INSURANCE NEWSCAST "Headlines Only Edition" for: Friday, 05/25/07

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

INSURANCE NEWSCAST "Headlines Only Edition" for: Friday, 05/25/07

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

Agents for Change Praises Senators Sununu and Johnson for Reintroducing Optional Federal Charter Legislation - Agents for Change strongly commends Senators Tim Johnson (D-SD) and John Sununu (R-NH) for reintroducing legislation to create an optional federal charter (OFC). ?Very simply, an OFC will help producers better serve their customers,? said Robert Poli, Chairman of Agents for Change.

ABIA AND ABA Support Optional Federal Charter Legislation Proposed In The Senate - WASHINGTON, May 24 - The American Bankers Insurance Association and American Bankers Association commended Sens. John Sununu and Tim Johnson for introducing legislation today to reform insurance regulation through the creation of an optional federal insurance charter. -  ?The Sununu-Johnson bill represents much-needed reform of insurance regulation that Congress must pass to meet the needs of consumers, insurers, agents and the nation.? said Kevin McKechnie executive director of ABIA. ?This legislation will strengthen America?s global competitiveness by allowing insurance companies and agents to better serve their policyholders by creating a national insurance regulatory structure.?

The Council Applauds Introduction Of Optional Federal Charter Legislation - WASHINGTON ? The Council of Insurance Agents & Brokers today praised Sens. Tim Johnson, D-S.D., and John Sununu, R-NH, for introducing legislation to provide an optional federal charter for property/casualty and life insurers, giving the insurance sector the same right to choose its regulator as is now afforded to banks. - Sununu introduced the legislation today on behalf of himself and Sen. Tim Johnson, D-S.D., who is recovering from a serious medical condition and has not yet returned to the Senate.  The two senators also introduced the optional federal charter legislation last year.

Big ?I? Opposes Optional Federal Charter Bill - WASHINGTON, D.C., May 24, 2007?The Independent Insurance Agents & Brokers of America (the Big ?I?) opposes S.40, the National Insurance Act of 2007 (NIA), introduced today by Sen. John Sununu (R-N.H.) and Sen. Tim Johnson (D-S.D.). -- Rather than creating a massive new federal bureaucracy under an Optional Federal Charter (OFC) bill, the Big I  instead supports targeted federal legislation to reform the state insurance regulatory system, which relies on the over 100 years of skill and experience of states as insurance regulators. An example of such a pragmatic approach is S.929, the Nonadmitted and Reinsurance Reform Act introduced by Sen. Mel Martinez (R-FL) and Sen. Bill Nelson (D-FL), which would help create uniformity in the surplus lines and reinsurance markets.

NAMIC: Optional Federal Charter Would Hurt Consumers and Insurers - WASHINGTON (May 24, 2007) ? The National Association of Mutual Insurance Companies (NAMIC) today announced its strong opposition to The National Insurance Act of 2007, which would bring the federal government into the insurance regulatory system. NAMIC contends the bill would hurt consumers and insurers, especially small- and medium-sized carriers that comprise the bulk of the insurance industry. - ?In addition to being completely unnecessary, this bill would likely lead to additional bureaucracy for insurers and, ultimately, higher prices for consumers,? said Justin Roth, NAMIC?s senior federal affairs director.

Scor to contest Allianz's 9/11 WTC settlement - PARIS, May 24 (Reuters) - French reinsurer Scor (SCOR.PA: Quote, Profile, Research said on Thursday it would challenge German insurer Allianz's (ALVG.DE: Quote, Profile, Research insurance settlement concerning the Sept. 11 2001 attacks on the World Trade Center and would seek arbitration. -On May 23 seven insurers agreed to pay out an additional $2 billion on the destruction of the World Trade Center, resolving all outstanding claims from the attacks and helping speed up the redevelopment of the site.

I.I.I. Offers Insights Into Sept. 11-Related Insurance Claims - NEW YORK, May 23, 2007 ? Reporters covering New York Governor Eliot Spitzer?s press conference this afternoon in lower Manhattan on insurance settlements relating to the Sept. 11, 2001 terrorist attacks should contact the Insurance Information Institute (I.I.I.)  - The I.I.I. estimates insurers paid $37.0 billion (adjusted in 2006 dollars) in property, life, and liability claims for losses related to the events of Sept. 11, 2001 in New York, Virginia and Pennsylvania. 

Court Approves $6.8 Million Settlement with State Farm Insurance for Screen Damage from Hurricanes Katrina and Wilma, According to Lee & Amtzis - BOCA RATON, Fla.--(BUSINESS WIRE)--A Broward County, Florida Court has approved a class action settlement on behalf of more than 12,000 State Farm Florida Insurance policyholders in Florida who will receive 100 percent of the damages they requested in a $6.8 million settlement of claims filed last year in which they alleged State Farm refused to pay replacement costs of screen enclosures damaged by Hurricanes Katrina and Wilma, attorneys for the plaintiffs announced today.

Allstate seeks 1st Calif. rate hike in 4 years - NEW YORK, May 23 (Reuters) - Allstate Corp. (ALL.N: Quote, Profile, Research said on Wednesday it is seeking its first increase in California homeowner insurance rates in nearly four years, prompting the state's insurance commissioner to say he would draw a "line in the sand" to ensure the rates charged aren't excessive.

Allstate Comments on California Homeowners Insurance Rates - RANCHO CORDOVA, Calif.--(BUSINESS WIRE)--Responding to statements made today by California Insurance Commissioner Steve Poizner, Allstate said the following: ?The facts are that Allstate?s California homeowners insurance rates currently in place were reviewed and approved by the California Department of Insurance in 2003, and our policies are competitively priced,? said Rich Halberg, Allstate spokesman for the company?s California Region. ?In fact, more than 50,000 Californians chose Allstate for new homeowners insurance policies in 2006, attracted by the value and competitive price of our policies.

36 Million Licensed Americans Unfit To Drive According to GMAC Insurance Study - ST. LOUIS, May 24 /PRNewswire/ -- Results from the 2007 GMAC Insurance National Drivers Test indicate that one in six drivers on the road -- roughly 36 million licensed Americans -- would not pass their written DMV exam if taken today. The third annual survey by GMAC Insurance gauges driver knowledge of the rules of the road by testing licensed Americans on actual questions from state DMV license exams.

Insurers Globally Address A Possible Increase In Weather-Related Catastrophes, Article Says - NEW YORK May 22, 2007--For the insurance industry, climate's impact isn't just a theoretical concern for the future, according to an article published today by Standard & Poor's Ratings Services. The article, which is titled "Insurers Seek To Weather Changes In The Weather," says that over the past few years, extreme weather worldwide points to a possibility that a warming global climate trend might increase the likelihood of catastrophic weather events. Of course, that could mean increased catastrophe losses for insurers, reinsurers, and investors in sidecars and natural catastrophe bonds. In response, insurers and reinsurers are already changing how they manage the catastrophe risk in their portfolios, and investors are changing the way they assess these risks.

MetLife Advice Program Reaches Milestones - NEW YORK, May 22, 2007 ? The MetLife Advice Program, the no-cost, add-on components available to employers looking to provide financial guidance to employees, in conjunction with their existing benefits package from MetLife, announced key milestones for its comprehensive program. To date, over 1,000 clients have signed up for MetLife Advice, serving 6.6 million employees. 

2008 HSA Cost of Living Adjustments Released Early  - New Jersey - 05/24/07 - - Recent HSA regulations have forced the IRS to release 2008 cost of living adjustments prior to June 1 of the preceding year. Please

Correlation trade is extreme sport for hedge funds - By David Wigan - LONDON, May 24 (Reuters) - Hedge funds are driving a surge in demand for the riskiest credit derivatives, with winner-takes-all strategies that appear to have turned the art of investing into the financial equivalent of extreme sports.

As hedge funds jostle for space in London's elite Mayfair district, intense competition has created an atmosphere in which only the highest possible returns will suffice, bankers say.

Mutual of Omaha Subsidiary To Acquire Lincoln?s Security Federal Bank - OMAHA, Neb.--(BUSINESS WIRE)--Omaha Financial Holdings, Inc., has reached a definitive agreement to acquire Security Federal Bank, a federally chartered savings bank based in Lincoln, Neb. - The transaction is expected to be completed in 120 to 150 days, subject to closing conditions and necessary approvals. The financial terms of the transaction were not disclosed.

Reservoir Capital Group Establishes Palisades Capital Advisors - Bradley D. Belt Appointed Chairman of Palisades - NEW YORK--(BUSINESS WIRE)--Reservoir Capital Group, L.L.C. today announced the establishment of Palisades Capital Advisors, L.L.C. (?Palisades?) and the appointment of Bradley D. Belt as its Chairman. Mr. Belt most recently served as Executive Director and CEO of the Pension Benefit Guaranty Corporation.

The Flip Side of Higher Healthcare Costs - Lower Life Insurance Premiums - SAN DIEGO, May 23 /PRNewswire/ -- The dark clouds of rising healthcare costs have a silver lining. As we spend more on healthcare, we live longer. This greater life expectancy is lowering life insurance premiums for both term life and "permanent" insurance, according to the Insurance Information Institute.

Foundation for Taxpayer and Consumer Rights: Allstate Overcharging CA Homeowners $900K a Day, $362 Average Annual Refund to Each Homeowner - SANTA MONICA, Calif., May 23 /PRNewswire-USNewswire/ -- Allstate must repay its California policyholders the $326 million a year it has been overcharging homeowners, said the Foundation for Taxpayer and Consumer Rights (FTCR) in response to today's order by Insurance Commissioner Poizner requiring Allstate to justify its current premiums or refund excessive rates.    --- "It's time Allstate stopped stalling and repaid the $900,000 a day it is overcharging California homeowners. Allstate's outrageous profits on the backs of California homeowners make direct consumer refunds long overdue.

Consumer Federation Applauds Commissioner Poizner's Allstate Order - SAN MATEO, Calif., May 23 /PRNewswire-USNewswire/ -- The Consumer ederation of California today applauded Insurance Commissioner Steve oizner's order against Allstate for overcharging Californians for homeowners insurance. Commissioner Poizner ordered Allstate to prove that their rates are not excessive and stated that he would order retroactive refunds to consumers if he determines that homeowners were overcharged. Allstate is California's third largest home insurance provider with 900,000 homeowner policies.

New Poll Shows that Recession Would Not Impact Global Outsourcing Trend Smart Multimedia Gallery - TROY, Mich.--(BUSINESS WIRE)--Syntel, Inc. (NASDAQ:SYNT), a global information technology services and Business Process Outsourcing (BPO) firm, surveyed 373 Fortune 1000 IT executives of global companies on their views of the global outsourcing industry. The TrendScan® survey by Syntel was conducted online between April 27, 2007 and May 15, 2007.

WSJ.com/Harris Interactive Survey: Sixty-Nine Percent of Employed U.S. Adults Receive Some Type of Retirement/Savings Benefit from Their Employer - ROCHESTER, N.Y., May 23 /PRNewswire/ -- A new Wall Street Journal Online/Harris Interactive Personal Finance Poll found that sixty-nine percent of employed U.S. adults receive some type of retirement or other savings benefit from their employer and that just under half of employed adults (49%) can participate in a 401(k) plan. Thirty-six percent say their employer matches their 401(k) contributions and 29 percent have a pension plan. Thirteen percent have the opportunity to buy company stock and 9 percent can participate in their company's stock-option plan.

MetLife Introduces Two New Dental Quality Resource Guides in ADA Approved Continuing Education Program - NEW YORK--(BUSINESS WIRE)----MetLife today announced two new additions to its series of Web-based self study continuing education guides for the dental community, Medical Emergencies: Preparation and Management and Treatment Planning. MetLife is approved by the American Dental Association (ADA) as a recognized provider under its Continuing Education Recognition Program (CERP), and these new offerings may be used to fulfill licensing requirements where applicable. MetLife's educational offerings are also approved by the Academy of General Dentistry. Access to these and other Quality Resource Guides in MetLife's Dental Continuing Education Program are available at www.metdental.com. 

StanCorp Financial Group, Inc. Announces New Share Repurchase Program - PORTLAND, Ore., May 23 /PRNewswire-FirstCall/ -- StanCorp Financial Group, Inc. ("StanCorp") (NYSE: SFG) announced today that its board of directors has authorized a repurchase program for up to 6 million shares of StanCorp common stock. - The repurchase plan was adopted in connection with the offering of Fixed-to-Floating Rate Income Capital Obligation Notes(R) ("ICONS") due 2067 with purchases under the plan to commence after the closing of the sale of the ICONS.

Greenlight Capital Re, Ltd. Prices Initial Public Offering - GRAND CAYMAN, Cayman Islands, May 24 /PRNewswire-FirstCall/ -- Greenlight Capital Re, Ltd. (Nasdaq: GLRE), a specialty property and casualty reinsurer based in the Cayman Islands, today announced that its initial public offering of 10,250,000 Class A Ordinary Shares priced at $19.00 per share. Substantially all of the net proceeds of the initial public offering will be used to increase the underwriting capacity of the company's reinsurance operations.   

Priority Health Introduces New Product to Drive Healthier Choices and Lower Costs - GRAND RAPIDS, Mich.--(BUSINESS WIRE)--Employers can now save up to 13 percent on health care premiums while improving the health of their employees with HealthbyChoice IncentivesSM, a new product introduced today by Priority Health, a Michigan-based health plan. The new product option provides an employer?s workforce with dual-level benefits: an enriched level of benefits for those who choose to follow certain health requirements and a standard plan for those who choose not to.

RedBrick Health: First Consumer-Owned Health Company - MINNEAPOLIS--(BUSINESS WIRE)--Recognized health care leaders, and founders of Definity Health, oday announced the formation of RedBrick Health, a health services company created to lead the transition to Consumer-Owned Health, which will allow employers the ability to clearly define health benefit contributions and grant employees the opportunity to control personal health care costs.

Ironshore Insurance Receives Surplus Lines Approval To Provide Property And Casualty Insurance For Florida Risks - Hamilton, Bermuda, May 24, 2007 - Ironshore Insurance Ltd. was approved to write property, property catastrophe and casualty insurance on an excess and surplus basis for risks located in the State of Florida. 

New homes sales rise 16.2 percent in April - Thu May 24, 2007 10:56AM EDT - WASHINGTON (Reuters) - Sales of new homes rose 16.2 percent in April, the sharpest climb in fourteen years, while prices fell a record 11 percent, according to a government report on Thursday that showed home builders taking extraordinary steps to move houses. - New single-family home sales rose to an annual rate of 981,000 units from a revised rate of 844,000 in March, the Commerce Department said.

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