INSURANCE NEWSCAST "Headlines Only Edition" for: Monday, 12/04/06

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INSURANCE NEWSCAST "Headlines Only Edition" for: Monday, 12/04/06  

Here is a quick look at the stories that will be in Monday's INSURANCE NEWSCAST.

 

1) Stock options of UnitedHealth CEO frozen - NEW YORK, Nov 30 (Reuters) - A federal judge has temporarily blocked outgoing UnitedHealth Group Inc. (UNH.N: Quote, Profile , Research) Chief Executive William McGuire from cashing in any of his unexercised stock options and collecting his retirement pay.  McGuire stepped down as chairman in October and his last day as CEO was Thursday, following an internal report by the insurer that concluded many of his stock option awards were likely backdated.

 

2) UnitedHealth new CEO starts; co. reshuffles execs - NEW YORK, Dec 1 (Reuters) - UnitedHealth Group Inc. (UNH.N: Quote, Profile , Research) said on Friday Stephen Hemsley has officially assumed the job of chief executive officer and named three executives as presidents overseeing various business segments as part of a management restructuring.  Hemsley, formerly president and chief operating officer of the U.S. health insurer, was named CEO earlier this year in the wake of a critical report into stock-options practices that led to the ouster of CEO William McGuire.

 

3) BIG ?I? DISAGREES WITH SPITZER DECISION ON INCENTIVE COMPENSATION - Attorney general?s ruling impacts insurance lines not implicated in illegal activities.  ALEXANDRIA, Va., Nov. 30, 2006?The Independent Insurance Agents & Brokers of America (the Big ?I?) disagrees with, and is disappointed by, New York Attorney General Eliot Spitzer?s decision that four leading companies can no longer offer incentive compensation to agents and brokers selling their products.

 

4) NAIC RELEASES ANNUAL AUTO INSURANCE DATABASE REPORT - KANSAS CITY, Mo. (Dec. 1, 2006) ? The National Association of Insurance Commissioners (NAIC) today announced the release of its 2003/2004 Auto Insurance Database Report, which provides the average costs associated with personal automobile insurance nationwide.  The report, which features vital state-by-state auto insurance data, is designed to provide necessary information and analysis to insurance regulators, consumers and policymakers.

 

5) AHIP Briefs Congressional Staff on New Access Proposal - Plan Would Expand Access to Health Insurance Coverage to All Americans Survey Found That the American Public Wants Congress to Address This Critical Issue.  WASHINGTON, Nov. 30 /PRNewswire/ -- Congressional staff members were briefed today at an event on Capitol Hill on a new policy proposal put forth by America's Health Insurance Plans (AHIP) to expand access to health insurance coverage to all Americans.

 

6) RILA Urges U.S. Court of Appeals to Uphold Lower Court Decision Striking Down Maryland Health Mandate - ARLINGTON, Va., Nov. 30 /PRNewswire/ -- The Retail Industry Leaders Association (RILA) today delivered oral argument before the United States Court of Appeals for the Fourth Circuit urging the Court to uphold a lower court ruling that struck down Maryland's mandated health benefit statute.  The appeal, argued today before a three judge panel in Richmond, Virginia, was initiated by the state of Maryland after the United States District Court in Baltimore invalidated Maryland's mandated health benefit statute in a decision issued on July 19. The Court determined that the Maryland state law was preempted by a federal law known as the Employee Retirement Income Security Act (ERISA).

 

7) Best?s Review: The Key to Underwriting Personal Lines Insurance is Focus - OLDWICK, N.J.--(BUSINESS WIRE)--Insurers that make the greatest profits underwriting personal lines risks are not always the most well-known, but they each have found their niche or sweet spot in the insurance business, the December issue of Best?s Review reports.  A.M. Best Co. examined three personal lines of insurance?private-passenger auto liability, private-passenger auto physical damage and homeowners multiple peril?and found the companies that scored the best in underwriting profitability, which doesn?t include money made from investments, often did so with a sharp focus on a particular area of expertise.

 

8) Modernizing Insurance Regulation Remains Top Priority for Broad-Based Financial Services Coalition Members - Washington, D.C., Dec. 1, 2006 -- The financial services industry this week renewed its commitment to modernizing the nation?s insurance regulatory system through enactment of federal legislation creating an optional federal charter (OFC) for insurance agents and companies.  At a meeting of the Optional Federal Charter Coalition, leaders of trade associations representing insurance companies, banks, and insurance agents and brokers, stressed the urgent need for national insurance regulatory reform.  The past two Congresses have held a series of hearings about the problems with the current, state-based insurance regulatory regime. Conversations began in earnest last year about implementing a meaningful new system that would include an optional federal charter.

 

9) Disaster insurance high on US House's Frank's list - WASHINGTON, Nov 30 (Reuters) - Bolstering the insurance industry against terrorist attacks and hurricanes will be a "very high" priority for the House Financial Services Committee after Democrats take over Congress in January, incoming committee Chairman Barney Frank said on Thursday.  "The whole question of disaster insurance will be high on the priority list," the Massachusetts lawmaker told reporters.

 

10) The Top 10 Health Stories of 2006, From the Harvard Health Letter - Editors of the Harvard Health Letter, in consultation with the doctors on its editorial board, have chosen the top 10 health stories of 2006.

 

11) U. S. Labor Department Sues Iowa Association to Recover Millions in Employee Benefit Plan Assets - DES MOINES, Iowa, Nov. 30 /U.S. Newswire/ -- The U.S. Department of Labor filed a lawsuit against the Iowa Association of Business and Industry (ABI), Des Moines, Iowa, for retaining all the proceeds from a stock distribution by Principal Mutual Insurance Co. that was based on employee benefit plan premiums paid to the insurer by employers participating in the association and their employees. Approximately 1,500 employers are members of the trade association.

 

12) Former AIG Exec Ousted Over Financial Misconduct, Funds Plan to Weaken Sarbanes-Oxley Reforms - LOS ANGELES, Nov. 30 /U.S. Newswire/ -- Former AIG insurance executive Maurice Greenberg, who was ousted because of accounting manipulations and misrepresentations, runs the foundation that funded a report released today that would weaken the post-Enron corporate governance and accounting standards that helped uncover AIG's misconduct.

 

13) Insurance Broker Capacity Coverage Alerts Companies About Costly Workers Compensation Mistakes - Mahwah, N.J., Nov. 30 /PRNewswire/ -- New Jersey-based insurance broker Capacity Coverage is warning businesses to avoid a costly workers compensation mistake. Many businesses don't realize there are "monopolistic states" where the state controls all Workers Compensation insurance -- Wyoming, North Dakota, Washington, and Ohio. West Virginia recently changed its monopolistic status by naming BrickStreet Mutual Insurance as its sole carrier. Other insurers will be added as of July 1, 2008.

 

14) OneBeacon Purchases National Marine Underwriters - OneBeacon Insurance Group (NYSE: OB) announced today that is has acquired ownership of National Marine Underwriters, a yacht-specialty Managing General Agent with a 20-year history of writing recreational marine business. National Marine Underwriters will become a part of International Marine Underwriters (IMU), a division of OneBeacon Insurance Group that offers ocean marine solutions for hull, marine liabilities, and private-pleasure yachts, as well as ocean cargo.

 

15) Independent Insurance Investments, Inc. Acquires Omni Insurance Group - Independent Insurance Investments, Inc. ("Independent") today announced that it has completed the acquisition of the Omni Insurance Group ("Omni") from The Hartford Financial Services Group Inc. (NYSE: HIG).  Omni is a non-standard auto insurance company that generated net written premiums of $174 million in 2005, employs approximately 250 people and distributes its products through a significant network of independent agents. Omni writes business in over 40 states.

 

16) Old Republic Completes Acquisition of Contractors Insurance Business - Old Republic International Corporation (NYSE: ORI), today confirmed that its subsidiary, Old Republic Insurance Company, has completed its previously announced acquisition of a casualty insurance underwriting division of Aon Corporation ("Aon"). Old Republic is acquiring policy renewal rights and related assets for a total purchase price of $85 million, and is assuming certain liabilities associated with Aon's Construction Program Group ("CPG"). With current annual premium volume of approximately $260 million, CPG provides specialized casualty insurance coverages and services to trade contractors, general contractors, and large commercial construction projects. Renamed Old Republic Construction Program Group, Inc., the acquired business has been organized as a joint underwriting venture between Old Republic and certain principals associated with Aon's CPG division.

 

17) Arthur J. Gallagher & Co. Acquires William H. Connolly & Co. - Arthur J. Gallagher & Co. (NYSE: AJG) today announced the acquisition of William H. Connolly & Co. of Montclair, New Jersey. Terms of the transaction were not disclosed.  Incorporated in 1950, William H. Connolly & Co. is a retail insurance broker offering commercial and personal insurance products and services as well as employee benefit packages and individual and group life and health coverage to its clients located throughout the Northeast. They specialize in programs for healthcare providers, metalworkers, universities, not-for-profit organizations and law firms. William H. Connolly, Jr. and his staff will continue to operate in their Montclair location under the direction of Douglas B. Brown, Vice President and Northeast Regional Manager of Gallagher's Brokerage Services Division - Retail.    

 

18) Aon Closes Sale of Both Aon Warranty Group and Construction Program Group - Aon Corporation (NYSE: AOC) announced today the close of the sale of Aon Warranty Group (AWG) and its worldwide operations (including Virginia Surety Company) to Warrior Acquisition Corp., an affiliate of Onex Corporation, and the close of the  sale of Construction Program Group (CPG) to Old Republic Insurance Company.  The sale of AWG and CPG is expected to result in sales proceeds and dividends in excess of $800 million. Net cash proceeds are subject to final transaction costs and certain post closing adjustments. The Company currently expects to record a pretax gain and a modest after-tax loss associated with these transactions during the fourth quarter 2006.    

 

19) Employers Direct Joins California Grocers Association -Employers Direct Insurance Company, a direct writer of California workers? compensation insurance, is pleased to announce that it has joined the California Grocers Association (CGA), a Sacramento-based trade association that has been the voice of the California food industry since 1898.  ?As we focus on providing the best possible workers? compensation programs to grocers and retailers in California, our CGA membership and participation in the Suppliers Executive Council (SEC) will allow us to gain additional insight and perspective into the food industry. We also strongly support CGA?s commitment to preserve the SB 899 reforms through their advocacy efforts in Sacramento,? said James E. Little, Chairman/President & CEO of Employers Direct Insurance Company.

 

20) INSURANCE NEWSCAST ?Pictures Of The Day?

 

21) Hospital CEO Cites HMO Abuses of Patients and Providers at NY Legislative Hearing - Health Insurance Industry Consolidation Empowers HMOs to ?Game the System? Unchecked by Regulators.  Patients, doctors and hospitals in New York are being ?strong armed? by HMOs who ?game the system to shift to their members, to publicly supported hospitals, and ultimately to the tax paying public, what should be the financial obligations of the HMOs,? according to David P. Rosen, CEO of three hospitals in New York City.

 

22) Leading Provider of Consumer-Directed Health Plans Offers Rebuttal to Kaiser Family Foundation Data Decade-plus worth of data tells a different story - A Kaiser Family Foundation survey of members of consumer-directed health plans (CDHP) today was described as ?biased and misleading,? because it failed to factor in the type of plan to which the survey respondents belonged.

 

23) CNA Study Analyzes Professional Liability Claims, Offers Risk Management Solutions for Physical Therapists - A new study recently published by CNA insurance companies is an educational resource to assist physical therapists with identifying and managing risk. The Physical Therapy Claims Study examines key elements of physical therapists? professional liability claims and presents practical risk management strategies that can be incorporated into clinical practice.

 

24) Aspen Insurance Holdings Limited Announces Repurchase of $156 Million of Ordinary Shares from Founding Shareholders - Aspen Insurance Holdings Limited ("Aspen") (NYSE:AHL) (BSX:AHL BH) today announced it has agreed to repurchase approximately $156 million of its ordinary shares, representing approximately 5.9 million shares, from two of its founding shareholders: The Blackstone Group and CSFB Private Equity. The shares are to be repurchased at a price per share of $26.50, representing a 1.7% discount to the closing price on November 30, 2006.

 

25) UnitedAuto Announces Pricing of $325 Million of Senior Subordinated Notes - United Auto Group, Inc. (NYSE: UAG), an international automotive retailer, today announced the pricing of $325 million aggregate principal amount of 7.75% senior subordinated notes due 2016 (the ?Notes?). The Notes were offered to qualified institutional buyers in a private placement pursuant to Rule 144A of the Securities Act of 1933.  The Company intends to initially repay amounts currently outstanding under the Company?s revolving credit agreement in the United States and a portion of its existing floorplan borrowings. All amounts repaid may be available for future borrowings. The Company presently intends to then re-borrow these amounts in March 2007, and use the proceeds to call its existing $300 million of 9.625% Notes due 2012, which are callable beginning in March 2007, subject to market and other conditions.

 

26) Lincoln Financial Group Announces Redemption of all 8.14% Series A Capital Securities -  Lincoln National Corporation (NYSE: LNC) today announced that its wholly owned subsidiary  and successor to Jefferson-Pilot Corporation, Lincoln JP Holdings, L.P., has called for redemption of all of the $200 million outstanding 8.14% Capital Securities, Series A ("Series A Capital Securities") issued by Jefferson-Pilot Capital Trust A (CUSIP No. 475529AA1) and guaranteed by Lincoln JP Holdings.

 

27) Malakut Insurance Brokers opened a representative office in Vietnam (Hanoi)- Hanoi 1 December, 2006 ? Malakut Insurance Brokers, JSC operating on the international reinsurance and insurance markets opened a representative office in Vietnam (Hanoi). The solemn ceremony took place on the 1st of December.  Malakut is the first Russian insurance institute opened in Vietnam. Malakut has all means and capabilities to become the biggest reinsurance broker in Vietnam. The Company's specialization is servicing and consulting of corporate clients and reinsurance of different types of risks, such as: Construction, Energy, Property, Marine especially Ship Builders, Space and Aviation.

 

28) Independent Insurance Investments, Inc. Acquires Omni Insurance Group - Independent Insurance Investments, Inc. ("Independent") today announced that it has completed the acquisition of the Omni Insurance Group ("Omni") from The Hartford Financial Services Group Inc. (NYSE: HIG).  Omni is a non-standard auto insurance company that generated net written premiums of $174 million in 2005, employs approximately 250 people and distributes its products through a significant network of independent agents. Omni writes business in over 40 states.

 

29) PIANJ supports bill to prohibit step-down provisions - The Professional Insurance Agents of New Jersey Inc.?s past President Paul Monacelli, CIC, CPIA, recently gave testimony before the New Jersey Senate Commerce Committee in support of bill number S-1666.  The bill would prohibit the use of step-down provisions in businesses? motor vehicle liability insurance policies and would reverse the effect of the Supreme Court of New Jersey?s decision in Pinto v. New Jersey Manufacturers Insurance Co. In the case, the court decided that step-down provisions in business auto policies are enforceable. Step-down provisions allow insurance companies to reduce the coverage available to employees not individually named on their employer?s business auto policy.

 

30) Call Center Earns ?Best in Class? Recognition - Assurant Employee Benefits? Call Center honored from among 30 entries - The Dental Claims Call Center of Assurant Employee Benefits was recently named first runner-up from a field of more than 30 entries in the 2006 ?Best in Class? competition of Call Center IQ?s Call Center Excellence Awards.  Aligned with Assurant Employee Benefits? corporate strategy of being easy to do business with, the Dental Claims Call Center has adopted several tactics that have set it apart from competitors, such as cross-training all employees to meet a variety of customer needs, and melding work from three individual call centers into one pool to provide more rapid and consistent customer service.

 

31) Caregiver Discrimination Lawsuits Against Employers Increase ? New Employee Benefit and HR Tool Can Help Lower Risks while Reducing Lost Productivity Costs - December 1, 2006 ? Madison, Wisconsin ? NavGate Technologies (www.NavGate.org), a pioneering industry leader and developer of technology-based care planning solutions for the whole family, has created a revolutionary new tool designed to help employees and employers address the significant problem of balancing care related work/family responsibilities.  With the significant increase in the number of family responsibilities discrimination lawsuits filed by employees, this innovative and inexpensive proprietary system known as CareOptionsOnLine?, or COOL?, can help reduce employer liabilities and lost productivity costs.  It is also proving to be what every employee needs to help navigate the increasingly demanding dual pressures of caregiving and working.

 

32) Independent Insurance Agents & Brokers of New York Rebuffs NYC Comptroller?s Report - The Independent Insurance Agents & Brokers of New York today rejected the conclusions contained in a report issued Nov. 29 by the New York City Comptroller?s Office. The report, titled Highway Robbery: The High Cost of Automobile Insurance in New York, examined trends in personal automobile insurance premiums and losses in New York over the past five years. However, the state?s oldest and largest insurance producer organization believes the comptroller?s recommendations of mandatory rate reductions and increased government intervention in the market will make the cost of auto insurance worse for New Yorkers.

 

33) General Casualty expands commercial coverage - General Casualty is expanding its commercial liability coverage on policies effective Dec. 1 and after, making the company?s program significantly more comprehensive than standard industry forms.  The Wisconsin-based property and casualty insurer enhanced its Commercial General Liability Coverage Extension Endorsement, which is automatically included for no additional cost with all commercial package and monoline general liability policies.

 

 

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