INSURANCE NEWSCAST for Thursday, 01/04/07 from www.InsuranceBroadcasting

Subject: INSURANCE NEWSCAST for Thursday, 01/04/07 from www.InsuranceBroadcasting.com

INSURANCE NEWSCAST - Thursday, 01/04/07
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Walt Podgurski, CLU, CES, Publisher & Editor

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INSURANCE NEWSCAST HEADLINES

1) Ironshore Inc. Created As New Global Cat Insurance Facility With Over $1 Billion In Capital

2) HCC to pay execs' tax penalty from backdated options

3) Massachusetts probes UBS hedge fund "hotel"

4) Best’s Review: Elite Insurance Brand Builders Share Their Strategies

5) January CPCU eJournal Considers Risk Management Perspective Of A Possible Flu Pandemic

6) Flawed Florida Credit Rule Rejection Is Good News For Consumers And Insurers, Says AIA

7) HR.com launches online marketplace for HR products and services

8) Watson Wyatt to Acquire Long-Time Partner in the Netherlands

9) Hilb Rogal & Hobbs Completes Acquisition of Glencairn Group Limited

10) Swett & Crawford Announces the Acquisition of Oxbridge Insurance Associates

11) First Niagara Risk Management Acquires Gernold Agency

12) National City Insurance Group, Inc. Acquires Employee Benefits Business Of The Hoffman Group, Inc. In St. Louis

13) Elder Health and Health Partners of Philadelphia Enter Agreement for Elder Health to Acquire Health Partners' Medicare Plan

14) INSURANCE NEWSLINK Articles

15) Bank Insurance News In Brief - January 3, 2007

16) Standard Life says 4 pct of shares still unclaimed

17) Health insurance bridges gap for poor families

18) Only four big U.S. cities ready for crisis: report

19) Mellon sells venture capital stakes

20) INSURANCE NEWSCAST “Pictures Of The Day”

21) Community Reinvestment Fund, USA Receives $5 Million Social Investment Loan from MetLife

22) Pro Group Management Selects NavRisk to Streamline Worker’s Comp Policy and Underwriting

23) Ratings Releases

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1. Ironshore Inc. Created As New Global Cat Insurance Facility With Over $1 Billion In Capital

Hamilton, Bermuda, January 3, 2007 - Ironshore Inc. announced today that it has raised more than $1 billion through a private placement of its equity securities, and it will begin underwriting specialty lines of insurance immediately through its Bermuda-based insurance subsidiary, Ironshore Insurance Ltd. This newly formed global insurance company was created in response to the crisis conditions in the U.S. property catastrophe insurance markets, a result of unprecedented hurricane activity in recent years and subsequent changes in the insurance industry that make such coverage capital intensive and much more costly.

Initially, Ironshore will write a worldwide book of property business. Because of marketplace demands, the company's initial focus will be on commercial risks with wind exposures in the catastrophe-prone coastal states such as Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina and Texas, as well as the Caribbean and Yucatan Peninsula. Ironshore will also provide commercial earthquake coverage in California.

Ironshore management and staff will be based in Bermuda, led by Robert V. Deutsch as Chief Executive Officer and Leslie J. Rock as President and Chief Underwriting Officer. Mr. Deutsch is a highly regarded executive who has worked in the insurance industry for 25 years, having served in leading roles with two major insurance companies. Mr. Rock has long been recognized as the leading property underwriter at Lloyd's, having served as chief property underwriter for three of its leading property syndicates over the past 25 years. Ironshore's leadership team also includes Mitchell E. Blaser, most recently the CFO of Swiss Re America and Marsh Inc, who has been appointed Chief Financial Officer.

"In the wake of Hurricane Katrina and other notable catastrophic events over the past two years, tens of billions of dollars have flowed into the reinsurance sector, but to date, permanent, adequate capacity has not been established on the insurance side," stated Deutsch. "Ironshore is very pleased to be able to provide significant new insurance capacity with a substantial, unencumbered capital base and a proven, strong management team."

The founders of Ironshore are Robert Clements and John Clements through their investment vehicle, Tara Partners Fund LLC, and Ironshore management. The company's founding investors are Bear Stearns Merchant Banking, Corporate Partners (a business unit of Lazard Alternative Investments), Fremont Partners, TowerBrook Capital Partners and Greenhill Capital Partners. Integro Ltd., a leading global insurance broker that focuses primarily on buyers of insurance with large and/or complex risks, is a sponsor of Ironshore.

Robert Clements is recognized for his industry leadership in creating insurance solutions in response to insurance market dislocations over the past 20 years, having founded a number of Bermuda domiciled insurance and reinsurance companies, including ACE Limited, XL Capital Ltd., Mid Ocean Ltd and, most recently, Arch Capital Group Ltd. Robert Clements said, "Integro initiated the idea of Ironshore as an independent, open-market facility available to all brokers, which we know from experience works best for all concerned."

Ironshore Founding Investors

BSMB, the private equity affiliate of The Bear Stearns Companies Inc. (NYSE: BSC), invests private equity capital in compelling leveraged buyouts, recapitalizations and growth capital opportunities alongside superior management teams. BSMB focuses on investments principally in middle-market retail, financial services and consumer products companies. Since its formation in 1997, BSMB has been an investor in over 50 portfolio companies. BSMB manages nearly $5 billion of private equity capital, including its new $2.7 billion institutional fund and capital dedicated to its affiliate, Bear Growth Capital Partners. More information about BSMB can be found at www.bsmb.com.

Corporate Partners II is a private equity fund targeting significant minority-stake investments in established public and private companies. Corporate Partners invests in solutionsSM by providing equity and equity-related capital to support companies where there is a value-added use of proceeds such as a strategic acquisition, the pursuit of a growth initiative, strengthening the balance sheet, increasing shareholder stability and other important corporate needs. Corporate Partners is a business unit of Lazard Alternative Investments, a merchant banking firm that manages over $2 billion. For more information on Corporate Partners, go to www.corporatepartnersllc.com.

Fremont Partners, founded in 1991, is a private investment partnership that has managed more than $2 billion of equity investments in 22 companies, representing a total transaction value of $5.6 billion. With offices in San Francisco and Boston, Fremont invests across a diverse range of industries, including financial services, business services, food and consumer products, healthcare, building products, and industrial manufacturing. Fremont Partners makes substantial equity investments in operating companies, typically with enterprise values up to $1 billion, and seeks to build long term sustainable value by working with management teams to implement strategic and operating initiatives. Its website may be found at www.fremontpartners.com.

TowerBrook Capital Partners, L.P. is a private equity firm with more than $2.5 billion under management. The firm has offices in London and New York and focuses on making investments in European and North American companies. TowerBrook pursues private equity investments in large and middle market companies, partnering with highly capable management teams. www.towerbrook.com Greenhill Capital manages several private equity funds with an aggregate of $1.3 billion in committed capital, focusing on the financial services, energy and telecommunications industries. Its publicly traded portfolio companies include: Global Signal Inc., Heartland Payment Systems, Inc. and Hercules Offshore, Inc. Greenhill Capital is an affiliate of Greenhill & Co., Inc. (NYSE: GHL), an independent global investment banking firm with offices in New York, London, Frankfurt, Toronto and Dallas. For more information about Greenhill Capital, please visit http://www.greenhillcapitalpartners.com.

Tara Investment Partners LLC and its affiliated funds were formed by Robert Clements and John Clements to partner with leading management teams and sophisticated investors in making private equity investment in the insurance industry.

Integro, through its subsidiaries, is an insurance brokerage and risk management firm dedicated to serving clients with large and/or complex risks. Integro has offices in New York, San Francisco, Chicago, Atlanta, Bermuda, Toronto, Montreal, London and Stockholm. Its headquarter office is located at 3 Times Square, 9th Floor, New York, New York, 10036. 1-877-688-8701. More information about Integro is available at www.integrogroup.com.

Ironshore Insurance Ltd. will be located at Swan Building, 3rd Floor, 26 Victoria Street, Hamilton HM 12, Bermuda, 441-279-8200.

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2. HCC to pay execs' tax penalty from backdated options

WASHINGTON, Jan 3 (Reuters) - HCC Insurance Holdings Inc. (HCC.N: ) said on Wednesday that it plans to reimburse executives and directors if they are subject to a penalty tax from the Internal Revenue Service for manipulated stock options.

The company said in a filing with the U.S. Securities and Exchange Commission that it plans to reimburse those employees for options exercised during 2006.

Houston-based HCC said on Dec. 27 that it had completed its independent review of its options granting practices. It said earlier that it would restate its financial results going back nine years for accounting errors related to its stock-based compensation grants. © Reuters 2007. All Rights Reserved.

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3. Massachusetts probes UBS hedge fund "hotel"

NEW YORK, Jan 2 (Reuters) - Massachusetts Secretary of State William Galvin has subpoenaed UBS (UBSN.VX: ) over whether its Boston "hedge fund hotel" charges fees that may create conflicts of interest and harm investors, a spokesman said on Tuesday.

UBS and other banks lease space to start-up hedge funds and provide receptionists and other support, with hopes that in time these funds will grow into bigger, lucrative customers.

But Galvin, who oversees banks and brokerages operating in Massachusetts, is concerned that funds may be paying inflated trading fees to help pay for the office space. Moreover these "soft dollar" costs are not disclosed to their investors.

"The secretary is looking into the matter of hedge fund hotels and the potential for conflicts of interest," spokesman Brian McNiff said. "The investigation into UBS practices is going on and is preliminary at this point."

McNiff added that some investors are unaware of the arrangements between banks and hedge funds, though inflated costs can drag on returns.

Hedge funds have been a gold mine for investment banks in recent years, generating a third of equities-trading commissions. Goldman Sachs (GS.N: ) and Morgan Stanley (MS.N: ) dominate the prime brokerage business, executing trades and lending securities, though UBS and other banks are expanding.

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4. Best’s Review: Elite Insurance Brand Builders Share Their Strategies

OLDWICK, N.J.--(BUSINESS WIRE)--Building a brand can be daunting. Often, it means remaking a company’s image. In the January issue of Best’s Review, the top marketing executives for four major insurers tell how they recently got the job done.

Hartford Financial Services needed to evolve its corporate identity from insurance to financial services.

MetLife needed to communicate to intermediaries that its group life, disability, auto and homeowners products were employee benefit options.

Hartford Steam Boiler had to break out from a name that conveyed an increasingly obsolete coverage and showcase its portfolio of modern coverage products for today's high tech business environment.

St. Paul Travelers, the result of a major merger, needed a new advertising message that was a common denominator across two dozen lines of business.

Although Hartford Steam Boiler offers a wide product selection, including identity theft, data compromise and medical equipment insurance, it was branded a boiler machinery insurance company. That had to change, said Denis O’Shea, vice president of communications. In St. Paul Travelers’ search for a new advertising message, “we weren’t trying to redefine the company,” said Shane Boyd, vice president of corporate communications. “We were looking for the common denominator—something that works across two dozen business lines.”

Those and other marketing challenges were explored during the 2006 Insurance Marketing and Advertising Summit, sponsored by the A.M. Best Co. and the Insurance Media Association in New York in November. The January Best’s Review cover story captures much of the conversation at the summit, plus fresh ideas shared by some of the key speakers beyond the boundaries of the meeting. www.bestreview.com

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5. JANUARY CPCU eJOURNAL CONSIDERS RISK MANAGEMENT PERSPECTIVE OF A POSSIBLE FLU PANDEMIC

MALVERN, PA, JANUARY 3, 2007—The January CPCU Society’s CPCU eJournal, “Preparing for the Pandemic Flu from a Risk Management Perspective,” examines the key components of planning for a flu pandemic within a risk management approach.

The January issue was written by Francis Achampong, Ph.D., the chief academic officer of Penn State University’s Mont Alto campus near Gettysburg, Pennsylvania.

“Widespread illness and deaths resulting from a pandemic can have significant and potentially devastating financial consequences for businesses, educational institutions, and other organizations, as a result of the toll on human resources and resultant disruptions in operations,” writes Dr. Achampong.

The article is based on the fear that a strain of the H5N1—known as Avian or bird flu—could mutate and spread among humans through the air. “In the United States alone, it is estimated that 200,000 to 2 million people could die from the pandemic flu. Depending upon the severity of a pandemic, it is projected that infections could range from 75 million to 90 million people,” continues Dr. Achampong in the issue.

With respect to general preparation for a pandemic, Dr. Achampong writes that “planning by individuals, families, communities, organizations, and governmental authorities is going to be critical.”

Dr. Achampong holds an LL.B. (magna cum laude) from the University of Ghana, LL.M. and Ph.D. degrees in law from the University of London, and a second LL.M. from Georgetown University Law Center. Achampong is also admitted to the New York and Virginia Bars. His Ph.D. dissertation drew on insurance regulation in the United States and England as a basis for an exposition, analysis, and critique of insurance regulation in Ghana. Before assuming his current position, he served as interim dean of the School of Business at Norfolk State University, an AACSB-accredited school. Prior to that, he was a department head and professor of business law and insurance in the school. He began his career teaching in Howard University Business School’s insurance program.

The CPCU eJournal, a monthly electronic publication available to CPCU Society members, provides a medium for the _expression_ of opinion and the presentation of pertinent articles on subjects of interest to financial services and property and casualty insurance professionals.

For more information, please contact Julia Sherwin at the CPCU Society at (800) 932-2728, Ext. 2738. Copies of January’s CPCU eJournal can be downloaded from the CPCU Society web site at www.cpcusociety.org.

The CPCU Society is a community of credentialed insurance professionals who promote excellence through ethical behavior and continuing education. The Society's 26,000 members hold the Chartered Property Casualty Underwriter (CPCU®) designation, which requires passing eight rigorous undergraduate- and graduate-level examinations, meeting experience requirements, and agreeing to be bound by a strict code of professional ethics. The CPCU designation is conferred by the American Institute for CPCU.

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INSURANCE NEWSCAST

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6. Flawed Florida Credit Rule Rejection Is Good News For Consumers And Insurers, Says AIA

ATLANTA, Jan. 3, 2007 - The American Insurance Association (AIA) today praised a ruling by a Florida Administrative Law Judge that unequivocally rejected the Office of Insurance Regulation’s (OIR) rule regarding insurer use of credit information.

“The ruling is an impartial decision that unmistakably rejects efforts to arbitrarily restrict a proven risk measurement tool benefiting a majority of policyholders that is used in most states,” said David Snyder, AIA vice president and assistant general counsel.

The judge called the proposed rule “arbitrary and capricious,” and found that it is “vague, fails to establish adequate standards for agency decisions, and vests unbridled discretion” to the regulating agency. The judge also found the proposed rule would “enlarge, modify, or contravene the specific provisions of law,” while also having a “definitional failure.”

In a legal challenge that lasted almost two years, AIA and other insurance trade organizations argued that OIR’s proposal was the wrong public policy answer to questions about insurer use of credit information. It went far beyond the language of the Florida statute that authorizes insurers’ use of credit and credit scores in underwriting and rating.

“The proposed rule ran counter to helping provide a stable, predictable marketplace for insurers in order to efficiently conduct business, especially, as the judge pointed out, given the ‘circular’ nature of the OIR’s definition of its own rule that left insurers in an untenable situation. Had it moved forward, Florida consumers would have been the eventual losers,” added Snyder.

As with Oregon voters’ rejection of a ban on insurer use of credit information in November, the Florida decision is another positive development supporting the use of credit information to achieve more accurate underwriting and rating decisions. According to testimony presented during the hearings on the proposed Florida rule, credit information is a top three risk classification factor for certain insurance coverage such as property damage, personal injury protection and collision. “This is another step forward for consumers as we continue to demonstrate from the West Coast to the East Coast the true benefits of insurer use of credit information,” said Snyder.

A copy of the complete 96-page ruling can be found at: http://www.doah.state.fl.us/ros/2005/05-1012.PDF.

The American Insurance Association represents approximately 400 major insurance companies that provide all lines of property and casualty insurance and write more than $120 billion annually in premiums. The association is headquartered in Washington, D.C. and has representatives in every state. All AIA press releases are available at http://www.aiadc.org/.

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7. HR.com launches online marketplace for HR products and services

HR.com invites HR solution providers to promote and sell products directly to HR.com’s community of 135,000 members via its new HR Marketplace

Aurora, ON (January 2, 2007) - HR.com, the world’s largest social network and online community for HR professionals, is set to enter the online marketplace with the launch of their HR Marketplace. The auction and fixed priced marketplace will offer 135,000 community members fast and easy access to HR services, books, research, software, podcasts, audio products, HR publications, events, training, product information and more.

“This is an extremely exciting opportunity for HR solution providers to connect with busy and time-starved HR decision-makers. The Marketplace offers providers a unique and cost-effective way of reaching a targeted HR audience at a lower cost per acquisition than traditional marketing methods,” says HR.com’s CEO, Debbie McGrath.

For more information on HR.com’s HR Marketplace including listing fees, please visit www.hr.com/marketplace.

HR.com is a free website that is in business to help build great companies by connecting them to the knowledge and resources they need to effectively manage the people side of business. As the largest social network and online community of HR executives, we provide thousands of worldwide members with easy access to shared knowledge on best practices, trends and industry news in order to help them develop their most important asset - their people.

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8. Watson Wyatt to Acquire Long-Time Partner in the Netherlands

WASHINGTON, Jan. 3 /PRNewswire-FirstCall/ -- Watson Wyatt (Nachrichten) Worldwide, a leading global consulting firm, announced today the intention to acquire its alliance partner in the Netherlands, Watson Wyatt Brans&Co. A definitive agreement is expected to be signed in the first quarter of 2007.

The two firms have maintained a close relationship for many years. In 1999, the Netherlands office of Watson Wyatt merged with the leading Dutch actuarial consulting firm, Brans&Co., to create Watson Wyatt Brans&Co. Since then, Watson Wyatt Brans&Co. has operated as a separate partnership as part of Watson Wyatt Worldwide. The partnership currently has 180 associates located in five offices throughout the country - Amsterdam, Eindhoven, Nieuwegein, Purmerend and Rotterdam. Its 2006 revenues were approximately $37 million (Euro 28m).

Watson Wyatt is the trusted business partner to the world's leading organizations on people and financial issues. The firm's global services include: managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; advising pension plan sponsors and other institutions on optimal investment strategies; providing strategic and financial advice to insurance and financial services companies; and delivering related technology, outsourcing and data services. Watson Wyatt has 6,000 associates in 30 countries and is located on the web at http://www.watsonwyatt.com/.

Watson Wyatt Brans&Co. is a market leader in the Netherlands for pensions consulting, with prominent pension funds and other blue-chip organizations among its clients. Brans&Co was established in 1945 as an actuarial firm and has extended its services from retirement consulting to incorporate legal aspects of employee benefits and investment consulting to a wide range of clients.

Watson Wyatt will continue to operate a separate Insurance&Financial Services consulting business in the Netherlands

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9. Hilb Rogal & Hobbs Completes Acquisition of Glencairn Group Limited

RICHMOND, Va.--(BUSINESS WIRE)--Hilb Rogal & Hobbs Company (NYSE: HRH), the world's tenth largest insurance and risk management intermediary, announced that effective January 1, 2007, it has completed the previously announced acquisition of the stock of London-based Glencairn Group Limited (Glencairn). Terms of the transaction were not disclosed.

Glencairn is an independent Lloyd’s insurance and reinsurance broker group with over 150 employees headquartered in London and throughout its three offices in South Africa, Russia and Australia. Providing a broad spectrum of wholesale and retail products and services in the property, casualty, reinsurance, financial, professional, accident & health, and specialty areas, including political risks and cargo, Glencairn expects 2006 annualized revenues of approximately USD 39 million (GBP 20 million). Also effective January 1, 2007, Glencairn’s former Chairman and Chief Executive Officer, Steve Hearn, was appointed CEO of both his current staff and the staff of HRH’s existing London operations.

Hilb Rogal & Hobbs Company is the eighth largest insurance intermediary in the United States, with over 120 offices throughout the United States and London. HRH helps clients manage their risks in property and casualty, employee benefits, professional liability and other areas of specialized exposure. In addition, HRH offers a full range of personal and corporate financial products and services. HRH is focused on understanding our clients’ businesses, employees and risks, as well as the insurance and financial markets, so that we can develop insurance, risk management and employee benefits solutions that best fit their needs. The company’s common stock is traded on the New York Stock Exchange, symbol HRH. More information about HRH may be found at www.hrh.com.

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10. Swett & Crawford Announces the Acquisition of Oxbridge Insurance Associates

ATLANTA--(BUSINESS WIRE)--Swett & Crawford today announced the acquisition of the assets of Oxbridge Insurance Associates, Inc. (Oxbridge), located in Morristown, New Jersey.

Founded in 1991, Oxbridge is a property and casualty wholesale broker and managing general agent that writes specialty classes of business on a nationwide basis. Specialty lines written by Oxbridge include programs for the major professional sports leagues and an exclusive nationwide crane facility. Oxbridge also offers brokerage services for the transportation industry, with a focus on the motor coach, school bus and limousine industries.

Swett & Crawford, headquartered in Atlanta, Georgia, is the nation’s oldest independent wholesale insurance broker. Swett & Crawford is owned by its employees and two private equity firms, HM Capital Partners and Banc of America Capital Investors. In its national network of offices, Swett & Crawford serves independent agents and brokers through specialized Property, Casualty, Oil & Gas/Energy, Professional Services, Transportation and Underwriting Practice Groups, providing access to commercial insurance products and programs, including property and casualty coverages, products liability, professional liability, commercial and public auto liability, and a host of customized binding authorities and exclusive programs tailored to specific industries, business and professionals. www.swett.com

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11. First Niagara Risk Management Acquires Gernold Agency

LOCKPORT, N.Y., Jan. 3 /PRNewswire-FirstCall/ -- First Niagara Risk Management, Inc., the wholly-owned insurance subsidiary of First Niagara Bank, announced today that it has completed its acquisition of Gernold Agency Inc., an Orchard Park-based insurance agency specializing in alternative risk management solutions for larger businesses. This announcement comes less than a month after announcing plans for five additional branch locations in the first half of 2007 for First Niagara Bank. Gernold Agency serves 3500 clients and offers business insurance, personal and family insurance, and financial services and benefits that are complementary to First Niagara's current risk management offerings. Founded in 1935 by Richard Gernold's father, Leonard, Gernold Agency currently employs 20 associates. There are no layoffs planned as a result of this acquisition. By agreement of both parties, financial terms were not disclosed. www.fnfg.com

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12. National City Insurance Group, Inc. Acquires Employee Benefits Business Of The Hoffman Group, Inc. In St. Louis

ST. LOUIS – JANUARY 3, 2007—Dwight “Whitey” Kollmeier, president of the employee benefits division of National City Insurance Group, Inc., announced today the acquisition of the employee benefits business of HE Hoffman Group, Inc. of St. Louis. National City Insurance Group, Inc. is one of the top ten national bank-owned insurance agencies, according to the American Bankers Insurance Association (ABIA). National City Insurance Group has over $140 million in revenues.

The HE Hoffman transaction marks the first acquisition of an employee benefits agency by National City Insurance Group in a major National City market, creating an employee benefits hub in the St. Louis area. National City Insurance Group is currently targeting acquisitions in other metropolitan cities across National City’s eight state footprint. Targeted cities include: Chicago, Illinois; Louisville, Kentucky; Cincinnati, Cleveland and Columbus, Ohio; Indianapolis, Indiana; Detroit, Michigan and Pittsburgh, Pennsylvania. Earlier this year, National City Insurance Group, Inc. announced the acquisition of the employee benefits business of Valley Financial Group Agency, Inc. of Youngstown, Ohio and of the Stellar Group of Richland, Michigan.

“The goal of National City Insurance Group is to grow our annual employee benefits insurance revenue significantly. To enhance the value we bring to our new and existing clients, we intend to grow our employee benefits product and service offerings through strategic acquisitions of leading benefits firms throughout our footprint,” said Thomas J. Cook, president of National City Insurance Group. Cook also serves as president of the ABIA. www.nationalcity.com

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13. Elder Health and Health Partners of Philadelphia Enter Agreement for Elder Health to Acquire Health Partners' Medicare Plan

Sale of 'Senior Partners' to Elder Health Pending Approvals

BALTIMORE and PHILADELPHIA, Jan. 2 /PRNewswire/ -- Elder Health Inc. and Health Partners of Philadelphia Inc. announced today they have entered into an agreement under which Elder Health would acquire Health Partners' Senior Partners Medicare line of business in Philadelphia and surrounding counties.

Under the agreement, Elder Health Pennsylvania Inc., a subsidiary of Elder Health Inc., would acquire approximately 21,000 Senior Partners Medicare members, making Elder Health the second largest Medicare Advantage Plan in one of the largest Medicare markets in the country. Health Partners would retain ownership of its Medicaid plan, which serves more than 135,000 Medicaid members in Southeastern Pennsylvania.

The transaction is subject to regulatory approval and typical conditions for closing. The acquisition would increase Elder Health's total Medicare Advantage membership to more than 45,000, including 35,000 in the Philadelphia market. Elder Health also serves more than 25,000 individuals through its prescription drug plans.

"With Elder Health's exclusive focus on Medicare products, acquiring the Senior Partners members is a logical addition to our health plan, which solidifies our position in the Philadelphia market," said Jeff Folick, Elder Health Chief Executive Officer. "We are looking forward to serving these members and further strengthening our relationships with the health systems that serve them."

As part of the proposed transaction, Elder Health will enter into multi-year hospital and physician contracts with Temple University Health System, University of Pennsylvania Health System, and Jefferson Health System's Albert Einstein Medical Center and Frankford Hospitals. www.elderhealth.com www.healthpart.com

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14. INSURANCE NEWSLINK Articles

Recent articles added to INSURANCE NEWSLINK, the worldwide, strategic concise intelligence database of over 27,000 articles including interviews, uniquely analysed by company, market, research, regulatory, and IT topics. Please click here for a content overview and a 15-day free review.

THE TIME EFFECTIVE WAY TO STAY AHEAD

AXA to cut staff in Germany and indicates UK strategy
St Paul Travelers to stop contingent commissions
Amlin executive seconded to Lloyd's to assist electronic processes
Advent Re receives the nod in Bermuda
New Lloyd's syndicate launched
Aon acquires remainder of Russian unit
Beazley buys share capital of Santam Corporate
Jelf acquires again
Willis reviews rensurance rates and acquires in Florida
Castlewood moves for Inter-Ocean
Gallagher acquires in Philadelphia and settles contingent investigation
Allstate Life fined USD1.25m
MetLife settles with Spitzer
Putnam sale agreed
Munich Re in the news
Eureko dispute rolls on
China Life in first share sale
Mills goes to Deloitte & Touche
Axa Asia Pacific moves for Winterhur Life Hong Kong
Life application activity continues downwards in the US
Zurich moves for Spanish surety insurer
Equitable Life to sell University Life
500% growth predicted in Indian market by 2010
Four new branches for AXA jv in India
Chubb settles contingent probe

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15. BANK INSURANCE NEWS IN BRIEF - JANUARY 3, 2007

TODAY'S BANK INSURANCE NEWS IN BRIEF" is provided each week courtesy of Michael White Associates @ www.bankinsurance.com. To read these stories, visit http://www.bankinsurance.com/editorial/news/default.htm

LIFE INSURANCE APPLICATIONS 6.6% LOWER
ALLIANCE BANKSHARES ACQUIRES TWO INSURANCE AGENCIES
STERLING FINANCIAL SELLS INSURANCE BROKER AND HUMAN RESOURCES CONSULTING FIRM
ACORDIA SUED BY OF NEW YORK, CONNECTICUT AND ILLINOIS
HUNTINGTON BANCSHARES TO ACQUIRE SKY FINANCIAL
NATIONWIDE BANK GETS GREEN FLAG TO MERGE WITH CREDIT UNION
ARTHUR J. GALLAGHER WILL PONY UP $36.85 MILLION TO SETTLE CLASS-ACTION CHARGES
INVESTORS CAPITAL CORPORATION FINED FOR PRACTICES RELATED TO EQUITY-INDEXED ANNUITY SALES
AEGON AND RANBAXY PROMOTER GROUP TEAM UP TO OFFER LIFE INSURANCE AND ASSET MANAGEMENT IN INDIA
CHINA TARGETS MONEY LAUNDERING

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16. Standard Life says 4 pct of shares still unclaimed

LONDON, Jan 3 (Reuters) - Standard Life (SL.L: ) policyholders who failed to collect shares distributed after the former mutual floated last July have left some 4 percent of the insurer, or around 272 million pounds ($536 million) of stock, unclaimed. The Edinburgh-based insurer, which ended 80 years of mutual status, said on Wednesday that over 235,000 of its former members -- now shareholders -- had yet to claim a total of almost 90 million shares.

One former member in southeast England was missing out on shares worth over 138,000 pounds at current market values. An additional 18 million pounds in cash lie unclaimed by almost 20,000 former members, it said, largely those living outside the UK for whom it was too complex to issue stock.

Standard Life's unclaimed shares and cash are held in a trust, where they will remain until July 2016. After that, proceeds will be used for general corporate purposes. The insurer said some 7,000 people were coming forward each month to collect shares or cash.

"We are pleased that people are continuing to come forward to claim their shares and cash," a Standard Life spokesman said. "It is neither in the best interests of the individuals concerned, or the company, for these assets to be lying in trust."

Standard Life shares have climbed over 22 percent since the listing, Britain's biggest since 2000. On Wednesday the shares were trading around 299 pence at 1331 GMT, down 2.3 percent on the day after a strong rise on Tuesday. © Reuters 2007. All Rights Reserved.

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17. Health insurance bridges gap for poor families

Wed Jan 3, 2007 8:10am ET

By Verna Gates

BIRMINGHAM, Alabama (Reuters) - For years, Al Rohling watched parents quit their jobs when their kids got sick, deliberately making their incomes drop to a point where they could get U.S. government medical help.

Rohling, who directed Alabama's housing authority at the time, reached a startling conclusion: If children could drive parents into hardship when they became ill, could medical insurance help parents rediscover financial health?

"Health care for children really is a bridge to get out of poverty," said Rohling.

Rohling quit his job in 1988 to help set up the Child Caring Foundation, which provides free health insurance for children through the Blue Cross and Blue Shield of Alabama health care provider.

The foundation is just one example a charity that bridges the gap between Medicaid -- subsidized insurance -- for the poorest and private health insurance paid for either privately for those who can afford it or by an employer.

That gap leaves up to 9 million U.S. children uninsured in the United States, a nation with no universal health care, and many parents are forced to struggle with a patchwork of other provisions in order to get health care for their children.

"The problem of the uninsured is getting worse," and the number of uninsured children has risen since 2004, said Jennifer Tolbert, principal analyst with the Kaiser Commission on Medicaid and the Uninsured, a Washington-based think tank.

Tolbert said it was possible the U.S. Congress could increase the scope of the State Children's Health Insurance Progam (SCHIP) to provide greater state coverage for uninsured children when it debates reauthorizing the program next year.

IN THE LURCH

Children with health insurance are usually taken to the doctor at the first sign of illness, while parents of uninsured kids often wait because they are conscious of the cost.

Then the child's illness can worsen and the parent is forced to miss work to nurse the child back to health.

In Alabama, there were 230,000 uninsured children in 1988, and that has fallen to around 70,000 due to a combination of the Child Caring Foundation and state programs.

Jody Sharp, 60, is an example of the problem the charity aims to address.

She and her husband adopted a foster child, Dana, from a mother who was mentally handicapped. Later, they adopted Dana's brother Kyle who has epilepsy and asthma.

But Sharp's husband, the family wage earner, walked out in 1990, leaving Sharp to bring up the two children with no health insurance.

"If you never had a child with epilepsy, you would never know how many bills you can incur. With no insurance, it's thousands of dollars just like that," Sharp told Reuters.

During their two years in the Alabama Blue Cross Blue Shield program, Sharp's children received free medical care and she found a job working with special needs children. The money saved helped her move into private health insurance.

Some 90 percent of the 55,000 children on the program move into private health insurance within about 30 months.

"All of us have times when we lose jobs or lose our homes. You need the support of insurance so you don't have to worry about squeezing doctor bills out of an already stretched paycheck," said Sharp.

BEAR'S EYE

To recruit families, Rohling tours the state presenting health screenings at schools with the help of volunteers from the University of Alabama at Birmingham School of Nursing and elsewhere.

At one recent presentation, a student nurse pulled a teddy bear eye out of a child's ear, ending three years of one-sided deafness. It was an example of how problems can fester for children who don't have health insurance.

Low cost health insurance for low income American children began in Pittsburgh in 1985 when Highmark Blue Cross Blue Shield of Western Pennsylvania insured children of laid-off steel workers. By 2006, 144,000 children were in their program.

"There was a crisis. And the whole thing came about as an answer for how health insurance should work," said spokesperson Denise Grabner of Highmark.

In 1997, the program expanded to include children of the working poor when Congress enacted the SCHIP providing some matching funding.

Alabama was the first of 20 states to participate, creating the All Kids program, with money from state settlement with tobacco companies. The program provides insurance for children above the level at which they would qualify for Medicaid.

Many states now provide insurance for families who earn up to double the poverty rate, defined as $10,000 a year for a single person and $20,000 for a family of four. But Rohling said an individual needed to earn nearly three times the poverty level to afford private insurance.

"We fill the void between affordability and eligibility."

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18. Only four big U.S. cities ready for crisis: report

Tue Jan 2, 2007 9:27pm ET

WASHINGTON (Reuters) - More than five years after the September 11 attacks, only four big U.S. cities have emergency communications allowing police, fire and medical officials to coordinate fully during a crisis, a federal report said.

The Department of Homeland Security report, due to be released officially on Wednesday, listed Washington, D.C.; San Diego, California; the Minneapolis-St. Paul metropolitan area of Minnesota; and Columbus, Ohio, as the major urban areas that achieved "most advanced" status.

The study awarded the same status to the smaller metropolitan areas of Sioux Falls, South Dakota, and Laramie, Wyoming.

Portions of the report obtained by Reuters said federal officials surveyed the emergency communications systems of 75 urban and metropolitan areas.

New York City, which was hardest hit by the 2001 attacks that killed 3,000 people, did not appear among those with the most advanced systems. Neither did Chicago, another city seen as a potential target.

The report ranked Chicago in the early stages of communications development and cited political divisions between the city and surrounding Cook County as the reason.

The inability of police and fire officials to communicate during the September 11 attacks was blamed for the deaths of New York City firefighters despite a police warning when the World Trade Center towers began to collapse.

The September 11 commission, which investigated the attacks, recommended "interoperability" of the communications systems of urban emergency services.

The new Homeland Security report said 75 urban and metropolitan areas have policies governing interoperability. But it said leadership and planning have lagged and emergency services in some areas were still in need of regular training.

Homeland Security awarded most-advanced status to areas that have standard procedures for interoperable communications, proven familiarity with the equipment during emergencies and a strategic plan for meeting further communications goals.

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19. Mellon sells venture capital stakes

BOSTON, Jan 3 (Reuters) - Mellon Financial Corp. (MEL.N: ), which is being acquired by Bank of New York Co. Inc. (BK.N: ), said on Wednesday it has sold stakes in the portfolios of its venture capital business, resulting in an after-tax loss of about $70 million. Mellon said the stakes in the portfolios of Mellon Ventures were sold to Goldman Sachs Group Inc. (GS.N: ) affiliate Goldman Sachs Private Investments Ltd. and New MVI LP.

"The sale of the venture capital portfolio is consistent with Mellon's strategic focus on asset management and servicing businesses," Mellon said in a regulatory filing.

Bank of New York announced in December it would buy Mellon for $16.5 billion to create Bank of New York Mellon Corp., a powerhouse in custody services with $16.6 trillion of assets under administration and one of the biggest asset managers. The deal is expected to close around July 1.

Mellon also said in the filing that it will include in its fourth-quarter 2006 results a tax benefit of about $75 million, primarily related to a reversal of deferred tax liabilities. Mellon shares were up 0.74 percent at $42.46 in early trade on the New York Stock Exchange. The shares rose 23 percent in 2006. © Reuters 2007. All Rights Reserved.

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20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:

	Gary Betty is seen in a 1999 file photo. EarthLink Inc. said its President and Chief Executive Officer Garry Betty passed away on Tuesday due to complications from cancer. REUTERS/Jeff Christensen
	Robert L. Nardelli speaks during an interview at the Home Depot corporate headquarters in Atlanta, Georgia September 7, 2006. Home Depot Inc. on Wednesday said that Chairman and Chief Executive Nardelli left the struggling retailer in a mutual decision with its board of directors. REUTERS/Tami Chappell
	A Bluetooth enabled Nokia N-GAGE game deck is seen in a 2003 file photo. A U.S. research institute has sued Nokia, Samsung Electronics and Matsushita-owned Panasonic for violating a patent for Bluetooth technology, potentially putting the free wireless standard at risk. NO THIRD PARTY SALES REUTERS/LEHTIKUVA/Markku Ulander
	Health insurance bridges gap for poor families. Ashley Wright, a clinical supervisor, sets up monitoring equipment in the trauma center at Tulane University Hospital in New Orleans February 14, 2006. The gap between Medicaid and private health insurance leaves up to 9 million U.S. children uninsured in the United States, a nation with no universal health care, and many parents are forced to struggle with a patchwork of other provisions in order to get health care for their children. REUTERS/Lee Celano.
	Indonesian rescue team and volunteers return after searching a village that was reported to be the location of the crash of the Adam Air Boeing 737-400 which went missing with 102 passengers onboard, in Lili village, Polewali in West Sulawesi province, January 2, 2007. 02 Jan 2007 REUTERS/Dadang Tri
	A Starbucks location in a file photo. Pastries and other foods sold at half of Starbucks Corp.'s U.S. outlets will be free of artery-clogging trans fats starting this week, a spokesman for the coffee shop chain said on Tuesday. REUTERS/Caetano Barreira
	Actress Jessica Simpson (R) is introduced by Blockbuster Chairman and CEO John Antioco at the launch of the Total Access program in Hollywood, California November 2, 2006. Movie rental company Blockbuster Inc. said on Wednesday that it ended 2006 with around 2.2 million online rental subscribers, including about 2 million paying subscribers. REUTERS/Mario Anzuoni
	Sirius Satellite Radio CEO Mel Karmazin in a file photo. The company said on Tuesday it ended 2006 with 6.024 million subscribers and achieved its first quarter of positive free cash flow in the fourth quarter in line with its expectations. REUTERS/Mike Blake
	Participants take part in an earthquake simulation exercise in Istanbul in this November 7, 2006 file photo. Turkey lies on a major fault line and has had 90 earthquakes higher than magnitude 5 since 1903, including one in August 1999 when nearly 18,000 people were killed. REUTERS/Fatih Saribas. Many scientists agree the question is not if, but when in the next three decades a major earthquake will hit Istanbul, the former seat of the Byzantine and Ottoman empires and source of more than half Turkey's industrial output.
	People riding an elephant watch a Rhinoceros bathing in a pond in the Royal Chitwan National Park about 200 km (125 miles) south of Kathmandu January 2, 2007. According to the Department of National Parks and Wildlife Conservation 28 rhinos were killed by poachers for its horn during the last year and half. 02 Jan 2007 REUTERS/Kiran Man Chitrakar
	The General Motors world headquarters is seen along the Detroit River in Detroit, Michigan July 26, 2006. The disappearance of billionaire investor Kirk Kerkorian, who had agitated for changes at GM before selling off his stake, removes the uncertainty of a fight for board control but also puts the spotlight back on GM management in 2007, analysts said. REUTERS/Rebecca Cook (UNITED STATES)

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21. Community Reinvestment Fund, USA Receives $5 Million Social Investment Loan from MetLife

MINNEAPOLIS--(BUSINESS WIRE)--Community Reinvestment Fund, USA (CRF), a nonprofit organization that connects community development lenders with the capital resources of Wall Street, today announced MetLife provided the organization with a $5 million social investment loan. This new, low-interest loan represents the fifth investment MetLife has made in CRF, continuing a long-standing relationship through which MetLife provided $10.5 million in earlier investments that have generated significant social impact in low- and moderate-income communities.

CRF will use the latest MetLife social investment loan to foster greater community development in economically underserved areas by funding loans for small businesses, community facilities and affordable housing projects. www.metlife.com www.crfusa.com

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22. Pro Group Management Selects NavRisk to Streamline Worker’s Comp Policy and Underwriting

SAN FRANCISCO--(BUSINESS WIRE)--DAVID Corporation, a trusted provider of Risk Management software, today announced that Pro Group has selected NavRisk Policy administration and underwriting software, to automate and manage its workers’ compensation line of business. Pro Group chose NavRisk Policy for its ease of configuration and flexibility for their unique requirements.

Pro Group manages and administers workers’ compensation for four self insurance groups within the builder, transportation, retail and auto industries in Nevada. Previously, they used separate databases and spreadsheets to manage workers’ compensation policies for more than 1400 customers. Pro Group needed a system that would provide the underwriting team with one-time entry into a single system. www.davidcorp.com

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