Daily Quote: "Have you ever met a man so small that he could hide behind a technicality." - - Roy H. Williams
1. Pensions Pile Into Commodities Amid Volatile Oil Tue Jan 30, 2007 7:32am ET By Barani Krishnan NEW YORK (Reuters) - Institutional investors expected to pour another $25 billion into commodities this year are steadily building new long positions in energy markets amid selling pressure from hedge funds and other speculators. An infusion of cash by pension funds investing passively in commodity indexes helped oil recover last week from a weak start to 2007, Lehman Brothers said in a report issued Friday. It said the new investments could presage the additional $25 billion that such investors were expected to put into long-only investment strategies this year. But oil's potential to rally from such support is limited by hedge funds selling crude over the short-term for out-sized gains, market sources said. Trend-following managed futures firms which have yet to see a clear break in crude's bearish pattern are also pressuring the market with short positions, they said. After a near 7 percent rise last week from the lows of January, crude fell again Monday after speculation that OPEC, the single largest source of oil, could raise supplies in March after promising for months to cut back on a growing glut. U.S. light crude for front month delivery <CLc1> finished Monday's trade on the New York Mercantile Exchange down 2.54 percent, or $1.41, at $54.01 a barrel. It nearly peaked at $56 on January 25, after breaking the $50 support a week earlier. Volatility aside, analysts said institutional support for commodities seemed to be growing again and could rescue oil prices trapped in a long bear hug since last July's record of $78 a barrel. "I was bearish myself on oil up until about a week and a half ago, but I can simply no longer avoid the trend and what's going on," said Stephen Schork, author of energy market newsletter The Schork Report. "With the surge in open interest in NYMEX crude oil and all energy-related contracts, including the corn and sugar used to make ethanol, I think there is no denying the bullish impact you will ultimately see from these index-related investments," Schork said. Open interest in NYMEX crude rose 8 percent between December 26 and January 23 to 1,269,598 contracts. Net short positions in crude rose 28 percent -- going from 140,461 to 179,791 contracts. "I think the funds shorting on crude now are just jockeying for position in a very uncertain market," said Schork. "At this point, with the institutional support coming behind oil and the improving fundamentals for demand, it's very difficult to see oil prices coming off very much further. I think where we are now, at between $53 and $55, is fair value." Pension funds and other institutions buy into commodity indexes to offset risks in investments such as equities. Analysts said some investors had cut their long exposure to commodities in recent months after their investments generated steady losses because of a weak oil market. Crude prices have fallen since the last quarter of 2006 from a combination of mounting stockpiles and an unseasonably warm winter. But colder-than-usual temperatures in coming days in the U.S. Northeast, the world's largest heating oil market, should help market sentiment, industry sources said. "Technically, the markets are ... enjoying something of a modest bounce within a larger downtrend," Man Financial said in a research report Monday. (Additional reporting by Matthew Robinson) © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. RESEARCH ALERT-Goldman upgrades U.S. life insurers Mon Jan 29, 2007 9:30am ET (Reuters) - Goldman Sachs upgraded the U.S. life insurance sector to "neutral" from "cautious." The brokerage, in a research note, said the group should benefit as relative earnings growth becomes more attractive, excess capital management drives up return on equity and consolidation opportunities surface. Goldman said that although the sector underperformed the S&P 500 by 4.2 percent in 2006, it expects investors to view the sector as a group more favorably in 2007. Prudential Financial Inc. (PRU.N: ) and Ameriprise Financial Inc. (AMP.N: ) are the stocks with strongest earnings growth expectations in 2007, Goldman said. The brokerage has a "buy" rating on Prudential's stock, citing an attractive business mix including higher exposure to international segments and expectations for further improvement in its return-on-equity. Goldman has a "buy" rating on Ameriprise, citing an expected turnaround in the asset management operations and excess capital redeployment. Goldman rated Genworth Financial Inc. (GNW.N: ) as a "buy", saying the stock is attractive at 1.2 times book value, the company has excess capital capacity and is focusing on products and distribution in longer-term growth markets. The brokerage also rated MetLife Inc. (MET.N: ) as a "buy" citing robust book value growth and excess capital capacity, among other reasons. (Reporting by Amitha Rajan in Bangalore) © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Hannover Re looks to market to shift credit risk By Jonathan Gould FRANKFURT, Jan 30 (Reuters) - Hannover Re (HRNGn.DE: ) plans to protect itself from the risk of defaults in the insurance sector by shifting some of its risk to the financial markets through a new type of financial transaction. The world's fourth-biggest reinsurer is to launch a synthetic collateralised debt obligation (CDO) to hedge part of its credit risk issued by Merlin CDO I, a special purpose company based in the Netherlands, a report by credit rating agency Standard & Poor's showed. "We will have an announcement on this in the coming weeks," a Hannover Re spokesman said on Tuesday, but declined to give details of the transaction. Hannover Re has been one of the leaders in the reinsurance sector in shifting risks on its books, such as hurricane, European windstorm or aviation risks, to the capital markets. It is now pursuing similar innovation for its credit risk. The company has in the past indicated that it wanted to reduce reinsurance recoverables on its balance sheet, which total about 4 billion euros ($5.2 billion). "This landmark transaction is the first synthetic CDO of insurance and reinsurance entities rated by Standard & Poor's," said S&P credit analyst Lapo Guadagnuolo. The deal has generated interest among banks and insurance players, and S&P has already been asked about rating similar transactions, Guadagnuolo said. Buyers of the new CDO would be exposed only to the credit risk of an international group of 100 insurers and reinsurers, totalling 1 billion euros of exposure, the S&P report showed. "This is the first time that it's 100 percent insurance and reinsurance risk, which raised a big analytical task about how to treat correlation in a one-sector portfolio," Guadagnuolo said. Merlin is expected to sell 95 million euros worth of notes in four classes rated from AAA to BBB. Societe General is arranging the issue. © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Guy Carpenter Publishes U.S. Reinsurance Renewals at January 1, 2007 New Report Finds Soft Market Conditions Prevailing; Severe Storms and Florida Legislation Potential Destabilizing Forces NEW YORK--(BUSINESS WIRE)--Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist and a part of the Marsh & McLennan Companies (NYSE: MMC), today announced the publication of U.S. Reinsurance Renewals at January 1, 2007, its annual review of pricing, retentions and limits, capacity and terms and conditions across the property, casualty, liability, casualty facultative, accident & health, life & annuity and U.S. marine and offshore liability lines of business. According to the report, rates at the January 1, 2007 renewals period for U.S. property catastrophe were below the levels of July 1, 2006 renewals, with nearly all other lines experiencing rate decreases or renewing at expiry. The report also concludes that two developments in early 2007 have the potential to impact a relatively placid reinsurance marketplace: Severe storm activity – In addition to deaths and extensive economic losses, European Windstorm Kyrill and the severe winter storms that pummeled western and central parts of the United States are expected to cause widespread insured losses. Insured losses from Kyrill are estimated between EUR 4 billion and EUR 8 billion ($5.2 billion to $10.4 billion), while insurance losses from the U.S. winter storms already are estimated at more than $250 million in January alone. Florida legislation – The Florida state legislature’s recent expansion of the cover provided by the Hurricane Catastrophe Fund (FHCF), from a ceiling of an industry loss of $16 billion to a loss of $28 billion, awaits the governor’s signature. The legislation raises a number of troubling issues, not least the fact that the FCHF will now be supported by the issuance, post-event, of bonds – a “play now, pay later” structure that runs counter to the basic premises of insurance and reinsurance. In addition, there is concern that the Florida plan may be seen as a model for other states, leading to a contraction of insurance and reinsurance markets. “Now that the U.S. reinsurance market has entered the soft phase of the cycle, we can, assuming no mega-catastrophes, expect soft market conditions to persist for a number of years,” said Sean Mooney, Guy Carpenter’s Chief Economist. Among the other major findings of the January 1, 2007 renewals report: Increased industry capital – Due to significant rate increases and a relatively benign loss season, 2006 is likely to be a record year for reinsurance industry profitability. The industry has witnessed significant recapitalization from internal profits, as well as an inflow of new capital. This has helped quickly replenish whatever capital was extracted from the market in 2004 and 2005. U.S. coastal exposures the exception – A disparity persists between continued hard conditions for U.S. coastal exposures and soft market conditions elsewhere. A reassessment of exposures in the wake of the record-breaking hurricanes of 2004 and 2005, reinforced by increased projected losses from the major modeling firms and higher ratings agency standards for catastrophe exposures, has led to a severe shortage of capacity allocated to U.S. and Mexican coastal exposures. Divergent pricing trends – Across a number of casualty lines, the primary and reinsurance sectors are out of phase in terms of pricing, with soft market conditions prevailing in the primary market while the reinsurance market remains relatively firm. The report identifies a number of key factors in this divergence, including a more conservative approach to underwriting and pricing by reinsurers, differing views on the adequacy of primary carrier rates between the primary market and reinsurers, and greater overall caution among reinsurers as a result of greater exposure to severity increases and clash risks. A copy of the full report is available for download at www.guycarp.com. For printed copies, please contact Guy Carpenter at marketing@guycarp.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. National Survey: Bankers Concerned about Wal-Mart Entering Banking Arena CHICAGO--(BUSINESS WIRE)--Almost three-quarters (70%) of bankers say that the entry of Wal-Mart into the financial services business would be a threat to their banks’ business, according to Grant Thornton LLP’s 14th Annual Survey of Bank Executives. Wal-Mart, which applied for federal deposit insurance for a Utah-licensed industrial loan company last year, is already perceived by many bankers as a competitor. Last year alone, Wal-Mart launched its own store-branded Discover® card and began to offer discounted money-transfer services in partnership with MoneyGram®. Out of those banks surveyed, 76% of banks with less than $500 million in assets, 81% of rural banks and 73% of private banks agree that Wal-Mart’s entry into the banking industry would be a threat to their banks’ business. “When it comes to competition, the majority of bankers see Wal-Mart as a menace,” says John Ziegelbauer, Grant Thornton’s national managing partner of the financial institutions practice. www.GrantThornton.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. Prudential Financial Dispels Common Tax Misconceptions in Series Geared toward Baby Boomers Fact or Fiction? Social Security benefits aren’t subject to income taxes. NEWARK, N.J.--(BUSINESS WIRE)--Tax season is right around the corner, and while many Americans are focused on how to save money on this year’s returns, they shouldn’t lose sight of how tax decisions they make today can affect their retirement plans tomorrow. In response, Prudential Financial (NYSE:PRU) has developed a series of 12 frequently asked tax questions, along with responses from company subject matter experts. This week’s question marks the first in a series that will run today through Monday, April 16. Fact or Fiction? Social Security benefits aren’t subject to income taxes. For the majority of Americans, this statement is fact, according to Robert Fishbein, vice president and corporate counsel in Prudential Financial’s Tax Department. But for one-third of people collecting Social Security benefits1, it’s fiction. Whether you fall into the fact or fiction category depends on your total income from other sources. For example: If you’re single and your “combined income”—which is calculated by adding together your adjusted gross income, your non-taxable interest (from tax-exempt bonds, for instance) and one-half of your Social Security benefits—is $25,000 or higher, you may have to pay income taxes on at least 50 (and up to 85) percent of your Social Security benefits. If you are married, file a joint tax return, and you and your spouse have a combined income of $32,000 or more, you, too, may have to pay income taxes on a portion of your benefits. If you’re married and file a separate tax return, your Social Security benefits will likely be subject to income taxes. If you do fall into one of these categories, the good news is that the taxable portion of your Social Security benefits can never exceed 85 percent. “Certain questions cross our desk year after year, which means they are clearly proving tricky for consumers. In this case, it’s important for Americans to have an understanding of their total financial picture—not only at tax time, but for financial planning purposes in general,” Fishbein stated. www.prudential.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Arthur J. Gallagher & Co. Signs Agreement to Acquire Lowndes Lambert Group Canada, Ltd. ITASCA, Ill., Jan. 29 /PRNewswire-FirstCall/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today announced the signing of a definitive agreement to acquire the Lowndes Lambert Group Canada, Ltd. headquartered in Toronto, Ontario. Terms of the transaction were not disclosed. The transaction is expected to close mid-February, 2007. With a 50 year history, Lowndes Lambert Group Canada, Ltd. is a Canadian property/casualty retail insurance broker offering risk management, commercial, and personal lines insurance services to their North American client base. They also specialize in insurance products for transportation, hospitality and pharmaceutical businesses. Philip G. Kane and his associates will continue to operate from their eight Canadian locations under the direction of James S. Gault, President of Gallagher's Brokerage Services Division - Retail. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Lewin Group Study of President Bush's Health Proposal Finds Benefits to Some Uninsured and Reduced Tax Revenues to Government WASHINGTON, Jan. 29 /PRNewswire-USNewswire/ -- President Bush's health insurance proposal would save families money and reduce the number of uninsured, according to Lewin Group vice president John Sheils, but the major tax reductions would go to families with incomes above $50,000. The Bush plan would also increase the U.S. budget deficit by $61.8 billion in the first year. The increase in the deficit would decline over the following decade. "The President's proposal is designed to eliminate the incentives that encourage increased health care spending," said Sheils. "And it achieves that goal -- health spending could be reduced by about $24.5 billion in 2009." Sheils estimated the impact of the President's proposal using The Lewin Group Health Benefits Simulation Model (HSBM). HSBM is a micro-simulation model of the U.S. health care system designed to estimate the impact of alternative health reform models on coverage and expenditures for employers, governments and households. According to Sheils, families would save an average of $732 in taxes, premiums and out of pocket spending. "Although the plan cuts costs for certain families, about 70 percent of the reduction in taxes would go to families with incomes above $50,000. Only 20 percent would go to currently uninsured people," Sheils added. One key aspect of the plan is the number of uninsured who would be covered under this new plan. The Lewin Group study shows that the President's proposal would reduce the number of uninsured -- projected to be 48.4 million people in 2009 -- by about 9.2 million people. One unintended consequence would force about 2.3 million workers and dependents to become uninsured, when they would lose employer coverage. The Lewin Group study shows that the government stands to lose money because tax revenues would be reduced -- tax filers would count employer healthcare spending as taxable income but would receive a deduction, whether they have employer coverage or private non-group coverage. Replacing the existing tax exclusion with the deduction would increase the federal deficit by $61.8 billion in 2009. This is an average federal expenditure of $7,440 per newly insured person. However, the impact on the federal deficit would decline from an increase of $61.8 billion in 2009 to a net reduction in the deficit of $45.3 billion in 2018. The net cost of the program over the 2009 to 2018 period would be $153.8 billion. The Lewin Group is a premier national health care and human services consulting firm with more than 35 years of experience finding answers and solving problems for leading organizations in the public, non-profit, and private sectors. Our more than 100 consultants are drawn from industry, government, academia, and the health professions. Many are national authorities whose strategies for health and human services system improvements come from a personal experience with imperatives for change. http://www.lewin.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Governor Granholm and HHS Secretary Leavitt Discuss Ways to Improve Access to Affordable Health Coverage WASHINGTON, Jan. 29 /PRNewswire-USNewswire/ -- Governor Jennifer M. Granholm and HHS Secretary Mike Leavitt today discussed plans to increase access to affordable health care in Michigan. The discussion was held during a late afternoon meeting in Lansing. In 2005, Michigan approached HHS with the broad outlines of a federal Medicaid waiver request that would allow the channeling of state and federal dollars in a way that would provide the uninsured with access to affordable health care coverage. Governor Granholm's administration staff and HHS officials have met to discuss important policy and budgetary considerations of the plan, which state officials expect to submit to HHS soon. "We want to be partners with the federal government to give our citizens access to affordable health insurance," Governor Granholm said. "Our Michigan First Healthcare Plan is intended to provide a quality product at an affordable cost, create incentives for business, and help bring down health care costs for everyone and we are pleased that Secretary Leavitt and his staff are working with us to make our plan a reality." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. U.S. Automakers Commit to National Initiative for Improving Quality and Value in Health Care Greater Detroit Area Health Care Council Recognized as a 'Community Leader' WASHINGTON, Jan. 29 /PRNewswire-USNewswire/ -- In a meeting today in Detroit with HHS Secretary Mike Leavitt, executives from GM, Ford and Chrysler Group signed support for a national initiative aimed at improving health care quality, information and cost-effectiveness for employees and their families. In signing statements of support, G. Richard Wagoner, Jr. of General Motors, William Clay Ford, Jr. of Ford Motor Company and Tom LaSorda of Chrysler Group pledged to provide quality and price information about doctors, hospitals and other medical providers for all enrollees in their health care insurance programs. This information will help employees choose health care providers based on the quality of care they deliver and the prices they charge. Earlier in the day, a group of about 30 other Michigan employers signed statements of support. The companies who signed, including the three automakers, cover nearly 2 million people. In addition, the employers will support health information technology by encouraging the use of recognized interoperability standards in the health IT products used by their health plans. They also pledged to develop incentives for achieving better value in health care, including incentives for high quality care and for more active involvement by employees in choosing their health care services. These four actions are the "cornerstones" of an initiative launched last November by Secretary Leavitt. By committing to these actions, the Michigan employers are joining a growing number of states and companies that are pledging to make quality and price information available to health plan enrollees in order to enable them to compare providers when they purchase health care services. President Bush committed federal health programs to these four "cornerstones" through an Executive Order last August. In November, Secretary Leavitt invited all employers, in both the private and public sectors, to take these same four steps. By committing to these goals, he said, "Our individual actions will be aligned toward reaching the common national goal of better health care at lower cost." More information is available at http://www.hhs.gov/transparency. For a full list of companies who have signed statements of support, including those signing in Detroit today, visit: http://www.hhs.gov/transparency/employers/statements.html. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Work & Family Benefits, Inc. Launches The Workplace Resource Center To Provide Online Tools for Addressing Behavioral Workplace Issues Newest component of the My Live Values(sm) work/life product suite delivers best-in-class content developed by PENN Behavioral Health. Parsippany, NJ - January 29, 2007 - Work & Family Benefits, Inc. (WFB), the nation's largest provider of dependent care resources and referral services to employer clients, today announces the launch of The Workplace Resource Center, a library of relevant and timely tools and training to help employers and managers respond effectively to behavioral issues that impact workforce performance and productivity. The content, developed in conjunction with PENN Behavioral Health (a division of the University of Pennsylvania Health System), is the newest component to be embedded within WFB's My Life Values, a web-enabled work/life information desktop that uses proprietary search tools to route users to exclusive, focused, best-in-class content. "Even the most experienced managers and supervisors sometimes struggle with performance and productivity issues and want to feel confident that their response is both appropriate and effective," says Bill Mulcahy, president of Work & Family Benefits, Inc. "That's why we chose PENN Behavioral Health as our partner and worked with their team of experts to identify those issues that are the most pressing for organizations, as well as to develop resources that provide practical and effective guidance. The objective behind The Workplace Resource Center is threefold--to help organizations address issues proactively rather than reactively, to help them intervene appropriately when an employee's behavior is affecting workplace performance, and to help them form the basis for healthy and productive working relationships and workforce motivation." "Today, more than ever, managers, human resource leaders, and supervisors need tools to develop efficient and effective workforces and teams," says Rosellen Taraborrelli, Executive Director of PENN Behavioral Health Corporate Services. "Management training is typically focused on mastering the fundamentals of workplace initiatives set by an organization rather than on the development of skills for strong interpersonal relationships and effective communication styles. In addition, most supervisors are excellent specialists and technical advisors but lack the techniques, strategies, and perspectives essential for motivating and elevating their team's productivity. The Workplace Resource Center is designed to get to the heart of the behavioral health issues that often entangle even the most proficient leaders. Using WFB's innovative web platform we can provide easy access to resources that can help remedy the most common workplace relational dynamics and issues." Components of The Workplace Resource Center The Workplace Resource Center is divided into two major categories. The Organization and Human Resources Center covers issues that companies face as a whole and have human resource or senior management implications such as compliance, policies, zero tolerance, interventions and safety, and workplace satisfaction and stability. Current topics cover a range of issues, including adapting to change, building and maintaining strong teams, conflict resolution and problem solving, optimizing differences, reducing stress and burnout, promoting a resilient workforce, and handling anger, frustration, and insubordination. The Manager and Supervisor Center covers issues that individuals tackle on a daily basis and impact the ability to lead, motivate, and enhance employee performance and productivity. Current topics cover customer service, leadership and management strategies, personality differences, time management, and bridging the generation gap. About My Life Values My Life Values(sm) provides overburdened employees with a uniquely valuable tool that simplifies access to a comprehensive and tightly integrated array of quality work/life and e-commerce resources. Most important, it meets the demand for cost-effective, real value-added product differentials. My Life Values is designed to seamlessly "embed" into core benefit offerings and empowers employees to be informed decision makers. My Life Values enhances employee satisfaction and retention with a truly unique work/life solution. Work & Family Benefits, Inc., (WFB) Parsippany, NJ, was founded in 1992 by Bill Mulcahy, president, and is dedicated to the transformation of employee benefits to meet the needs of today's workforce. In March 2004, WFB was recognized by Business Insurance as the "largest provider of Dependent Care Resource and Referral Services to Employers Clients in the U.S." Its cornerstone is the Work & Family Benefits, Inc. Values Package®, which delivers a comprehensive work/life program with core competencies in child, elder, and adult care consultation and referral delivered as a cost-effective employee benefit. The Work & Family Benefits, Inc. product suite is distributed to employers, labor organizations, third-party administrators, associations, discount cards, and other strategic marketing alliances. For more information, visit www.wfbenefits.com. www.pennbehavioralhealth.org My Life Values® is a trademark of Work & Family Benefits, Inc. Bill Mulcahy, President, Work & Family Benefits, Inc., 800-644-2363, mulcahy@wfbenefits.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Grow Your Sales, Income, New Customers, Leads and Appointments! Affordable Solutions for Agencies, Brokers, and Individual Agents Integrity Sales Solutions, one of America’s premier sales growth firms, is pleased to announce a suite of proven, affordable solutions to help grow sales and profits for insurance and benefits providers. Over the past 13 years, Integrity has helped Fortune 500 and small companies add tens of thousands of new customers and over $2 Billion in new sales. Now, Integrity is pleased to announce a line of sales-building programs for the insurance and benefits industry. Whether you’re a national company, or an individual agent, Integrity has cost-effective solutions to rapidly grow your sales and income!
Integrity Sales Solutions can help you solve your toughest sales problems, increase your name recognition, add large numbers of new customers, build your sales pipeline, reduce your sales cycle, generate highly qualified leads, increase viable sales appointments, compete against larger competitors, improve agent productivity, and substantially increase agent and management sales and income. For more information about how Integrity Sales Solutions can help you grow your sales and income, please contact Jeff Roberts at 800-845-7720 or jroberts@integritysalesus.com. Website: www.integritysalesus.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. New HSA Data Reveal Greater Use of the Bank Account When Employers Integrate Their Health & Financial Solutions Majority of consumers open their accounts, contribute funds and carry over balances; Average enrollee contributes $1,206 annually; 86 percent carry a balance from year to year; Plans proving to be an important element in advancing health care affordability and quality MINNEAPOLIS--(BUSINESS WIRE)--UnitedHealth Group (NYSE:UNH) has found that employers using an integrated health and financial strategy when offering a Health Savings Account (HSA) are stimulating much greater engagement among employees enrolled in an HSA-based health plan. An integrated model most typically includes online enrollment technologies, a company contribution to the HSA and/or thorough communications about the benefit design. An analysis by UnitedHealth Group of 25,000 HSA enrollees whose employers use an integrated model found that a majority of those individuals open the bank account, contribute their own funds and carry balances over from year to year. This data reinforce that consumers, when given the proper support, are increasingly more comfortable with the HSA model and are better understanding the advantages of saving early on for future health care expenses. Across UnitedHealth Group, nearly 1 million individuals are now enrolled in an HSA-based health plan, and an additional 1.1 million are enrolled in a plan with a Health Reimbursement Account. Exante Financial Services is the nation’s largest HSA administrator, with over 250,000 HSAs and $300 million in deposits. Visit the newsroom at www.unitedhealthgroup.com for more detailed HSA data from this analysis, as well as a comprehensive study summary and additional information about UnitedHealth Group’s consumer-driven health plan membership. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Milliman Acquires Leading Brazilian Health Actuarial Firm Acser to Continue Operations As 'Milliman Acser' SEATTLE, Jan. 29 /PRNewswire/ -- Milliman, Inc., the international firm of consultants and actuaries, announced today that, effective January 1st of this year, it acquired Acser, a leading healthcare actuarial firm in Brazil. Acser will continue to provide consultative services to its client base of approximately 100 health plans under the name Milliman Acser. www.milliman.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. TAX ALERT: Remember Your Deduction for Long Term Care Insurance Premiums KIRKLAND, Wash., Jan. 29 /PRNewswire/ -- As April 15 nears, tax-time frowns may be accompanied by smiles for many aging Americans. Deductible amounts for long term care insurance premiums are going up. For the 2006 tax year they're higher than in 2005; and for 2007, they'll be even higher. "Be sure to claim your deduction if you qualify," says Cameron Truesdell, CEO of LTC Financial Partners LLC, the nation's most experienced long term care insurance brokerage. If you already owned a long term care insurance plan in 2006, the deductible amounts for the 2006 tax year may be as high as --
** Before end of taxable year For the 2007 tax year, the deductible amounts may be as high as --
**Before end of taxable year The limits are specified in section 213(d)(10) of the Internal Revenue Code. For couples filing jointly, the total maximum deduction is based on each person's age. Business owners may qualify for additional tax breaks or advantages. http://www.ltchotline.com/taxbreaks.html. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Carpenter Moore and USI Southwest Enter Strategic Alliance to Provide Executive Liability Coverage to Public Companies HOUSTON, Jan. 29, 2007 (PRIME NEWSWIRE) (PRIMEZONE) -- USI Southwest and Carpenter Moore, a wholly owned subsidiary of The Nasdaq Stock Market, Inc. (Nasdaq:NDAQ), today announced an agreement to partner and provide executive liability services to public companies in Texas, Louisiana and New Mexico. The combined expertise and resources of these two leading insurance entities will assist business leaders and their boards in navigating complex liability issues. The strategic alliance will focus on providing an array of professional services to publicly traded companies in the areas of executive liability; directors and officers liability; errors and omissions insurance; employment practices insurance and related management liability coverage, such as M&A and loss mitigation coverage. For additional information, please contact Jack Wagner of USI Southwest at 214-443-3160 or jack.wagner@usi.biz or Keith Martinsen of Carpenter Moore at 212-381-6457 or keith.martinsen@nasdaq.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. MetLife eyes Citigroup partnership for China sales By George Chen SHANGHAI, Jan 30 (Reuters) - MetLife's (MET.N: ) China venture said on Tuesday it is in talks to form a business partnership with Citigroup Inc. (C.N: ) to boost its insurance sales in the country. Bob Pei, chief executive of United MetLife Insurance Co., a 50/50 venture between MetLife, the top U.S. life insurer, and Shanghai Alliance Investment Ltd., told Reuters the insurance venture was considering selling its products through Citigroup's branches in China this year. "We are still in talks with Citigroup for such a plan, and we hope local consumers can buy our insurance products at Citigroup's counters after the bank is registered as a local bank," said Pei, a former Citigroup executive. Last month, China granted approvals to nine foreign banks, including Citigroup, to prepare for local incorporation -- a step that must be taken if the foreign banks want to provide full-fledged local currency services to Chinese residents. MetLife has already teamed up with Chinese banks, including Industrial and Commercial Bank (601398.SS: )(1398.HK: ) and Pudong Development Bank (600000.SS: ), to help the New York-based insurer sell policies in China, Pei said. ($1=7.77 Yuan) © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. RiverSource Succession ProtectorSM Universal Life Introduced by RiverSource Life Insurance Company New Survivorship Universal Life Insurance Product Helps Enhance Legacy Planning, Equalize Inheritances and Protect Against Estate and Income Taxes MINNEAPOLIS--(BUSINESS WIRE)--RiverSource Life Insurance Company, a subsidiary of Ameriprise Financial (NYSE:AMP), today launched RiverSource Succession ProtectorSM, a powerful new financial solution for helping manage the estate planning and wealth transfer goals of affluent older Americans. As a survivorship universal life insurance policy, Succession Protector insures two lives and pays out at the second death. Beneficiaries receive tax-free life insurance proceeds without going through the time and cost of probate. Proceeds can help combat the impact of income and estate taxes, which can significantly erode sizeable retirement account balances and the value of one’s estate. Mark Schwarzmann, president of Insurance, Annuities and Product Distribution at Ameriprise Financial, said, “We created this new life insurance product to help couples protect the legacy they have created together. It provides them with a financial strategy that can help ensure that their success will live on for succeeding generations, by preserving assets for heirs, providing for a charity or helping protect the interests of a family-owned business.” www.ameriprise.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Companion Benefit Alternatives Introduces Disease Management Programs for Depression, Alcohol Use COLUMBIA, S.C.--(BUSINESS WIRE)--Companion Benefit Alternatives Inc., which manages mental health and substance abuse benefits for 1.3 million members of leading health plans, has launched innovative disease management programs to help members who suffer from depression or alcohol use disorders. With the launch of the Essential SolutionsSM programs, CBA joins only a handful of other managed behavioral health organizations (MBHOs) nationwide that offer disease management for alcohol use. “Our innovative approach to alcohol management includes targeting those who meet the criteria for dependence as well as those at risk of becoming dependent,” said Dr. John P. Emerick, CBA’s medical director and a board-certified psychiatrist. Both programs include regular telephone calls from clinical staff to the member, instead of relying solely on printed educational and support materials. Also, with the member’s permission, CBA’s disease managers will share their findings with the prescribing physician so the information can be integrated into the treatment plan. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
View INSURANCE NEWSCAST "Sports Pictures Of The Day" View INSURANCE NEWSCAST "Entertainment Pictures Of The Day" Sponsored By:
21. America Service Group Inc. Announces New Contract between Company Operating Subsidiary, Prison Health Services, Inc., and Vermont Department of Corrections BRENTWOOD, Tenn,--(BUSINESS WIRE)--America Service Group Inc. (NASDAQ:ASGR) announced today that its operating subsidiary, Prison Health Services, Inc. (PHS), has entered into a new contract with the Vermont Department of Corrections for the provision of medical services to approximately 1,700 inmates in nine correctional facilities across the state. The new contract commenced on January 29, 2007, upon the expiration of the previous PHS contract. The new contract is structured on a cost-based model with defined risk-sharing and pay-for-performance parameters. www.asgr.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Pacific Life Foundation Distributes over $3.5 Million in Annual Grants at a Reception to Benefit the Community NEWPORT BEACH, Calif.--(BUSINESS WIRE)--For the fifteenth consecutive year, nearly 200 nonprofit agencies primarily serving Orange County, CA, gathered at an afternoon reception held at Pacific Life’s headquarters in Newport Beach. The agencies received grants ranging from $2,500 to $133,000. The Pacific Life Foundation distributed over $3.5 million at the event and has committed to spend a total of $4.2 million for 2007. “Since 1993, we have made a special effort every year to gather together diverse non-profit agencies and honor them for the service and work they provide in our communities,” said Robert G. Haskell, president of the Pacific Life Foundation. “The reception is not only a great opportunity for the Foundation to interact with those receiving our grants, but it also provides an atmosphere in which nonprofit leaders can interact with their peers.” www.PacificLife.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Fireman’s Fund Reaches $10 Million Milestone in Donations to Fire Service More than 300 Fire Departments Supported Since 2004 NOVATO, Calif.--(BUSINESS WIRE)--Fireman’s Fund Insurance Company today announced that its corporate philanthropy program, Fireman’s Fund HeritageSM, has surpassed the $10 million milestone since its inception in 2004. The initiative is the company’s nationwide commitment to provide needed equipment, training, and community education programs to fire departments and other fire service organizations. Fireman’s Fund employees and its network of independent agents work together to identify needs at local fire departments. Grants are issued, in part, to fill the voids left by growing budget cuts. Donations average $20,000, but can range from $5,000 to more than $100,000. Seen by more than two million viewers nationwide, The History Channel® will air an encore presentation of “Into the Fire” on Sun., Feb. 11, 2007 at 1pm/12CT. The “Into the Fire” DVD will also be available at www.firemansfund.com/heritage. Funds raised through the showing of the film and sale of the DVD will benefit firefighters and fire service organizations across the country in association with the National Fallen Firefighters Foundation (NFFF). Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. MetLife Goes Global with Snoopy® -- Extends License of Peanuts® Characters Around the World -- MetLife, Inc. announced an agreement with United Media to extend its licensing of the Charles Schulz Peanuts characters to every market in the world. (Photo: Business Wire) NEW YORK--(BUSINESS WIRE)--MetLife, Inc. (NYSE: MET) announced today an agreement with United Media to extend its licensing of the Charles Schulz Peanuts characters to every market in the world. This new arrangement replaces the existing limited international agreement and adds to the long-time US and Canada agreement, creating global coverage for MetLife’s use of the characters for the first time. The new agreement gives MetLife exclusive rights in the financial services category to use the Peanuts characters. “Our research in key markets around the world shows that people have very common financial concerns, despite a variety of differences in economic development, government structures and demographics,” said Bill Toppeta, president of MetLife’s International business. “That gives us confidence that a powerful consistent brand icon will work effectively and be culturally accepted in a variety of diverse settings.” www.metlife.com www.unitedmedialicensing.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Morris, Manning & Martin Partners Participate in Reinsurance Conference Atlanta (Jan. 29, 2007) – Lewis E. Hassett, head of Morris Manning & Martin’s insurance/reinsurance dispute group, will co-chair the upcoming Mealey’s Fundamentals of Reinsurance Litigation & Arbitration Conference in New Orleans, March 15-16 at the Ritz-Carlton Hotel. This prestigious educational program provides attorneys with strategic insight into the reinsurance principles, processes and practical applications vital to providing successful legal counsel. The event will feature two additional attorneys from Morris Manning & Martin: Larry Kunin and Jessica F. Pardi. Reinsurance litigation and arbitration is undergoing tremendous changes as some companies are consolidating, while others are going through high profile insolvencies. Topics covered during the program include: alternatives to traditional arbitration, emerging trends in reinsurance disputes, and changes to the law that affect allocation and aggregation. For more information, or to register, go online to www.lexisnexis.com/conferences or call 1.800.MEALEYS or 610.768.7800. Morris, Manning & Martin, LLP, (www.mmmlaw.com) enjoys national prominence for its corporate finance, securities, litigation, technology, real estate and real estate capital markets, environmental, insurance and healthcare practices. The firm has offices in Atlanta, Washington, D.C., Charlotte, Raleigh-Durham and Princeton. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Perr&Knight Expands East Coast Operations Pacific Palisades, CA, January 29, 2007 – Perr&Knight, a leading provider of Competitive Intelligence Services to the insurance industry, is now obtaining all approved Property & Casualty filings for all lines of business in Massachusetts, Maine, Rhode Island and Vermont. The Company has been conducting business in these states for years, but is now expanding its east coast operations due to increased client demand. In addition to the new states listed above, Perr&Knight is already obtaining all approved Property & Casualty filings for all lines of business in: California, New York, Pennsylvania, Illinois, Indiana, Washington, Oregon, Florida, Arizona, Nevada and North Carolina. Perr&Knight’s www.ratefilings.com is the largest insurance filing repository of its kind with over 350,000 filings currently in the database and approximately 5,000 filings added to the database each month. “We are expanding the number of states in which we obtain all filings in order to keep up with the demand for competitor information”, said Managing Principal Scott Knight. Knight added, “Offering a service whereby our clients have online access to all competitor filings in a given state is much more efficient and economical than having to pay hourly rates and high per page fees to obtain individual filings over the course of a year. Companies still have the options to download filings they need one at a time or subscribe to our COMP Pro service whereby they get access to all the filings they need for a flat annual fee.” www.perrknight.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Changes In Your Life Can Mean Changes In Your Insurance, Says The I.I.I. - Ten Questions to Determine Whether You Need to Update Your Coverage NEW YORK, January 29, 2007 — Major purchases and lifestyle changes such as marriage, divorce or retirement can have a profound effect on your insurance, according to the Insurance Information Institute (I.I.I.) “To make the most of your insurance dollars, it is very important that you let your insurance agent or company representative know about alterations to your home and other major events in your life,” says Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “A great way to start the new year off on a firm financial footing is to discuss your current insurance needs with your agent, broker or company representative to make sure that it is up-to-date.” At least 32 million U.S. households own insurance policies that aren’t right for them; in 2006 58 percent of homes were undervalued—by an average of 21 percent—relative to what it would cost to rebuild. To ensure that yours is not one of those households, the I.I.I. recommends asking the following ten questions: 1. Have you gotten married or divorced? 2. Have you had a baby? 3. Has your teenager gotten a drivers license? 4. Have you switched jobs or experienced a significant change in your salary? 5. Have you done extensive renovations on your home? 6. Have you decided to buy a retirement or vacation home? 7. Have you acquired any new valuables—jewelry, electronic equipment, fine art, antiques? 8. Have you signed a lease on a house or apartment? 9. Have you joined a carpool? 10. Have you retired? For more information on insurance and financial planning for different stages of your life, see the Life Stages tool at http://www.iii.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. MetLife And Previser Launch Oral Health Disease Management Pilot Program NEW YORK – January 29, 2007 – MetLife and PreViser Corporation, a developer of patented oral health risk assessment software technology, today announced the launch of a new pilot program to help identify risks for periodontal disease. MetLife will provide dentists in the pilot program free access to PreViser’s Oral Health Information Suite™, an oral health risk assessment software, through the Web site portal, www.metdental.com, so they can more effectively treat their MetLife dental plan patients who are affected by, or at risk for, periodontal disease. Participants for the pilot program are a select group of dental practices and dentists from MetLife’s Preferred Dentist Program (PDP) – a nationwide network of over 95,000 dentist locations. www.metlife.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. 2007 ODG Product Line Released January 30, 2007 – Encinitas, CA – Work Loss Data Institute (WLDI) announces the release of the 2007 ODG product line, including the 12th annual edition of Official Disability Guidelines and the 5th annual edition of ODG Treatment in Workers’ Comp. With its rigorous and ongoing update schedule based on strict principles of evidence-based methodology, including the annual release and publication of new editions, the ODG product line remains the industry leader in disability duration and medical treatment guidelines for workers’ compensation and non-occupational disability cases. www.worklossdata.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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