INSURANCE NEWSCAST "Headlines Only Edition" for: Friday, 06/01/07

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

INSURANCE NEWSCAST "Headlines Only Edition" for: Friday, 06/01/07

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

 

Ceridian agrees to be bought for $5.3 bln - By Megan Davies  - NEW YORK, May 30 (Reuters) - Ceridian Corp. (CEN.N: Quote, Profile, Research, under pressure from an activist hedge fund, agreed to be bought by private equity firm Thomas H. Lee Partners [THL.UL] and insurance company Fidelity National Financial Inc. (FNF.N: Quote, Profile, Research for $5.3 billion, the business services company said on Wednesday. - Ceridian had been battling with Pershing Square Capital Management, a hedge fund and major shareholder, which wanted the company to spin off its Comdata division and replace its board.

Wachovia to buy A.G. Edwards for $6.8 billion - Thu May 31, 2007 8:22am ET - NEW YORK (Reuters) - Wachovia Corp. (WB.N: Quote, Profile , Research) on Thursday said it would buy A.G. Edwards Inc. (AGE.N: Quote, Profile , Research) for about $6.8 billion in cash and stock to create the second-largest retail brokerage in the United States. - The deal calls for the exchange of 0.9844 shares of Wachovia common stock and $35.80 in cash for each A.G. Edwards share. The deal represents a 16 percent premium to A.G. Edwards' closing share price on Wednesday.

Pay bias cases face 6-month limits: Supreme Court - Tue May 29, 2007 12:38PM EDT  By James Vicini - WASHINGTON (Reuters) - The U.S. Supreme Court handed business groups a victory on Tuesday by ruling that federal law limits pay discrimination lawsuits to a six-month period after the alleged unlawful employment practice occurred. - By a 5-4 vote, the high court rejected the argument that an employee can sue over the amount of a current paycheck, based on employment decisions that occurred long ago outside the six-month, statute-of-limitations period.

Barclays settles insider trading charges - Wed May 30, 2007 12:17PM EDT  By Emily Chasan - NEW YORK (Reuters) - Barclays Bank (BARC.L: Quote, Profile, Research has agreed to pay about $10.9 million to settle charges of illegal insider trading in bond securities, the U.S. Securities and Exchange Commission said on Wednesday. - In court documents filed in New York, the SEC alleged that Barclays and Steven Landzberg, the former head proprietary trader for Barclays' U.S. distressed debt desk, illegally traded millions of dollars of bond securities between March 2002 and September 2003, based on material, nonpublic information received through bankruptcy creditor committees.

RIMS Launches Online Legislative Action Center - New York, N.Y., May 31, 2007 ? In an effort to involve its members in government affairs and lobbying initiatives, the Risk and Insurance Management Society, Inc. (RIMS) has launched the RIMS Legislative Action Center on its website at www.RIMS.org/LegislativeAction. -- RIMS Legislative Action Center provides information and updates on key federal legislative initiatives, including the Terrorism Risk Insurance Act (TRIA), Surplus Lines Reform Legislation and Optional Federal Charter. It also provides an extensive database on members of Congress, including voting scorecards and links to their websites.

Ernst, Deutsche may face fines in tax shelter case: report - Thu May 31, 2007 8:16AM EDT - NEW YORK (Reuters) - Ernst & Young (ERNY.UL: Quote, Profile, Research and Deutsche Bank (DBKGn.DE: Quote, Profile, Research could face monetary sanctions rather than criminal charges in a U.S. tax shelter probe, The Wall Street Journal reported on Thursday, citing unnamed sources. - U.S. prosecutors charged two current and two former partners of the accounting firm on Wednesday with tax fraud conspiracy arising out of the sale of tax shelters.

Wellpoint CFO resigns, violated code of conduct - Thu May 31, 2007 8:44am ET - CHICAGO (Reuters) - Wellpoint Inc. (WLP.N: Quote, Profile , Research) said its chief financial officer, David Colby, resigned after an internal investigation revealed that he violated the health insurer's code of conduct. - The board of directors named Wayne DeVeydt as his successor, effective immediately. - In a statement, the largest U.S. health insurer said its investigation did not reveal illegal conduct and that the violations were not related to Wellpoint's business.

Celebrating Its 55th Anniversary, Aus Unveils Its Newly Designed Website: www.onlineAUS.com - On Monday, May 21, 2007, AUS unveiled its newly designed Web site. The new site is a continuation of AUS's commitment to the financial services industry.

DOZENS ARRESTED ACROSS FIVE COUNTIES IN REGIONAL INSURANCE FRAUD BUSTS - FRESNO ? Today California Insurance Commissioner Steve Poizner, with Fresno County District Attorney Elizabeth A. Egan, Kern County District Attorney Ed Jagels, Kings County District Attorney Ron Calhoun, Merced County District Attorney Larry Morse II, and Tulare County District Attorney Phil Cline, unveiled the results of concerted, multiple investigations into alleged auto insurance and workers? compensation insurance fraud over the past year. - Over the past few days, law enforcement officers fanned out over five counties to serve 58 arrest warrants for insurance fraud and related charges, such as grand theft, receiving stolen property and perjury. Four suspects were already arrested and charged late last year. Another suspect is in federal custody; a hold has been placed on him to answer for the local charges.

Professional Insurance Agents Say Check Your Insurance Before Hurricane Flags Fly - WASHINGTON, May 30 /PRNewswire-USNewswire/ -- With the start of the Atlantic hurricane season on June 1, the National Association of Professional Insurance Agents is reminding homeowners to review their insurance coverage before the warning flags fly.

Hurricane and Summer Rainy Season Begins; FEMA Strongly Urges Consumers to Protect Their Property With Flood Insurance - WASHINGTON, May 31 /PRNewswire-USNewswire/ -- June 1 marks the official arrival of the 2007 hurricane and summer rainy season and FEMA's National Flood Insurance Program (NFIP) strongly urges homeowners, business owners and renters to learn their flood risk and protect their property with flood insurance. This year, flood risk is especially high: experts predict above-average hurricane activity, with a 75 percent chance of a major hurricane hitting the United States and the potential for as many as 17 named storms anticipated for the season.

A.M. Best Comments on the Impact of NAIC Reinsurance Collateral Proposal - OLDWICK, NEW JERSEY, U.S.A., May 30, 2007?A.M. Best Co. has reviewed the potential impact of the NAIC?s Reinsurance Evaluation Office proposal that will grant credit for ceded reinsurance. As a result of that review, A.M. Best expects that there are only a handful of U.S. property/casualty companies that will see a material negative impact on their Best?s Capital Adequacy Ratio (BCAR) if collateral for reinsurance recoverables was changed. This review was conducted by recalculating each individual company?s BCAR after removing all of the credit for collateral currently included in the capital model.

RAA RELEASES 2007 FIRST QUARTER REINSURANCE RESULTS - WASHINGTON, D.C. ‑‑ According to a survey of reinsurers? statutory underwriting results conducted by the Reinsurance Association of America (RAA), a group of 22 U. S. property‑casualty reinsurers wrote $6.7 billion of net premiums during the three months ended March 31, 2007.

Schip Guidelines - Principles For Health Insurance Coverage For Children And Families - From the Health Policy Consensus Group - May 22, 2007  -- Members of the Health Policy Consensus Group offer the following guidelines to policymakers for consideration during debate over reauthorization of the State Children's Health Insurance Program (SCHIP). We also offer a brief summary of our larger vision of expanding access to health insurance. -- In summary, we recommend a combination of more equitable tax treatment for all health insurance purchasers, additional assistance for lower-income people, and state flexibility to turn SCHIP and Medicaid benefits into defined contributions.

AIA To Urge Stronger Support From State Regulators Of Insurer?s Limited Anti-Trust Exemption - WASHINGTON, D.C., May 31, 2007? The American Insurance Association (AIA) will urge state insurance regulators to be more forceful in their support of the limited exemption from federal antitrust laws currently in the McCarran-Ferguson Act and their opposition to Congressional efforts to repeal that exemption, during the National Association of Insurance Commissioners (NAIC) meeting June 1-4 in San Francisco.

A.M. Best Special Report: U.S. Long-Term Care ? 2006 Market Review - OLDWICK, N.J.--(BUSINESS WIRE)--According to a recent special report by A.M. Best Co., over the past several years, the individual long-term care insurance industry has been impacted by numerous challenges, which have led to declining sales and lower-than-expected overall profitability. Consequently, individual long-term care sales are running only near the early to mid-1990s levels, as many companies have de-emphasized this product line due to less than anticipated profitability, and as the products themselves have become considerably more expensive over the past five years.

L.A. Care Launches Ad Campaign Targeting Uninsured - LOS ANGELES, May 30 /PRNewswire/ -- L.A. Care Health Plan, the nation's largest public health plan, will launch a new advertising campaign this week targeting low-income Hispanic uninsured families. Nationally recognized advertising agency La Gente de RLR was awarded the account in February, and is handling all creative development, production, media planning, and media buying. Through this effort, L.A. Care hopes to reach uninsured families who are eligible for government-sponsored health care programs (such as Medi-Cal and Healthy Families) but are not enrolled for a variety of reasons.

MIB Life Index Reports North American Life Insurance Activity Down 1.6% in April - WESTWOOD, Mass., May 30 /PRNewswire/ -- North American application activity for individually underwritten life insurance was off -1.6% in April year-over-year, according to the MIB Life Index (SM). The year-to-date (YTD) decline of -4.6% over January-April 2006, compares less favorably to a -1.1% decline seen during the first four months of last year, January-April 2006/2005. Month-over-month, April's application volume was down -2.8% from March 2007 levels.

The Main Street America Group Announces Expanded Surety Bond Capacity - JACKSONVILLE, Fla., May 31 /PRNewswire/ -- The Main Street America Group, a super regional property-casualty insurance carrier, announced today the U.S. Treasury Department has raised its NGM Insurance Company's single surety bond capacity threshold with limits available up to $54 million per bond. (Logo: http://www.newscom.com/cgi-bin/prnh/20060213/FLM008LOGO )

Life Producers See Business Spike over Past 12 Months - CLEARWATER, FL (May 31, 2007) - A recent study by Agent Media, publisher of the Agent's Sales Journal and Insurance Marketing magazine, shows that life insurance producers have seen their business trend upward over the past 12 months, mirroring the recent positive performance of the life industry as a whole.

S&P:  As Solvency II Approaches, European Insurers Should Ignore It At Their Peril, Says Report - LONDON May 30, 2007--Insurance is experiencing a revolution globally, which is changing the competitive landscape. Solvency II promises much for market efficiency in Europe, but insurers and supervisors are far from ready, according to a report ("Beware Solvency II: As The 2010 Implementation Date Looms Closer, European Insurers Should Ignore It At Their Peril") published today by Standard & Poor's Ratings Services.

HSBC Reveals Billions Contributed by Older People - NEW YORK, May 22 /PRNewswire-USNewswire/ -- The third annual HSBC Future of Retirement study, the largest study of aging and retirement ever undertaken, has found that, far from being a drain on society, older people are huge contributors to the economic and cultural wellbeing of their nations. Conducted with Oxford University's Oxford Institute of Ageing, The Future of Retirement project surveyed 21,000 people in 21 countries and territories.

Anthem Blue Cross and Blue Shield Keeps Promise to Members: Enhanced Consumer- Driven Health Plans and Services Now Available to Individuals and Small Businesses - DENVER, May 23 /PRNewswire/ -- Anthem Blue Cross and Blue Shield is now offering new consumer-driven health plan (CDHP) options for small group employers and individuals that will change the way consumers think about health care -- helping them to lead healthier lives while also helping them gain control over the rising cost of care. These products and services have been available to large businesses in Colorado since January.

Asparity Quantifies Consumer Behavior for Health Care Benefits - DURHAM, N.C.--(BUSINESS WIRE)--Asparity Decision Solutions found that employees who used decision support during the 2007 enrollment season made different ? and more cost-effective ? health care choices that better met their needs than employees who did not use decision support (nonusers). Asparity quantified consumer behavior in health care benefits and found the following results from the 2007 enrollment season:

China to let insurers invest more abroad: official - Thu May 31, 2007 1:10AM EDT -  BEIJING (Reuters) - China will soon let insurance firms plough more money into equities and other assets overseas, including London and New York, and allow them to set up fund companies, a senior regulatory official said on Thursday. - Sun Jianyong, a director of the China Insurance Regulatory Commission, told reporters that his commission would soon issue long-awaited rules to permit domestic insurers to invest 15 percent of their total assets abroad, up from 5 percent now.

Israel's Clal Insurance buys U.S insurer Guard - JERUSALEM, May 31 (Reuters) - Clal Insurance Enterprises Holdings (CLIS.TA: Quote, Profile, Research, one of Israel's largest insurance companies, said on Thursday a wholly owned subsidiary had bought U.S. insurer Guard Financial Group Inc.

Morgan Stanley to buy Australia's Investa - Thu May 31, 2007 4:20am ET By Michael Smith -SYDNEY (Reuters) - Morgan Stanley's (MS.N: Quote, Profile , Research) real estate unit agreed to buy Australia's Investa Properties Ltd. (IPG.AX: Quote, Profile , Research) for A$4.7 billion ($3.9 billion) on Thursday, the nation's third-largest property trust takeover. - Morgan Stanley Real Estate offered A$3.08 for each Investa share, its second major acquisition in the past week.

 

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