INSURANCE NEWSCAST "Headlines Only Edition" for: Wednesday, 12/20/06

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INSURANCE NEWSCAST can be read online at www.insurancebroadcasting.com

INSURANCE NEWSCAST "Headlines Only Edition" for: Wednesday, 12/20/06  

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

 

1) AIR Worldwide Estimates Pacific Northwest Winter Storm May Cause Insured Losses in Excess of Half a Billion Dollars in the U.S. - BOSTON, Dec. 19, 2006 ? Catastrophe risk modeling company AIR Worldwide Corporation estimates U.S. insured losses from the Pacific Northwest winter storm could exceed half a billion dollars in the U.S.  Wind gusts of more than 90 mph were widely reported across Oregon and Washington and heavy precipitation caused localized flash flooding in western Washington and blizzard conditions in the eastern part of the state.

 

2) Insurance Commissioner John Garamendi Releases "Best Practices" Report for Annuity Sales  Guide For Insurance Industry Aimed At Curbing Financial Abuse Of Seniors And Highlighting Best Practices Within The Industry  -- SACRAMENTO ? Taking aim at preventing financial abuse of senior citizens, California Insurance Commissioner Garamendi is releasing a report detailing best practices in annuity sales. Titled ?A Suitable Match: Best Practices for Annuity Sales,? the report focuses on practices that both insurers and producers can adopt to increase the certainty that customers are purchasing annuities that are well-matched to their financial goals.

 

3) UnitedHealth sees 2007 revenue about $79.5 bln - Tue Dec 19, 2006 11:10am ET By Lewis Krauskopf  -- NEW YORK (Reuters) - UnitedHealth Group Inc. (UNH.N: Quote, Profile , Research), which is trying to emerge from a stock options scandal, on Tuesday forecast better-than-expected 2007 revenue and a rise in net earnings next year of about 14 percent.  -- The health insurer, which also affirmed its 2006 profit outlook as it met with analysts, forecast 2007 revenue of about $79.5 billion. That forecast exceeded the $77.9 billion in revenue expected by analysts, according to Reuters Estimates.

 

4) Life Insurance Finance Association Will Not Support NAIC Viatical Law - LIFA Believes Model Act is Harmful to Consumer Rights; Calls on NAIC to Withdraw and Re-draft Act -- SAN ANTONIO--(BUSINESS WIRE)--The Life Insurance Finance Association (LIFA) today issued the following statement regarding the NAIC Viatical Settlements Model Act: The Life Insurance Annuities (A) Committee of the National Association of Insurance Commissioners (NAIC) missed the mark this weekend when it voted out of committee a draft of amendments to the NAIC Viatical Settlements Model Act (the ?Model Act?), which are harmful to consumer rights and do little to prevent the abuses which they were purportedly drafted to address.  -- The original intention of the committee and its chairman, North Dakota insurance commissioner Jim Poolman, was to prohibit the sale of Stranger-Initiated Life Insurance (SILI), also referred to as Stranger-Owned Life Insurance (STOLI). SILI and STOLI-type transactions have raised serious concerns throughout the insurance industry in that they are often designed to manufacture life-insurance sales for the sole purpose of placing that insurance and its death benefits in the hands of disinterested third-party investors, in violation of most, if not all, insurable-interest laws throughout the country.

 

5) Fitch Releases U.S. Insurance Broker 2006 Review & Outlook for 2007 - CHICAGO--(BUSINESS WIRE)--Fitch Ratings today released its annual analysis of the U.S. insurance brokerage industry, commenting on the market's issues one year further removed from the turmoil created by industry investigations that commenced in late 2004. -- Fitch's Rating Outlook for the insurance broker industry is Stable. A Stable Outlook implies that Fitch would not expect ratings to change in the near term for the brokers in Fitch's ratings universe.

 

6) Venture Capitalists Bullish on 2007 - NVCA Annual Predictions Survey Shows Strong Interest in Energy, New Media and Alternative Exit Strategies  -- WASHINGTON, Dec. 18 /PRNewswire/ -- Venture capitalists are predicting a strong and stable investment climate in 2007 with opportunities across a diverse group of industry sectors and global regions, according to a survey conducted by the National Venture Capital Association (NVCA). And while there is dissension as to whether the IPO market will open for venture-backed companies in 2007, there are strong indications that the venture capital community will be betting on alternative exit strategies for their portfolio companies in the coming year. The survey results also suggest that there will be fewer venture funds operating in 2007 as the technology bubble burst finally works its way through the system.

 

7) LifeStrive® Corporate Wellness Consultants Provides A Health Maintenance And Promotion Program - 12/16/06: PHOENIX, ARIZONA - The growing trend of consumerism in health care has created a need for employees everywhere to obtain authentic, personalized direction and prioritization in the domain of health maintenance and promotion that is easily accessed, scalable and cost-effective. -- LifeStrive® Corporate Wellness Consultants now provides a health maintenance and promotion program with a lab benefit that fits this need. The features are: an Annual Wellness and Health Promotion Evaluation valued at over $630, plus all-year Discount Laboratory Services up to 70% off the retail lab price. Richard Perryman, Managing Partner for LifeStrive stated; ?With access to this information and personalized direction, consumers can take charge of their health and prioritize their spending accordingly for an annual fee of $79.95 (individual) and $99.95 (family). This fee is reimbursable through Flex and HSA spending accounts. Now that we are creating consumers in health care?we need to enable and educate them as to what their health-related priorities should be. This program represents a clear step in that direction?.

 

8) Employer-Sponsored Healthcare Coverage Appears to Be Meeting Needs of U.S. Adults - ROCHESTER, N.Y., Dec. 18 /PRNewswire/ -- The latest Wall Street Journal Online/Harris Interactive Health-Care Poll reveals that most adults with employer-sponsored health insurance feel very or somewhat confident that their coverage will meet their needs in the upcoming year (89%) and relatively few individuals expect to switch (6%) or drop (less than 0.5%) their current coverage next year. Furthermore, most individuals believe their out-of-pocket costs at the point of care - co-pays and deductibles - will remain about the same compared to this year (out-of-pocket for a doctor visit after the deductible 69% and out-of-pocket for prescription drugs after the deductible 68%). By comparison, adults with employer-sponsored health insurance are more likely to anticipate an increase in their monthly premiums (34%), though this group still represents a minority.

 

9) Improved BenefitsCeckU® Website Helps Seniors Quickly Find Benefits - SITE ALSO RECOGNIZES FINANCIAL PARTNERS AND SUPPORTERS - WASHINGTON, DC, December 19, 2006 ? The National Council on Aging (NCOA) today announced the unveiling of a new, more user-friendly BenefitsCheckUp® Web site. BenefitsCheckUp is a free and confidential online service that helps seniors determine what benefits they qualify for and how to claim them. -- Developed and maintained by the NCOA, BenefitsCheckUp is the nation's most comprehensive Web-based service to screen for benefits programs primarily targeted to seniors with limited income and resources. Since 2001, close to 2 million people have used BenefitsCheckUp to find benefits programs that help them pay for prescription drugs, health care, rent, utilities, and other needs. It includes more than 1,400 public and private benefits programs from all 50 states and the District of Columbia. 

 

10) PAR Marks 20 Years of Delivering E&O Protection and Risk Management to Agents, Brokers - Captive Founded by Broker Groups Amid ?80s Liability Crisis - COLUMBUS, Ohio, USA (18 December 2006)?Professional Agencies Reinsurance (PAR), Ltd., a captive facility that provides comprehensive errors and omissions (E&O) coverage and expert risk-management counsel to larger agencies and brokers, is celebrating its landmark 20th anniversary. -- The specialty E&O captive was founded by Assurex Global and The Council of Insurance Agents & Brokers (CIAB) in the mid-1980s during the uncertainty wrought by that period?s liability availability and affordability crisis. Today, PAR provides E&O protection and risk-management expertise to more than 9,500 insurance professionals in more than 65 of the largest agency and brokerage firms in the U.S.

 

11) Congress Supports Long Term Care Through Expanded Health Savings Accounts - Individuals and Businesses Can More Easily Afford Protection, Says Expert Amy Pollock of Atlanta - Atlanta, GA, December 21 ? Before adjourning on the 9th, Congress passed the Tax Relief and Health Care Act (H.R. 6111), which expands the sources and amounts that may be contributed to Health Savings Accounts (HSA's). This is good news for those seeking long term care protection but unsure how to finance it, according to Amy Pollock of LTC Financial Partners, the nation's most experienced long term care insurance brokerage. -- HSA's are tax-advantaged savings accounts restricted to health-related purposes. Funds may be withdrawn tax-free to pay for long term care (LTC) insurance, deductibles, co-insurance, and dental and vision care.

 

12) Michigan Is Soon To Become The 29th Member Of The Interstate Insurance Product Regulation Commission - GREAT LAKES STATE MAKES GREAT STRIDES FOR INTERSTATE COMPACT  - WASHINGTON, D.C. (Dec. 18, 2006) ? Michigan is soon to become the 29th Member of the Interstate Insurance Product Regulation Commission (Commission), adding to the growing list of states to join the Insurance Compact.  -- The Michigan Legislature adopted the Compact on Dec. 14. The bill now is on its way to Gov. Jennifer M. Granholm for action. Once the governor signs the Compact into law, Michigan officially would become the 29th state to become a Member of the Commission, increasing the nationwide premium volume in the Compact to 48 percent. Michigan also will join the Management Committee, bringing it up to its full complement of 14 members.

 

13) Nearly Three Fourths Of Employees Polled Are Job Hunting - HR Professionals Concerned About Resignations, Says New Poll from SHRM and CareerJournal.com - (Alexandria, Va., December 19, 2006)? More than 75 percent of employees are looking for new jobs, according to the 462 employees and 367 HR professionals surveyed in the 2006 U.S. Job Retention Poll released today by the Society for Human Resource Management (SHRM) and The Wall Street Journal's CareerJournal.com.  According to HR professionals, on average, 12 percent of their organizations' workforce had voluntarily resigned since the beginning of 2006. Non-management employees were the most likely to resign, according to 71 percent of the HR professionals surveyed.

 

14) A.M. Best Special Report: Mutual Life Insurance Companies -- Staying the Course - OLDWICK, N.J.--(BUSINESS WIRE)--In September 2002, A.M. Best Co. issued ?Demutualizations: The State of Conversions in 2002.? Among the most critical findings was that the wave of mutual company conversions since the mid-1990s had subsided, and the remaining mutual life insurers had made conscious decisions to remain mutual. Four years later, the message has not changed, and the prognosis for well-run mutuals to thrive continues. A.M. Best?s meetings with mutual company management teams indicate that mutual life companies will retain their mutual status, with no major demutualizations on the near-term horizon.

 

15) Moody?s Corporation Acquires Wall Street Analytics - NEW YORK--(BUSINESS WIRE)--Moody?s Corporation (NYSE: MCO) announced today that it has acquired Wall Street Analytics, Inc., a leading developer of sophisticated structured finance analysis and monitoring software. The firm will now be known as Moody?s Wall Street Analytics. Terms of the transaction will not be disclosed and the financial impact to Moody?s is not expected to be material.

 

16) A.M. Best Methodology: Property/Casualty Supplemental Rating Questionnaire - OLDWICK, N.J.--(BUSINESS WIRE)--In an effort to provide more time to all parties associated with the completion of A.M. Best Co.?s Property/Casualty Supplemental Rating Questionnaire (SRQ), A.M. Best has placed the updated natural catastrophe-related questions on its website. The changes to the existing questions, as well as new questions related to the use of non-traditional catastrophe mitigation techniques, warranted the need to notify interested parties earlier than the January 2007 release date.

 

17) A.M. Best Special Report: Year-End Banking Summary for 2006  - OLDWICK, N.J.--(BUSINESS WIRE)--For the past couple of years, the U.S. banking industry has been managing successfully through margin compression pressures, benefiting from fairly stable economic conditions and the banks? ability to draw down on loss reserves and generate fee income. -- Several notable developments occurred in the third quarter of 2006 and beyond that confirm A.M. Best Co.?s February 2006 commentary on the turning of the industry cycle: a new Federal Reserve policy holding the line on raising rates; upward creeping of loan losses, a more erratic performance of trading income at large institutions; and increased competition for deposits and loans that has been driving up the cost of funds and driving down asset yields.

 

18) Woodbury Financial Services Acquires Diversified Financial Concepts - Acquisition Positions Leading Independent Broker-Dealer for Continued Growth and Provides Increased Support for Independent Financial Representatives   -- WOODBURY, Minn.--(BUSINESS WIRE)--Woodbury Financial Services, a subsidiary of The Hartford Financial Services Group, Inc. (NYSE: HIG) and leading independent broker-dealer, has agreed to acquire the assets of Diversified Financial Concepts (DFC). DFC is an investment and insurance products? marketing firm affiliated with Woodbury, which is based in Tucson, Arizona. The agreement is expected to close in February.

 

19) BB&T Selects Evolution Benefits to Provide Card Services for Its Health Savings Accounts - AVON, Conn.--(BUSINESS WIRE)--BB&T Corporation (NYSE: BBT) has selected Evolution Benefits to provide card services for its recently announced Health Savings Account product. This expands the parties? relationship that started in late 2005 when Evolution Benefits began providing card services to BB&T?s subsidiary, Stanley, Hunt, Dupree & Rhine Inc.  -- Under the new relationship, BB&T will use Evolution Benefits? prepaid benefits card services to power the Benefit Access card. The card is issued to consumers who establish individual HSAs through BB&T?s extensive network of more than 1,450 financial centers, as well as those who sign up for BB&T HSAs through their employer. It serves as the primary vehicle for accessing the funds in their HSAs to pay for health-care expenses on a pre-tax basis. The BB&T HSA product is fully integrated and provides a mutual fund component, online access, online bill payment, and deposits and withdrawals can be made at BB&T branches.

 

20) INSURANCE NEWSCAST ?Pictures Of The Day?

 

21) Top Healthcare Minds Gather for Comprehensive National Healthcare Summit - MIRAMAR, Fla., Dec. 19 /PRNewswire/ -- On January 21-23, 2007, at The Rosen Centre Hotel in sunny Orlando, Florida, more than 50 of the nation's top healthcare experts will gather under one roof at the National Summit on Quality/Performance Management & Compliance in Healthcare, sponsored by Comprehensive Health Solutions, Inc. (CHS). -- More than 40 sessions will be offered addressing Compliance, Quality and Operational issues - with four specific tracks for: Hospital/Health Systems, Home Health, Hospice and Long-Term Care.

 

22) Insurance Media Firm Offers New Web-Log - Insurance Writer, a Jefferson City-based risk management and insurance media firm, recently started a web-log devoted to all aspects of marketing for insurance professionals. Insurance Writer was founded in 1993 by Nancy Germond. The blogs URL is www.insurancecopywriter.blogspot.com.  Her website is www.insurancewriter.com. Her blog can be accessed from either URL. -- Many insurance professionals work with copywriters who have little knowledge of the complex insurance industry, so a copywriter who understands insurance and has worked in its many phases can offer directed marketing assistance.

 

23) Actuate Renews Agreement with Oracle - Three Year Agreement Extends Delivery of Actuate-based Reporting Capabilities Within Oracle?s Siebel Customer Relationship Management -- SOUTH SAN FRANCISCO, Calif. & REDWOOD SHORES, Calif.--(BUSINESS WIRE)--Actuate Corporation (Nasdaq:ACTU), the world leader in Enterprise Reporting and Performance Management Applications that empower 100% of users to achieve breakthrough corporate performance, and Oracle (Nasdaq GS:ORCL) today announced that the companies have signed an agreement to extend the use of Actuate?s reporting capabilities within Siebel CRM for a further three years. The agreement marks a decade of Actuate?s world class reporting technology constituting a fundamental part of Siebel CRM.

 

24) WellnessPlus from CIGNA Dental Expands DPPO Product Suite - Rewards Members for Getting Preventive Care - PLANTATION, Fla., Dec. 19, 2006 /PRNewswire/ -- CIGNA Dental today announced the expansion of its DPPO product suite to include three new CIGNA Dental WellnessPlus* features that reward members who receive preventive dental care by increasing their benefits. -- "Incentives in employee benefits are an important tool employers can use to encourage employees to adopt healthy behaviors," said Rebekah Whitehouse, chief marketing officer for CIGNA Dental. "This fresh new consumer-focused approach applies concepts routinely used in medical plans to the field of dental benefits, with the goal of improving the overall health of employees while increasing opportunities to control costs and  improve productivity."

 

25) Great American Insurance To Give Away Freightliner at Mid-America Trucking Show Mid-America Trucking Show - CINCINNATI--(BUSINESS WIRE)--Great American (NYSE:AFG)(NASDAQ:AFG), one of the nation?s leading insurers of independent owner operators, will give away more than just a bag of trade show trinkets at the upcoming Mid-America Trucking Show to be held March 22-24, 2007 in Louisville, KY. One lucky winner will be chosen at random from entrants in the company?s BIG RIG GIVEAWAY Sweepstakes. -- Great American is giving away a 2002 Freightliner Classic XL, enhanced by 4 State Trucks, home of TV?s famous Chrome Shop Mafia. 4 State Trucks is well-known for truck makeovers that include customized interiors and elaborate airbrushed graphics on the truck?s cab and trailer. ?This Freightliner will be completely ?tricked out,?" according to Tim Clinton, Director of Marketing for Great American?s Trucking Division.

 

26) International Excess Companies Expands Its Operations by Forming a New Pittsburgh Branch as an Additional Resource for Clients - PITTSBURGH, Dec. 19 /PRNewswire/ -- International Excess Companies opens International Excess of Pittsburgh led by industry veteran W. Flagg Pavlik. His responsibilities include the strategic formulation of brokerage, binding and program capabilities of all property and casualty activities. Marc Pender, Executive Vice President of International Excess Companies, stated, "This is a continuation of our expansion plan and a renewed commitment to our western Pennsylvania region."

 

27) First Mercury Financial Corporation Announces Completion of $25.0 Million Trust Preferred Securities Offering - SOUTHFIELD, Mich., Dec. 18 /PRNewswire-FirstCall/ -- First Mercury Financial Corporation (NYSE: FMR) ("First Mercury" or the "Company") announced today that on Thursday, December 14, 2006, it closed on the private placement sale of $25.0 million of thirty-year floating rate trust preferred securities issued through a wholly-owned trust subsidiary. -- First Mercury's trust subsidiary will have the right to call the trust preferred securities at par after five years from the date of issuance. The planned use of proceeds is to support existing and future growth of First Mercury's insurance operations by increasing the capital of the Company's operating insurance subsidiary, First Mercury Insurance Company.    

 

28) Eastern Insurance Holdings, Inc. CEO to Ring the NASDAQ Stock Market Closing Bell - LANCASTER, Pa., Dec. 18 /PRNewswire-FirstCall/ -- Eastern Insurance Holdings, Inc. (Nasdaq: EIHI) (EIHI) announced today that Bruce Eckert, Chief Executive Officer, will preside over the closing bell for the NASDAQ Stock Market on December 19, 2006.  -- The closing bell ceremony celebrates EIHI's June 2006 listing on NASDAQ, and its stock offering in which EIHI sold 7,475,000 shares of its common stock at a price of $10 per share, raising gross proceeds of $74.75 million. The Lancaster-based holding company, through its operating subsidiaries, is a specialty underwriter of niche products for commercial markets.

 

29) Fitch: Capital Structure Developments Key Driver of U.S. Recovery Rating Changes - Fitch notes that the most common driver of Recovery Rating changes has been changes in the amount of secured debt in issuer capital structures, affecting in particular Recovery Ratings on senior unsecured bonds. Enterprise value considerations also resulted in Recovery Rating changes but to a lesser degree than capital structure dynamics. These are the results of a new study examining the distribution of Fitch's Recovery Ratings in their first full year after launch. The study also shows that investors incorporating only a default risk constraint in their credit decision process would be accepting a good deal of uncertainty in terms of possible recovery values in the event of default.

 

30) Chaucer Holdings PLC selects Keane SCORE(TM) to enhance Risk Management and Compliance processes in UK Financial Services Arena - Keane's SCORE will give Chaucer a ready-to-use, web-based solution to integrate a range of compliance and risk management processes  -- Wayne, Pa.-Dec 18, 2006-The Keane Organization, Inc., a leading provider of compliance and risk management solutions to Fortune 1000 corporations, today announced that Chaucer Holdings, PLC, has adopted Keane SCORETM, Keane's proprietary technology platform to enhance enterprise-wide governance, risk and compliance management efficiencies throughout the Chaucer business. 

 

 

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