a major storm(s) were to hit Florida this year, the fragile market could effectively 'collapse', especially if such an event intensifies the withdrawal of private capacity. Accordingly, Fitch believes these pressures will continue to create uncertainties for insurance companies with material presence in the Florida homeowners market, and in some cases, could become a more significant negative ratings consideration if stability does not return to the market relatively soon.

Fitch's special report is now available on www.fitchratings.com under the following headers: Financial Institutions > Insurance > Special Reports

Background:

Florida is at greater risk for hurricane catastrophe losses than other areas of the country in that 25% of the coastal property exposed to hurricanes in the U.S. is located in Florida. Furthermore, given the density and expected continued growth of the population, particularly along the desirable coastal areas that are at a much greater risk of loss, the risk exposure is only expected to grow. The Florida Office of Insurance Regulation (FL OIR) earlier this year estimated that a 1 in 100 year hurricane event in Florida would result in $50 billion of insurance industry losses. In addition, some experts predict that hurricane activity could be above average in the near term, as we are currently in the high frequency part of the hurricane cycle, despite the limited storm losses in 2006 and 2007.

While the sizable hurricane losses in 2004 and 2005 caused many insurers to reduce their exposure in Florida or exit the market altogether, what a number of insurers view as a difficult regulatory environment has also prevented many companies from returning to the market. These insurers claim that recent legislation and state actions have worked against the insurance industry by 1) making it more difficult for multi-line insurance companies to write Florida automobile insurance business without also writing Florida homeowners risk, 2) prohibiting any new Florida-only subsidiary 'pup' companies of larger insurance organizations, and 3) requiring state insurance regulators to factor in a company's national profits when approving rates in Florida, which leads to further rate suppression.

Overall, Fitch views the nature of the Florida homeowners market as a negative for insurer credit ratings. The core challenges are rooted in the state's significant exposures to hurricane risk. For private insurers at least, these risks are exacerbated by the expanded role of state sponsored entities, against whom private insurers find it difficult to compete, as well as significant differences of opinion with regulators as to the level at which rates should be set. Fitch believes these challenges and tensions will not be alleviated any time soon, which means ratings pressures will also remain in place for the foreseeable future.   www.fitchratings.com

Tue Mar 25, 2008 12:17pm EDT 

By Al Yoon

NEW YORK (Reuters) - Prices of existing single-family homes slumped for the 18th month in a row in January, for a record annual drop, according to Standard & Poor's/Case-Shiller home price index released on Tuesday.

The composite month-over-month index of 20 metropolitan areas fell 2.4 percent to 180.65 from December, bringing the measure down 10.7 percent from a year earlier and 12.5 percent from its July 2006 peak.

The 12-month drop was the latest in a string of records for the statistic set as the housing market slumped. The previous annual drop, in December, was 9.1 percent.

The latest annual decline was just over half of the 20 percent total decline expected by S&P's chief economist, David Wyss, said David Blitzer, a managing director at S&P.

Wyss expects prices to hit bottom in early 2009, Blitzer said in a conference call.

(Reporting by Al Yoon and Richard Leong; Editing by Jonathan Oatis)

© Reuters 2008 All rights reserved

Tue Mar 25, 2008 12:34pm EDT  NEW YORK, March 25 (Reuters) - CME Group Inc (CME.N: ) said on Tuesday it is acquiring Credit Market Analysis Ltd, a provider of credit derivatives data, as the exchange looks to bolster its business in the fast-growing market.

CME offers credit derivatives contracts, but trading volume has typically been low for these products. Buying Credit Market Analysis, which provides credit derivatives data to asset managers, may help the exchange understand the market better, an analyst said. (Reporting by Phil Wahba; Editing by Andre Grenon)

Tue Mar 25, 2008 12:31pm EDT 

NEW YORK, March 25 (Reuters) - Citigroup (C.N: ), the largest U.S. bank, on Tuesday launched an online foreign exchange trading platform aimed at retail investors and small institutional dealers.

The platform, CitiFX Pro, is available to U.S. clients and will be unveiled in other parts of the world over the next few months, the bank said in a news release.

In November, Citigroup and Copenhagen-based Saxo Bank announced plans for CitiFX Pro, which combines Saxo's technical expertise with the deep liquidity that Citigroup offers. Citigroup is the largest U.S. bank by assets.

Citigroup is one of the top participants in the $3 trillion-a-day currency market, along with Deutsche Bank (DBKGn.DE: ) and UBS (UBSN.VX: ), which both have foreign exchange trading platforms meant for retail clients. (Reporting by Kevin Plumberg; Editing by Jonathan Oatis)

COLUMBUS, Ga., March 25 /PRNewswire/ -- Aflac Incorporated's board of directors has released the proxy statement language formally inviting shareholders to vote on the company's performance based compensation. The action marks the first time shareholders will vote on executive compensation for a major American public company. Aflac will announce the results of the vote on May 5, 2008, during the annual shareholders meeting in Columbus, Georgia, where the company is headquartered.   http://www.aflac.com/shareholdermeeting. 

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has released its revised rating methodology on life settlements, “Life Settlement Securitization,” which describes the criteria for rating securities backed by life settlements. A life settlement is an insurance policy sold by the owner—typically the insured or a trust—for an amount greater than the surrender value of the policy but lower than the face amount of the policy. The purchaser of the life settlement becomes the new owner and beneficiary of the life insurance policy and is responsible for making future premium payments and collecting the death benefits of the insured.

For more information on A.M. Best’s rating methodologies or to download a copy of this full methodology report, visit http://www.ambest.com/ratings/methodology.html. 

For access to special reports, analytical methodologies and transactions relating to structured finance, please visit http://www3.ambest.com/sfc/. 

CINCINNATI--(BUSINESS WIRE)--The Great American Insurance Group is pleased to announce that its Environmental Division is open for business and actively accepting submissions. The experienced underwriting staff and claims group offers a broad portfolio of environmental products addressing a wide spectrum of risks. Limits of liability are available up to $25 million. Brokers and agents looking for environmental solutions for their clients can contact the Great American Environmental Division at 888-828-4320.

Nearly Half of Employers Now Have CDHPs, Watson Wyatt/National Business Group on Health Survey Finds

WASHINGTON, D.C., March 13, 2008 – The number of companies that offer a consumer-directed health plan (CDHP) is rising, and the number of workers who enroll in the programs has nearly doubled over the last two years. Furthermore, health cost increases for companies with high CDHP enrollment are roughly half those facing companies offering only traditional health coverage, according to an annual survey conducted by Watson Wyatt and the National Business Group on Health.

Nearly half (47 percent) of the 453 large U.S. employers that participated in the survey currently offer a CDHP, an increase from 39 percent in 2007 and 33 percent in 2006. By 2009, 54 percent of companies plan to offer a CDHP. A CDHP is a high-deductible plan offered with a personal account that can be used to pay a portion of medical expenses not covered under the plan.

As adoption rates climb, employee enrollment also continues to rise. Fifteen percent of employees at organizations that offer CDHPs are currently enrolled in such plans, up from 8 percent in 2006 and 10 percent in 2007. Only 6 percent of companies report 100 percent enrollment in a CDHP, but that number is expected to rise to 9 percent in 2009.

“A CDHP offers a way for companies to control costs while increasing employee accountability for health care decisions,” said Ted Nussbaum, Watson Wyatt’s director of group and health care consulting in North America. “The participants in a consumer-oriented model must be more familiar with the system and have a deeper understanding of their options. But encouraging employees to adopt healthy behaviors and manage their health proactively is no easy task.”

To view the 13th annual National Business Group on Health/Watson Wyatt Report, visit www.watsonwyatt.com/purchasingvalueinhc. 

Long-term care insurance has evolved from a post-retirement purchase to a staple of financial planning for those in their 40s and 50s.  According to new research just published by the American Association for Long-Term Care Insurance (AALTCI), one third (33%) of buyers of individual long-term care insurance protection in 2007 were under age 55.   Younger individuals are not merely buying protection in anticipation of claims in their later years.  The Association's new study revealed claims involving policyholders in their 20s and 30s.

"Long-term care planning is now an integral part of mainstream financial planning, especially for baby boomers," states Jesse Slome, AALTCI executive director.  According to data published in the Association's 2008 Long-Term Care Insurance Sourcebook, some 400,000 Americans purchased insurance protection last year either on an individual basis or through their employer.  The total number of Americans with protection has now reached eight million.

"Individuals who purchase protection at younger ages are far more likely to qualify for significant savings offered to those who meet health qualifications," Slome explains, "and now the data confirms that some of these younger policyholders will actually receive benefits from their protection as a result of an accident or illness." 

Six of the nation's leading insurers shared data for their youngest policyholders receiving claim benefits in 2007.  One such claimant was 32-year-old; fell and injured their knee requiring several surgeries and months of rehabilitation.  After six months on claim (receiving care in their home) they recovered fully.  Another individual (currently 39) has been on claim for over four years due to Parkinson's disease.  The youngest individual on claim (individual LTCi policy) was age-25 upon submission of the initial claim payment.  The youngest group (employer-sponsored) plan participant on claim is 23.

The complete study findings are included in the 2008 LTCi Sourcebook published by the American Association for Long-Term Care Insurance.  Copies are available (free for members; $59 for non-members) by contacting the Association at (818) 597-3227 or by visiting the organization's Website

www.AALTCI.org.                              

2007 Sales By Issue Age  (Individual policy sales)

Under 35     1%

35-44     6%

45-54     26%

55-64     50%

65-74     15%

75 or Older     2%

2007 Sales By Issue Age  (group policy sales - employer-sponsored)  Note: Group buyers tend to be younger

Under 35     9%

35-44     18%

45-54     36%

55-64     30%

65-74     6%

75 or Older     1%

Source:  2008 Long-Term Care Insurance Sourcebook, published by the American Association for Long-Term Care Insurance, February 2008

CHICAGO--(BUSINESS WIRE)--According to a special report published last week by Fitch Ratings, the downward earnings revisions in the health insurance sector for 2008, which created a quick and in some instances severe correction in share prices, has not changed the rating agency's Stable Rating Outlook for the sector.

In recent weeks, several health insurance companies cited inadequate pricing, increased medical cost trends attributed to a heavy influenza season and declining investment income from recent interest rate drops as the cause for lower expected 2008 earnings. Year-to-date the market valuation for health insurers has fallen over 35%.

Fitch's Special Report on this issue, 'Health Insurers: Prognosis Unchanged: Ratings Stable Despite Downward Earnings Revisions', can be accessed from Fitch's website at: www.fitchratings.com under the following headers: Financial Institutions > Insurance > Special Reports.

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 free review.

THE TIME EFFECTIVE WAY TO STAY AHEAD  

• ABI responds positively to Solvency II draft report

• FSA issues discussion paper on commercial lines commission disclosure

• Ping An stays in the headlines

• ACE holding company to re-domesticate to Switzerland

• LIMRA publishes persistency study

• Gallagher acquires in Pennsylvania

• Legal & General moves for Suffolk Life

• Mastek secures Legal & General contract

• Increasing use of data mining solution by brokers says Open GI

• Kewill to work with KMG on electronic trading after successful pilot

• Snapshots Brazil Motor Insurance 2008

• Ryan names retirement date

• Impressive results from SCOR

• Scottish Widows offers contract valuation through IntelliFlo

• Vienna to merge Polish life units

• Marsh sets up new arm in Dubai

• Willis aims at smaller UK brokers with N2

• Humana to buy in Illinois

• Towergate looking to buy a small insurer? 

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

• EW REPORTING METHOD MAKES U.S. BANKS’ INSURANCE BROKERAGE FEE INCOME APPEAR SLIGHTLY LOWER

• TEST TAKING SCANDAL LEADS TO SUSPENSION OF 16 STATE FARM REPS

• TWO ELDERLY WOMEN ACCUSED OF TAKING OUT LIFE POLICIES ON HOMELESS MEN AND KILLING THEM TO COLLECT THE PAYOUTS

• INSURANCE BROKERAGE FEE INCOME UP 6%, BOLI INCOME UP 4.5% AT NORTHWEST BANCORP

• PARKWAY BANK REPORTS 16.5% DROP IN INSURANCE BROKERAGE FEE INCOME

17-year-old boy needs cancer treatment, PacifiCare denies

CYPRESS, Calif., March 25 /PRNewswire/ -- Registered nurses, friends and concerned community members will join the family of Nick Colombo marching on the corporate offices of health insurance giant PacifiCare in Orange County today to protest the denial of a life-saving cancer treatment for the 17-year- old, the California Nurses Association/National Nurses Organizing Committee (CNA/NNOC) announces.

The family and the nurses are also urgently appealing to the public to call PacifiCare at 714-828-1821 and demand they provide the care Nick needs.

Supporters can deliver the same message to PacifiCare spokesman Tyler Mason at 714-226-3530

What:   March on PacifiCare

When:   TODAY, March 25, 10:00 am

Where:  PacifiCare Headquarters,

5701 Katella Ave, Cypress, CA 90630

"My brother Nick Colombo is just 17 years old, and he has suffered with a painful bone cancer for four years," said Ricky Colombo, Nick's 19-year old brother. "Our insurance company, PacifiCare, denied Nick radiation treatment available in Kansas City which can save his life. He has exhausted all other treatment options but nothing worked. This is our last effort and this procedure has worked before with people in Nick's situation. We are now standing up for Nick, and telling PacifiCare that what they are doing is wrong."

Nick's brother Ricky asked for assistance in the patient stories section of the Guaranteed Healthcare, a Web site maintained by CNA/NNOC to document the stories of real people harmed by the health insurance companies.

Read his full story here: http://www.guaranteedhealthcare.org/your_story/save-my-brother-nick-pacificare   "PacifiCare and the State's refusal of Nick's cancer treatments -- overruling the urgent appeals of an array of doctors and nurses -- is indicative of the failures of the healthcare plans offered up in many states including California," said Geri Jenkins UCSD Medical Center RN and an elected member of the CNA/NNOC Council of Presidents.

The treatments were deemed medically necessary by Nick's doctors, but California's Managed Care oversight board recently sided with PacifiCare, a decision that Nick's caregivers, family and community have vowed to overturn.

PacifiCare was recently fined $3.5 million by the state of California for systematic mishandling of at least 133,000 claims like Nick's. The company is facing up to $1.3 billion in addition penalties, for illegally denying care, and a Department of Managed Health Care investigation found that the corporation wrongly denied claims in 30 percent of its HMO cases in 2006-7. In 2005, PacifiCare was taken over by the nation's largest health insurer, UnitedHealth, which is expected to grow its profits 13 percent in 2007-8, according to recent reports.

NEW YORK--(BUSINESS WIRE)--The Depository Trust & Clearing Corporation (DTCC) announced today it cleared and settled more than $1.86 quadrillion in securities transactions in 2007. DTCC also reported record revenue of $1.69 billion and returned $984 million to its customers in the form of discounts and rebates.

Through its subsidiaries, DTCC provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over the counter derivatives, and is a leading processor of mutual funds and insurance transactions. DTCC’s depository provides custody and asset services for about 3.5 million securities issues from the U.S. and 110 other countries and territories worth more than $40 trillion.

DTCC’s $1.69 billion in revenues last year was up 24% from the $1.36 billion in 2006. Record high volumes and DTCC’s tight fiscal management helped reduce costs in some of DTCC’s traditional market segments and resulted in record rebates and discounts of $984 million. Because DTCC operates on an “at-cost” basis, excess revenue beyond that required to fund the business is returned to customer firms on a pro-rata basis.

In addition to the rebates, the company announced the largest fee cuts in its history for 2008, driven by the economies of scale and frugal cost management provided by DTCC’s operations. These changes are expected to result in a combined total of $198 million in fee reductions to customers for the coming year. That followed fee revisions resulting in almost $90 million in reductions for 2007.  www.dtcc.com

Integrated Practice Includes Investor Relations, Public Relations and Marketing Services

NEW YORK, March 25 /PRNewswire/ -- KCSA Strategic Communications has formally launched a practice dedicated to supporting the investor relations, public relations and marketing needs of financial services companies.

The new initiative leverages KCSA's decades of financial services experience, including deep and varied industry knowledge, to offer clients highly innovative, strategic communications campaigns and expert counsel that produces measurable results. Representative financial services client experience includes Alpha Financial Technologies, Compass Diversified Holding (CODI), Genesis Lease Holding, JMP Group, LaBranche & Co, Macquarie Infrastructure Company (MIC), Pennsylvania Real Estate Investment Trust (PREIT), ThinkEquity Partners, Toronto-Dominion Bank and SeaBright Insurance Holdings. http://www.kcsa.com

WASHINGTON--(BUSINESS WIRE)--GEICO and Presidential Classroom are teaming up on a scholarship program that will bring more high school students to Washington, D.C. this summer to learn first-hand about the federal government, international affairs and public leadership from extraordinary, successful leaders and policy-makers.

Presidential Classroom is a national program for more than 2,500 of the country’s top high school students who visit the nation’s capital each year, meet federal officials and learn about issues from those involved in the policy process. The students also visit organizations that play a role in implementing government programs, shaping legislation or communicating through national bureaus in media and public affairs.

This year, GEICO will present scholarships to 30 students who will be named “GEICO Presidential Classroom Scholars.”

BLOOMFIELD, Conn.--(BUSINESS WIRE)----CIGNA (NYSE:CI) today announced two new enhancements to its online Prescription Drug Price Quote tool that will make it even easier for members to save money on their prescriptions. Now by using the myCIGNA.com personal Website, eligible CIGNA Pharmacy Management(R) members can get electronic generic prescription discount coupons. They can also get real-time, side-by-side price comparisons of drug costs from three local pharmacies at a time, as well as from the CIGNA Tel-Drug(R) Home Delivery Pharmacy. 

WASHINGTON (Reuters Life!) - Middle-income families can expect to spend $204,060 on feeding, housing and schooling a child born in 2007 until his or her 18th birthday, the U.S. government reported on Monday.

Child care and education costs will represent a larger share of costs for raising the '07 baby through adulthood than they have in the past, the Agriculture Department said in an annual study on child-rearing costs.

"The cost of providing food decreased from 24 percent to 17 percent of total child-rearing costs, while child care and education expenses increased from 2 percent to 12 percent," the department said.

Housing will be the single largest cost for U.S. families -- making up 33 to 27 percent of total expenses across income groups, USDA said.

Factoring in inflation, the grand total for middle-income families comes to $269,040, USDA said. Total costs also include transportation, health care, and other necessities.

JERSEY CITY, N.J., March 25, 2008 — ISO Insurance Technology Solutions (ISO-ITS) today announced that Hermitage Insurance Company has implemented ISO Rating Service® within its policy-administration system.

ISO Rating Service is a comprehensive, automated rate-management system containing a combination of advanced technology and product-management tools. The system provides insurers with advisory information loaded into a powerful rating engine combined with rate-management decision tools and continual ISO updates. www.iso.com