Daily Quote: "Great minds discuss ideas, average minds discuss events, small minds discuss people." - - Lawrence J. Peter
1. A.M. Best Launches 15 Insurance Stock Indexes OLDWICK, N.J., Dec. 1, 2006—A.M. Best Co. has released 15 stock indexes covering publicly traded companies in sectors of the U.S. and global insurance industry. Companies in the indexes include insurance carriers with interactive ratings from A.M. Best, along with insurance brokers. The indexes are compiled in real time and distributed on major financial wires by Dow Jones Indexes. The symbols for all 15 indexes begin with the letters "AMB" and are followed by letters indicating the sector they cover. The 15 indexes and their symbols include:
Those wishing to track the performance of publicly traded insurers can use the indexes for comparison purposes. The indexes can be followed by tracking the index symbol on any of the stock-tracking services. The indexes will also be covered regularly in A.M. Best’s publications including BestWire, a real-time news wire; BestDay, a daily newspaper; BestWeek, a weekly newsletter; and Best's Review, a monthly news magazine. For a video presentation explaining the new indexes, visit: www.ambest.com/video/ambindexes. www.ambest.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. RMS Publishes Assessment of Future Flood Risk in New Orleans Stakeholders Urged to Consider Analysis of Future Risk Factors as Crucial for City Redevelopment NEWARK, Calif., Dec. 4 /PRNewswire/ -- Risk Management Solutions (RMS) today released an extensive report on the future flood risk faced by the city of New Orleans due to hurricane storm surges. The report, Flood Risk in New Orleans: Implications for Future Management and Insurability, outlines the ongoing threat of flood risk due to future hurricane storm surges and considers the role of insurance, the planning process, and the government in providing physical and economic protection so those living and investing in the city can have confidence that the risk is being effectively managed. In framing the debate for New Orleans' future, the report signals to those who hold a stake in the future of New Orleans, including the policy makers who are responsible for its safety and prosperity, that they must plan for a future that will undoubtedly be more hazardous than in the past. The report concludes that the threat of flooding in the city continues to increase due to a combination of three physical temporal factors:
These factors all serve to increase the storm surge flood hazard faced by New Orleans, and will significantly raise the risk of flooding in the city through the 21st century. "While this report concerns a single city along the U.S. Gulf Coast, the devastation caused by storm surge and flooding in New Orleans can be seen as a parable of our time," stated Hemant Shah, president and CEO of RMS. "These problems are shared by many cities along the U.S. Atlantic and Gulf Coasts, as well as other coastal cities around the world that face similar risks due to rising sea levels and increasing storm intensity associated with climate change." The report illustrates how the risk analysis involved in assessing insurability can be a useful tool for policy makers concerned with determining acceptable levels of risk. In addition, the use of catastrophe models to quantify the risk allows the individual components of risk (hazard, exposure, vulnerability) to be separated, so that uncertainties are explored along with alternative strategies for risk mitigation. "New Orleans has the opportunity to pioneer solutions that maintain the viability of the city while at the same time ensuring that risk to the city's citizens and businesses is maintained below acceptable and published thresholds," said Robert Muir-Wood, chief research officer of RMS. "As the leading independent provider of global risk information, RMS will be working to ensure that probabilistic risk analytics continue to remain at the heart of decisions about development, flood protection, and economic viability." www.rms.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Enterprise Risk Management Critical for Insurers Globally, but Regional Approaches Vary, According to Tillinghast Study Risk Reporting to Boards and Senior Management More Common STAMFORD, Conn.--(BUSINESS WIRE)--Driven in part by increased demands from regulatory and rating agencies, enterprise risk management (ERM) has become integral to insurers’ business processes around the world. Sixty percent of survey respondents explicitly factor risk management considerations into their decision-making, according to the fourth biennial survey of risk and capital management practices among insurers worldwide by the Tillinghast business of Towers Perrin. The 2006 study focuses on a number of issues including risk measurement, quantification competencies, how companies calculate and use economic capital (EC), risk reporting and areas where the global insurance community is seeking to improve their risk management capabilities. In addition, a special section has been included that focuses on the impact of Solvency II on the European community. Other key findings from the study: External pressures are raising the bar for risk management globally. While most companies globally (78%) cite “good business practice” as the principal driver for their current risk management efforts, rating agency considerations are a significant factor for North Americans (72%) whereas changes in insurance solvency regulations are a major driver for European Union insurers. Two-thirds of the insurance industry globally uses EC as a risk quantification tool. This is a significant increase over 2004 where only half of the respondents indicated they were using EC. A further 19% of the participants indicated they are considering the use of EC. Insurers are using a diverse set of risk metrics. Insurers assess the impact of risk on their capital, value and earnings in a variety of ways, with 63% using at least three differing measures. The most common are statutory or regulatory capital and surplus (56%), economic value (42%) and GAAP or IAS measures (38%). “Companies are clearly more disciplined in their use of ERM today than ever before, as catastrophic events, capital efficiencies and competitive pressures have driven companies to adopt less of a ‘seat-of-the-pants’ approach to risk issues,” said Managing Director Tricia Guinn, who oversees both the Tillinghast and Reinsurance businesses of Towers Perrin. Risk Management Raises Its Profile “As risk issues have gained importance, so has the role of the chief risk officer,” said Prakash Shimpi, Practice Leader with global responsibility for ERM. “Insurers are not only examining risk more closely, but they are also holding executives more accountable for the results.” Almost half of the respondents (43%) report having a chief risk officer (CRO) with primary responsibility for risk management, up from 39% in 2004 and only 19% in 2002. The study also indicates that risk management is gaining importance in board rooms, with nearly all respondents (92%) reporting on risk to their board of directors at least annually, up from 84% in the 2004 survey. 53% of all respondents report at least quarterly to their board. Risk reports to senior management have become a common practice, with 39% reporting monthly and another 35% reporting quarterly. Risk reporting varies regionally: Bermudian (89%) and Canadian (82%) insurers are more likely than U.S. or Asia/Pacific companies (53% respectively) to report quarterly on risk to their boards. European life insurers (65%) and p/c insurers (60%) are twice as likely to report to senior management monthly as their North American counterparts (31% respectively). Room for Improvement While ERM has made significant progress in recent years, there are still growing pains: Most respondents (77%) are highly focused on improving risk measurement and quantification processes to enhance their overall ERM efforts, particularly in the U.K. (97%) and Japan (95%). Respondents are generally not satisfied with their current capabilities in many of the risk management areas they see as important. They are significantly dissatisfied with their ability to quantify operational risks and their ability to reflect risk in performance measures. “Insurers now recognize the potential impact a single event like a security breach or systems failure can have on their operations, as well as on their financials. Operational risks can be complicated and difficult to quantify, so many are turning to scenario analysis to achieve meaningful results,” said Shimpi. “We expect operational risk modeling and management practices to steadily improve over the next few years.” Economic Capital as a Key ERM Tool The survey also found that many insurers are moving toward the use of economic capital (EC) as a risk management tool. As stated previously, nearly two-thirds (65%) of all respondents calculate EC and an additional 19% said they are considering calculating EC, implying that it may soon be a universal tool. “U.S. insurers tend to use regulatory or statutory capital benchmarks more than EC,” said Stephen Lowe, Managing Director and Leader of the Towers Perrin P/C Insurance Practice. He added, "However, EC measures have some inherent advantages that, over time, will drive broader use in the U.S." The report is available at www.towersperrin.com/tillinghast. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. New AllianceBernstein Research Shows Majority of Eligible Employees Avoid Actively Managing Their 401(k) Plan Study Shows Americans Only Occasionally Monitor Critical Savings Vehicle; Some Plan Participants Never Review Retirement Account Information NEW YORK--(BUSINESS WIRE)--The majority of 401(k) eligible employees admit they are unprepared or reluctant to review, manage and monitor their retirement plan investments, AllianceBernstein announced today. More than half of the 1,000 American workers polled by AllianceBernstein, or 61 percent, say they are “Accidental” investors, meaning they lack confidence in their ability to manage their investments, don’t enjoy the process and often give minimal attention to their retirement accounts. “As Defined Contribution plans quickly replace Defined Benefit plans as the primary retirement savings account for most corporate employees in the United States, a logical assumption would be that employees are ready to accept control of their retirement investments,” said Dick Davies, Senior Managing Director, head of Institutional Defined Contribution Services at AllianceBernstein. “The high number of Accidental investors illustrated in this research shows us that is not the case.” According to the research, nearly half of all Accidental investors review their investments no more than once a year – or not at all (32 percent)! For those who do monitor their investments, the retirement plan statement is the primary source of information; half of all Accidental investors also rely on this document as their primary source of information. When considering all 401(k) eligible investors, the Internet is the second most important resource for retirement plan valuation (33 percent). Surprisingly, given the availability of mutual fund NAV’s in newspapers, that medium ranked last (3 percent) in helping participants determine the value of their retirement investments. In a recent overhaul of retirement plans, Congress directly addressed plan design issues and enacted measures to foster increased participation in 401(k) plans among eligible employees. Davies commented, “The recent passage of the Pension Protection Act of 2006 encourages the automation of many aspects of DC plans including: enrollment, default investments, contribution rate escalation – as well as mandating the frequency and content of participant statements. All of these provisions are directly on point to improving the retirement security of many Americans. Rather than fight employee inertia, the lesson learned over the past 25 years of the 401(k) experience is to harness it.” AllianceBernstein L.P. ("AllianceBernstein") is a leading global investment management firm providing investment management services for many of the largest U.S. public and private employee benefit plans, foundations, public employee retirement funds, pension funds, endowments, banks, insurance companies and high-net-worth individuals worldwide. AllianceBernstein is also one of the largest mutual fund sponsors, with a diverse family of globally distributed mutual fund portfolios. Through its subsidiary, Sanford C. Bernstein & Co., LLC, AllianceBernstein provides in-depth research, portfolio strategy and trade execution to the institutional investment community. www.alliancebernstein.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. America’s Health RankingsTM Gives Nation Its Annual Check-up Americans’ Overall Health Improves Slightly from Last Year, but Rate of Improvement Has Leveled off since 2000; Minnesota, Vermont and New Hampshire Remain Nation’s Healthiest States; Louisiana and Mississippi Rank as Least-Healthy States; For the First Time, the Report Incorporates State-Specific Analysis of Quality of Medical Care Delivery versus Costs as Part of a Comprehensive Picture of Overall Health; Data Indicates Inverse Relationship between Cost and Quality WASHINGTON--(BUSINESS WIRE)--Americans as a whole are only 0.3 percent healthier than they were at this time last year, according to the 17th annual edition of America’s Health Rankings: A Call to Action for People & Their Communities™, released today. This increase is significantly lower than the nation’s average annual improvement of 1.5 percent documented between 1990 and 2000, and only keeps pace with the 0.3 percent average annual national improvement since 2000. The report also observes that the United States continues to trail other nations in important statistics such as healthy life expectancy and infant mortality. The report, which is produced by United Health Foundation in partnership with the American Public Health Association and Partnership for Prevention, is a yearly assessment of the relative healthiness of the nation, based upon analysis of comprehensive determining factors such as personal behaviors, the environment in which people live and work, the decisions made by public and elected officials and the quality of medical care delivered by health professionals. This year, the report ranks Minnesota as the healthiest state in the nation for the fourth year in a row. Vermont comes in second, followed by New Hampshire, Hawaii and Connecticut. Louisiana is ranked as the least-healthy state, while Mississippi (49), South Carolina (48), Tennessee (47) and Arkansas (46) complete the bottom five. “We as a nation are blessed with unparalleled resources and assets and as such it is troubling that we are not making more significant progress in overall health improvements,” said Reed Tuckson, M.D., senior vice president of United Health Foundation. “This report is a call to action for all of us – as individuals, members of families, participants in community life, health professionals and political and policy leaders – to intensify our efforts toward a healthier America. We can do better and our children deserve better.” To view the entire report, please visit www.americashealthrankings.org or www.unitedhealthfoundation.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. A.M. Best Special Report: Blues Plans Grow and Strengthen OLDWICK, N.J.--(BUSINESS WIRE)--Blue Cross Blue Shield companies continued to produce favorable earnings for the first six months of 2006. While overall earnings remained positive, the largest growth in underwriting and net income was reported by the for profit, public companies. These companies reported an average underwriting gain of $133.9 million and net income of $109.2 million for the first six months of 2006, which represents a growth rate of 26.8% for underwriting and 30.6% for net income, according to a special report from A.M. Best Co. The Blue Cross Blue Shield plans as a group have remained successful in generating growth in earnings, improved capitalization and gains in membership. Overall earnings for the plans have remained favorable as a result of declining medical cost trends combined with lower administrative expense ratios driven by technological improvements and synergies from mergers and acquisitions. This trend has allowed the capitalization at the plans to strengthen. www.bestweek.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. A.M. Best Special Report: Pools and Trusts Show Continued Upswing in Performance OLDWICK, N.J.--(BUSINESS WIRE)--Rated self-insurance pools and trusts in 2005 saw a significant change in operating performance compared with 2004. The operating results for 2005 were characterized by a precipitous decrease in the loss and loss adjustment expense ratio, which was offset partially by an increase in the underwriting expense ratio. The net result of these changes was a 4.3-point drop in the combined ratio after policyholder dividends, according to a new special report from A.M. Best Co. www.bestweek.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Third Annual Farmers Insurance Study Ranks Most Secure U.S. Places To live St. George, Utah, Rated No. 1 LOS ANGELES, Dec. 4 /PRNewswire/ -- When it comes to choosing a place to live, work or raise a family, safety and security are two characteristics that many people would find appealing. According to the Third Annual Most Secure U.S. Places to Live rankings from Farmers Insurance Group of Companies(R), the most secure location to live in the United States is St. George, Utah. The rankings, compiled by database experts at http://www.bestplaces.net, took into consideration crime statistics, extreme weather, risk of natural disasters, environmental hazards, terrorism threats and job loss numbers in 379 U.S. municipalities. The study divided the communities into three groups: large metropolitan areas, mid-size cities and small towns. The Provo-Orem, Utah, area was ranked first in the 2004 Farmers Insurance study, while the Richland-Kennewick-Pasco area in southeast Washington was tops in 2005. "Everyone looks for a safe, secure place to live," said Jeff Beyer, senior vice-president and chief communications officer for Farmers. "Whether you are single or raising a family, a secure environment is important. It offers the well-being so necessary to succeed in today's fast paced world." Top-ranked St. George, whose population of 110,515 places it among the small towns, offers a climate that features mild winters, low annual precipitation and clean air. St. George had the lowest crime rate of all 379 communities in the Farmers study and the lowest unemployment rate among the 138 small towns. The Boise City-Nampa, Idaho, area topped all large metropolitan areas with populations of 500,000 or greater. Nestled against the foothills of the Rocky Mountains, the area is shielded from severe weather and has one of the lowest unemployment rates in the Farmers study. The Most Secure Mid-Size city with a population between 150,000 and 500,000 is Las Cruces, New Mexico. Las Cruces scored well in the extreme weather and unemployment categories. Here are the lists of the top 20, in order, of Farmers Insurance Group's Most Secure Places to Live in the United States: Most Secure Places to Live - Large Metro Areas (500,000 or more residents)
Most Secure Places to Live - Mid-Size Cities (150,000 - 500,000 residents)
Most Secure Places to Live - Small Towns (Fewer than 150,000 residents)
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Gainesville, Florida Underwriter is Tops in the Sports Insurance Business GAINESVILLE, Fla., Dec. 5 /PRNewswire/ -- Salaries in the sports world continue to grow, and the effects of injury are more devastating than ever. That's where a pioneer in the industry comes in to save the day. Keith Lerner, an insurance underwriter, works to secure the future of college, professional, and now 11th and 12th grade athletes. For almost two decades, athletes nationwide have confidently placed their futures with him. Lerner writes insurance policies for athletes to rely on, so in case of a career-ending injury, they aren't left penniless. The policies cover the athletes both on and off the field, 24 hours a day, seven days a week. In the collegiate realm, Lerner has written for more than 40 top colleges and universities, and writes in excess of $50 million to $60 million dollars in coverage annually. Included in Lerner's athletes are Willis McGahee, a former Miami Hurricane now with the NFL's Buffalo Bills, and Ed Chester. McGahee, who suffered a knee injury during the 2001 NCAA National Championship game, fortunately didn't have to collect. Chester, a former University of Florida football player, collected a $1 million dollar policy after his dreams of the NFL were shattered due to an injury. "Coaches and players should be aware of the option of insurance," Lerner said. "The choice is to go pro or stay and be protected. That's what I'm here for." "When this all started back in 1984, $1 million dollars was huge, and now it isn't unusual for successful players to have policies for $5 to $10 million," said Lerner, citing the first-ever policy for Herschel Walker of the University of Georgia. Lerner and his associates are prepared for any growth in this industry, and have recently expanded their business as they take on more athletes in their new office, three times the size of their last location. Although Lerner most commonly covers football players, he also writes policies for basketball, baseball, and hockey players, and wrote policies for the first golfer and tennis player to be covered in NCAA history. His scope of work also branches beyond athletes to coaches, teams, and even leagues. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Travelers Expands Commercial Auto Coverage Market HARTFORD, Conn., December 5, 2006 – Travelers today announced the availability of commercial auto coverage for small to mid-sized businesses on a monoline basis through its Select Accounts, Commercial Accounts and Construction divisions. This expanded monoline auto program provides a high-liability commercial auto policy on a stand-alone basis even when the supporting lines of coverage do not qualify. “Agents often have trouble finding a desirable standard market for their commercial auto business. Our monoline program allows agents to separate the commercial auto coverage needs and consider Travelers as a better alternative,” said Bill Cunningham, president of Travelers Commercial Accounts. “This gives customers the benefits of a preferred market, including superior service, a vast network of claim professionals in all 50 states, and the comfort of knowing that the number one writer of commercial auto in the U.S. is standing behind them.” www.travelers.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
11. Meritain Health Acquires CBSA PERFORMAX Acquisition Creates Nation's Largest Privately Held Manager of Health Benefits Plans AMHERST, N.Y., Dec. 5 /PRNewswire/ -- Meritain Health, Inc., a leading provider of health plan management services and a division of health care services company Prodigy Health Group, has announced the acquisition of CBSA PERFORMAX. The acquisition doubles the size of Meritain Health, creating the nation's largest privately held manager of health benefits plans. Financial terms of the transaction were not disclosed. The combination of Meritain Health and CBSA PERFORMAX brings together two companies that are passionately dedicated to helping employers control the long-term cost of health care while providing superior customer service and flexibility. The combined company will operate under the Meritain Health name and maintain CBSA PERFORMAX's presence in Baltimore and Minneapolis, as well as its regional sales and service offices. In total, the combined company has offices throughout the country, over 1,350 employees, 1,400 clients and over a million members nationally. The announcement reflects the considerable consolidation underway in the healthcare services industry. It follows Meritain Health's August 2006 acquisition of Weyco, Inc., a third party medical benefits administrator, as well as the merger between Corporate Benefit Services of America (CBSA) and PERFORMAX, also in August 2006. www.meritain.com www.prodigyhealthgroup.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Invitation to the Towers Perrin 2006 Hurricane Post-Season Webinar 2006 spared Florida, New Orleans and other hot hurricane spots from more pain. Why? A shift in atmospheric pressure over the Atlantic, a new El Niño climate pattern, cooler tropical waters in the North Atlantic and warmer-than-normal waters in the South combined to minimize the likelihood of storms making landfall. Though these unusual atmospheric conditions resulted in a milder than expected 2006, what can be expected for the year ahead? And what can insurers and catastrophe professionals prepare themselves for in 2007? Please join the Reinsurance business of Towers Perrin and AccuWeather’s Chief Forecaster, Joe Bastardi, as they discuss in detail the factors that contributed to a mild 2006 hurricane season and predict what the 2007 season may have in store: What Happened? The Good, the Bad and the Ugly of the 2006 Hurricane Season Forecaster and Media Misinterpretations: Dispelling the "Red Herring" Ernesto's Impact on the East Coast, Florence Staying Off to the East and the June Floods Climate Patterns, Global Warming and the Insurance Industry Mr. Bastardi's 2007 Winter Predictions and Long-Range Forecast for the 2007 Hurricane Season At the conclusion of his presentation, Mr. Bastardi will be available for Q&A. Towers Perrin 2006 Hurricane Post-Season Webinar December 6, 2006 at 10:00 AM (EDT) Length of the Webinar will be 60 mins. (incl. participant questions) We hope you can join us for what will be an eye-opening webcast. If you're interested in attending this webinar, please contact me at neha@blisspr.com or at (212) 840-1661 to register. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. ACE Approved to Establish Life Insurance Operation in Russia NEW YORK--(BUSINESS WIRE)--The ACE Group of Companies announced today that it has received approval from the Federal Service for Insurance Supervision (FSIS) to underwrite life insurance in the Russian Federation. ACE’s life insurance operations, based in Moscow, will be headed by Anton Kushner, Chief Executive Officer and General Director of ACE Life Insurance, Russia. Mr. Kushner will oversee sales and distribution relationships, product development and general operations, and lead a seasoned local management team with international experience. “The life insurance industry in Russia is at an early stage of development and represents a real opportunity for ACE,” said Evan Greenberg, President and Chief Executive Officer of ACE Limited. “Russia’s rising middle class aspire to a better life, which we can help them plan and attain through the life insurance products and services that we offer.” ACE Life Insurance, Russia has been approved to sell a full range of life insurance products and will focus initially on protection products to corporations and individuals. The company will market these products through multiple distribution channels including direct sales and independent and non-insurance intermediaries. www.acelimited.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Johnson & Strachan Insurance, The Morrow Group Merge FAIRFAX, Va.--(BUSINESS WIRE)--Johnson & Strachan Inc., a full-service commercial and personal insurance agency, announced today it has acquired The Morrow Group, an independent insurance agency specializing in group health and employee benefits. The merger, which is effective immediately, reunites the two agencies that had separated in 1998 for business reasons. All personnel and operations from The Morrow Group, which was located in Burke, Va., have moved to the Johnson & Strachan offices in Fairfax, Va. www.jsinsurance.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Direct General Corporation Enters into Merger Agreement with Private Equity Group NASHVILLE, Tenn.--(BUSINESS WIRE)--Direct General Corporation (“Direct General”) (NasdaqGS: DRCT) announced today that it has entered into a definitive merger agreement with Elara Holdings, Inc. ("Elara"), an affiliate of Fremont Partners (“Fremont”) and Texas Pacific Group ("TPG"), under which Elara will acquire Direct General. In the transaction, Direct General’s shareholders will receive $21.25 in cash for each share of Direct General common stock they hold, a 28.71% premium to the closing price of $16.51 on December 4, 2006. The total value of the transaction, including debt, is approximately $628.2 million. “Fremont Partners and TPG are successful investors with strong track records in helping companies meet their full potential. The firms are committed to supporting our dedicated management team and approximately 2,500 employees by expanding our product line, geographic reach and customer service which has already made us an industry leader and an essential resource to hundreds of thousands of American drivers,” said William C. Adair, Jr. Chairman & CEO. “We are also delighted our shareholders can enjoy a significant premium on their investment in Direct General.” www.direct-general.com www.fremontpartners.com www.texaspacificgroup.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. EIG Mutual Holding Company Files Registration Statement With SEC RENO, Nev., Dec. 4 /PRNewswire/ -- EIG Mutual Holding Company today announced that it has filed a registration statement with the Securities and Exchange Commission (SEC) in connection with its proposed initial public offering of shares of its common stock. The Company proposes to undertake this offering concurrently with its conversion from a mutual insurance holding company to a stock corporation in accordance with the Plan of Conversion adopted by the Company's Board of Directors on August 17, 2006 and amended and restated on October 3, 2006. The proposed offering by the Company remains subject to a number of conditions, including the entry into an underwriting agreement with the underwriters of the offering, approval of the Plan of Conversion by the required votes of the Company's members, final approval from the Nevada Division of Insurance, and declaration of the effectiveness of the registration statement relating to the offering by the SEC. www.eig.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. CompBenefits Corporation Announces Proposed Initial Public Offering of Common Stock ATLANTA, Dec. 4 /PRNewswire/ -- CompBenefits Corporation announced today that it has filed a registration statement with the Securities and Exchange Commission relating to the proposed initial public offering of its common stock. All shares in the offering will be sold by CompBenefits. Goldman, Sachs & Co. and Banc of America Securities LLC will serve as joint book-running managers and CIBC World Markets Corp. will serve as co-manager for the proposed offering. CompBenefits Corporation, headquartered in Atlanta, GA, provides dental and vision benefit plans to over 4.8 million members in 31 states. CompBenefits offers a diversified portfolio of products designed to fulfill the oral- and eye health benefit needs of public and private sector employer groups, government-sponsored plans, health plans, and individuals. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Republic Companies Group, Inc. Stockholders Approve Acquisition By Delek Capital Ltd. NEW YORK, Dec. 4 /PRNewswire-FirstCall/ -- Republic Companies Group, Inc. (Nasdaq: RUTX) ("Republic") announced that its stockholders have voted to adopt the previously-announced merger agreement providing for the merger of Republic and a wholly-owned subsidiary of Delek Capital Ltd. ("Delek Capital"), which is a majority-owned subsidiary of Delek Group Ltd. ("Delek"), at Republic's special meeting of stockholders held today in New York City. Further, all governmental and regulatory consents and approvals, the receipt of which is a condition precedent to the consummation of the merger, have been obtained. www.RepublicGroup.com 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. UMB Asset Management Launches “Choosing a Financial Advisor” Podcast KANSAS CITY, Mo.--(BUSINESS WIRE)--UMB Asset Management, a division of UMB Financial Corporation (NASDAQ: UMBF), continues to use the popular “new media” channel by launching its sixth podcast, available live on Apple’s iTunes and umb.com. UMB is one of the first financial institutions in the country to use this technology to educate and communicate with current and prospective customers. The podcast is hosted by K.C. Mathews, Executive Vice President and Director of Portfolio Management at UMB, and covers key questions an individual should ask a current or potential financial advisor. The topic is especially appropriate for younger audiences who are typical podcast listeners. www.umb.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Fix Medicare Part D: Put Patients First, Profits Last Congress Could Eliminate Doughnut Hole by Collecting Drug Discounts Instead of Allowing Pharmacy Benefit Managers to Pocket the Discount Dollars WASHINGTON, Dec. 5 /PRNewswire/ -- Democrats' control of Congress offers fresh hope Medicare Part D will be transformed into a real benefit for patients rather than a cash cow hand out to pharmacy benefit managers (PBMs). The Association of Community Pharmacists Congressional Network (ACP*CN) supports the Democratic leadership's interest in giving the government the ability to negotiate drug prices under Medicare Part D but Congress can't stop there. Congress must eliminate the "middle man" role PBMs play in Medicare, which allows them to profit from drug manufacturer discounts, as seniors free fall into the doughnut hole. "If consumers were expected to pay premiums for 12 months of auto, life or medical insurance and then only receive six months worth of coverage, they would say the insurance companies were getting rich without providing them with a 'real' benefit," said Mike James, Vice President, Governmental Affairs, ACP*CN. "Logic should tell Congress America's seniors are getting a skewed drug benefit while pharmacy benefit managers and other plan sponsors report record profits as a direct result of offering Medicare Part D plans. As the program is today, the drug discounts are going into the pockets of PBMs, rather than eliminating the doughnut hole," added James. Drug manufacturers give PBMs rebates or discounts for placing their drugs on formularies, so PBMs create formularies based on profit not patient care. PBMs make enormous profits from these discounts, which are not passed back to plan sponsors to lower drug costs. If Congress removed these middlemen from the drug benefit and allowed PBMs to only process claims, program costs would decline, requiring no coverage gap. Ironically, when Congress passed Medicare Part D, members said the break in coverage was needed to cut program costs, yet plan sponsors and pharmacy benefit managers continue to record double digit earnings from the program. It appears creating the doughnut hole was code for a special interest hand out to big business. Even more troubling, as seniors face increased Medicare premium expenses next year, they will find fewer plans offering brand name drug coverage in the doughnut hole. In another "cost saving" move, Congress indexed the coverage gap for inflation. This means next year seniors will pay even more for drugs, as profits soar higher for big business. In 2007, when a senior reaches $2400 in total drug costs (up from $2251 this year) coverage will stop and then resume only when the senior spends a total of $5,451.21, which is an increase of $351.21 from this year's $5100 total. Congress recognizes there is something truly rotten in Medicare Part D and ACP*CN encourages members to examine the entire problem and follow the pathway of millions of dollars in drug discounts. www.acpcn.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. First Notice Systems Integrates StrikeIron Web Services for Insurance Claims RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--StrikeIron Inc., provider of the Web Services Marketplace, today announced that First Notice Systems, Inc., the industry leader in claim reporting solutions for the insurance industry, has integrated StrikeIron’s Address Verification Web Service into First Notice’s product and service offerings. As a critical interface between customers and clients, First Notice must maintain real-time response speed, data accuracy, and efficient business process flow to continue to deliver the company’s high-quality service. By integrating StrikeIron web services, First Notice has further enhanced insurance claims reporting by adding functionality that continues to reduce loss adjustment expense. www.concentra.com www.strikeiron.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. SoundBite Communications Solidifies Leadership Position within Automated Voice Messaging Market BURLINGTON, Mass.--(BUSINESS WIRE)--SoundBite Communications Inc., a leading provider of hosted, automated customer contact solutions, today announced a series of milestones that have established the company as a leader in the rapidly growing automated voice messaging (AVM) market. Highlights include significant customer adoption, resulting in increased market share; a greatly enhanced infrastructure including a new release of the award-winning SoundBite automated voice messaging solution; key executive appointments and industry recognition for SoundBite’s automated customer contact solutions. As a result of its phenomenal growth and momentum, SoundBite projects that it will deliver 400 million messages this year, doubling the number of messages delivered in 2005. www.SoundBite.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Don't Put Your Auto Insurance on Auto-Pilot Insurance Commissioners Offer Tips for Updating Coverage, Saving Money KANSAS CITY, Mo., Dec. 5 /PRNewswire/ -- Smart motorists rely on seatbelts and airbags as the first line of protection in the event of a car accident. Another important safeguard -- especially for financial security -- is understanding and purchasing appropriate automobile insurance coverage. That's one reason the National Association of Insurance Commissioners (NAIC) has created its consumer Web site, www.InsureUonline.org. While liability or no-fault insurance is mandated in most states, it is also a necessity for nearly all drivers to protect their assets in the event they cause a motor vehicle accident. Still, according to a 2006 Insurance Research Council study, 15 percent of U.S. drivers were uninsured in 2004, up from 13 percent in 1999. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Independence Blue Cross Wins Disease Management Association of America Award for Innovative Programs That Help People Stay Healthy PHILADELPHIA, Dec. 4 /PRNewswire/ -- The Disease Management Association of America (DMAA) has awarded Independence Blue Cross (IBC) the 2006 Disease Management Leadership Award for Outstanding Health Plan, in recognition of the company's Connections(SM) Health Management Programs that help members with chronic and other conditions better manage their health. Esther Nash, MD, Senior Medical Director, Population Health and Wellness at IBC, will accept the award today at the DMAA's 7th annual Disease Management Leadership Forum in Denver, Colorado. www.ibx.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Blue Cross and Blue Shield of Florida Selects Benefitfocus CHARLESTON, S.C., Dec. 5 /PRNewswire/ -- Benefitfocus, a leader in health care technology, has signed a contract with Blue Cross and Blue Shield of Florida (BCBSF) to support its group business with eEnrollment capabilities. To enhance BCBSF's advantage in the burgeoning small group market, Benefitfocus will begin providing automated enrollment and plan configuration tools to its small and large group members in 2007. The initial deployment of the enrollment automation software will be for small groups of two to 50 employees. www.benefitfocus.com www.bcbsfl.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Premera Blue Cross Scales Stellent Universal Content Management Across Enterprise EDEN PRAIRIE, Minn.--(BUSINESS WIRE)--Stellent, Inc. (Nasdaq:STEL), a global provider of content management solutions, announced today Premera Blue Cross, a health benefits company serving more than 1.6 million members in the Western United States, has scaled Stellent® Universal Content Management™ across its enterprise. Specifically, the Stellent system serves as the content foundation for Premera’s four public Web sites, four types of portals (seven in total), company intranet, and Health Insurance Portability and Accountability Act (HIPAA) document repository. To view an in-depth case study of the Stellent implementation at Premera Blue Cross, visit www.stellent.com/success. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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