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Wednesday
07/30/08 |
Your Insurance News "Strategic
Relationship"
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Read online at
www.insurancebroadcasting.com.
Read daily by
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Walt Podgurski, CLU, CES, Publisher & Editor
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We are
Chipping Away at the
Limited Nature of Mini-Med Plans!
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Call us today for
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Daily Quote:
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encountered great success yet, there is no reason you can’t bluff a
little and act like you have. Confidence is a magnet in the best sense
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M&A / ALLIANCES / EARNINGS
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Insurers
Push For U.S. Optional Charter
Tue Jul 29, 2008 1:00pm EDT
WASHINGTON, July 29 (Reuters) - The U.S.
regulatory structure for the insurance industry puts companies
at a disadvantage overseas and stifles innovation and
competition for consumers, the industry told U.S. lawmakers on
Tuesday.
At a Senate Banking Committee hearing to consider creating an
optional federal charter system, the insurance industry said the
current system of state charters also hinders foreign firms from
providing products to U.S. consumers.
"The absence of a federal insurance regulator leaves the U.S.
insurance industry at a distinct disadvantage," John Pearson,
chairman of Baltimore Life Insurance Co, said in prepared
testimony.
Pearson, who testified on behalf of the American Council of Life
Insurers trade group, said the industry is subject to disparate
laws and regulations in various states that stifle innovation.
For several years the industry has been pushing for a federal
charter, seeking to shed what it calls the burdens brought on by
chartering in different states.
Pearson also said there is a perception abroad that the U.S.
system discriminates against foreign companies and acts as a de
facto trade barrier.
The issue was recently highlighted by the Treasury Department
which proposed streamlining regulation of the U.S. financial
services industry, including insurance.
Steven Goldman, New Jersey commissioner of banking and
insurance, said the industry has not suffered despite the
complaints, citing record industry profits.
According to the Consumer Federation of America (CFA), insurers
generated post-tax profits of $253 billion from 2004 through
2007.
In 2004 four major hurricanes hit Florida but the property and
casualty insurance industry posted record profits of $40.5
billion and insurers saw another year of record profits in 2005
even with Hurricane Katrina, the consumer group said.
Industry analysts have said the chances of passage for any of
the bills now aimed at creating a federal system is low given
how little time is left on the congressional calendar.
Committee Chairman Christopher Dodd said the insurance industry,
like other segments of the financial services sector, is
increasingly becoming international. Many large insurance firms
operate in Dodd's home state of Connecticut.
"The ability of insurers to spread U.S. risk broadly around the
world has enormous benefits for American consumers, as it
increases insurance capacity here at home," he said.
Some critics, including Goldman, fear consumer protection
efforts would be eroded if states loose the ability to regulate
insurers.
Travis Plunkett, CFA legislative director, said state regulators
have not fared well either in some consumer protection issues
but a federal system could harm state consumer protection
efforts.
He said insurers want a system similar to U.S. banking
regulation that allows banks to choose their regulator.
"The insurance industry is very pragmatic in their selection of
a preferred regulator," Plunkett said. "They always favor the
least regulation." (Reporting by John Poirier; Editing by Tim
Dobbyn)
© Thomson Reuters 2008 All rights reserved
1.
Merrill To Sell $8.5
Bln Stock After Big Write-Down
Tue Jul 29,
2008 4:36am EDT
By Christian
Plumb and Jonathan Stempel
NEW YORK
(Reuters) - Merrill Lynch & Co said on Monday it will take a
$5.7 billion third-quarter write-down as it unloads huge amounts
of risky debt, and will raise $8.5 billion by selling new stock.
The Wall Street
investment bank and brokerage announced its plans less than two
weeks after posting a $4.9 billion second- quarter loss, hit by
$9 billion of write-downs in that period.
In a sign of
how toxic Merrill's debt holdings have become, it has agreed to
sell $30.6 billion of collateralized debt obligations (CDOs), a
kind of repackaged debt, to an affiliate of private equity fund
Lone Star Funds, for just $6.7 billion, or about 22 cents on the
dollar.
The fire sale
nature of that deal will add to concerns that the global credit
crisis, which has already led to more than $400 billion of
write-downs and losses at major banks, still has a long way to
run.
"What is
happening to Merrill and others is death by a thousand cuts.
It's painful to see it happen over and over again," said Daniel
Alpert, managing director at investment bank Westwood Capital.
Merrill said
its stock sale, which includes a $3.4 billion purchase by
Singapore's state-run Temasek Holdings, may grow to $9.8
billion. Management also plans to buy 750,000 shares, it said.
Monday's
write-down and plans to raise capital may raise further
questions about the ability of John Thain, who only became
Merrill's CEO in December following the ouster of Stanley
O'Neal, to turn around the firm.
The company has
lost $19.2 billion in the past year and suffered more than $40
billion of write-downs from subprime mortgages and other risky
debt. Its shares sank 11.6 percent in New York Stock Exchange
trading ahead of the announcement and are now less than a third
of their value a year ago.
(Additional
reporting by Doris Frankel in CHICAGO; Jonathan Spicer, Dan
Wilchins and Lilla Zuill in NEW YORK; Kevin Lim and Louise
Heavens in SINGAPORE and Kim Yeon-hee in SEOUL; editing by
Jeffrey Benkoe, Andre Grenon & Ian Geoghegan)
© Thomson
Reuters 2008 All rights reserved |
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2.
Analyst Sees $8 Billion
Citi Writeoff After Merrill Move |
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(Reuters) - Deutsche Bank analyst Mike Mayo said on Tuesday that
Citigroup Inc (C.N: ) may post about
$8 billion in write-downs from its exposure to collateralized debt
obligations (CDOs), a day after Merrill Lynch & Co (MER.N: ) agreed to sell its CDOs for just 22 cents
on the dollar.
The analyst also forecast a third-quarter loss for Citigroup, and shares
of the largest U.S. bank slipped to $17.20 in trading before the bell,
from Monday's close of $17.43 on the New York Stock Exchange.
Citigroup has $22.5 billion of net CDO exposure, and based on Merrill's
expected write-downs it could have another $7 billion of write-downs,
analyst Mayo said. The bank is also likely to incur a $1 billion loss on
its remaining $2 billion exposure to monoline bond insurers, he added.
"Citi
should still be able to absorb much of these charges and credit costs in
general given an estimated $20 billion of second-half 2008
pre-provision, pre-tax earnings and the sale of its German retail
business ... but the decision about raising new capital could be closer
than we previously thought," Mayo wrote in a note to clients.
The analyst cut his third-quarter estimate by $1 to a loss of 59 cents a
share. For 2008, he expects Citigroup to post a wider loss of 80 cents a
share, from a loss of 66 cents a share. Mayo maintained his "hold"
rating on the stock.
On
Monday, Merrill said it would take a $5.7 billion third-quarter
write-down as it unloads huge amounts of risky debt, and would raise
$8.5 billion by selling new stock.
In
a sign of how toxic Merrill's debt holdings have become, it agreed to
sell $30.6 billion of CDOs, a kind of repackaged debt, to an affiliate
of private equity fund Lone Star Funds for just $6.7 billion, or about
22 cents on the dollar.
The fire-sale nature of that deal will add to concerns that the global
credit crisis, which has already led to more than $400 billion of
write-downs and losses at major banks, still has a long way to run.
Through Monday, Citigroup shares have fallen 41 percent this year.
(Reporting by Tenzin Pema in Bangalore; Editing by Mike Miller)
©
Thomson Reuters 2008 All rights reserved |
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3.
Merrill And XL To Bail
Out Struggling Bond Insurer |
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By
Jonathan Stempel and Dan Wilchins
NEW YORK (Reuters) - Merrill Lynch & Co Inc agreed to help bail out bond
insurer Security Capital Assurance Ltd by canceling $3.5 billion in
credit default swaps and ending litigation.
Under the pact, Security Capital will be released from the derivatives
guarantees it sold to Merrill. In return it will make a $500 million
payment to the investment bank.
The agreement is part of a series of moves by the third biggest U.S.
investment bank to reduce risk. The brokerage also said on Monday it
planned to issue $8.5 billion of common stock. (For story, click on
[nN28182950)
As
part of the bailout, brokered by New York State Insurance Superintendent
Eric Dinallo, Bermuda-based reinsurer XL Capital Ltd will pay $1.78
billion in cash and issue 8 million shares to Security Capital, a former
subsidiary.
XL
said it will sell $2.5 billion of securities to help fund the agreement,
which it said will eliminate more than 98 percent of its exposure to
Security Capital.
XL
spun off Security Capital more than two years ago in an initial public
offering that left it with a 46 percent stake, and as a guarantor of
some of the risks SCA held before its IPO.
"SCA is going from essentially on the brink of insolvency to a surplus
of about $1 billion," Dinallo said on a conference call with
journalists.
"It gives us some light at the end of the tunnel that even an extremely
distressed bond insurer ... can be brought out of a pretty dire
situation."
Bond insurers have been battered by their exposure to complex mortgages
and other debt.
Several have lost the pristine "triple-A" credit ratings that many
issuers and investors demand, leading Warren Buffett's Berkshire
Hathaway Inc to fill the void by establishing its own bond insurer.
Security Capital stopped writing new business earlier this year after
posting a fourth-quarter loss of $1.2 billion. It had been in litigation
with Merrill over credit derivatives it had sold to the Wall Street
investment bank and brokerage.
"Given the current market conditions, we think this agreement is in the
best interests of our shareholders," Merrill spokesman Bill Halldin
said.
(Additional reporting by Lilla Zuill; Editing by Andre Grenon, Leslie
Gevirtz, Ted Kerr, Gary Hill)
©
Thomson Reuters 2008 All rights reserved |
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4.
Professional Insurance
Agents Say H.R. 5840 Has Become a Bill Enabling Federal Insurance
Regulation |
|
WASHINGTON, July 28 /PRNewswire-USNewswire/ -- Proposed legislation that
started out as a bill to create an insurance information office has been
changed to enable federal regulation of insurance, according to the
National Association of Professional Insurance Agents (PIA).
When H.R. 5840, the innocuous-sounding Insurance Information Act of
2008, was introduced earlier this year, its supporters said it was
simply an effort to create an information resource for members of
Congress on insurance matters.
“This bill has been misleading from the outset,” said PIA National
President Robert Page. “The title of the bill is a misnomer and the
rhetoric of its supporters is designed to conceal what is really going
on here. This piece of legislation is part of a coordinated push by
advocates of federal insurance regulation to sweep away opposition and
advance their agenda in a disingenuous manner.”
As
the drafting process for H.R. 5840 proceeded, the Treasury Secretary’s
powers were expanded, giving him authority to preempt state insurance
laws, regulations and practices, not only when he says they conflict
with international agreements, but also when he says they conflict with
“national insurance policy” as set by the Treasury Department.
By
the time that the House Capital Markets Subcommittee approved H.R. 5840
on July 9, 2008, the bill had been transformed into legislation that
would enable a federal takeover of most insurance regulation:
--
Under H.R. 5840, Congress grants new powers to the Secretary of the
Treasury, making the Secretary the principal federal authority for
domestic and international insurance issues of national interest with
the power to determine which state laws, regulations and industry
practices will be preempted.
--
H.R. 5840 effectively guts the McCarran-Ferguson Act of 1945 and the
Gramm-Leach-Bliley Act of 1999, which establish and affirm that the
states are the regulators of the business of insurance.
“This is no longer a bill that is only about creating an insurance
information office,” said PIA National President-elect Kenneth R.
Auerbach, Esq. “The current version of this bill would effectively lay
open to review and approval by the Secretary of the Treasury the laws
and practices of all 55 United States jurisdictions in most matters
relating to insurance.”
“People have been encouraged to read the bill more narrowly than this,”
Auerbach said. “If that is the case, then PIA wants the actual language
in the bill to articulate that narrowness. The current language provides
the power to determine which state laws, regulations and industry
practices will be preempted, without any proper legislative authority
acting to do so. This is a federal power grab.”
PIA believes that consumers are best served by the current system under
which the business of insurance is regulated by the states. PIA opposes
federal regulation of insurance, and also opposes proposals which would
create a dual regulatory system through an optional federal charter for
insurers, which would essentially allow them to decide whether to be
regulated by the states or the federal government.
In
a speech in April to the Maine Insurance Agents Association, Auerbach
said that despite the arguments advanced by advocates of federal
insurance regulation, what is really underway is a competition for
market share by major players.
“Federal involvement is being marketed as a way of making insurance
regulation more efficient, but the subprime mortgage meltdown occurred
under federal regulation,” Auerbach said. “All at the same time that the
insurance industry -- which is under state regulation -- remained on a
firm financial footing, achieving record profits and lower prices for
consumers.”
“So our question is, why would it be more efficient for the one sector
of financial services that has prudently conducted its business to be
subsumed into a federal regulatory structure that has failed in the
supervision of banking and securities?” he said.
www.pianet.com |
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5.
NAMIC: National
Targeted Uniformity Without OFC is Best for Insurers, Consumers |
|
WASHINGTON (July 29, 2008) – Congress can play an important role in
helping to streamline and improve the current insurance regulatory
system without launching a complete overhaul. That’s the message the
National Association of Mutual Insurance Companies (NAMIC) is delivering
to members of the Senate Committee on Banking, Housing and Urban Affairs
today as the committee holds a hearing to examine the state of the
insurance industry with an eye toward the current regulatory and
oversight structure.
“NAMIC supports targeted national uniformity efforts and opposes an
optional federal charter at this time,” said Chuck Chamness, NAMIC’s
president/CEO. “We believe reforming the current state-based regulatory
system is best for insurance consumers and companies.”
Among the proposals NAMIC supports: legislation to create an Office of
Insurance Information, as long as it is accompanied by the strongest
confidentiality and privilege protections, is limited in scope, has a
well-balanced advisory panel with limited preemptive authority, and is
subject to congressional oversight. The bill, H.R. 5840, was introduced
by Rep. Paul Kanjorski, D-Pa.., in June.
“Representative Kanjorski’s bill addresses two key points raised by
proponents of an OFC: assuring that information on the insurance
industry is available to the federal government – especially in times of
crisis – and providing a process for agreements on international trade,”
Chamness said. “Therefore, we believe the establishment of an OII
diminishes the argument for an OFC.”
NAMIC also supports H.R. 1065, the Nonadmitted and Reinsurance Reform
Act of 2007, to modernize the regulation of nonadmitted insurance and
reinsurance companies, and H.R. 5611, the National Association of
Registered Agents and Brokers Reform Act or NARAB II, which would
establish licensing reciprocity for insurance producers that operate in
multiple states.
“These proposals are great examples of ways Congress can have a limited
role in helping to modernize the current state regulatory system,”
Chamness said. “We would also encourage Congress to look at legislation
to streamline company licensing for insurers that operate in multiple
jurisdictions.”
While stakeholders should continue to focus on reform in the states,
Chamness said the current regulatory system is not so in need of repair
as to warrant a federal takeover. “The property/casualty insurance
industry has never had a taxpayer bailout,” he said. “The same cannot be
said for other divisions of the financial services industry that are
regulated by the federal government.
“Insurance consumers are not clamoring for a federal overhaul of the
insurance regulatory system,” Chamness said. “NAMIC supports changes on
the state and federal levels that will result in much needed
improvements to the current regulatory system without creating a new
unnecessary layer of bureaucracy.”
www.namic.org |
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6.
Financing Retiree
Health Care: Assessing GASB 45 Estimates of Liabilities |
|
New Center for Excellence Issue Brief
WASHINGTON, July 29 /PRNewswire-USNewswire/ -- The Center for State and
Local Government Excellence has issued its second issue brief on retiree
health benefits, Financing Retiree Health Care: Assessing GASB 45
Estimates of Liabilities. The brief, which was written by Robert L.
Clark, professor of economics and management, innovation, and
entrepreneurship in the College of Management, North Carolina State
University, analyzes the key assumptions actuaries use to estimate a
government's retiree health costs.
State and local government employers are faced with a number of
uncertainties about the future of health care in the United States as
well as in their own organizations. They must factor in variables
including health care plan design, demographic factors, and financing
methods.
Financing Retiree Health Care examines some of the broad questions that
will affect future costs.
--
Will health insurance costs continue to rise faster than other public
expenditures?
--
Will employers make changes in their health plans or the eligibility
criteria for retiree health benefits?
--
Will employers make changes in the way they pay for their unfunded
health care liabilities?
--
What impact would the establishment of a trust fund have on unfunded
liabilities?
--
What changes in Medicare or national health policy will occur?
For a copy of the full brief visit
http://tinyurl.com/5j7rsk
http://www.slge.org. |
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7.
A.M. Best Special
Report: Medical Malpractice Leads Captives’ Premium Decline |
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OLDWICK, N.J., July 28, 2008—Falling medical malpractice premiums led to
a 15% drop in net premiums written between 2006 and 2007 for a composite
of captive insurance companies, but captives overall benefited from
favorable underwriting trends.
--
Net premiums written fell 26% in medical malpractice, the largest line
with nearly one-third of the business for the 177 captives in this A.M.
Best Co. special report.
--
Solid underwriting results in medical malpractice helped the captive
composite’s loss ratio to improve substantially in 2007 to 61.9.
--
Despite increases in the expense ratio and policyholder dividends, the
combined ratio improved to 92.3, based on the excellent loss ratio.
--
The captive composite’s favorable underwriting trends contrasted with a
slight deterioration for the overall property/casualty industry.
--
Captives’ net income dropped in 2007, as realized capital gains fell
from the exceptional level of 2006.
--
Like the P/C industry as a whole, captives were impacted by the soft
market and the stunted growth of exposures in the current economy.
--
Declining premium volumes suggest future weakening in captives’
performance, but these companies generally are insulated from sudden,
major underwriting losses.
--
Captives’ positive results in recent years are igniting competition as
traditional insurers encroach on areas that have more flexible pricing
in an effort to lessen the soft market’s impact.
--
Captives have benefited from stable or reduced reinsurance rates, which
have allowed companies to increase limits on excess layers.
--
Proposals by the IRS last year would have restricted the tax
deductibility of loss reserves paid to captives, but concentrated
lobbying by industry representatives prompted the IRS to withdraw the
proposal.
--
A.M. Best’s outlook for the captive industry is stable.
www.bestweek.com |
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8.
Norvax And WellPoint To
Host Free Webinar Exploring the Growing Senior Health Insurance Market |
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*
Free webinar “Senior Online Shopping Trends: New Insurance Sales
Opportunities for Brokers” open to all insurance agents and brokers
*
Baby Boomers expected to push Senior 65+ market to over 70+ million
within three decades.
CHICAGO, IL – July 25, 2008 – Norvax, the #1 provider of technology and
Internet tools for insurance sales, and WellPoint, Inc., one of the
nation’s leading health benefits provider, will present a free webinar
on Wednesday, July 30, at 12:00 PM CST, for agents and brokers looking
to serve the fast-growing Medicare-eligible senior market.
This free webinar, “Senior Online Shopping Trends: New Insurance Sales
Opportunities for Brokers,” will provide a detailed overview of current
senior health insurance trends. It will also review the rate of senior
adoption of the Internet. Participants will then learn about successful
tactics, plans and automation tools other top-producing agents are now
using to build their senior market business.
The featured speakers are Jeremiah Desmarais, vice president of
marketing for Norvax, and John B. Rudy, senior strategic partners
consultant for WellPoint. Agents and brokers who wish to receive an
invitation to this free webinar can go to
http://www.norvax.com/promotions/SeniorTrends-Webinar.html
“Top agents already sense that the Medicare-eligible senior market is
going to be huge,” said Rudy. “But few really understand how big it’s
going to get. And fewer still know how to position themselves to seize
the opportunities coming our way. We plan to change that with this
webinar.”
This webinar, however, is an exclusively online presentation. It is not
a conference call, and there will be no call-in phone number.
Participating agents and brokers will need a computer with Internet
access and either speakers or headphones.
For more information about this free webinar, health insurance agents
and brokers can visit www.norvax.com
or call 1-866-466-7829 ext 1.
Event Registration URL:
http://www.norvax.com/promotions/SeniorTrends-Webinar.html
www.wellpoint.com.
Norvax Inc. is a leading developer of Web-based sales and customer
communication tools that connect and help consumers, insurance brokers,
agents and carriers transact health insurance business more efficiently.
From tools for building lead-generating Websites to health insurance
quote engines and email autoresponders that can automatically include
updated health insurance quotes, Norvax’s health insurance technology
lets agents increase sales, cut administrative time and reduce expenses
by initiating customer contact faster and automatically maintaining
around-the-clock communications with prospects. Founded in 2001, Norvax
was named among the Top 10 fastest-growing software companies in the
U.S. in 2007 by Inc Magazine. Norvax is privately held and headquartered
in Chicago.
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9.
Mployd.com and iPeople,
LLC Join Forces |
|
The Goal…Identify Talent for the Insurance Industry!
Canadian based Mployd, one of the most competitive providers of job
search and recruitment tools for job seekers and employers has retained
iPeople, LLC, a Washington, D.C. based executive search firm
specializing in the insurance industry, to assist with its planned
expansion into the United States.
Under the new agreement, iPeople with provide its unique business model,
industry knowledge and reputation in recruiting experienced insurance
professionals for agencies, banks and brokers throughout the United
States. Mployd will provide iPeople entrée into overseas markets and
opportunities, in particular, the United Kingdom. Working together,
they hope to identify talent to meet the ever expanding need of the
global insurance market.
Braiden Harvey, president, is excited about his organization’s growth
and its relationship with iPeople. “Having the experience of iPeople
behind us will insure we make the correct choices as we continue our
expansion into the United States. “iPeople brings unique insights and
experience into the hiring of mid and senior level insurance
professionals, and we are delighted to have them on our team.”
Mark Shlien, principal of iPeople, said, “As matchmakers to the
insurance industry, we are looking forward to providing our expertise to
Mployd.com. Mployd is well placed internationally, has a strong
management team, an excellent reputation and a very positive approach to
bringing candidates and employers together. Mployd and iPeople bring
unique skill sets to the table and we are delighted to have this
opportunity.”
About Mployd
Mployd is a rapidly growing international online employment opportunity
site. Mployd has created a resource to meet the needs of companies,
human resource managers, recruitment organizations, company recruiters
and job seekers. Visit
http://www.mployd.com or call 866-551-8823, for additional
information.
About iPeople, LLC
iPeople, LLC, provides retained executive search and recruiting services
to insurance professionals, including insurance agencies, bank-owned
agencies, brokers and insurance carriers. iPeople provides a unique
approach for insurance organizations looking to hire highly qualified
insurance executives by using the latest employee assessment tools and
interviewing techniques. Visit
http://www.theipeople.com or call 202-544-7675, for additional
information. |
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10.
Wolters Kluwer
Financial Services Acquires U.K.-Based Compliance Online |
|
MINNEAPOLIS--(BUSINESS WIRE)--Wolters Kluwer Financial Services
announced today that the company has acquired Compliance Online, an
online compliance information provider focused on regulatory
information, analysis, news and value-added commentary for the United
Kingdom’s financial services market.
Compliance Online provides U.K. customers with high-quality, explanatory
regulatory information to help the customers understand how to conduct
business under the Financial Services Authority (FSA) rules and
guidance. Compliance Online’s suite of content solutions includes
high-value summaries, commentary and interpretation of FSA regulations
in the form of news analysis, daily articles, compliance calendars and
more. These tools allow customers to quickly understand and interpret
the implications of these rules and regulatory guidance.
Compliance Online’s U.K. analytical content complements the U.K. primary
law materials on Wolters Kluwer Financial Services’ Compliance Resource
Network, an online site that provides fast and convenient access to
essential regulatory information, requirements and analysis.
www.WoltersKluwerFS.com |
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11.
Only 13 Percent Of
Banks On Watch List Fail: FDIC's Bair |
|
WASHINGTON (Reuters) - About 13 percent of banks placed on a regulatory
watch list historically have failed, the head of the U.S. Federal
Deposit Insurance Corp said on Monday.
The agency has a running tally of problem banks that its examiners
closely monitor. At the end of the first quarter, 90 institutions were
on the list that is expected to be updated next month.
"Actually, only 13 percent of the institutions that go on the troubled
bank list eventually fail," FDIC Chairman Sheila Bair said in an
interview on the PBS program "NewsHour with Jim Lehrer."
"We work with the primary regulator to give them extra care and
attention, to nurse them back to health or to sell them off to another
institution," said Bair.
So
far this year seven banks have failed, including IndyMac Bancorp Inc (IDMC.PK:
), which became the third largest U.S bank failure and was on the FDIC watch list in the second quarter.
Bair said she would be surprised if she saw another bank failure like
IndyMac, or larger.
The FDIC oversees an industry-funded reserve of about $53 billion used
to insure up to $100,000 per deposit and $250,000 per individual
retirement account at insured banks.
(Reporting by John Poirier; Editing by Tim Dobbyn)
©
Thomson Reuters 2008 All rights reserved |
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12.
TIAA-CREF Statement on
Best Practices for Residential Covered Bonds from U.S. Department of the
Treasury |
|
NEW YORK--(BUSINESS WIRE)--TIAA-CREF issued the following statement
in support of the U.S. Department of the Treasury’s Best Practices for
current and prospective participants in the U.S. covered bond market:
"Treasury's best practices for covered bonds will serve as an important
step in the expansion of the covered bond market in the United States,"
said Sanjeev Handa, Head of Global Public Markets, TIAA-CREF. "By
providing guidelines for residential covered bonds that advocate for the
strong credit quality of the underlying collateral while maintaining the
flexibility to include high quality loans outside of the guidelines for
Government-Sponsored Enterprises, these Best Practices can help create
transparency for investors while helping bolster liquidity in
underserved areas of the housing market."
Handa continued, "With clear guidelines from the U.S. Treasury and FDIC,
covered bonds, long utilized as a mortgage finance vehicle in Europe,
could serve as one way of strengthening the U.S. housing market by
creating additional liquidity for mortgage lenders and, in turn, home
buyers."
1
Federal Deposit Insurance Corporation Covered Bond Policy Statement,
Final Statement of Policy, July 15, 2008;
http://www.fdic.gov/news/news/press/2008/pr08060a.html
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13.
Nationwide Financial®
Unveils New YourLifeSM Accumulation Variable Universal Life Product |
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A
Powerful Solution for Complex Needs
COLUMBUS, Ohio--(BUSINESS WIRE)--Planning for the future used to be
simple, but in today’s new economic reality, things are more complex.
To
help boost consumer confidence, Nationwide Financial Services, Inc.
(NYSE: NFS) today launched Nationwide YourLifeSM Accumulation VUL, the
newest member of its YourLifeSM suite of life insurance products.
Nationwide YourLife Accumulation VUL provides clients with death benefit
protection, potential cash value growth plus living benefits as part of
their long-term planning strategy, all in one convenient product.
“Consumers used to rely on Social Security and a company pension to take
care of their retirement income needs,” said Peter Golato, senior vice
president for Nationwide Financial. “A term life insurance policy would
cover burial expenses and pay off the mortgage. Today, consumers want
more from their life insurance.
“The primary market for this product is a person between 35 and 55 years
old, affluent and with a higher market risk tolerance. These clients are
typically contributing the maximum amount allowable to their qualified
retirement plans and have a well-diversified portfolio. They need
additional retirement income or other income-planning solutions and
would like to use some of their disposable funds for tax-advantaged
accumulation opportunities,” Golato said.
A
secondary market for the product includes business partners who want to
protect the business from disruption should something happen to either
of them. The potential cash value growth can be used by one partner to
buy out the other in the case of early retirement. Or, the death benefit
could provide the capital needed for one partner to purchase the
business back from the other partner’s estate.
Product benefits for both the financial professional and the client
www.nationwide.com |
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14.
Secure Identity Systems
Offers Consumers Free ID Theft Protection Tool |
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BRENTWOOD, Tenn.--(BUSINESS WIRE)--Every two seconds, someone in the
United States becomes a victim of identity theft. Secure Identity
Systems is dedicated to ensuring its customers aren’t among those
numbers. In an effort to further protect against this crime, the company
is now giving all customers who enroll in their ID protection services
within the next 60 days a free copy of LegacyGuard, a software
application that stores all of an individual’s important financial and
legal information in one, password-protected place. LegacyGuard is
currently valued at $49.95.
By
stowing all credit card and bank account records, tax returns, insurance
policies, and other documents containing sensitive personal or financial
information in one secure place, LegacyGuard helps prevent loss of data,
and provides one more defense in the battle against ID related losses.
And in the event of physical injury, mental illness or death,
LegacyGuard will ensure a seamless transition of affairs, saving your
loved ones from the tremendous stress and amount of time required to
manage your estate.
For more information on how to enroll in Secure Identity Systems’
identity theft program, visit
www.SecureIdentitySystems.com or call 615-377-7661. |
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|
15.
Farmers Insurance
Donates More Than One Ton of Food to Community Food Pantry and Salvation
Army in Olathe, Kansas |
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OLATHE, Kan.--(BUSINESS WIRE)--Farmers Insurance Group of
Companies® Olathe operations are finishing up a local food drive for the
Olathe Community Food Pantry and Salvation Army in Olathe.
“The donations, amounting to well over one ton of food will be dropped
off on Tuesday July 29, 2008,” said Vince Donofrio, Farmers Vice
President of HelpPoint, a multi-state customer claims center. Farmers is
the largest private employer in Olathe.
“As our economy tightened, more and more people have looked to the food
pantries for assistance,” Donofrio added. “This increase has created
food shortages at all the pantries. Our employees held a food drive as a
way to help out. We work in Olathe and many of our staff live here and
to know that hunger that affects so many is devastating, especially
children and that is why we are so pleased to help."
www.farmers.com |
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16.
New Jersey Drivers Can
Now Save Big Bucks Based on How They Drive as Progressive Launches
One-of-a-Kind Car Insurance Program |
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Optional Behavior-Based Car Insurance, MyRateSM, Lets Lower Risk Drivers
Pay Less
MAYFIELD VILLAGE, Ohio--(BUSINESS WIRE)--Are you the poster child for
safe driving, always leaving plenty of space between you and the car
ahead? Or a business traveler who parks your car at the airport or train
station several days a week? Or maybe you have a car that you only take
out for a spin on warm summer days. If so, your car is probably less
likely to be involved in a crash, so shouldn’t you pay less for car
insurance?
Progressive thinks so, and that’s why it’s introducing an optional car
insurance program that offers lower rates on vehicles that are driven in
less risky ways. The behavior-based insurance program, called MyRate,
gives drivers a customized rate based on how, how much, and when their
car is driven. It will be available starting Aug. 8 to New Jersey
drivers who purchase polices online, by phone, or through independent
agents. www.progressive.com |
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17.
Homeowners Insurance:
Tips for Reducing Your Premium |
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ONTARIO, Calif., July 29 /PRNewswire/ -- With gas prices fluctuating,
the mortgage crisis and economic conditions threatening a recession,
people everywhere are looking to save money. A good place to start is
with your homeowner's policy, says Frank N. Darras, one of Americas' top
insurance lawyers.
In
spite of our economy, home values have increased over the past 5-15
years. Many people have failed to determine if their current insurance
coverage would be adequate to replace their homes. Your policy should
allow you to completely rebuild your home should a disaster occur. If
not, get your policy updated to match your current property values. See
http://www.darrasnews.com.
"Make sure you are not grossly underinsured," says Darras. "You will pay
more in premiums but save in the long run, if disaster strikes."
Darras offers these tips to save money:
--
Determine the limits you want on your homeowners insurance, what value
you need to insure, get multiple quotes.
--
Consider purchasing your homeowner, auto and umbrella insurance with the
same company so a multi-coverage discount will apply.
--
Having smoke, burglar alarms and a sprinkler system could mean bigger
discounts.
--
Get a quote for insurance that would pay to replace your belongings,
rather than pay you based on their depreciated value.
--
Ask your agent what documentation you need to substantiate a claim, in
case of theft or fire. Make sure you videotape all of you personal
properties including what is in the drawers and cabinets and send the
tape to someone you trust for safekeeping.
--
Make sure you carry enough liability coverage to protect you against a
lawsuit if someone gets slips, trips or gets hurt on your property.
"Always read the policy when you receive it and ask your agent to slowly
and carefully explain any provisions you don't understand. Finally,
never buy insurance from a company you don't recognize," says Darras.
For more information see
http://www.darrasnews.com or call 800-458-4577. |
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18.
Subprime/Credit Crunch
Crisis and Stock Market Volatility Led to Higher Securities Class Action
Filings in the First Half of 2008, Finds Report by Cornerstone Research
and Stanford Law School |
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Second Consecutive Half-Year with High Filings after a Two-Year Lull
Boston and Stanford, July 29, 2008—During the first half of 2008
securities class action filings continued the rebound that started in
the second half of 2007, following two years of lower activity.
According to a report released today by Cornerstone Research in
cooperation with Stanford Law School’s Securities Class Action
Clearinghouse, there were 110 filings between January 1 and June 30,
2008, suggesting as many as 220 filings by the end of the year.
The recent high level of filings coincided with a marked increase in
stock market volatility. Filings jumped from 119 in the twelve months
ending June 2007 to 217 over the next twelve months, and stock market
volatility doubled over the same period. This level of litigation
activity exceeded the annual average for the eleven years between
January 1997 and December 2007. About half of the filings in the first
half of 2008 were driven by the subprime mortgage/credit crunch, with 58
filings containing related allegations. Of these, 17 involved auction
rate securities.
Professor Joseph Grundfest, co-Director of the Rock Center on Corporate
Governance and former Commissioner of the Securities and Exchange
Commission, noted that, “We continue to witness the dramatic effects of
the subprime market meltdown, with half of the filings so far this year
linked to the subprime/credit crunch disaster.”
Dr. Gould and Professor Grundfest are available to speak to the media
about the report, titled Securities Class Action Filings: 2008 Mid-Year
Assessment. The full text of the report is available at
http://securities.cornerstone.com and
http://securities.stanford.edu.
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20.
INSURANCE NEWSCAST "Pictures Of The Day"
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Firefighters combat blaze near Yosemite.
Residents watch flames rise from the bed of the Merced River along
Highway 140, near Yosemite National Park in Midpines, California July
28, 2008. REUTERS/Robert Galbraith
Read Entire Story!!!
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Bush approves execution of U.S. Army private.
President Bush pauses during remarks on his freedom agenda at the Ronald
Reagan Building in Washington July 24, 2008. REUTERS/Jason Reed
Read Entire Story!!!
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Truckers sue LA ports over anti-pollution
program. A container ship loaded with cargo is shown at the Port of Long
Beach in Long Beach, California April 27, 2006. REUTERS/Robert Galbraith
Read Entire Story!!!
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Shi'ite pilgrims gather at Imam Moussa al-Kadhim
shrine to mark his death anniversary in Baghdad July 28, 2008. Picture
taken July 28, 2008. REUTERS/Mahmoud Raouf Mahmoud (IRAQ)
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Turkey's Prime Minister Tayyip Erdogan addresses
MPs from his ruling AK Party (AKP) during a meeting at the Turkish
parliament in Ankara July 29, 2008. Erdogan called for unity in Turkey
on Monday after 17 people were killed in two bombings in Istanbul and
said a court case to close his ruling party was not currently a
priority. REUTERS/Umit Bektas (TURKEY)
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The small cluster of islands, called Dokdo in
Korean and Takeshima in Japanese, is seen in this aerial view photo
taken July 29, 2008. South Korea's Prime Minister Han Seung-soo on
Tuesday visited a set of desolate islands at the centre of a territorial
tussle with Japan and criticised a U.S. government agency for shifting
its position on their ownership. The long-burning dispute over the rocky
outcrop erupted again this month after an official school history guide
in Japan referred to the islands as Japanese territory, triggering angry
demonstrations in Seoul and an official protest from South Korea.
REUTERS/Jeon Su-young/Yonhap (SOUTH KOREA).
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Soldiers from South Korea's Special Welfare
Command participate in an exercise before their colleagues' infiltration
operation drill during a photo call on a beach in Boryeong, about 190 km
(118 miles) southwest of Seoul, July 29, 2008. REUTERS/Lee Jae-Won
(SOUTH KOREA)
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A woman collects drinking water from a tube well
at the flooded village of Godadhar in Faridpur, Bangladesh, July 27,
2008. Several areas in north and northeastern Bangladesh remain
inundated with floodwaters after the embankments of the rivers Jamuna
and Padma collapsed due to heavy rainfall earlier this week.
REUTERS/Andrew Biraj
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Local residents crowd a swimming pool during hot
weather in Suining, Sichuan province, China, July 27, 2008. The local
temperature reached 37 degrees Celsius (98.6 degrees Fahrenheit) on
Sunday, local media reported. REUTERS/Stringer
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A couple is seen during the evening at the bank
of River Yenisei in the city of Kyzyl, in the Tuva region on the
Mongolian border, some 736 km (457 miles) south of the Siberian city of
Krasnoyarsk, July 27, 2008. Picture taken July 27, 2008. REUTERS/Ilya
Naymushin (RUSSIA)
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