INSURANCE NEWSCAST "Headlines Only Edition" for: Wednesday, 12/27/06

[acinatech@yahoo.com]

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

INSURANCE NEWSCAST "Headlines Only Edition" for: Wednesday, 12/27/06  

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

 

1) Ernst & Young LLP Issues 2007 U.S. Industry Outlook for Life Insurance Industry - NEW YORK, Dec 20, 2006 (BUSINESS WIRE) -- In 2007 the life insurance industry is looking forward to a year of continued good performance, opportunity and tough competition for the loyalty of a new generation of retiring consumers, according to Ernst & Young's Global Insurance Center.

2) Chubb Settles with New York, Connecticut and Illinois AGs: No Finding of Chubb Participation in Illegal Bid-Rigging - No Fine or Penalty Assessed Chubb to Contribute $15 Million to Excess Casualty Compensation Fund Chubb to Replace Contingent Commissions with Supplemental Commissions in All U.S. Insurance Lines -- WARREN, N.J., Dec 21, 2006 /PRNewswire-FirstCall via COMTEX/ -- The Chubb Corporation (NYSE: CB) announced today that it has entered into a settlement agreement with the Attorneys General of New York, Connecticut and Illinois, resolving all issues arising out of those officials' investigations of property-casualty insurance market practices.

3) Acordia Inc. Disputes Attorneys' General Charges - SAN FRANCISCO, Dec. 19 /PRNewswire-FirstCall/ -- Acordia Inc., the fifth largest insurance brokerage in the nation and owned by Wells Fargo & Company (NYSE: WFC), said it will vigorously defend against allegations brought by the attorneys' general of New York, Connecticut and Illinois.    

4) Milliman Survey Confirms Continued Dominance of Guarantees in Variable Annuity Retirement Income Products - SEATTLE, Dec. 20 /PRNewswire/ -- Results from Milliman's second annual Guaranteed Living Benefits (GLBs) survey of leading variable annuity (VA) carriers indicate that GLBs continue to drive variable annuity sales. -- Total sales of VAs that offered a GLB during calendar year 2005 averaged 87% of total VA sales, stable relative to 2004 results. This figure increased to 89% during the first half of 2006, demonstrating the continued popularity of such benefits.

5) Audit Integrity Cites Pension Practices as a Developing Area of Corporate Risk - Identifies 61 At-risk Companies -- NEW YORK & LOS ANGELES--(BUSINESS WIRE)--Audit Integrity, LLC, a financial research firm specializing in corporate accounting and governance issues, is warning investors and other corporate stakeholders that pension reforms adopted this year are generating a new set of risks that could surpass, at least in the financials involved, the recent highly publicized options backdating scandals. -- The firm has identified 61 corporations as fitting a ?high-risk profile? characterized by aggressive approaches both in their accounting and corporate governance practices, and in the actuarial assumptions underlying their pension valuations.

6) BIG ?I? OPPOSES A.G. INTERVENTION IN INCENTIVE COMPENSATION - ALEXANDRIA, Va., Dec. 21, 2006?The Independent Insurance Agents & Brokers of America (the Big ?I?) is disappointed to see another settlement out of New York Attorney General Eliot Spitzer?s office that bans the payment of contingent compensation that is entirely legal. The settlement is with Chubb Corp. and was joined by the attorneys general of Connecticut and Illinois. -- Chubb?s settlement announced today marks an end to the company?s offering of contingent compensation calculated retrospectively at the end of a production year in all lines of insurance, and the start of a new system of supplemental compensation in 2007.

7) Money Purchase and Profit Sharing Plans on the Rise as More Companies Freeze Their Traditional Pension Plans, Says New Diversified Investment Advisors Survey - PURCHASE, N.Y.--(BUSINESS WIRE)--While mounting financial pressures have led many corporations to freeze or curtail their defined benefit plans, the pressures to attract and retain top talent while helping employees reach their financial goals for retirement remain. These seemingly divergent business imperatives have led to a dramatic increase in the incidence of 401(a) money purchase plans, such as profit sharing plans funded primarily with employer contributions, according to Diversified Investment Advisors? recently released Report on Retirement Plans?2006.

8) Workplace Options Poll Shows U.S. Employees Prioritize Health During the Holidays - Raleigh, NC ? December 20, 2006 -- Workplace Options, the largest provider of work-life employee benefits in America, has announced results from their special holiday poll conducted through WPO?s Advantage? Website. -- The poll, available to U.S. employees who have access to WPO?s Advantage? web site through their employer or employee assistance plan (EAP) asks employees how they will keep their health in focus over the holidays. The results indicate that most people will rely on healthy eating and exercise to avoid weight gain over the holidays. 

9) RMS RELEASES FIRST EARTHQUAKE MODEL FOR INDIA - Newark, Calif. - December 20, 2006 - Risk Management Solutions (RMS), the world's leading provider of products and services for the management of natural hazard risk, today announced the launch of the RMS® India Earthquake Model. Developed for use in the RiskLink® catastrophe modeling system, the Aggregate Loss Module (ALM®) was built in partnership with Aon Re Asia and RMSI, allowing access to detailed data on insured exposure, soil data, inventory, and local building standards.

10) Aon to Acquire Valley Oak Systems - CHICAGO, Dec 20, 2006 /PRNewswire-FirstCall via COMTEX/ -- Aon today announced it has entered into a letter of intent agreement to acquire Valley Oak Systems of San Ramon, California. Aon expects to consummate the transaction by January 31, 2007. -- Valley Oak Systems (VOS) is the proven leader of claims management software, services and support for the insurance industry. Its iVOS "one- system" solution includes medical bill review, policy underwriting, case management, billing, and event management capabilities.

11) AR Governor Mike Huckabee Unveils New Health Care Insurance Program to Provide Safety Net to Workers - LITTLE ROCK, Ark., Dec. 22 /PRNewswire-USNewswire/ -- Gov. Mike Huckabee has announced a new innovative plan to give small business owners and their employees in Arkansas better access to health care coverage. The program is designed to provide a "safety-net" of benefits to workers who currently have no coverage, including those services that people need and use the most. -- The new program, called ARHealthNet, will offer affordable medical benefits to working adults who are employed by small businesses that have not been able to offer health care coverage.

12) A.M. Best Special Report: Underwriting Income Spurs Strong Nine Month U.S. Property/Casualty Operating Results - OLDWICK, N.J.--(BUSINESS WIRE)--The U.S. property/casualty industry reported very strong operating results in the first nine months of 2006, propelled by underwriting income of $23.7 billion. Despite an increasingly competitive marketplace, the industry posted record results through the third quarter of 2006 due to a combination of lower catastrophe losses, continued adherence to underwriting discipline and favorable prior-year reserve development and loss frequency trends, according to a special report by A.M. Best Co.

13) BestWeek: As New Congress Moves in, a Tougher NAIC Cat Plan May See the Light - OLDWICK, N.J.--(BUSINESS WIRE)--In 2007, insurance regulators expect a much friendlier atmosphere on Capitol Hill as Democrats take control of Congress. And because this may be a Congress that will be more open to an all-perils policy and a federal backstop for natural catastrophe risk, Florida Insurance Commissioner Kevin McCarty wants those proposals back in the National Association of Insurance Commissioners' "National Catastrophe Risk: Creating a Comprehensive National Plan."

14) Aon Capital Markets Places Innovative California Earthquake Catastrophe Bond - CHICAGO, Dec. 21 /PRNewswire-FirstCall/ -- Aon Corporation (NYSE: AOC) today announced that its investment banking group, Aon Capital Markets, successfully completed the private placement of $190 million of principal at- risk variable rate notes for Munich Re. The placement provides Munich Re with fully collateralized catastrophe protection for California earthquake property exposures ceded by Zurich American Insurance Company and its affiliates. Aon Capital Markets was the Initial Purchaser for the Rule144A transaction.

15) Arthur J. Gallagher & Co. Acquires Mid America Group, Inc. - ITASCA, Ill., Dec. 21 /PRNewswire-FirstCall/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today announced the acquisition of Mid America Group, Inc. located in Philadelphia, Pennsylvania. Terms of the transaction were not disclosed.

16) White Mountains Re Completes Acquisition of Mutual Service Casualty Insurance Company - HAMILTON, Bermuda, Dec. 22 /PRNewswire-FirstCall/ -- White Mountains Re Group, Ltd., the Bermuda-based reinsurance unit of White Mountains Insurance Group, Ltd. (NYSE: WTM), announced today that its wholly-owned subsidiary Folksamerica Reinsurance Company has completed its acquisition of Mutual Service Casualty Insurance Company, a Minnesota-domiciled, runoff insurer formerly affiliated with Illinois-based Country Insurance & Financial Services (Country). As part of a sponsored demutualization and conversion to a stock company, Mutual Service Casualty has been renamed Stockbridge Insurance Company.

17) GAINSCO Announces $18 Million Capital Securities Issue - DALLAS, Dec. 21 /PRNewswire-FirstCall/ -- GAINSCO, INC. (Amex: GAN) today announced that its newly-formed and wholly-owned subsidiary, GAINSCO Statutory Trust II, issued $18 million of 30-year capital securities. The capital securities require quarterly payments of interest at a floating interest rate equal to the 3-month LIBOR (London interbank offered rate for U.S. dollar deposits) plus a margin of 3.75%. The capital securities will mature on March 15, 2037, and are redeemable, in whole or in part, at the Company's option beginning after March 15, 2012, at the liquidation amount of $1,000 per capital security. Payments under the capital securities are guaranteed by the Company.

18) Fitch Teleconf: 2007 Nonprofit and Health Care Systems Outlook, 1/11/07 2pm ET - NEW YORK--(BUSINESS WIRE)--On Monday, Jan. 8, Fitch Ratings will release its 2007 Nonprofit and Health Care Systems Outlook. In conjunction with the report, Fitch will host a teleconference on Thursday, Jan. 11 at 2:00 p.m. ET. -- Fitch Senior Director John Wells and Director Anthony Houston will discuss Nonprofit Hospitals and Health Care systems. Director Lauren Coste and Analyst Annahita Haghgooie will speak about For-profit Hospital Management Companies, and Director Brad Ellis, from Fitch's Insurance Group, will focus on Health Insurance/Managed Care Companies, followed by a Q&A session.

19) MetLife to Pay Eligible Life Insurance Policyholders $1.7 Billion in Policy Dividends - NEW YORK--(BUSINESS WIRE)--MetLife, Inc. (NYSE: MET) announced today that its life insurance subsidiaries (Metropolitan Life Insurance Company, New England Life Insurance Company and General Life Insurance Company) will pay an aggregate amount of approximately $1.7 billion in policy dividend payments to eligible life insurance participating policyholders for 2007.  -- Eligible policyholders include MetLife clients with in force permanent life insurance policies, primarily whole life policies and certain term life insurance, sold by the companies? sales force -- MetLife and New England Financial -- and independent distribution channel.

20) INSURANCE NEWSCAST ?Pictures Of The Day?

21) The New York Stock Exchange Grants Penn Treaty an Additional Trading Period - ALLENTOWN, Pa., Dec. 22 /PRNewswire-FirstCall/ -- Penn Treaty American Corporation (NYSE: PTA) today announced that the New York Stock Exchange ("NYSE") has agreed to provide the Company with up to a three-month additional trading period through April 2, 2007, subject to reassessment on an ongoing basis.     -- As the Company disclosed during the investor conference call held on December 20, 2006, the Company has been monitored and under review by the NYSE in light of the delay in filing with the Securities and Exchange Commission ("SEC") its December 31, 2005 Form 10-K and Form 10-Q filings for March 31, June 30 and September 30, 2006.

22) Aspen Insurance Holdings Limited Announces Accelerated Share Repurchase With Goldman Sachs  - HAMILTON, Bermuda, Dec. 22 /PRNewswire-FirstCall/ -- Aspen Insurance Holdings Limited ("Aspen") (NYSE: AHL; BSX: AHL BH) today announced that on December 21, 2006 it entered into an accelerated share repurchase program with Goldman, Sachs & Co. to buy back $44 million of Aspen's ordinary shares. The agreement includes collar provisions that establish the minimum and maximum numbers of shares to be repurchased. The program is expected to be completed within three months.

23) Pan-American Life Center Sold - Insurer Signs Long-Term Lease to Remain in New Orleans - NEW ORLEANS--(BUSINESS WIRE)--Pan-American Life Insurance Company has announced the sale of the Pan-American Life Center at 601 Poydras Street to Equastone, a California real estate company. -- Pan-American Life, celebrating its 95th anniversary in New Orleans this year, has signed a long-term lease to remain in the building and keep its International Headquarters in the city.

24) FNB United Corp. Announces Restatement of Financial Statements Due to Earlier Overstatement of Estimated Loss on Investment Securities - ASHEBORO, N.C.--(BUSINESS WIRE)--FNB United Corp. (NASDAQ:FNBN) today announced that it will restate its historical financial statements for the quarter and nine months ended September 30, 2006. The historical financial statements for these periods and the Form 8-K and related press release of FNB United reporting results for the third quarter of 2006 should no longer be relied upon as a result of an overstatement of an estimated loss on investment securities.

25) ACE USA Introduces ACE Professional Risk Select Policies to Respond to Unique Needs of U.S.-based Small- to Mid-size Companies - PHILADELPHIA, Dec 20, 2006 (BUSINESS WIRE) -- ACE USA, the U.S.-based retail operating division of the ACE Group of Companies, today announced that it has introduced its ACE Professional Risk Select suite of policies to help meet the growing professional liability insurance needs of small- to mid-size businesses and business professionals. Based in Philadelphia, the ACE Professional Risk Select unit is staffed by a dedicated underwriting team with particular expertise in the professional liability marketplace. The majority of the insurance products underwritten by the ACE Professional Risk Select team can be bound with a short-form application designed for small risks and include the following:

26) The Hanover Insurance Group Implements Corprasoft OnDemand For Legal Department Matter Management - DALLAS--(BUSINESS WIRE)--Corprasoft, Inc., a leading provider of matter management software for in-house legal departments, today announced that The Hanover Insurance Group has successfully implemented Corprasoft OnDemand as the new matter management system for its corporate legal department. -- Corprasoft OnDemand is a unique, hosted solution for matter management from Dallas-based Corprasoft. The offering is an innovative licensing option for in-house legal departments that allows them to deploy a matter management system without a lot of the typical up-front information technology costs.

27) Harbor Capital Advisors Represents First Capital Group in Merging With Arrowhead Wholesale Insurance Services, LLC. - LONG ISLAND, N.Y., Dec. 22 /PRNewswire/ -- Harbor Capital Advisors, Inc., announced its latest closed transaction, the merger of First Capital Group and Arrowhead Wholesale Insurance Services, LLC (AWIS) to form First  Capital - AWIS LLC, a subsidiary of American Wholesale Insurance Services,LLC.

28) Insurance Auto Auctions to Combine Operations with ADESA, Inc. - WESTCHESTER, Ill.--(BUSINESS WIRE) --Insurance Auto Auctions, Inc. (?IAAI?), a leading provider of automotive salvage auction and claims processing services in the United States, announced today that it plans to combine operations with ADESA, Inc. (NYSE: KAR), which has entered into a definitive merger agreement to be acquired by a group of private equity funds consisting of Kelso & Company, GS Capital Partners, an affiliate of Goldman Sachs, ValueAct Capital and Parthenon Capital. ADESA is North America?s largest publicly traded provider of wholesale vehicle auctions and used vehicle dealer floorplan financing. IAAI is owned by Kelso & Company, Parthenon Capital and certain members of its senior management team. As part of the transaction, IAAI will be contributed to the surviving corporation simultaneously with the closing of the transaction with ADESA. The transaction would include a refinancing of IAAI?s existing 11% Senior Notes due 2013 through commencement of a tender offer.

29) Allegheny Energy Announces Litigation Settlement - GREENSBURG, Pa.--(BUSINESS WIRE)--Allegheny Energy, Inc. (NYSE:AYE) announced today that it has reached an agreement to settle the consolidated ERISA class action litigation currently pending against Allegheny Energy and certain of its current and former directors. The proposed settlement remains subject to court approval, following notice to class members. -- Under the proposed settlement in the consolidated ERISA class action, the action will be dismissed with prejudice in exchange for a cash payment of $4 million, of which approximately $3.9 million will be made by Allegheny Energy?s insurance carrier.

30) MetLife Auto & Home Offers Tips and Free Brochures to Help Minimize the Threat of Holiday Fires - WARWICK, R.I.--(BUSINESS WIRE)--There are many causes for celebration during the winter holiday months, but it?s also the time of the year when the threat of home fires increases dramatically. Nearly one third of all residential fires occur during the winter, according to the National Fire Protection Association, resulting in billions of dollars in property damage, as well as thousands of injuries and deaths. Fires can originate from many sources: too many holiday lights plugged into an outlet, portable heating devices, or roaring fireplaces. However, there are precautions that homeowners can take to keep the home fires burning safely.  

 

INSURANCE NEWSCAST from InsuranceBroadcasting.com
9221 Ravenna Road, Suite #D8, Twinsburg, OH 44087
888-282-1765   --- 330-425-8399