Daily Quote: "As every divided kingdom falls, so every mind divided between many studies confounds and saps itself." -- Leonardo da Vinci
1. JPMorgan Chase to Sell Insurance Underwriting Business to Protective Life CHICAGO--(BUSINESS WIRE)--Feb. 7, 2006--JPMorgan Chase & Co. (NYSE:JPM) announced today it has signed a definitive agreement to sell its life insurance and annuity underwriting business, or Chase Insurance, to Protective Life Corporation (NYSE:PL) for a cash purchase price of approximately $1.2 billion. The sale is subject to normal regulatory approvals and is expected to close in the third quarter of 2006. JPMorgan Chase anticipates the transaction will have no material impact on earnings. "With the merger of Chase and Bank One, we reviewed all our businesses and concluded that insurance underwriting does not have the same scale as our core banking businesses," said Charles W. Scharf, CEO of Chase's Retail Financial Services, which includes Chase Insurance. "We will continue to meet our customers' insurance and annuity needs without underwriting the products." The sale includes both the heritage Chase insurance business and the life business that Bank One bought from Zurich Insurance in 2003. In 2005, Chase Insurance posted operating earnings of $79 million on revenue of $644 million. Chase will retain its debt-protection business and continue to distribute life and annuity products through its branch network. www.jpmorganchase.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Berkshire Hathaway Inc. to Acquire Applied Underwriters Inc. OMAHA, Neb. & SAN FRANCISCO--(BUSINESS WIRE)--Feb. 8, 2006--Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) today announced it has agreed to acquire Applied Underwriters and all of its subsidiaries, including its North American Casualty insurance companies. Applied Underwriters is a privately held company that is the industry leader in integrated workers' compensation solutions ( www.applieduw.com ). Terms of the transaction were not disclosed. The transaction remains subject to customary closing conditions. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Ohio Gov. Taft Orders Review of Ads for Auto Insurance in State Registration Renewals - Governor's Action Follows Request From Professional Insurance Agents of Ohio WASHINGTON, Feb. 7 /PRNewswire/ -- You get your vehicle registration renewal notice in the mail. It says you must certify that you have insurance and threatens fines, penalties and the loss of your driver's license if you don't. Enclosed in the notice is an ad for auto insurance from one insurance company. The Professional Insurance Agents Association of Ohio (PIA) wrote to Gov. Bob Taft to object to the practice. As a result, Taft launched a review of the matter, after stating that he is very troubled by insurance companies advertising through the Bureau of Motor Vehicles (BMV). Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. RenaissanceRe Reports $207 Million Operating Loss for the Fourth Quarter of 2005; $2.92 Operating Loss Per Common Share; $210 Million Net Loss for the Fourth Quarter of 2005; $2.97 Net Loss Per Common Share PEMBROKE, Bermuda--(BUSINESS WIRE)--Feb. 7, 2006-- Operating Earnings Guidance of $6.50 to $7.00 Per Common Share for 2006 RenaissanceRe Holdings Ltd. (NYSE: RNR) today reported a net operating loss attributable to common shareholders of $206.9 million in the fourth quarter of 2005, principally reflecting a $313.9 million net negative impact from hurricane Wilma. These results compared to net operating income available to common shareholders of $188.6 million reported for the fourth quarter of 2004. Net operating (loss) income excludes net realized investment losses of $3.5 million in the fourth quarter of 2005 and net realized investment gains of $2.8 million in the fourth quarter of 2004. Net operating loss per common share was $2.92 in the fourth quarter of 2005, compared to net operating income per common share of $2.62 in the fourth quarter of 2004. Net loss attributable to common shareholders was $210.4 million or $2.97 per common share in the quarter, compared to net income available to common shareholders of $191.5 million or $2.66 per common share for the same quarter of 2004. Neill A. Currie, CEO, commented: "For the first time in our corporate history, we've had an operating loss for the year, which was chiefly the result of the very active hurricane season. While disappointing from a financial perspective, 2005 demonstrated the value that Renaissance delivers to its customers--through rapid and reliable claims payment, through our capacity to price and bind contracts in all market conditions and through the strength of our balance sheet." Mr. Currie also said: "For 2006, we are projecting operating EPS of $6.50 to $7.00, reflecting an operating Return to Headlines - - Print Article / Read Entire Article / E-Mail Article5. Information Builders Joins ACORD to Support Operational Excellence Through Insurance and Financial Services Standards Company Committed to Fostering Best-Practice Standards for Industry Growth NEW YORK, Feb. 8 /PRNewswire/ -- Information Builders, the enterprise business intelligence (BI) standard of choice for organizations around the world, today announced its membership in the Association for Cooperative Operations Research and Development (ACORD), the leading global nonprofit association for the insurance, reinsurance, and related financial-services industries dedicated to developing the use of worldwide industry standards. Through this membership, Information Builders is extending its commitment to the rigorous needs of industry customers such as ING Canada and National Life. "Joining ACORD allows Information Builders to further its involvement in insurance data standards and ensure that our industry-tailored offerings are aligned with their needs," said Pat Saporito, Insurance Industry Manager for Information Builders. "We provide the tools insurers need to accelerate the development of their enterprise business intelligence and data integration initiatives, with solutions such as the WebFOCUS Insurance Reporting Foundation (IRF) and iWay ACORD e-Business Adapter, developed with the principal objective of helping insurance keep pace with rapidly changing regulatory and competitive market demands." Promoting the use of standards on behalf of the insurance industry since 1970, ACORD seeks to improve efficiency and expand market reach through a focus on global industry standards. Through its participation in ACORD, Information Builders endeavors to work with insurance industry experts and consumers to continue its tradition of intense collaboration with its customers and targeted markets in the development of solutions geared to meet specific needs. (For more information on Information Builders' insurance solution please visit http://www.informationbuilders.com/solutions/insurance.html) www.acord.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. UnumProvident to Present at Merrill Lynch Investors Conference CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Feb. 7, 2006--UnumProvident Corporation (NYSE: UNM) announced today that it will present at the Merrill Lynch Insurance Investors Conference on Feb. 16, 2006. Mr. Thomas R. Watjen, president and chief executive officer, will represent UnumProvident and is scheduled to speak at 10:50 a.m. (Eastern). There will also be a live audio webcast of the presentation at http://www.veracast.com/webcasts/ML/insurance06/38305196.cfm. This webcast will be archived for 14 days. During UnumProvident's presentation, Mr. Watjen will focus on the Company's fourth quarter 2005 results, general business strategy, and future growth opportunities. UnumProvident (UNM) is the largest provider of group and individual disability income protection insurance in the United States and United Kingdom. Through its subsidiaries, UnumProvident Corporation insures more than 25 million people and paid $6 billion in total benefits to customers in 2005. With primary offices in Chattanooga, Tenn., and Portland, Maine, the company employs nearly 12,000 people worldwide. For more information, visit www.unumprovident.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Quixote Selects The Principal Financial Group To Provide Retirement Solutions DES MOINES, Iowa--(BUSINESS WIRE)--Feb. 8, 2006--The Principal Financial Group(R), the nation's 401(k) leader and total retirement solutions innovator, announced it was selected to provide retirement plan solutions for Quixote Corporation, effective December 15, 2005. Quixote is the world's leading manufacturer of transportation safety products and services. The Quixote retirement plan includes more than $22 million in transfer assets in their defined contribution plan and serves approximately 900 participants. www.principal.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Ansell Converts Non-Qualified Plan to New York Life Investment Management LLC WESTWOOD, Mass., Feb. 7 /PRNewswire/ -- NYLIM Retirement Plan Services, a division of New York Life Investment Management LLC (NYLIM), announced today that Ansell Limited has chosen NYLIM to administer its non-qualified retirement plan as an extension of having appointed the retirement plan firm in 2004 to run its defined contribution plan. In addition, the Ansell defined contribution plan will begin to offer participants a Roth 401(k) option at the end of February 2006. Roth 401(k)s, a new provision under the tax code as of January 1, 2006, are designed to provide participants with a way to pay taxes on contributions today and potentially avoid taxes at withdrawal. www.ansell.com www.sageviewadvisory.com www.nylim.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. UniCare Launches New Option for Uninsured in Texas Sound(TM) Designed for 'Young Invincibles' Lifestyle and Budget CHICAGO, Feb. 7 /PRNewswire/ -- This is not your father's health insurance policy. UniCare Life & Health Insurance Company has unveiled an innovative health insurance plan for Texas called Sound(TM), which caters to the unique needs of adults between the ages of 19 and 29. There are an estimated 1.2 million uninsured people between the ages of 19-29 in Texas. And nationwide, nearly half of all full-time workers in this age group lack employer-based health benefits. Sound(TM) has the potential to reduce the number of uninsured Texans, by offering affordable access to quality medical care. Between school and the beginning of their professional careers, "young invincibles" are often no longer covered by their parents' insurance policy and are less likely to have employer-provided health coverage. Statistics indicate these individuals have one of the highest uninsured rates in the nation. www.soundhealth.com www.unicare.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. The Liability You Don't Know; Article from GE Insurance Solutions Details What Underwriters May Be Missing KANSAS CITY, Mo.--(BUSINESS WIRE)--Feb. 8, 2006--Vision may be the most important element required to underwrite liability risk, says Ajay Gupta, Marketing Leader of GE Insurance Solutions. Gupta says insurers tend to look backward at historical loss experience but not forward to factors that may impact future losses. Gupta's article, "Crisis or Opportunity: The Liability Dilemma", appears in the Winter edition of John Liner Review. He writes that some of the factors essential to analyzing liability but often overlooked are interest rate development, rising medical costs and rising tort costs. In his article, Gupta explores a theme that has haunted re/insurers in the last few years: adverse development on long-tail liability risk. He probes for the root cause of the problem that has in some cases forced re/insurers to add billions in loss reserves. "When pricing is inadequate, brokers and insureds contend that the underwriter didn't ask the necessary questions," he says. "The reality may be that the underwriter didn't understand the full scenario in the first place." Gupta continues: "The important issue for an underwriter is how a contract can be sensibly priced when the outcome may not be known for 30 years, as is the case with asbestos litigation." He contends that insurers are often hamstrung because their underwriters are generalists "who may understand a little about many industries," but rarely are "experts in a specific medical discipline or industrial sector. As disciplines become more specialized, underwriters struggle to keep up with new developments and the drivers behind such change." The answer, Gupta says, lies in providing frontline underwriters with the understanding and the tools they need. Gupta refers to it as understanding "the true cost of capital the insurers put on the line when they write a given volume of business or exposure over a 12-month period." Specifically, Gupta calls on insurers to recruit more specialist underwriters and enhance their training, employ rigorous underwriting discipline and implement strong risk management controls to avoid the dilemma of pricing uncertainty. Gupta concludes with a cautionary note that recalls a time when re/insurers specifically relied on investment income to achieve profitability and making an underwriting profit was uncommon: "Without providing this insight to underwriters, insurers will always be in the position of selling their product first and figuring out their true selling price after a loss comes in." To read the article, go to http://geinsurancesolutions.com/erccorporate/theinstitute/pc/0601_cris.htm. www.geinsurancesolutions.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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The #1 Insurance Newsletter In The World 11. NAILBA RELEASES IMAGING IMPLEMENTATION GUIDE Fairfax,Va – The National Association of Independent Life Brokerage Agencies (NAILBA) has announced the development and release of its Imaging Implementation Guide, a tool designed to help the life insurance industry significantly reduce its dependency and expense associated with processing paper documents. The Guide includes greatly needed business and technical information on imaging, including the most current industry standards and best practices. "Document imaging is an important technology in the independent wholesale life brokerage community," said Matthew J. McAvoy, CLU, ChFC, NAILBA Chairman and principal of Target Insurance in Kansas City, Mo. "Standardized imaging practices are enabling NAILBA member agencies and their carriers to significantly reduce the costs of processing paper documents in our complex multi-carrier environment, thus adding directly to the bottom line." NAILBA urges anyone interested in participating with the development of the next version to contact Barbara Herbetko, NAILBA's Imaging Sub-Committee Chair at barbarah@macnamee.com, or Jeff Kraber, NAILBA's Technology Advocate, at jkraber@nailba.org. www.nailba.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. AUTO ISSUES TOP AIA’S AGENDA IN MINNESOTA ST. PAUL, MN, Feb. 8, 2006 –Repeal or reform of the state’s auto insurance no-fault law, “no pay/no play” legislation and consumer privacy top the list of legislative priorities for the American Insurance Association (AIA) in the North Star State this session. “It is time to address the problems with Minnesota’s no-fault system for the benefit of consumers and the long-term health of the state’s auto insurance market,” said Steve Schneider, AIA vice president, Midwest Region. “Fixing the broken, and increasingly expensive, system will be our top priority this year in Minnesota.” Chief among the problems in Minnesota’s no-fault system is the low medical cost threshold for lawsuits – just $4,000 – that has created an incentive for unscrupulous medical providers and trial lawyers to exploit the system and go to court. The goal of a no-fault system is to avoid a courtroom battle but Minnesotans, in essence, pay for both a no-fault and a traditional tort system. A joint Senate Commerce and House Commerce & Financial Institutions Committee will meet Feb. 28 to discuss the issue. “Additional market reforms such as enacting ‘no pay/no play’ legislation would be beneficial, too. ‘No pay/no play’ is a term that refers to prohibiting uninsured motorists from filing lawsuits in motor vehicle crash cases for things such as pain and suffering damages. It is unfair for an uninsured motorist, who is driving illegally, to sue someone and reap a financial windfall by collecting non-economic damages,” added Schneider. The 2006 session may also see onerous privacy-related proposals that could unduly restrict insurers’ ability to perform normal business operations with customers and prospective customers. Restricting access to certain personal identifying information or credit-related information in the name of preventing identity theft is often more of a hurdle than a help for consumers and businesses. “There are already strict federal and state laws governing how a person’s information can be used and who has access to it, and severe penalties for misuse. Insurers do a very good job protecting their customers’ information and any further restrictions on an insurer’s ability to conduct business could chill the marketplace,” stated Schneider. Minnesota’s Legislature reconvenes March 1 and is scheduled to adjourn May 22. www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. CSAA Adopts ISO HomeValue for Residential Replacement Cost Estimates BOSTON, Feb. 8, 2006 — ISO and AIR Worldwide Corporation announce the addition of the California State Automobile Association (CSAA) as the latest insurer to benefit from ISO HomeValue. CSAA signed a multi-year license for ISO HomeValue, a web-based residential property replacement cost estimator that helps insurers address insurance-to-value and contain premium leakage in their portfolio. www.isohomevalue.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Morris, Manning & Martin Partner to Co-Chair Insurance Conference Atlanta Attorney Lew Hassett Will Lead “Fundamentals of Reinsurance Litigation & Arbitration” Conference Atlanta (February 2006) – Morris, Manning & Martin partner Lewis E. Hassett, will co-chair the upcoming Mealey’s Fundamentals of Reinsurance Litigation & Arbitration Conference to be held March 23-24, 2006 at the Ritz-Carlton in Boston. The conference will provide insurance and law professionals with the opportunity to understand and analyze the basic principles of reinsurance and to use them as a springboard for mastering more complex issues. Conference attendees will gain insight into the advantages and disadvantages of reinsurance litigation versus arbitration, as well as learn the background case law necessary for successful legal counsel. The conference will also address issues such as reinsurance intermediaries, disputes, key phases of the arbitration process, procedural matters and regulatory oversight. “The conference is an excellent opportunity for insurers, reinsurers and law firms to have their personnel acquire a solid basis in reinsurance disputes,” said Hassett. “Not only are these principles instrumental to the function of an important area in our economy, but these principles apply to even the most factually complex reinsurance cases." The conference also provides prime opportunities for networking with faculty, colleagues, and potential clients from around the nation. For more information on the conference, visit www.mealeys.com/conferences or call 1-(800)-Mealeys. www.mmmlaw.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. FEB. 22 IS INAUGURAL ACSR TRIBUTE DAY Day will recognize agents’ dedication to customer service ALEXANDRIA, Va., Feb. 7, 2006—February 22 will be the inaugural annual ACSR Tribute Day, in honor of the graduates of the Accredited Customer Service Representative (ACSR) program. The ACSR program is a joint program between the Independent Insurance Agents & Brokers of America (IIABA), the American Institutes for CPCU (AICPCU), and the Insurance Institute of America (IIA). It is a nationally recognized designation that provides participants with a strong insurance foundation and equips them with the customer service skills and technical knowledge necessary to succeed in today’s agency environment. Nearly 13,000 agents and brokers have achieved the ACSR designation, which is available in personal lines, commercial lines or life/health. ACSR modules have been approved in many states for continuing education credit for agents’ license renewal. www.independentagent.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Comments on Deficit Reduction Act The Deficit Reduction Act is the single most positive occurrence for the long-term care insurance industry that has occurred within the past five years. With Medicaid planning loopholes closed and the look-back period now extended to five years, long-term care insurance has never been a more viable option for millions of Americans. There are currently 7 million Americans with long-term care insurance. I believe that number could double in the next five years. If you are writing about the Deficit Reduction Act and its impact on LTCI, don't hesitate to give me a call. It's quite exciting news ... and something very positive for all. Jesse Slome, Executive Director, American Association for Long-Term Care Insurance, P: 818-597-3227 E: mailto:jslome@aaltci.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. LONG-TERM CARE AWARENESS WEEK PROCLAIMED First Week In November Dedicated To Creating Local Awareness Of Risk and Available Solutions The American Association for Long-Term Care Insurance (AALTCI), the national trade organization serving insurance and financial professionals who market long-term care financial solutions, has declared November 5 – 11, 2006, Long-Term Care Awareness Week. “The week will be marked by special events and awareness programs conducted by long-term care insurance professionals around the country,” explains Jesse Slome, AALTCI’s executive director. “The Association’s national conference will be held in Austin, Texas in conjunction with the week.” “This is a pivotal year for long-term care insurance awareness,” declares Stephen Moses, president of the Center for Long-Term Care Reform. “The just-passed Deficit Reduction Act of 2005 makes long-term care insurance far more necessary for millions of Americans. Getting information to consumers is an important first step.” To create awareness for the benefits of long-term care insurance, members of the American Association for Long-Term Care Insurance will receive publicity packages they can use to create local media coverage for Long-Term Care Awareness Week in their community. “Some seven million Americans already own long-term care insurance,” notes Slome. “We believe that a thousand passionate LTC professionals will join in the event and create widespread exposure toward our goal of doubling that number within the next five years.” For more information visit the American Association for Long-Term Care Insurance’s Website www.aaltci.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. NFCC Increasingly Concerned About Rising Consumer Debt Levels Encourages Consumers to Seek Assistance Silver Spring, MD - An $3.3 billion increase in consumer debt during December is an unhappy reminder that holiday spending can signal financial danger if shoppers get carried away, the National Foundation for Credit Counseling said today. The NFCC commented after the Federal Reserve reported that consumer debt climbed 1.9 percent to $2.16 trillion during the final month of 2005. The Federal Reserve new consumer debt numbers cover levels reached through the end of December 2005 and the $2.16 trillion figure represents a noteworthy increase over the previous month. "While there are a number of explanations for these increased numbers - holiday shopping, higher fuel and heating costs, rising interest rates and minimum payments, and potentially unforeseen situations such as illness or loss of jobs - there is no doubt that American consumers are amassing more debt than ever with little thought towards how they will repay it," said NFCC president and CEO Susan C. Keating. "This is why the services of accredited community-based credit counseling agencies are so critically important for the millions of consumers in need of assistance and financial education." The NFCC's nonprofit agencies have trained, certified credit counselors who offer low-cost and free educational information, management advice and debt reduction services. NFCC members help more than one million households annually through nearly 1,000 agency offices nationwide. To schedule a confidential appointment with an NFCC member agency in or near your community, call 1-800-388-2227, or visit: www.nfcc.org for the online Member Locator Service. The NFCC, founded in 1951, is the nation's largest and longest serving national nonprofit credit counseling organization. The NFCC's mission is to set the national standard for quality credit counseling, debt reduction services and education for financial wellness, through its member agencies. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. vInsurance First to Utilize RSS to Streamline Communications between Insurance Retailers and Wholesalers Redondo Beach, CA - February 7, 2006 The vInsurance RSS Service launched today as the first insurance industry service to help retail producers and wholesale brokers utilize RSS (Really Simply Syndication). RSS is poised to be the "next killer application" - along with email and the web - to enable yet even more effective communications between entities in the insurance value-chain. However, the challenge the insurance industry was facing with RSS was how to most effectively leverage this new XML Standard. The vInsurance solution is to use RSS to enable retailers to find market information and obtain the insurance forms in a service-oriented way consistent with the distributed nature of the insurance value-chain. www.vinsurance.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day"
View INSURANCE NEWSCAST "Sports Pictures Of The Day" 21. PIACT, PIANH, PIANJ, PIANY offer agents spring education opportunities Via seminars or online programs, insurance personnel can find all the CE they need this spring GLENMONT, N.Y.This spring the Professional Insurance Agents of Connecticut, New Hampshire, New Jersey and New York State are hosting a wide range of continuing education programs. Developed by committees of insurance producers, PIA's education programs have something for every independent insurance agent to help them fulfill their continuing education requirements for the year. These education opportunities are offered through a variety of venues from seminars and courses to online and self-study. For more information on any of the PIACT, PIANH, PIANJ and PIANY CE courses, online programs or education seminars, logon to PIA's award-winning Web site at www.piaonline.org or call the Education Department at (800) 424-4244, or e-mail education@piaonline.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. CPCU SOCIETY LEADERSHIP SUMMIT COMING TO PHOENIX, ARIZONA APRIL 26-29, 2006 MALVERN, PA, FEBRUARY 7, 2006—The CPCU Society’s Leadership Summit, the all-inclusive leadership and career development event for the Society’s national, chapter, and sections’ leaders, will be held April 26-29, 2006. The CPCU Society, the premier association for more than 26,000 CPCU-credentialed insurance industry professionals, is dedicated to providing its members many opportunities to participate in leadership, career, and technical educational activities. The Society’s NLI courses convey leadership knowledge into practical day-to-day applications, and help insurance professionals learn to face today’s challenging industry issues. The featured NLI courses at this year’s Leadership Summit are as follows, and include two new courses. The 2006 Leadership Summit will be in Phoenix, Arizona, at the Pointe Hilton Squaw Peak Resort. NLI Courses will also be offered prior to the CPCU Society’s 62nd Annual Meeting and Seminars, September 9-12, 2006, in Nashville, Tennessee. For more information on both events, visit the CPCU Society’s web site at www.cpcusociety.org, or call the Society’s Member Resource Center at (800) 932-2728, option 4. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Reducing dietary fat doesn't cut disease risk -study Wed Feb 8, 2006 10:37 AM ET -- By Andrew Stern -- CHICAGO (Reuters) - Women who ate less fat and more fruits, vegetables and grains did not reduce their risk of two types of cancer or heart disease, though they did show signs of being healthier, researchers said on Tuesday. The broad conclusion of the study -- that a healthier diet doesn't ward off disease -- drew criticisms from some experts who said it could be misinterpreted and taken as an excuse by some people to eat as much of anything they want. Editorials accompanying the three related studies published in the Journal of the American Medical Association pointed to the relatively healthy population of women in the study, and noted the women who modified their diets might have cut out fats found in fish and nuts now known to be healthy components of the "Mediterranean diet." "I encourage people to interpret this with caution because we have many unanswered questions," Dr. Jeanette Keith of the University of Chicago said in a phone interview. She was not part of the study. Other outside experts described the large, multimillion-dollar, government-funded study as the most definitive to date, upending widely held beliefs that people can avoid disease by eating healthier foods. The same Women's Health Initiative study previously drew the surprising conclusion that hormone-replacement therapy carries heightened risks of health ailments such as stroke. "This large randomized clinical trial provides the most definitive evidence to date of the impact of a low-fat diet," said Dr. Michael Thun of the American Cancer Society. But Thun cautioned that proponents of low-fat diets could also draw positives from the findings. © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Heart failure increasing in older adults Wed Feb 8, 2006 10:15 AM ET NEW YORK (Reuters Health) - The rate of heart failure in the US among older adults increased from the 1970s to the 1990s, but survival rates have improved, new research shows. Both of these trends were more apparent in men than in women. "Hospitalizations for heart failure have more than doubled between the two periods," Dr. William H. Baker, from the University of Rochester in New York, said in a statement. "Heart failure is the most common discharge diagnosis for men and women over age 65." The findings, which appear in the American Heart Association's journal Circulation, are based on study of new cases of heart failure in the early 1970s and 1990s using data for more than 300,000 older adults enrolled in an HMO in Oregon or Washington. From 1970 to 1974, a total of 387 patients were diagnosed with heart failure. The number of new cases from 1990 to 1994 was 1555. After accounting for age, a 14 percent increase in the rate of heart failure was observed between the two periods. As noted, this rise was greater in men than in women. Deaths due to heart failure fell during the 20-year period by 33 percent for men and by 24 percent for women, the report indicates. As to why survival did not improve as much in women, the researchers believe that it may be because older women have more additional diseases than men or because they are more physically frail. "The increase in incidence and survival for heart failure suggests an accelerating rise in this disabling and costly disease that is of public health and clinical importance," Baker emphasized. "In the future, heart failure deserves the highest research priority into its precipitating factors and its management." © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Nortel sees $2.47 bln charge to settle lawsuits Wed Feb 8, 2006 10:59 AM ET -- By Susan Taylor -- OTTAWA (Reuters) - Nortel Networks Corp. (NT.TO: Quote, Profile, Research) (NT.N: Quote, Profile, Research) said on Wednesday it has agreed in principle to pay $2.47 billion in cash and stock to settle two class-action lawsuits stemming from a financial scandal that first rocked the telecommunications equipment supplier in 2003. Hit with legal action in the wake of revised financial guidance in 2001 and its restatement of financial results from 2001 through 2003, Nortel said it wanted a settlement so that it could focus on rebuilding its business. Under the proposed deal, Nortel expects to pay $575 million in cash from its reserves and issue 628.7 million of its common shares, or 14.5 percent of its current equity. It sees a total charge of $2.47 billion, or 57 cents a share. The company also said it will contribute to the settlement one-half of any money it recovers in its lawsuits against senior executives dismissed in connection with the accounting debacle. Nortel fired its top three executives, including CEO Frank Dunn, "for cause" in 2004. An independent review of its books found that Dunn and others endorsed the use of provisions that did not comply with U.S. accounting standards. In several quarters that made the difference between a profit and a loss. There is also an unspecified insurance contribution in the settlement, which will not have any admission of wrongdoing by Nortel or any other defendants. ($1=$1.15 Canadian) © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Sixteen Percent CEO Turnover at Top Companies In 2005; Cash Separation Payments Range from $0 to $44 Million NEW YORK, Feb 07, 2006 (BUSINESS WIRE) -- Big company CEOs are on the move - out of their corner offices, with many of these departing leaders receiving some form of a golden handshake. After a one-year lull in 2003, CEO turnover among the top 200 largest U.S. corporations spiked in 2004 and 2005 according to executive compensation consultants Steven Hall & Partners. Sixteen percent of these 200 largest U.S. companies have a new CEO this year, as compared to 17% in 2004 and 8% in 2003. The historic high for CEO departures was set in 2000 when 21% left or lost their jobs. Steven Hall Partners has completed a detailed analysis of the sixteen leaders departing in 2005 from the top 100 companies. Half of these CEOs are receiving separation payments. Two who resigned under pressure from their boards received some of the highest cash payments. Phillip Purcell, former CEO of Morgan Stanley, received almost $44 million in cash, and Carly Fiorina, former CEO of Hewlett Packard, was paid $14 million. In addition, both receive pensions, with Mr. Purcell's supplemented by $500,000 per annum in benefits and charitable donations to be made in his name. "Fortunately, these two severance packages were the exception, not the rule in 2005, but they certainly captured the headlines. Awards such as these are often questioned as pay for non-performance," said Steven Hall, Managing Director of Steven Hall & Partners. "Going forward, the cost of packages like the one received by Carly Fiorina pursuant to her hiring employment contract with Hewlett Packard will be disclosed up-front under the proposed Securities and Exchange Commission (SEC) rules and no longer catch shareholders unaware." In fact, a few companies such as Coca-Cola, Union Pacific, EDS and American Electric Power, as well as Hewlett Packard, have now adopted policies requiring shareholder approval of senior executive severance that exceeds 2.99 times the sum of the executive's annual base salary and bonus. According to Mr. Hall, such policies should serve in the future to discourage payments such as the ad hoc package granted to the departing Mr. Purcell by his friendly board. www.shallpartners.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Increasingly, CBO Recognizes Likelihood Asbestos Trust Fund Will Fail WASHINGTON, Feb 07, 2006 /PRNewswire via COMTEX/ -- Last week, the Congressional Budget Office (CBO) responded to questions raised at the November Senate Judiciary Committee hearing on S.852, which would create a 30-year $140 billion federal asbestos trust fund. CBO's response represented its most pessimistic view yet on the potential insolvency of the trust fund. Excerpts follow: "Despite extensive research by many parties over a long period of time, there is no definitive way to predict with precision the number and value of claims against the asbestos fund or the revenues that will be collected. By CBO's estimate, the fund might or might not have sufficient resources to pay all valid claims. It is certainly possible that the proposed asbestos fund would be required to sunset before compensating all valid claims presented to it, or that the Congress and the President would feel the need to enact additional legislation providing resources beyond those authorized in S. 852." "There is a significant likelihood that the fund's revenues would fall short of the amount needed to pay valid claims, as well as debt-service and administrative costs." "Without a substantial increase in the resources available to the fund, there is no way to guarantee that the fund will not either revert to the court system or require additional funding. Under S. 852, any additional funding beyond the amounts authorized in the bill would require the Congress to enact additional legislation." Among other things (including the submission and approval of dormant claims, claims for indirect exposure of family members, exceptional medical claims, the impact of using CT scans for medical documentation, and the potential effects of treating other sites like Libby, Montana), CBO excluded debt service costs from its cost estimate (and yet still concluded that the Asbestos Fund would increase budget deficits over the 2006-2015 period by $6.5 billion). Asked by Senator Joe Biden how much interest the fund would incur, CBO stated: "Over the 2006-2015 period, the Treasury's debt-service costs would add about $1 billion in outlays to the federal budget. If the value of valid claims presented to the fund were about $130 billion (the scenario presented on page 8 of CBO's August 25, 2005, cost estimate for S. 852), we estimate that the fund would incur interest costs totaling about $10 billion over its life." SOURCE Coalition for Asbestos Reform Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. INSURANCE NEWSLINK ARTICLES INSURANCE NEWSLINK is a worldwide, strategic concise intelligence resource comprising over 25,000 articles commencing July 1993. Please click here for background and a 15-day free review of the service.
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. INSURANCE NEWSCAST “Book Of The Day” - YOU: The Owner's Manual : An Insider's Guide to the Body that Will Make You Healthier and Younger (Hardcover) by Michael F. Roizen, Mehmet List Price: $24.95 - Price: $16.47 -- For more information or to order, click here! Editorial Reviews Amazon.com If there ever was a pair of docs who can make the small intestine seem truly intriguing, here they are. Dr. Mehmet Oz is an alternative-medicine maverick and a cardiologist known to implement acupuncture during open-heart surgery. Dr. Michael Roizen developed the RealAge concept of calculating one's biological, as opposed to chronological, age. Here they've whipped up a witty guide to the workings of the entire body, appropriate not just for those who can't tell their pancreas from their pituitary. Even Cheers’ Cliff Claven types who think they know it all will likely be humbled by the 50-question "body-quotient" quiz that starts off the book. With much sassy humor (they describe the adrenals as similar in shape to Mr. Potato Head's hat), they give a guided tour of the body's anatomy and major systems (hormonal, nervous, digestive, sensory, etc.) including plenty of fascinating trivia along the way. How often should you get your thyroid level checked? How much gas does the average person produce in a day? And, most importantly, how many times a year do most people have sex?? Drs. Oz and Roizen know. They also reveal plenty of bizarre (and potentially life-saving) facts such as this: If your earlobe has a prominent vertical wrinkle, it's likely that your arteries are aging faster than they ought to be. If only 8th-grade health class had been this fun. The docs' main goal in presenting all this info is twofold: firstly, it's your body, so shouldn't you finally learn how it works? And, secondly, they want to help teach ways of preserving the body's health and youthfulness. To that end, they've included an "Owner's Manual Diet," a 10-day menu plan designed not for weight loss, but to make you feel "years younger." Its simple recipes are each meant to benefit a certain body system, such as Tomato Bruschetta, packed with the antioxidant lycopene, which has been proven to boost immunity. --Erica Jorgensen From Publishers Weekly Anti-aging guru Roizen and celebrated heart surgeon Oz combine their popular approaches to patient-centered care in this assessment of how much, or more to the point, how little, readers know about their bodies. After taking the quizzes in the book, readers may feel shocked by their ignorance of basic anatomy and the processes required to maintain physical and mental functioning. Each chapter focuses on a body part or system (heart, brain, digestive, reproductive, etc.) and discusses diseases associated with it; genetic and lifestyle influences on its aging process; and foods, supplements and habits that can prevent or reverse related illnesses. The book has an entertaining feel: friendly elves guide readers through illustrations of the body and cartoons feature alien creatures that enter the body and cause illness. The humor is irreverent (e.g., muscle cells surrounding dead heart tissue "start fighting with each other, like Jerry Springer's guests, instead of supporting each other, like Oprah's" [incidentally, the authors will appear on Oprah in May to promote the book]). Despite a 10-day, 30-recipe food plan and a less-is-more exercise regime, however, readers may have trouble using the information to create a lifestyle that will fulfill the authors' promise of weight loss, disease prevention and longevity. Even the recipes target one specific area of the body and weaken the overall conceptual framework. This lighthearted book will be most useful to those who like their health lessons served with a side of humor. (May 1) Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article The e-mail address subscribed to INSURANCE NEWSCAST is insurancenewscast-2027-log@pipe.insuranceletter.com. |
