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1. White Mountains Increases its Loss Estimates from 2005 Storms HAMILTON, Bermuda, June 16 /PRNewswire-FirstCall/ -- White Mountains Insurance Group, Ltd. (NYSE: WTM) today announced that, following receipt of new claims information, its Folksamerica Reinsurance Company subsidiary ("Folksamerica") has increased its gross loss estimates for hurricanes Katrina, Rita and Wilma ("KRW") by $203 million (net of reinstatement premiums). In taking this action, Folksamerica has set its reserves for offshore energy and marine exposures for hurricanes Katrina and Rita at full policy limits and has also increased reserves on other exposures affected by KRW. Under the terms of Folksamerica's quota share reinsurance treaty from 2005 with Olympus Reinsurance Company ("Olympus"), $143 million of the loss is ceded to Olympus. Without other action, this cession would exhaust the bulk of Olympus' capital. However, White Mountains is in advanced discussions with Olympus and its two largest shareholders regarding an arrangement to reimburse Olympus for up to $137 million of the ceded losses. In addition, White Mountains would waive override commissions due from Olympus after March 31, 2006 for reinsurance contracts with an effective date of December 31, 2005 and prior. White Mountains expects the commission waivers would total approximately $8 million. After giving effect to the reimbursement, Olympus' capital would be approximately $140 million, which is roughly in line with its level prior to this adverse development. Olympus would continue to receive cessions from Folksamerica under the quota share agreement as revised at the beginning of 2006 and would continue to be responsible to Folksamerica for losses on exposures that have been ceded to it. In addition, Olympus and its two largest shareholders would agree, at Folksamerica's option, to continue the quota share treaty with Folksamerica through the end of 2007. If this arrangement is consummated, the total effect on White Mountains in the second quarter of 2006 from the adverse development and the arrangement would be $197 million pre-tax ($128 million after tax or $12 per common share). If the arrangement is not consummated, the second quarter effect on White Mountains would be reduced, but due to Olympus' financial position, in the future Folksamerica would not expect to be able to recover significant amounts (beyond amounts collateralized) arising from losses on exposures that have been ceded to Olympus. www.whitemountains.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Bermuda Reinsurers Foresee Hard Market into 2007 Florida capacity squeeze could spill into other regions Bermuda reinsurers have forecast that rates will continue to harden through the year and could even spread into other territories in 2007. According to the most recent Bermuda Quarterly Report from Benfield’s Industry Analysis and Research team, increased demand, revised catastrophe models and more stringent capital constraints continue to squeeze capacity. The 18-page report observed that total net income for Bermuda’s 16 leading reinsurers was up 21 percent over 1Q 2005 to US$2.3 billion. Premium income, meanwhile, decreased 5 percent to US$16.5 billion, the first decrease in 1Q premium volume since 2001. The weighted average combined ratio decreased from 91.6 percent to 89.2 percent. “These top line reductions are attributable to more disciplined underwriting, reduced capacity due to stricter capital requirements by rating agencies, and the transfer of business to sidecars,” said Christopher Klein of Benfield’s Industry Analysis and Research team. www.benfieldgroup.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Willis Group CEO calls for a Single, National Approach to Disaster Insurance Matters; Optional Federal Charter a Good First-Step Washington DC, June 16, 2006 – Joe Plumeri, Willis Group Holdings Chairman and CEO, delivered a pointed address, “Tumultuous Times for The Catastrophic Risk Insurance Market: Coping with a New Era of Risk”, yesterday at the 2006 annual meeting of the Real Estate Roundtable. He called urgently for the insurance industry and lawmakers to develop a single, coordinated plan that will provide the necessary insurance protections to the American economy in the event that catastrophic events – whether natural or man-made – prove too much for the insurance sector to bear. “The insurance industry is stronger today than it has ever been and can certainly withstand ‘modest’ disasters or severe hurricane seasons in the absence of other catastrophic events,” said Plumeri. “However, if the 2005 hurricane season took out 12% of the industry’s capacity and this year’s storm season is predicted to be worse, couple that with the threat of a global avian flu pandemic and a coordinated, multi-city terrorist attack, and it is not hard to imagine insured losses that would exceed the industry’s financial resources.” “There simply is not enough capacity in the world to endure a worst-case scenario,” Plumeri continued. “Whether we establish a National Disaster Insurance Program that resembles Pool Re in London or having carriers set aside additional surplus on their balance sheets with some tax benefit or some other mechanism – we need a program that we can all agree upon and will all live by as we enter this New Era of Risk. This is not an insurance issue; and it is not a political issue – it is a matter of national economic security.” A central reason why there currently is not a national approach to this critical issue is the absence of a voice on such matters in Washington DC. In his speech, as well as in meetings on Capital Hill through the day, Plumeri stressed the need for an Optional Federal Charter to give the industry some structure and guidelines with respect to national issues, staying clear of state- or regional-specific matters. “A national approach to disaster insurance is not a new idea,” Plumeri continued. “It was proposed in the aftermath of Hurricane Andrew in 1992 and the Northridge Earthquake in 1994. Unfortunately, parochial concerns short-circuited that effort. Had there been a single voice for the industry at the federal level then, we would have had a solution by now. And the same goes for terrorism risk. TRIA is a great short-term mechanism. But the reason there is not a permanent solution to this permanent problem is because there is no federal coordination. An Optional Federal Charter will put in place a definitive, accepted and authoritative process to find a solution that will afford some level of economic security in the face of natural and man-made catastrophic events.” www.willis.com. Editors Note: The full speech is available via the following link: http://www.willis.com/news/News_Attachments/Joe_Plumeri_Real_Estate_Roundtable_Speech.pdf Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. NY Mayor: WTC insurance fight can be resolved By Joan Gralla - NEW YORK, June 16
(Reuters) - New York Mayor Michael Bloomberg said on Friday the World
Trade Center developer's latest battle with his insurers can be resolved
and should not delay the rebuilding any further. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Letting inflation rise could be costly: Fed's Kohn Fri Jun 16, 2006 11:39am ET WASHINGTON (Reuters) - Cutting U.S. inflation "could be difficult and costly" once it rose, Federal Reserve Board Governor Donald Kohn said on Friday, adding it would be dangerous if global markets came to question the U.S. central bank's devotion to price stability. In a speech prepared for delivery to a conference sponsored by the Federal Reserve Bank of Boston, Kohn said increased globalization may have helped keep U.S. inflation in check, but said that disinflationary impact could "dissipate or even be reversed in coming years." "A smaller response of inflation to domestic demand also implies that reducing inflation once it rose could be difficult and costly," Kohn said. Kohn also said integrated global financial markets could be "less forgiving" of any policy error. "If financial market participants thought that the (Fed policy-setting panel) was not dedicated to maintaining long-run price stability -- a notion that I can assure you is not correct -- they would be less willing to hold dollar-denominated assets, and the resulting decline in the dollar would tend to add to inflationary pressures," he said. A copy of his text was released in Washington. Kohn, who has been nominated to be the central bank's vice chairman, said the inflation-damping effects stemming from increased globalization in recent years reflected, at least in part, current global imbalances and inflexible currencies in China and some other emerging-market economies. "These imbalances are not likely to be sustained indefinitely," he said, adding that upward pressures on inflexible currencies were likely to mount and downward pressure on U.S. inflation to decrease. Kohn said it appeared globalization has had "some limited influence" on U.S. inflation, but said that "to date the effects have been gradual and limited." And he warned globalization may not always act as restraint on U.S. inflation. "The effects of globalization on domestic inflation need not ... be negative, especially in today's environment of strong global growth," he said. © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. ING Reinsurance Consolidates Life, Accident and Disability Units to Better Serve Customers MINNEAPOLIS, June 16 /PRNewswire/ -- ING, a leader in both the disability and group life and accident reinsurance markets, has consolidated these respective high performing teams in order to streamline customer service and offer a more comprehensive approach to meeting the reinsurance needs of its clients. The new unit will be under the direction of Scott Machut, Vice President and Head of Life, Accident and Disability Reinsurance; and Jim Rathburn, Vice President of Life, Accident and Disability Reinsurance. "This is a positive move for ING Reinsurance as we continue to find better ways to meet the increased demands of clients across the Life, Accident and Disability lines," said Mike Emerson, President. "The Disability Reinsurance team is strong and talented - and will continue to maintain its focus. With their broad leadership and management skills, Scott and Jim can build on that strength so that our new combined unit will have advantages for customers, as well as for employees." Together, Scott and Jim have more than 30 years of experience in various roles within ING, most recently leading the Life, Accident, and Specialty Reinsurance unit. As part of this reorganization, Curt Zepeda has been named Vice President and Chief Underwriter for Disability Reinsurance and Jeff Schuh has been named Vice President and Senior Actuary, Disability Reinsurance. Roxanne Bergland, Marketing Manager, Life, Accident, and Disability Reinsurance, will continue in her key marketing and client relationship role for Disability products, and given the common client base, her expertise will also be utilized across multiple product lines. "This new structure enables us to provide service on a customer-focused basis as opposed to a product line basis," said Machut. "Merging these units leverages our individual strengths and allows us to focus on growing our business by better meeting the needs of our customers," he added. "It will be much easier for our customers to do business with us." "This is a chance to build on the expertise of the Disability team and the reputation it has earned in the marketplace," said Rathburn. "Separately, each team has achieved excellence; and both are industry leaders. By coming together, we can capitalize on our strengths and focus on comprehensive reinsurance solutions." www.ingreinsurance.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. NEW HAMPSHIRE GOVERNOR SIGNS AIA-SUPPORTED PREMIUM TAX CUT CONCORD, NH, June 16, 2006 –New Hampshire Gov. John Lynch (D) has signed legislation (HB 678) supported by the American Insurance Association (AIA) to reduce the premium tax on property-casualty and life insurers. The tax will be reduced from two percent to one percent over three and a half years beginning July 1, 2007. “Governor Lynch’s decision to enact this important piece of legislation into law is a sign that New Hampshire welcomes insurers to do business in the Granite State,” said Laura Kersey, AIA assistant vice president, Northeast Region. “Reducing the tax burden on New Hampshire insurers will create a more attractive economic environment in the state.” The bill also changes the way insurers pay their taxes. Under the measure, insurers will pay 100 percent of the previous year’s taxes by March 15 of each year, rather than making quarterly payments throughout the year. www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Fiserv, Inc. Acquires Insurance Wholesalers Inc. Lead Generation and Wholesale Firm Will Enhance Insurance Distribution Management Strategy Brookfield, Wis., June 16, 2006 – Fiserv, Inc. (Nasdaq: FISV) announced today that it has acquired Insurance Wholesalers Inc. The firm, based in Citrus Heights, Calif., will become part of the Distribution Solutions Division of Fiserv’s Insurance Group. Details of the transaction were not disclosed. Insurance Wholesalers generates leads resulting in the sale of term and universal life insurance products that cover the amount of an insured’s mortgage. Brian Pope, who founded the firm in 1991, will continue as president of the newly acquired company. The firm’s 42 employees will join Fiserv. www.fiserv.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. NAIC PLANS JOINT HEARING ON HYBRID SECURITIES Valuation of Securities and Capital Adequacy Task Forces Meeting Planned KANSAS CITY, MO (June 15, 2006) – The National Association of Insurance Commissioners (NAIC) is planning a special joint meeting for two of its member task forces to discuss the classification structure for recently issued hybrid securities. The date has not been set, but regulators are planning a July meeting in New York City for the Valuation of Securities (VOS) Task Force and the Capital Adequacy Task Force (CADTF). During the NAIC Summer National Meeting held June 10-13 in Washington, D.C., the Financial Condition (E) Committee determined the NAIC’s Securities Valuation Office (SVO) should continue its process for classifying hybrid securities, while regulators evaluate whether the current classification structure utilized in statutory reporting should be modified. An assessment of the appropriate regulatory risk-based capital (RBC) factor also will be a central topic. On June 13, the Financial Condition (E) Committee specifically determined: Further evaluation of the classification structure, including RBC factors, is needed for hybrid securities. The VOS Task Force and CADTF will make a joint recommendation to the Financial Condition (E) Committee on its findings by the Fall National Meeting in September, with a final decision on the matter by December 2006, in time for the year-end 2006 annual statement filing. The SVO will continue with its existing classification process, including the publishing of such classifications through the NAIC Automated Valuation System. The NAIC will post information about the joint meeting on its Web site, www.naic.org, as soon as details are confirmed. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Arthur J. Gallagher & Co. Announces Lemac & Associates, Inc. Acquisition ITASCA, Ill., June 15 /PRNewswire-FirstCall/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today announced that its subsidiary, Risk Placement Services, Inc., has acquired Lemac & Associates, Inc., headquartered in Los Angeles, California. Terms of the transaction were not disclosed. Established in 1984, Lemac & Associates, Inc. is a wholesale insurance broker and managing general agent. They provide excess and surplus property/casualty coverages including professional and general liability, workers' compensation and other specialty insurance products and services for their retail insurance agent clients throughout the United States. William Newton, President of Lemac, and his associates will continue to operate out of their current locations in Los Angeles and Orange, California under the direction of Joel Cavaness, President of Risk Placement Services, Inc. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article Benefits Marketing Association Benefits Marketing Mania 2006 - View Meeting Details
11. ACE USA Introduces Enhanced Insurance Protection to Respond to Unique Needs of Life Sciences Companies PHILADELPHIA--(BUSINESS WIRE)--June 15, 2006--ACE USA, the U.S.-based retail operating division of the ACE Group of Companies, today announced that it has launched a Commercial Package Policy to help protect life sciences companies from property and casualty exposures faced by this specialized industry. The ACE USA Commercial Package Policy is offered to ACE's U.S.-based life sciences customers already covered under its Life Sciences Products Completed Operations Liability Policy. This product is offered by ACE Medical Risk, an operating division of ACE USA, which provides a wide range of liability products for clients throughout the healthcare industry worldwide.(1) The life science industry is rapidly growing and complex, comprising many specialized scientific and technological fields. According to a 2006 PricewaterhouseCoopers LLP report on the Top Ten Business Issues for Health Industries, the cost of drug development is in excess of $800 million, with pharmaceutical manufacturers under strong pressure from stakeholders to produce positive financial results. Subsequently, the pharmaceutical industry will be focused on boosting R&D productivity and cutting costs; many drug companies will consider forming strategic alliances and joint ventures with biotech firms as a source for new products.(2) "During this time of unprecedented change in the life sciences market, and with the rapid advances in science and technology, now more than ever it is critical to offer effective risk management and insurance solutions to our customers," said Philip Twietmeyer, Senior Vice President, ACE Medical Risk. "Providing a comprehensive package property policy as an add on to those exposures already covered by ACE's Life Sciences Products Completed Operations Policy allows us to round out our insurance program to meet the unique needs of our life sciences customers." www.acemedicalrisk.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. The PMA Insurance Group Enters Into an Agreement to be the Workers' Compensation Insurance Provider for the Wholesalers Insurance Plan BLUE BELL, Pa.--(BUSINESS WIRE)--June 16, 2006--The PMA Insurance Group has entered into an agreement to be the workers' compensation insurance provider for the Wholesalers Insurance Plan (WIP), offered by American Wholesalers Underwriting, Ltd. of Stamford, Connecticut. The WIP is a national insurance program dedicated to servicing the risk management needs of the durable goods wholesaler/distribution industry. The industry includes wholesale operations ranging from automotive, electrical and plumbing to HVAC, medical supplies and industrial parts and material handling equipment. Through the WIP, durable goods wholesalers can obtain workers' compensation, property, inland marine, auto liability, general liability and umbrella insurance in a single program. WIP's workers' compensation product is now being underwritten by The PMA Insurance Group, rated A- (excellent) by A.M. Best. "PMA is very pleased to bring its workers' compensation products and services to the WIP program," says John Santulli, Senior Vice President, Marketing & Field Operations, The PMA Insurance Group. "We have extensive experience in underwriting and servicing wholesalers and look forward to bringing our expertise to this program." Agents and brokers can obtain more information on the WIP by contacting: Mike Ebert, Manager of Program Development, The PMA Insurance Group, (717) 730-8116 or email: Mike_Ebert@pmagroup.com or contact your local PMA Branch Office. The PMA Insurance Group, a multi-lines property and casualty insurer specializing in workers' compensation, is known for service excellence and high levels of customer satisfaction. In addition to workers' compensation, PMA offers commercial automobile, commercial multi-peril, general liability and umbrella insurance. The PMA Insurance Group is headquartered in Blue Bell, Pennsylvania and includes Pennsylvania Manufacturers' Association Insurance Company, Manufacturers Alliance Insurance Company and Pennsylvania Manufacturers Indemnity Company, which are subsidiaries of PMA Capital Corporation (NASDAQ:PMACA). American Wholesalers Underwriting, Ltd. (AWUL) is a nationally recognized Program Administrator, Underwriter and Wholesaler serving Retail Insurance Agencies. AWUL is a recognized leader in various segments of the property and casualty insurance industry. Notably, through its Wholesalers Insurance Plan (WIP), they have underwritten insurance products for durable and non-durable goods wholesalers/distributors for over 12 years. For more information on the WIP program, please visit www.awul.com or call John Shea, Vice President, AWUL, 1(800) 303-4321 Contacts The PMA Insurance Group Diane Schmidt, 1-800-222-2749, ext. 5136 Diane_Schmidt@pmagroup.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Assurant Secures Property Catastrophic Reinsurance Coverage NEW YORK, June 15 /PRNewswire-FirstCall/ -- Assurant, Inc. ("Assurant") (NYSE: AIZ), a premier provider of specialized insurance and insurance-related products and services, today announced that it has purchased its property catastrophic ("CAT") reinsurance program effective June 1, 2006. Assurant utilizes catastrophe reinsurance for its Assurant Specialty Property business to protect the company's capital base from catastrophe risk and lessen the inherent variability catastrophes can have on earnings. In structuring the property catastrophe reinsurance program, the company applies a disciplined risk management process including utilizing multiple catastrophic models to evaluate the estimated loss potential from various perils, analyzing the geographic spread of risk and quantifying the reinsurance cost relative to the coverage provided, as well as the credit quality, financial strength and claims paying ability of the reinsurers. Effective June 1, 2006 for the term of one year, Assurant has placed one hundred percent of its per occurrence property CAT reinsurance program with over thirty highly rated reinsurers. Assurant has purchased coverage with a $340 million limit in excess of a $60 million retention, which provides coverage for a $400 million event. The program includes an automatic reinstatement for a second event under terms similar to the first event. In addition to the per occurrence property CAT reinsurance program, the Florida Hurricane Catastrophe Fund ("FHCF") provides Florida specific coverage of approximately $170 million for the 2006 hurricane season with an estimated retention of $60 million. For Florida hurricanes, the FHCF program will be utilized first before Assurant's per occurrence property CAT reinsurance program. The company has also placed 85% of $50 million in aggregate coverage in excess of $100 million of losses. This provides protection for multiple events. Events of at least $10 million in losses are eligible for inclusion and no one event can contribute more than $50 million to the $100 million retention. www.assurant.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Three Leading Insurance Carriers Select New Offering from Brainshark and iPipeline EXTON, Pa., June 15 /PRNewswire/ -- American National, Lincoln Benefit Life, and Mutual of Omaha are the first life insurance companies to take advantage of the partnership between iPipeline and Brainshark. These carriers have integrated Brainshark on-demand presentations into iPipeline's extensive insurance product database. In doing so, they are able to easily present crucial product knowledge, sales tips, and advanced marketing concepts to the more than 750 General Agents, Broker Dealers, Banking Institutions and other Distributors who use iPipeline's platform to conduct business. www.ipipeline.com www.brainshark.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Nationwide Bank and Nationwide Federal Credit Union Announce Plans to Seek Merger Credit Union members to get $79 million if deal is approved COLUMBUS, Ohio, June 16 /PRNewswire/ -- Nationwide Bank and the Nationwide Federal Credit Union (NFCU) announced today they are jointly pursuing a merger of the two organizations. NFCU will seek membership approval for this proposed transaction. The new Nationwide Bank will combine the strength of the NFCU's member service with Nationwide's significant resources and wide customer base. In an approach that will benefit NFCU members, Nationwide Financial Services, Inc. will pay $79 million for the members' ownership interest in the credit union. These funds will be credited to member accounts on a pro-rata basis according to the deposit account balances as of March 31, 2006. Today's announcement follows the NFCU Board's unanimous support of the merger. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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The #1 Insurance Newsletter In The World 16. XL Capital Ltd to Commemorate 20th Anniversary With Global Day of Giving HAMILTON, Bermuda, June 16 /PRNewswire-FirstCall/ -- XL Capital Ltd (NYSE: XL) ("XL" or the "Company") announced today that it will commemorate its 20th anniversary with a Global Day of Giving -- a day dedicated to supporting the communities in which XL operates. The global volunteer event, which is being held today, will see XL employees donating over 20,000 hours of service in more than 20 locations worldwide. Most of the Company's staff will spend the business day working on a variety of charitable projects and activities. While education is the primary focus of XL's global Corporate Social Responsibility ("CSR") program, the Global Day of Giving projects have largely been driven by employee ideas and an assessment of needs in each location. www.xlcapital.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. James River Group Completes $20 Million Trust Preferred Offering CHAPEL HILL, N.C., June 15 /PRNewswire-FirstCall/ -- James River Group, Inc. (Nasdaq: JRVR) today announced the issuance of $20,000,000 of trust preferred securities in a private placement by James River Capital Trust III, a Delaware statutory trust that is wholly-owned by the Company and was formed for this purpose. The trust preferred securities have a maturity of 30 years, are redeemable after five years without prepayment penalty and pay variable interest at three-month LIBOR plus 3.00%. James River Group intends to use the net proceeds from the offering primarily to support the growth of its insurance subsidiaries and for other general corporate purposes. Keefe, Bruyette and Woods, Inc. and FTN Financial Capital Markets acted as placement agents for the offering. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Hospitals Could Save Nearly $5 Billion Through GPO Reform, Study Shows Leaders of FDA, CMS Featured Speakers at MDMA Annual Meeting WASHINGTON, June 15 /PRNewswire/ -- The nation's hospitals collectively could save nearly five billion dollars if hospital Group Purchasing Organizations (GPOs) lost their safe harbor protection under the Medicare anti-kickback statute, according to a new study released during the first day of the 12th annual meeting of the Medical Device Manufacturers Association (MDMA). Hal Singer, Ph.D., president of the economic consulting firm Criterion Economics, developed the study. He told MDMA that if GPOs -- which purport to save the health care system money through volume purchasing on behalf of groups of hospitals -- no longer were permitted to collect fees from dominant suppliers in exchange for market exclusivity, Medicare could save $2.5 billion annually. Details of the study may be found at the MDMA website: http://www.medicaldevices.org, beginning Monday, June 19. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. NAIC ADDS NEW WEB SEARCH TOOL News Releases May Now Be Searched By Topic or Key Word KANSAS CITY, MO (June 16, 2006) – Finding insurance news and information is now easier on the National Association of Insurance Commissioners’ (NAIC) Web site. A new, specialized search engine has been added to the NAIC Pressroom, making news releases issued from 2004 to the present easier to locate and sort by topic. www.naic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
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21. CIC AND CISR SCHOLARSHIPS AWARDED AT NAIW CONVENTION AUSTIN, TX (June 15, 2006) -- The National Alliance for Insurance Education & Research recently presented 13 scholarships to NAIW members at the 65th Annual Convention of the National Association of Insurance Women (NAIW) held in Orlando, Florida. The CIC and CISR scholarships were awarded at a special recognition luncheon June 2, 2006, in front of a crowd of more than 500 convention participants. Each scholarship grants full tuition to one program conducted by The National Alliance. Dr. William T. Hold, CIC, CPCU, CLU, President of The National Alliance, assisted by Danielle D. Janecka, Vice President of The National Alliance, made the presentations. “The scholarship recipients represent commitment to advanced education as well as to their industry, and are all current, active members of the NAIW," Dr. Hold said. www.TheNationalAlliance.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Insurance Firms Ranked on How They Treat Online Customers in Second Quarter 2006 Online Customer Respect Study Insurance Industry Records Lowest Scores for Online Customer Respect Among 12 Industries Studied IPSWICH, Mass., June 19, 2006-The Customer Respect Group, an international research and consulting firm that focuses on how corporations treat their online customers, today released findings from its Second Quarter 2006 Online Customer Respect Study of Insurance firms. This is the sixth study conducted on insurers. The study is the only one to bring objective and consistent measure to the analysis of corporate performance from an online customer's perspective. It assigns a Customer Respect Index (CRI™) rating for each company. The Customer Respect Index is a qualitative and quantitative in-depth analysis and independent measure of a customer's experience when interacting via the Internet. The complete table can be found at http://www.customerrespect.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Max Re Capital Ltd. Complies With Nasdaq Listing Requirements Max Re Capital Ltd. through its principal operating subsidiaries, Max Re Ltd., Max Insurance Europe Limited and Max Re Europe Limited, offers customized insurance and reinsurance solutions to property and casualty insurers, life and health insurers and large corporations. www.maxre.bm Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Fiserv Advanced Billing Enables Property/Casualty Insurers to Gain Technical Flexibility and Broad Functionality, Research Report States Chicago, June 15, 2006 – Fiserv, Inc. (Nasdaq: FISV) announced that the Fiserv Advanced Billing system has been recognized by Celent, LLC, a financial research and advisory firm, for its advanced technology, high level of technical flexibility, broad functionality and a deep level of client service for property/casualty insurers. The recognition appeared in the May, 2006 P/C Billing System Vendors report by Mathew Josefowicz, manager of Celent’s Insurance Group. www.fiservinsurance.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Fed seen stopping at 5.25 percent: think tank Fri Jun 16, 2006 1:30pm ET - By Kevin Plumberg - NEW YORK (Reuters) - The Federal Reserve will likely end its two-year credit tightening cycle at the end of June when it raises interest rates to 5.25 percent, an influential New York-based think tank said on Friday. Fed policy-makers, like their counterparts at the Bank of Japan and the European Central Bank, are very sensitive about increasing rates while economic growth is slowing, but recent inflation data has forced them to tighten a little more than they had planned, the think tank said in a presentation to analysts. "The Fed will hike rates at the June meeting up to 5.25 percent, and they will keep the 'vigilant' language open even while they are softening the economic outlook," said a member of the firm, which meets regularly with Fed officials. "That means they will not rule out the possibility of an August rate hike even though they expect data to come in weaker," he said on a background briefing. The rate futures market fully reflects expectations the Fed will tighten policy by a quarter percentage point for the 17th consecutive time at the June 28-29 meeting. The futures market puts the chance that the Fed will raise rates again in August -- to 5.50 percent -- at about 65 percent to 70 percent. Several investment banks raised their forecasts for the federal funds rate by the end of the year, including Lehman Brothers, which now expects the Fed to take rates to 5.75 percent by September. An uptick in core U.S. inflation and evidence that high energy prices could cause upward pressure on consumer prices over the long term caused the recent shift in tone from many Fed officials to a more aggressive stance against inflation, the think tank said. In a June 5 speech, Fed Chairman Ben Bernanke stunned investors when he said the central bank will continue to be vigilant in keeping inflation at bay even if the U.S. economy shows signs of a slowdown. But near the beginning of the year, Fed officials had planned on ending the cycle of rate rises between 4.75 percent to 5.00 percent. "Based on our conversations with the Fed, given the pipeline and the forward-looking aspect of the Fed and their desire not to react to current economic data ... expectations within the Fed were to stop hiking rates between 4.75 percent to 5 percent," the think tank said. Regardless of the Fed's pledge to remain vigilant against a rise in inflation, whether the U.S. economy glides to a gentle slowdown in growth or comes to an abrupt halt depends on where the Fed will ultimately leave interest rates. "The soft-landing-versus-bust outcome would hinge on whether the Fed stops at 5.25 to 5.5 percent nominal rates or has to go closer to 5.5 to 6 percent," the firm said. "The Fed's expectations are that it will be the former and not the latter." © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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