INSURANCE NEWSCAST "Headlines Only Edition" for: Monday, 12/11/06

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INSURANCE NEWSCAST "Headlines Only Edition" for: Monday, 12/11/06  

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

 

1) Wilbur Ross plans $100 mln investment in insurance - By Ed Leefeldt - NEW YORK, Nov 15 (Reuters) - Billionaire turnaround specialist Wilbur Ross said on Wednesday he is about to make a $100 million investment in the reinsurance industry, his latest vote of confidence in the sector.

 

2) U.S. Sen. Dodd urges lasting terror insurance fix - By Kevin Drawbaugh - WASHINGTON, Dec 7 (Reuters) - The next chairman of the U.S. Senate Banking Committee said on Thursday he wants a permanent solution to insuring terrorism risk rather than another extension of a temporary government program.

 

3) RIMS Media Advisory:  RIMS ISSUES POSITION ON A LONG-TERM SOLUTION TO TERRORISM EXPOSURE - RIMS has been at the forefront of the introduction, adoption and extension of the Terrorism Risk Insurance Act. Our members have testified before Congress, and we have brought our message personally to Capitol Hill. With this vital legislation set to expire on December 31, 2007, RIMS is proud to issue its ?Position on a Long-Term Solution to Terrorism Exposure?. We will continue to work closely with leaders in Congress, as well as industry partners to ensure that there continues to be a federal back stop to terrorism exposure in the United States beyond 2007.

 

4) Comprehensive Bill to Provide Immediate Relief to Disaster Victims Introduced - Small Business Disaster Response and Loan Improvements Act of 2006 Builds on Previous Proposals -- WASHINGTON, Dec. 7 /U.S. Newswire/ -- In her capacity as Chair of the Senate Committee on Small Business and Entrepreneurship, U.S. Senator Olympia J. Snowe (R-ME) along with Ranking Member John Kerry (D-MA), and Committee Members Senator Mary Landrieu (D-LA) and Senator David Vitter (R-LA) today announced that they have introduced the Small Business Disaster Response and Loan Improvements Act of 2006 (S. 4097).

 

5) Connecticut AG adds Allstate to antitrust probe - Fri Dec 8, 2006 1:29pm ET - NEW YORK (Reuters) - Connecticut Attorney General Richard Blumenthal said on Friday his probe into the insurance industry will now include Allstate Corp.'s (ALL.N: Quote, Profile , Research) decision to stop writing new homeowners' policies in his state.

 

6) Marsh CEO says he's still mulling sale of Putnam - NEW YORK, Dec 7 (Reuters) - Marsh & McLennan Cos. Inc. (MMC.N: Quote, Profile , Research) Chief Executive Michael Cherkasky said on Thursday he was still considering whether or not to sell the insurance broker's Putnam asset management unit and would decide by early 2007.

 

7) Much hyped health plans lead some to cut care-study - By Kim Dixon - CHICAGO, Dec 7 (Reuters) - People with high-deductible health plans designed to raise awareness of costs and reduce unnecessary care are causing consumers to scrimp on health care, according to a study released on Thursday.  -- The plans charge higher deductibles in exchange for lower premiums and cheaper preventive services to cut overall health care costs. They also offer a tax-deferred savings account that can be used for care.

 

8) Insurance broker Willis sees China growth - By George Chen ? Interview -- SHANGHAI (Reuters) - Willis Group Holdings Ltd. (WSH.N: Quote, Profile , Research), the world's third largest insurance broker, expects China to become its biggest business in Asia in the next three years, thanks in part to its recent victory in winning two important local contracts.

 

9) Willis Group to buy back 3.8 mln shares from Lehman unit - Thu Nov 16, 2006 5:07pm ET ? (Reuters) - Willis Group Holdings Ltd. (WSH.N: Quote, Profile , Research) agreed to buy back about 3.8 million shares of its common stock from a Lehman Brothers unit at an initial price of $150 million.

 

10) U.S. Commercial Lines Insurers' Results To Decline Slightly In 2007, Article Says - NEW YORK  Dec. 5, 2006--Standard & Poor's Ratings Services is maintaining its stable outlook on the U.S. commercial lines sector, according to an article published today. The article, which is titled "U.S. Commercial Lines 2007 Outlook: Insurers Heading For A Soft Landing," says that this means we expect the number of upgrades and downgrades over the next six to 12 months to be fairly balanced, with neither one outpacing the other.

 

11) Revised Insurance Capital Adequacy Credit Risk Measures Explained - NEW YORK  Dec. 4, 2006?Standard & Poor's Ratings Services has published an addendum to the proposed revision in its risk-based insurance capital model, titled, "Revised Insurance Capital Adequacy Credit Risk Measures."   -- Credit losses experienced by insurance companies and their subsidiaries are largely a result of credit defaults, rating transitions, and systemic credit spread movements. The source of these credit risks at insurance companies can include fixed income assets, credit derivatives, commercial mortgages, and counterparty credit exposure resulting from reinsurance contracts and over-the-counter (OTC) derivative contracts.

 

12) U.S. Life Insurers Enjoy Stable Outlook, Face Increased Competition And Riskier Returns - NEW YORK  Dec. 5, 2006--The next 12 months present challenges for the U.S. life insurance sector, including a flat yield curve, M&A activity, and a weak traditional sales environment that should be exacerbated by an increasingly complex product array, according to a report released today by Standard & Poor's Ratings Services. Nevertheless, Standard & Poor's believes the life insurance industry remains resilient due to its improved overall expense structure, enhanced enterprise risk management capabilities, and response to product needs in the ever-changing retirement market.

 

13) CIGNA Reaches Agreement in a 2002 Securities Class Action Suit - PHILADELPHIA, Dec. 8, 2006 /PRNewswire-FirstCall/ -- CIGNA announced today that it has reached an agreement to resolve claims filed in federal court against the company and certain of its officers in 2002 on behalf of a class of CIGNA shareholders.  -- The settlement, which specifies $93 million to be paid to the plaintiffs and their attorneys, is subject to a definitive written agreement by the parties and approval by the U.S. District Court for the Eastern District of Pennsylvania.

 

14) Independent Bank Corporation Announces Execution of a Definitive Agreement to Sell Its Insurance Premium Finance Business But Will Retain Its Warranty Payment Plan Business - IONIA, Mich., Dec. 7 /PRNewswire-FirstCall/ -- Independent Bank Corporation (Nasdaq: IBCP), a Michigan-based bank holding company ("IBC" or the "Company"), reported that its subsidiary, Mepco Insurance Premium Financing, Inc. ("Mepco"), has executed a definitive agreement to sell substantially all of its assets related to the insurance premium finance business to Premium Financing Specialists, Inc. ("PFS"). Mepco will continue to own and operate its warranty payment plan business.    

 

15) Ignagni: Setting the Record Straight on Consumer Directed Health Plans - WASHINGTON, Dec. 7 /PRNewswire/ -- Recent studies on consumer directed health plans (CDHPs), including a new study released today by Commonwealth Fund and the Employee Benefit Research Institute (EBRI), do not reflect all of the available data on the value of CDHPs in the health care marketplace. Karen Ignagni, President and CEO of America's Health Insurance Plans (AHIP), issued the following statement:    

 

16) Evolving Complex Exposures Leave Individuals at Risk - Chubb Calls for the Integration of Holistic Risk Management and Wealth Management - WARREN, NJ, Dec. 7 /PRNewswire-FirstCall/ -- Evolving complex personal and lifestyle exposures have increased the need for financial advisers to devote more time to helping manage their clients' risk, according to a white paper developed by the Chubb Group of Insurance Companies. Published in the current issue of The Journal of Wealth Management, "Managing Personal Risk in an Era of Rising Wealth and Proliferating Threats" addresses the evolving risk profile of affluent individuals and the increasing need for the financial planning community to integrate risk management into the wealth management process.

 

17) Life Insurance Finance Association Conference Reinforces Industry Support for Consumer Rights - Overflowing Crowd Actively Participates in Discussions on Industry Regulation  -- NEW YORK--(BUSINESS WIRE) --At the first Life Insurance Finance Association conference, held Wednesday, Nov. 29, participants reinforced the importance of reasonable regulation of the life insurance premium-finance industry to protect consumer rights.

 

18) RAM Holdings Ltd. Announces Pricing of its $75 Million Non-Cumulative Preference Share Offering - HAMILTON, Bermuda--(BUSINESS WIRE)--RAM Holdings Ltd. (Nasdaq:RAMR) announced today that it has agreed to sell $75 million of its 7.5% non-cumulative preference shares with a liquidation preference of $1,000 per preference share to qualified institutional buyers in private transactions. The Company also has granted certain customary exchange and shelf registration rights to purchasers under the terms of the preference shares.

 

19) Assured Guaranty Ltd. Announces Agreement to Repurchase Shares from ACE Limited - HAMILTON, Bermuda--(BUSINESS WIRE)--Assured Guaranty Ltd. (NYSE:AGO) (?Assured Guaranty? or the ?Company?) has announced that its subsidiary, Assured Guaranty US Holdings Inc., has entered into an agreement with a subsidiary of ACE Limited (?ACE?) to purchase 5,692,599 of Assured Guaranty?s common shares for $150 million.

 

20) INSURANCE NEWSCAST ?Pictures Of The Day?

 

21) Prudential Financial, Inc. Announces $2.0 Billion Offering of Convertible Debt - NEWARK, N.J.--(BUSINESS WIRE)--Prudential Financial, Inc. (NYSE:PRU) today announced the offering of $2.0 billion aggregate principal amount of convertible senior notes due 2036 pursuant to Rule 144A under the Securities Act of 1933, as amended. Prudential Financial has granted the initial purchaser of the convertible notes an overallotment option to purchase up to an additional $300 million aggregate principal amount of the convertible notes.

 

22) Erie Indemnity Executive Enters Into Stock Trading Plan - ERIE, Pa., Dec. 8 /PRNewswire-FirstCall/ -- Erie Indemnity Company (Nasdaq: ERIE) announced today that Douglas F. Ziegler, senior vice president and chief investment officer, has adopted a pre-set trading plan in accordance with Rule 10b5-1 of the Securities and Exchange Act of 1934. Rule 10b5-1 allows corporate insiders to enter into pre-arranged stock trading plans when they are not in possession of material non-public information about their company.

 

23) TURBULENT ENVIRONMENT CAUSES SHOCK AND DISRUPTION IN ORGANIZATIONS - Agility and Resilience Key to Successfully Managing Through Change  -- ST. PETERSBURG, FL (December 7, 2006) ? If you think the pace and disruptiveness of change is increasing around you, you?re likely right. In a recently released study by the Institute for Corporate Productivity (i4cp, formerly the Human Resource Institute) almost half of the participating organizations said that the pace of change and the disruptiveness of change had increased so dramatically that it was almost impossible to predict the future. 

 

24) Markel Corporation Launches New Office of Business Development - Richmond, VA ? December 7, 2006 ? Effective January 1, 2007, Markel Corporation will launch the Office of Business Development, a new division dedicated to generating growth within the Markel Group of companies. The Office of Business Development will be comprised of Letha Heaton, currently senior vice president Marketing at Shand Morahan & Company, Inc.; Brenda Phillips, currently vice president with Shand; and Jeff Lamb, most recently chief underwriting officer at Markel Underwriting Managers, Inc.

 

25) Foresters announces major shift in U.S. sales organization - Foresters Financial Partners goes independent - Toronto, Canada, November 30, 2006 - The Independent Order of Foresters, commonly known as ForestersÔ, today announced that it will launch a new sales organization in January 2007 to sell its life insurance products and annuities in the United States. This network of independent agencies will be known as Foresters Financial Partners Inc. with offices across the U.S.

 

26) LAWMAKERS PLEDGE TO PURSUE DISCLOSURE OF INSURANCE DATA ON FLOODED, TOTALED, STOLEN VEHICLES IN NEXT CONGRESS - Auto Dealers, Coalition Laud Effort to Keep Rebuilt Wrecks Off Consumers? Driveways  -- WASHINGTON ? Led by Senator Trent Lott, R-MS, Rep. Cliff Stearns, R-FL, and other Congressional leaders, the National Automobile Dealers Association (NADA) and a growing coalition pledged to continue their efforts to pass total-loss disclosure legislation when the new Congress convenes in January.  Lott said in today?s press conference that he plans to reintroduce legislation in the 110th Congress to reduce title fraud and title washing of insurance-totaled vehicles. 

 

27) DMVs Offer Solution to Protect Consumers from Damaged Vehicles Nationwide System Already Exists - ARLINGTON, Va., Dec. 8 /U.S. Newswire/ -- The American Association of Motor Vehicle Administrators (AAMVA), a nonprofit association representing state motor vehicle agencies, applauds members of Congress who yesterday called for legislation that will protect car buyers and highway travelers from unsafe cars totaled by Hurricane Katrina and other natural disasters. AAMVA urges lawmakers to coordinate efforts with the existing National Motor Vehicle Title Information System (NMVTIS), which is operating in 29 states.

 

28) Enterprise Risk Management Calls On Actuaries To Assume Broader Role Of Risk Manager, CAS Is Told - SAN FRANCISCO ? The development and implementation of Enterprise Risk Management (ERM) requires actuaries to assume the role of strategic risk managers in instituting what is essentially a cultural change in a company?s operations, actuaries were told at the Casualty Actuarial Society annual meeting here.

 

29) Enrolled Actuaries, Certified Pension Consultants Can Now Join FSP - Newtown Square, PA ? The Society of Financial Service Professionals (FSP) has expanded its membership eligibility criteria to include two additional designations: Enrolled Actuaries (EA) and Certified Pension Consultants (CPC).  Professionals with these credentials can now take advantage of the many educational, networking and ethics programs offered by FSP.

 

30) ACTUARIES? EXPERIENCE WITH PAST EXPOSURES HAS PREPARED THEM FOR NEW, EMERGING RISKS - SAN FRANCISCO ? Actuaries should draw on the lessons learned from the notorious exposures of asbestos and pollution to be better prepared to handle new emerging risks like nanotechnology and the avian flu, attendees at the CAS Annual Meeting were told.

 

31) Moody's Issues Supplement to Proposal on Hybrids and Preferred Stocks - New York, December 07, 2006 -- Moody's Investors Service has published a supplement to a November request for comment on ""Rating Preferred Stock and Hybrid Securities" that addresses a number of questions offered by market participants concerning the scope of a proposed change to Moody's treatment of some common deferral and settlement mechanisms for hybrid securities including preferred stock.

 

32) Whitehill Technologies releases Whitehill Enterprise 5.6 - Document automation software lets legal and professional services firms create professional documents and gain access to better business information   -- MONCTON, NB, Canada - Dec. 5, 2006 - Whitehill Technologies, Inc. today announced the release of Whitehill Enterprise 5.6, a leading document generation solution for legal and professional services firms.

 

33) TD Banknorth Selects Verint ULTRA Solution - Leading Banking and Financial Services Company Deploys ULTRA Analytics Suite to Enhance Customer Service With Actionable Intelligence  -- MELVILLE, N.Y. December 4, 2006 ? Verint Systems Inc.  (NASDAQ: VRNT), a leading provider of analytic software-based solutions for security and business intelligence, today announced that TD Banknorth selected its ULTRA? Analytics suite to enhance customer service and increase operational efficiency.  ULTRA?s actionable intelligence will enable TD Banknorth to drive superior performance by understanding the root cause of customer calls.

 

 

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