INSURANCE NEWSCAST "Headlines Only Edition" for: Thursday, 12/28/06

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INSURANCE NEWSCAST "Headlines Only Edition" for: Thursday, 12/28/06  

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

 

1) UnitedHealth says SEC launches formal options probe - NEW YORK, Dec 26 (Reuters) - UnitedHealth Group Inc. (UNH.N: Quote, Profile, Research), which has shaken up its executive ranks over questions about how stock options were awarded, said on Tuesday that U.S. securities regulators had launched a formal investigation into its options practices. -- The insurer received a "formal order of investigation" from the SEC staff on Dec. 19 following an informal inquiry in April, it said in a regulatory filing.

 

2) Cardinal Health in $11 mln settlement with Spitzer - By Jonathan Stempel  - NEW YORK, Dec 26 (Reuters) - Cardinal Health Inc. (CAH.N: Quote, Profile, Research), one of the largest U.S. prescription drug distributors, said on Tuesday it will pay $11 million to settle a probe by New York State Attorney General Eliot Spitzer into improper secondary market trading of pharmaceuticals. -- The settlement is the first in the attorney general's probe into trading practices in the market in which wholesalers trade drugs among themselves after they are sold by manufacturers, but before they are bought by pharmacies and hospitals.

 

3) Cardinal Health Announces Resolution of New York Attorney General Investigation - DUBLIN, Ohio, Dec. 26 /PRNewswire-FirstCall/ -- Cardinal Health, the leading provider of products and services supporting the health-care industry, today announced it has entered into a settlement that resolves an investigation by the New York Attorney General's Office regarding industry-wide practices for the purchase and sale of pharmaceutical products on the secondary pharmaceutical market. The company released the following statement. - The safety and security of our nation's pharmaceutical supply is one of Cardinal Health's top priorities and a responsibility we take very seriously. As part of the settlement, Cardinal Health has strengthened existing processes and is implementing new practices to enhance the safety and security of the distribution chain between pharmaceutical manufacturers and health-care providers, such as pharmacies and hospitals.

 

4) Insurance Commissioner John Garamendi Announces 18% Decrease In Farmers Insurance Homeowners Rates ? 1 Million Californians Will Benefit - The move represents a significant conclusion to Garamendi?s term as Insurance Commissioner and to his efforts to bring California homeowners insurance rates down this year by more than $439 million dollars -- Farmers Insurance has requested an 18% overall reduction in homeowners insurance rates for California policyholders. The $171 million in proposed rate decreases by the state?s 2nd largest homeowners insurer will impact nearly 1 million homeowners and renters.  The decreases will likely take effect in June.

 

5) AXA Asia to buy Winterthur HK for up to A$393 mln - SYDNEY, Dec 27 (Reuters) - Australian life insurer AXA Asia Pacific Ltd. (AXA.AX: Quote, Profile, Research) said on Wednesday it has agreed to buy Winterthur Life Hong Kong Ltd. for between A$278 million and A$393 million ($217-307 million). -- The acquisition follows an announcement in June by AXA's parent company, AXA SA, that it would acquire the Winterthur Group from Credit Suisse for 13.4 billion Swiss francs ($11 billion).

 

6) HCC Insurance to restate results after stock option review - Wed Dec 20, 2006 9:48am ET - Dec 20 (Reuters) - HCC Insurance Holdings Inc. (HCC.N: Quote, Profile , Research) said it will restate results for certain periods to correct accounting errors related to stock-based compensation after an internal review of its past stock option grants. -- It expects an aggregate compensation charge of about $30 million, before related income taxes, for the nine years ending December 31, 2005. (Reporting by Shivani Singh in Bangalore)

 

7) Faith Popcorn's Predictions 2007 - The New Networked Self - NEW YORK, Dec. 26 /PRNewswire/ -- Leading future-focused trend consultancy Faith Popcorn's BrainReserve anticipates the forging of a new type of identity in the coming years: The New Networked Self. The technological advances of the information age have produced the most powerful tools yet for shaping our collective human destiny. The world has simultaneously become more fluid and more connected, one of both infinite possibility and extreme intimacy. As a result, people are turning away from the ego-driven self-aggrandizement that characterized the old era of hyper-consumption. The New Networked Self is far more ecologically aware than her predecessor and sees herself as a tiny, but instrumental part of a much larger picture that is constantly in flux. With this newfound awareness comes a personal sense of responsibility to understand and engage with the whole.

 

8) The Year of the Data Breach ? 2006 Dramatically Changed the Identity Theft Landscape  - NASHVILLE, Tenn.--(BUSINESS WIRE)--As 2006 draws to a close, national experts in data security report that high-profile data breaches, growing criminal sophistication, increased media attention and unprecedented legislative activity have changed perceptions and practices around identity theft and left an indelible mark on the business environment.

 

9) Uncle Sam Gives Self-Employed Professionals a Holiday Gift - The Solo (k) - SAN FRANCISCO--(BUSINESS WIRE)--Thanks to Uncle Sam?s new Solo (k) retirement account, (http://www.pensco.com/account/solok.asp) small business owners have a better way to build wealth ? without the income restrictions imposed on Roth IRAs. -- With the new Solo (k), (http://www.pensco.com/account/solok.asp) and Roth component, solo practitioners and husband-and-wife-owned businesses get tax-free growth, the ability to borrow from their account and more choices of investments. And there?s still time to set up a Solo (k) (http://www.pensco.com/account/solok.asp) retirement plan for 2006 ? simply complete the plan documents before December 31 and fund it later.

 

10) Bankruptcy Trustee Reaches Settlement With Former Law Firm Partners - AKRON, Ohio, Dec. 26 /PRNewswire-USNewswire/ -- Bankruptcy Trustee Marc P. Gertz and more than 70 former partners, law firms and insurers of the former Cleveland-based law firm of Arter & Hadden have reached a settlement of claims made in a 16-count complaint that was filed by the Trustee in the U.S. Bankruptcy Court for the Northern District of Ohio against the partners and their new law firms. -- The settlement, which still requires approval by the Bankruptcy Court, calls for the defendants and their insurers to pay $9.25 million to the Trustee.  The defendants deny any wrongdoing.  This amount is in addition to settlements reached with more than 50 other former partners, totaling over $1 million, and does not include claims against approximately 66 additional partners who were not part of this settlement agreement.

 

11) Alliance Bankshares Closes Insurance Acquisition - Battlefield Insurance Joins Alliance Platform - CHANTILLY, Va.--(BUSINESS WIRE)--Alliance Bankshares Corporation (NASDAQ:ABVA) reported that its insurance subsidiary, Alliance Insurance Agency, Inc acquired certain assets and liabilities of Battlefield Insurance Agency, Inc and Northern Virginia Insurance Agency, Inc both of Manassas, Virginia. The operation will be managed under the trade name, Alliance/Battlefield Insurance Agency, Inc.

 

12) The Hartford?s New Auto Insurance Plan Available in Six More States  - HARTFORD, Conn.--(BUSINESS WIRE)--In order to provide more choice and convenience when purchasing car insurance, The Hartford Financial Services Group, Inc. (NYSE: HIG), one of the nation?s leading providers of investment and insurance products, announced that the enhanced version of its popular DimensionsSM personal auto insurance program -- Dimensions with Auto Packages -- is now available to customers in six more states: Minnesota, Oklahoma, Colorado, Kansas, Nevada and New Mexico.

 

13) Principal Financial Group Opens New Wellness Office in Reading, Pennsylvania - DES MOINES, Iowa--(BUSINESS WIRE)--The Principal Financial Group® announces the opening of a new office in Reading, Pa. The new location will serve as a hub for Principal Wellness Company in the East Coast region and will specialize in onsite health and wellness screenings including consultations, high-risk interventions and customized wellness programs for employers.

 

14) 12 of the Top 25 U.S. Banks Join the Endpoint Exchange Network in 2006 - OKLAHOMA CITY--(BUSINESS WIRE)--Endpoint Exchange LLC, a Metavante company, today announced that 12 of the country?s top 25 banks (by asset size) have joined the company?s growing national check image exchange network in 2006. These new member institutions are industry leaders in the electronification of check payments, investing millions of dollars in imaging technology and infrastructure. They represent several of the largest volume check processing institutions in the country, processing and clearing millions of checks and check-related items each day.

 

15) Major Homebuilders Adopt Laborers' Pension Fund Proposal Requiring Majority Vote for Directors - WASHINGTON, Dec. 22 /PRNewswire-USNewswire/ -- Two major homebuilders -- Atlanta-based Beazer Homes and Reston-based NVR -- have adopted a proposal from the Central Laborers Pension Fund requiring a majority vote to elect directors.  -- "This provides a more meaningful role for shareholders and we applaud Beazer and NVR," said Terence M. O'Sullivan, General President of the Laborers' Union.

 

16) New rules enable healthy savings - Sat Dec 23, 2006 1:23pm ET By Linda Stern -WASHINGTON (Reuters) - Health Savings Accounts are a great deal, and they are about to get even better. The 109th Congress, in one of its final acts, expanded the tax breaks that are linked to these accounts. - The new rules, which go into effect January 1, 2007, will make it easier for workers and their families to build a sizable health-care nest egg to see them through the high-health-care consuming retirement years. But you have to know how to make the best of them.

 

17) CRM Holdings, Ltd. Subsidiary Majestic Insurance Company Receives Licensing Approval in New York  - HAMILTON, Bermuda, Dec. 26 /PRNewswire-FirstCall/ -- CRM Holdings, Ltd. ("CRM", "the Company") (Nasdaq: CRMH), a leading provider of a full range of products and services for the workers' compensation insurance industry announced today that its recently acquired subsidiary, Majestic Insurance Company ("Majestic") has received licensing approval to operate in the state of New York. -- Majestic has been granted a license to do business in New York by the New York State Insurance Department effective December 18, 2006. Majestic currently writes workers' compensation insurance under various state acts and the U.S. Longshore and Harbor Workers' Compensation Act in fifteen other states, and operates primarily in California, Arizona, Alaska, Nevada, Oregon and Washington. Most recently in November 2006, Majestic was upgraded to an A- rating (Excellent) by rating agency A.M. Best.    

 

18) City vs. City: When It Comes to Health Insurance Costs, Geography Matters  - ROCKVILLE, Md., Dec. 21 /PRNewswire-USNewswire/ -- A new federal database for the first time allows companies, consumers, health care analysts and others to compare health insurance costs among the nation's largest cities and other geographical areas. This new metropolitan area data table developed by HHS' Agency for Healthcare Research and Quality provides comparable statistics on average annual costs for companies and workers contributing to private- sector health insurance. This newest addition to AHRQ's extensive data on employer-based health insurance can be accessed at http://www.meps.ahrq.gov/mepsweb/survey_comp/Insurance.jsp.    

 

19) New National Business Group on Health Survey Shows Majority of American Employers Believe They Should Help Employees Quit Smoking - WASHINGTON, D.C., December 19, 2006 ?  Employers ranked smoking ? the leading preventable cause of disease and premature death in the U.S.1 ? among their top three employee health priorities along with high blood pressure and obesity, according to a new survey released by the National Business Group on Health.2 Furthermore, eighty-two percent of employers said that they should take steps to help employees quit smoking.2  Most employers said that they believe that establishing smoke-free workplaces is the best way to encourage smokers to quit, but the survey found that employees who smoke most wish that employers would offer access to smoking cessation benefits to help them quit.2

 

20) INSURANCE NEWSCAST ?Pictures Of The Day?

 

21) ICBA Applauds Housing Finance Board?s Action On Home Loan Bank Retained Earnings - Washington, D.C. (December 22, 2006)?The Independent Community Bankers of America (ICBA) applauds the Federal Housing Finance Board (FHFB) for adopting an ICBA-supported proposal to permit each Federal Home Loan Bank to build retained earnings based on its individual situation rather than a one-size-fits-all approach. -- ?In scrapping its controversial one-size-fits-all proposed rule, the Federal Housing Finance Board did the right thing for the nation?s community banks and the communities they serve,? said Camden R. Fine, ICBA president and CEO. ?Instead of imposing an arbitrary requirement across the system, the Board adopted an approach ICBA has long-advocated because it permits each FHLBank to build retained earnings based on its individual situation.?

 

22) Fitch: CLOs More Concentrated in Shareholder- Friendly and Covenant Light Loans - Fitch Ratings-NY-December 21, 2006: A Fitch Ratings study has found that collateralized loan obligations (CLOs) in the U.S. are acquiring a higher proportion of leveraged loans used for shareholder friendly-activities than the market as a whole. The survey also found that covenant packages accompanying the loans CLOs acquire tended to be modestly smaller than in the overall market.

 

23) ING Delivers Pending Case Downloads via E-Z Data?s DataXchange Online Solution - Pasadena, CA, December 21, 2006 ? E-Z Data, Inc., a leading provider of front-office systems for insurance companies, general agents, banks, investment dealers, agents, and financial advisors, announced today that ING in now delivering pending case downloads using the popular DataXchange? Online solution. ING joins more than 25 other carriers using DataXchange, a data aggregation solution for the insurance brokerage industry, to proactively exchange new business and policy information with their independent distribution channels.

 

24) AETNA INTRODUCES NEW HEALTH INSURANCE OPTIONS FOR INDIVIDUALS AND THEIR FAMILIES IN MISSOURI - KANSAS CITY, Mo., ? Aetna (NYSE: AET) announced today that it is selling health plans for individuals and their families throughout the state of Missouri. With the new Aetna Advantage Plans for Individuals and Families, consumers will be able to purchase health insurance directly from Aetna or through independent insurance agents or brokers. The plans offer affordable, comprehensive health coverage for a broad array of commonly used health care services, and provide online information tools to help consumers make informed health care decisions and lead healthy lifestyles.

 

25) Patelco Credit Union Reaches $4B Milestone - SAN FRANCISCO--(BUSINESS WIRE)--Patelco Credit Union, serving members for over 70 years, became the 10th credit union in the country to hit the $4-billion mark in assets when it did so on November 30th.  -- Privately insured Patelco serves over 230,000 members with 37 branches throughout California and a branch in Illinois. It took Patelco 59 years to reach the $1 billion mark, which it did in 1995.

 

26) TSYS Prepaid Surpasses Milestone of 11 Million Healthcare Accounts - NEW YORK--(BUSINESS WIRE)--TSYS Prepaid, a wholly owned subsidiary of TSYS and one of the world?s leading prepaid payment-services companies using the Visa® and MasterCard® networks, announced today that it has grown its healthcare business to more than 11 million active card accounts on file. -- ?TSYS Prepaid has achieved a strategic milestone that we've been working toward for many months,? says James A. Accordino, president of TSYS Prepaid. ?We believe TSYS is positioned to help bring together healthcare and financial services, translating to a more seamless experience for our clients and their customers.?

 

27) Get Better Prepared for a Disaster by Creating a Free Home Archive with Insurance Vault from the Hurricane Law Group - BOCA RATON, Fla.--(BUSINESS WIRE)--Are you prepared to provide your insurance company photographs of your home and an inventory of your personal possessions in case of a disaster? Like most Americans, you probably are not. This lack of preparation could cost you tens of thousands of dollars in insurance proceeds and years of delays in settling your claim. Now, however, thanks to the help of Insurance Vault (http://www.insurancevault.net), a new free online service, everyone can quickly and easily create a digital home archive and be better prepared for a disaster.

 

28) Votago Announces Availability of Free Software Application for Creating Electronic Health Records - GLEN ROCK, N.J.--(BUSINESS WIRE)--Votago LLC, a developer of personal software applications designed for use on portable digital devices, today announced the market introduction of a free application that allows users to create and maintain electronic health and medical records. -- The application, called Votago Personal Health, is now available free for download from the company?s web site: www.votago.com.

 

29) GlobalOptions Joins Forces with Work First Casualty Insurance to Combat Insurance Fraud - NEW YORK--(BUSINESS WIRE)--GlobalOptions Group (OTCBB: GLOI) announced that its GlobalOptions Fraud & SIU Services division has entered into a formal agreement to serve as an SIU provider to Work First Casualty Insurance. -- Work First Casualty Company is a broad-based property and casualty insurance carrier created to offer a workers compensation insurance program to service the temporary staffing industry. Work First has developed its business by insuring the workers compensation exposures of temporary staffing companies with a guaranteed cost program in several targeted states. Currently, Work First holds a license to write workers compensation in 38 states and Puerto Rico.

 

30) Horizon Health Corporation Announces Merger Agreement with Psychiatric Solutions, Inc. - LEWISVILLE, Texas--(BUSINESS WIRE)--Horizon Health Corporation (NASDAQ:HORC) today announced that it has signed a definitive agreement under which Psychiatric Solutions, Inc. (NASDAQ:PSYS) ("PSI") will acquire Horizon Health in a transaction valued at approximately $426 million including the assumption or repayment of approximately $105 million of debt. -- Under the terms of the agreement, Horizon Health stockholders will receive $20 in cash for each share of Horizon Common Stock they hold. The transaction is subject to approval by Horizon Health stockholders and regulatory approvals, as well as satisfaction of other customary closing conditions. The transaction is expected to be completed in the second calendar quarter of 2007.

 

31) California Association of Mortgage Brokers Commends Passage of Mortgage Insurance Tax Deductibility Bill - SACRAMENTO, Calif.--(BUSINESS WIRE)--As part of their ongoing effort to promote consumer protection, the California Association of Mortgage Brokers (CAMB) issued a statement praising new tax legislation signed into law today by President George W. Bush, which allows the deduction of mortgage insurance premiums on federal income tax returns.

 

32) ACE USA Introduces ACE Professional Risk Select Policies to Respond to Unique Needs of U.S.-based Small- to Mid-size Companies - PHILADELPHIA--(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:

 

33) Assured Guaranty Ltd. Announces the Completion of Share Repurchase from ACE Limited and Closing of $150 Million Enhanced Junior Subordinated Debentures Offering - HAMILTON, Bermuda--(BUSINESS WIRE)--Assured Guaranty Ltd. (NYSE:AGO) (?Assured Guaranty? or the ?Company?) announced today that its subsidiary, Assured Guaranty US Holdings Inc., received the proceeds from its issuance of $150 million of 6.40% Series A Enhanced Junior Subordinated Debentures and concurrently completed the repurchase of 5,692,599 of the Company?s common shares from ACE Bermuda Insurance Ltd., a subsidiary of ACE Limited. These transactions were originally announced on December 7, 2006.

 

34) AIG to Withdraw Its Common Stock Listing on NYSE Arca, Inc.  - NEW YORK--(BUSINESS WIRE)--American International Group, Inc. (AIG) today announced that it plans to voluntarily withdraw its Common Stock (par value $2.50 per share) from listing on NYSE Arca, Inc., formerly the Pacific Exchange. AIG?s Common Stock will continue to be listed on the New York Stock Exchange. -- The decision to voluntarily withdraw listing from NYSE Arca, Inc. was made to eliminate duplicate administrative requirements inherent with dual listings as a result of the NYSE Group?s recent merger with Archipelago Holdings, the parent company of NYSE Arca. NYSE Arca will continue trading AIG?s Common Stock on an unlisted trading privilege basis.

 

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