Daily Quote: "Let us not look back in anger, nor forward in fear, but around us in awareness." - - Leland Val Vandewall
1. Ping An A-Shares to Debut in Shanghai in the World’s Largest IPO Equity Listing by an Insurance Company HONG KONG--(BUSINESS WIRE)--Ping An Insurance (Group) Company of China Ltd (Ping An; HKSE:2318; SSE:601318) today announced that it will list A-Shares on the Shanghai Stock Exchange under the stock code “601318” on Thursday, March 1, 2007. This event marks the addition of another leading financial services stock to the A-Share market and will allow domestic Chinese investors to share in the results of years of professional operations at Ping An. Ping An has will issue a total of 1.15 billion shares at RMB33.8 per share, which was determined based in the Group’s fundamentals, the industry in which it operates, peer group valuation comparisons and the general condition of the A-Share and H-Share markets. About 345 million A-Shares were allotted to strategic investors who are subject to a 12-month disposal moratorium starting from the debut of trading. Another 230 million A-Shares were allotted to institutional investors who will be subject to a three-month disposal moratorium. Since kicking off this A-Share listing exercise, Ping An, has been receiving recognition not only from the regulators but also from investors, receiving particular praise for strengths including a clear corporate strategy, fully-integrated financial platform, international management team, sophisticated management structure and strong back-office capabilities. This enthusiasm has underpinned this widely anticipated offering, and as a result, the pricing comes in at the high-end of the initial pricing range, which values the Company among the highest of all financial stocks in China. The listing will be the second largest ever in the A-Share market in China and will make it the world’s largest for an insurance company. Dr. Peter Ma, Chairman and Chief Executive Officer at Ping An, said the successful listing of A-Shares in Shanghai has marked an important milestone in Ping An’s corporate history. The recognition from the investor community and the society as a whole about Ping An’s capabilities and potential are being reflected in the overwhelming response for this A-Share IPO exercise. He added Ping An, as an active participant in China’s capital market development, will endeavor to make the best efforts to become a leading global integrated financial services group by providing best-in-class products and services for customers and generating sustainable growth and returns for investors. Ping An is a diversified financial holding group founded in 1988. It is headquartered in Shenzhen, Guangdong Province, China. It offers integrated securities, trust and banking services with insurance as its core business. Ping An is a listed company on the main board of the Hong Kong Stock Exchange under the name “Ping An of China” and the stock code “2318”. Over the last 18 years, Ping An has become one of China’s best-known financial industry brands both domestically and internationally. The Group has an extensive domestic customer base and is one of the few Chinese financial institutions providing integrated services. www.pingan.com.cn Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Majority of Americans Unprepared for Financial Impact of Disability, NAIC Survey Shows State Insurance Regulators Offer Tips to Consumers on Disability Insurance KANSAS CITY, Mo., Feb. 28 /PRNewswire/ -- Most Americans are not prepared to deal with the possibility of becoming disabled and, in turn, unable to work, according to new research by the National Association of Insurance Commissioners (NAIC). More than half (56 percent) of U.S. adults say they would be unable to pay their bills or meet expenses if they became disabled and could not work for a year or longer, according to a January NAIC national consumer survey fielded by International Communications Research. The survey showed consumers have an optimistic picture of their future, with only 13 percent saying it was somewhat or very likely they would become disabled and unable to work. However, data from the Social Security Administration (SSA) indicates that a substantial portion of the nation's population -- 20 percent -- will actually become disabled for a year or more before reaching age 65. These findings highlight the need for long-term disability insurance, designed to protect people financially by replacing some of their lost income. In the NAIC survey, only 44 percent of respondents indicated they had long- term disability coverage. Of these individuals, 71 percent said their long- term disability insurance was employer provided rather than individually purchased. This suggests a significant number of people could lose their coverage in the event of a change in employment status. "Many people don't think about the impact becoming disabled can have on their ability to earn a living and remain financially independent," said Walter Bell, NAIC President and Alabama Insurance Commissioner. "Understanding the role of disability insurance at each life stage is critically important to one's total financial security." Having knowledge about disability insurance options before an accident or serious illness occurs can help ease the financial pain during recovery. The NAIC provides information on disability insurance for consumers in all life stages on its consumer education Web site, Insure U (http://www.InsureUonline.org). Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Scruggs Katrina Group Tells Judge Senter: Proposed Settlement Can Work; Former Mississippi Attorney General Mike Moore Joins Effort as Co-Counsel GULFPORT, Miss., Feb. 27 /PRNewswire-USNewswire/ -- The group of attorneys who crafted the proposed Katrina settlement agreement with State Farm told the District Court it has played "nearly all of its cards" to "force the best compromise for the greatest number" of policyholders denied coverage after the crippling hurricane. The Scruggs Katrina Group (SKG) -- counsel for the plaintiffs -- led by attorneys Richard "Dickie" Scruggs and Don Barrett, has been joined by former Mississippi Attorney General Mike Moore. Moore will act as co-counsel in the proposed settlement process. In a letter to Senior District Judge L.T. Senter, Jr., who has asked questions about the proposed agreement regarding Dennis R. and S. Imani Woullard vs. State Farm, the lawyers called the settlement a solution "for the willing." "Those who wish to fight it out for punitive damages, etc., may do so and gamble on a Broussard style verdict," the lawyers wrote, referring to the family who sued State Farm and was awarded $1 million in punitive damages. "For those who wish a free, voluntary, simple and fast decision under Court aegis in order to move on with rebuilding their lives, this settlement will provide it." The attorneys, who recently agreed to a settlement with State Farm for 640 policyholders, said that with "some modifications" the proposed settlement will "result in needed recovery for the class and the Coast." SKG, Moore, counsel representing State Farm and members of state Attorney General Hood's office will present clarifications and their thoughts on the proposed settlement agreement before a public hearing on Wednesday at 1:30 pm in Judge Senter's court (see full text of the letter at link which is the basis for tomorrow's comments from SKG). www.scruggskatrinagroup.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Finding a Permanent Solution to Terrorism Risk Insurance is a Matter of National Economic Security – Says Willis Group Executive Washington DC. February 28, 2007 – Urging renewal of the government’s terrorism insurance backstop, Don Bailey, CEO of Willis North America, a subsidiary of Willis Group Holdings, told Congress today that the federal program has stabilized the market and made affordable terrorism coverage available to businesses across the country and in most major industrial sectors. Testifying before the Senate Banking Committee on behalf of his Company and The Council of Insurance Agents & Brokers, Bailey said the Terrorism Risk Insurance Act (TRIA) has been an unqualified success, and allowing it to expire at the end of this year would be “economically devastating.” Both Willis, a global insurance broker, and The Council, which represents the leading domestic and international commercial insurance agents and brokers, favor a permanent or long-term government backstop program, Bailey said. “The most important issue for the broker community is maintaining access to coverage at a price the business consumer can afford,” he said. “In order to get this access, we need insurers who are able and willing to provide the coverage. It is clear that they cannot and will not be able to provide terror coverage without a federal backstop or some other mechanism to cap their exposure.” “Allowing TRIA to expire at this time will certainly cripple, if not completely paralyze, a significant portion of our economy,” he said. www.willis.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. BIG “I” SUPPORTS CONTINUED FEDERAL ROLE IN TERRORISM INSURANCE New Hampshire agent testifies on necessity of terrorism risk program WASHINGTON, D.C., Feb. 28, 2007—The Independent Insurance Agents & Brokers of America (the Big “I”) today urged Congress to ensure availability of terrorism risk insurance through a continued federal government role and to examine long-term solutions before the current backstop legislation expires. Tom Minkler, chairman of the Big “I” government affairs committee and an independent agent in Keene, N.H., testified before the Senate Committee on Banking, Housing and Urban Affairs. He commended the committee members and Congress for recognizing the importance of a federal role in terrorism insurance by enacting the Terrorism Risk Insurance Extension Act (TRIEA) of 2005. “The current public-private partnership created by TRIA, and extended in TRIEA, has worked well, allowing businesses across America to continue operating and growing, and preserving jobs in the process,” Minkler testified. “These laws have saved our economy millions of dollars by making terrorism insurance broadly available to all businesses that want and need this coverage at virtually no cost to the federal government. Prices have come down, capacity has grown, and demand is up in many geographic areas.” Minkler noted that the insurance market’s ability to protect the American economy from the financial consequences of terrorism risk is a critical component of national security during the ongoing war on terror. Minkler said that terrorism risk coverage would become inordinately expensive and probably unavailable to many businesses if the federal role lapses. “TRIA is scheduled to expire on Dec. 31, 2007, and there is no reason to believe that the threat of terrorism is on the decline, or that the private insurance markets alone can adequately meet our nation’s need for coverage,” Minkler said. www.independentagent.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. AIA SUPPORTS A LONG-TERM PUBLIC-PRIVATE PARTNERSHIP FOR TERRORISM INSURANCE Washington,D.C., Feb. 28, 2007 – Charles Clarke, Vice Chairman of Travelers, testified today before U.S. Senate Banking Committee members that terrorism remains an uninsurable risk for private sector insurers, and endorsed the view of the committee’s chairman that a public-private partnership to insure against terrorism risk be continued for the long-term. “Characteristics that make terrorism an uninsurable risk remain as strong today as they were immediately following September 11, 2001,” stated Clarke, who was testifying on behalf of the American Insurance Association (AIA). “Most experts agree that it is not a matter of if, but when, another catastrophic attack will occur onU.S.soil. A continued, vibrant federal terrorism risk insurance program therefore remains vital to the national security and economic well-being of our nation for the foreseeable future,” Clarke said. Noting that the Terrorism Risk Insurance Act (TRIA), and the TRIA Extension Act (TRIEA) have worked by making terrorism insurance widely available to U.S. businesses, Clarke made the case for a continued public-private mechanism for management of terrorism risk that increases federal financial participation in the event of a chemical, nuclear, biological, and radiological (CNBR) attack. www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Conn. lawmakers seek near-universal health cover Wed Feb 28, 2007 8:44am ET HARTFORD, Connecticut (Reuters) - Four Connecticut state lawmakers proposed on Tuesday a $900 million program to bring health-care to the state's poor and uninsured, weighing in on a growing national debate over health-care reform. State Democratic Rep. Brian O'Connor said the program would offer tax credits to small businesses that employ the largest numbers of uninsured workers and would be funded in part by a rise in taxes on hospitals, doctors and laboratories. It also would seek a vanity sales tax on plastic surgery, higher state cigarette taxes, funds from tobacco litigation settlements and a federal reimbursement from spending on Medicaid and health coverage for uninsured children. Another $600 million would come from a 3 percent "provider" tax on hospitals, doctors, laboratories and home health-care services, which are now tax-exempt, said O'Connor, who is chairman of the state legislature's Insurance Committee. He said the tax would be an "incentive for the physicians to, basically, provide health care." Michael Christ, a Democrat who is deputy majority leader in the state's House of Representatives, also sponsored the measure but said it lacks the full backing of House leaders but had piqued their interest. "After discussion with the speaker, he's encouraged by our concepts and by our ideas," Christ said. "I don't think he is ready to endorse any specific plan." "While we don't have top leadership saying 'This is the bill we are going to go with', we expect to work with our colleagues in the House and the Senate and see what type of support we do have," he added. He said the goal was to reduce the ranks of uninsured to just 3 percent of Connecticut's 3.4 million residents in five years, compared to nearly 6 percent of the state population who lacked health insurance according to a 2004 state estimate. The plan was roundly criticized by the Connecticut State Medical Society, which represents 7,000 physicians. "I really don't see how that is going to increase access to quality patent, medical and surgical care to the people in the state of Connecticut when you have a tax on the services physicians are supplying," said the group's chairman, Dr. Michael Deren. Health-care reform, which has foundered at the federal level, is emerging as a hot issue as growing numbers of U.S. states look for ways to reverse a trend that has left more than 47 million Americans uninsured as traditional employer-based coverage shrinks. © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. HHS Secretary Leavitt Unveils Plan for 'Value Exchanges' to Report on Health Care Quality and Cost at Local Level Plan Combines Nationally-Recognized Standards With Local Control WASHINGTON, Feb. 28 /PRNewswire-USNewswire/ -- HHS Secretary Mike Leavitt today unveiled a plan for chartering local collaborative organizations that are working to improve quality and value in health care by assessing the performance of local health care providers and reporting these findings publicly. The plan would bring the local collaboratives into a nation-wide system, and the collaboratives would use nationally-recognized standards to measure and improve quality of care in their local areas. "This plan is about giving consumers good information to make decisions about their health care, and giving providers information to help them improve care," Secretary Leavitt said. "It's also about hard work and trust. At the local level, providers and purchasers can meet eye-to-eye and achieve the trust that must underlie a system of improvement based on more open information." For more information: http://www.hhs.gov/transparency Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. A.M. Best Maintains Stable Outlook on the Personal Lines Segment OLDWICK, N.J., Feb. 28, 2007—A.M. Best has maintained a stable outlook for the personal lines segment in 2007 based on its continued favorable risk-adjusted capitalization and on-going operating profitability. It is estimated that the personal lines segment will report strong earnings and capital growth in 2006. These operating results were driven by several factors, including favorable frequency and severity trends, modest catastrophic activity and the maintenance of pricing and underwriting discipline. www.ambest.com/ratings Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Moody's: Florida Regulatory Reforms Significant for P&C Sector New York, February 28, 2007 -- Recent pro-P&C consumer reforms will have a significant impact on the way the private (insurers and reinsurers) and residual markets operate in Florida -- though the impact of the reforms on various constituencies will differ, according to a recent report by Moody's Investors Service. Although the recently enacted laws will influence the competitive landscape in Florida, Moody's expects the majority of its property & casualty (re)insurance ratings will remain stable as a result of the current legislative enactments. The report is titled "Regulatory Climate Change in Florida: Implications for the Property-Casualty (Re)Insurance Sector." www.moodys.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Fed lifts mutual fund order against Bank of America WASHINGTON, Feb 27 (Reuters) - The U.S. Federal Reserve Board on Tuesday said it ended a 2-year-old enforcement action against Bank of America Corp. (BAC.N: ) over mutual fund trading abuses. The Fed did not state specific reasons for ending the action, which prescribed numerous corrective actions and was part of a $675 million settlement of trading abuse charges against the bank. The February 2005 written agreement with the Federal Reserve Bank of Richmond included the asset management arm of FleetBoston Corp., which Charlotte, North Carolina-based Bank of America acquired in 2004. It was part of one of the largest settlements in then-New York Attorney General Eliot Spitzer's sweeping investigation of market timing and late trading abuses in the mutual fund industry. In market timing, some investors were allowed to rapidly trade in and out of mutual fund shares to take advantage of time zone differences between international stock markets, diminishing returns for long-term investors. Some funds also were backtiming orders placed after the market close to illegally give clients that day's closing valuation, instead of the next day's price. The Fed settlement prescribed numerous corrective actions, including enhancing internal compliance and risk management processes and enhanced procedures for approving significant new client relationships, new or unique investment products, services or transactions. ((Reporting by David Lawder, editing by Chizu Nomiyama; Reuters Messaging: david.lawder.reuters.com@reuters.net; Email: david.lawder@reuters.com; +1 202 898 8395)) (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Bernanke renews call for action as population ages Wed Feb 28, 2007 10:17am ET By Mark Felsenthal WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke renewed a warning to the U.S. Congress on Wednesday that failure to take action soon to prepare for the retirement of aging Baby Boomers could lead to serious economic harm. Bernanke did not address the outlook for U.S. interest-rate policy or Tuesday's collapse in global stock markets in his prepared testimony to the House of Representatives' Budget Committee, which were nearly identical to remarks he delivered to a Senate panel last month. "A vicious cycle may develop in which large (budget) deficits lead to rapid growth in debt and interest payments, which in turn adds to subsequent deficits," Bernanke said. Bernanke told Congress that over time, the United States needed to move toward fiscal policies that were sustainable and that would promote more saving to support the Social Security retirement program without imposing undue costs on taxpayers. However, he offered no specific policy prescriptions. "Crucially, whatever size of government is chosen, tax rates must ultimately be set at a level sufficient to achieve an appropriate balance of spending and revenues in the long run," Bernanke said. Bernanke said advocates of lower taxes would have to accept lower spending on entitlement programs. Likewise, proponents of more-expansive government programs must recognize the need for higher taxes brought about by higher spending, he added. The Fed chief was expected to be asked about a global stocks sell-off on Tuesday in which the blue-chip Dow Jones industrial average <.DJI> notched its biggest one-day point drop since just after the September 11 attacks. In his prepared testimony, Bernanke cited projections that showed government spending on so-called entitlements, primarily Social Security and the Medicare health care program, would rise to 10.75 percent of total national output by 2017 and keep rising after that. He said that would put "enormous pressure" on the budget deficit in coming years. (Additional reporting by Glenn Somerville) © Reuters 2007. All Rights Reserved. Federal Reserve Board Chairman Ben Bernanke testifies in Washington, February 15, 2007. Bernanke renewed a warning to the U.S. Congress on Wednesday that failure to take action soon to prepare for the retirement of aging Baby Boomers could lead to serious economic harm. REUTERS/Jim Young Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Bernanke says Fed econ view unchanged by stock dip Wed Feb 28, 2007 11:21AM EST - By Mark Felsenthal - WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke said on Wednesday a sharp slide in stock markets this week has not changed the Fed's outlook for moderate U.S. growth. "My view is that taking all the new data into account, that there is really no material change in our expectations for the U.S. economy since I last reported to Congress a couple weeks ago," Bernanke said in response to questions from the House Budget Committee. There appeared to be no single trigger to the financial market correction on Tuesday, Bernanke said, adding that the Fed has been closely monitoring the markets. "They seem to be working well, normally," he said. Bernanke's remarks came after the U.S. stock market suffered its worst slide since 2001, as a sell-off in China's stock market raised fears equity valuations may have been too high. "We are looking at moderate growth in the U.S. economy going forward," Bernanke said. "If the housing sector begins to stabilize and if some of the inventory corrections that are still going on in manufacturing begin to be completed, there's a reasonable possibility that we'll see some strengthening of the economy sometime during the middle of the year," he added. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Munich Re says 2006 net a record, raises dividend MUNICH, Feb 28 (Reuters) - Munich Re (MUVGn.DE: ) posted on Wednesday record net profit as expected for 2006 and raised its dividend by nearly half, but fourth-quarter premiums fell, showing pricing pressures in reinsurance underwriting. The world's second-biggest reinsurer said net profit was 3.536 billion euros ($4.67 billion) in 2006, just below the average forecast of 3.539 billion euros in a Reuters poll. Munich Re shares trade at about 0.9 times its estimated 2007 embedded value, making it cheaper than the world's biggest reinsurer, Swiss Re (RUKN.VX: ), which trades at almost 1.2 times, analysts at KBW estimated in a recent study. Munich Re shares followed the downward trend of world stock markets on Tuesday, closing down 3 percent at 124.67 euros, for a decline of 4.4 percent for the year to date. (Reporting by Jonathan Gould; editing by Sue Thomas, Reuters Messaging: jonathan.gould.reuters.com@reuters.net; +49 69 7565 1242) ($1=.7567 Euro) Keywords: MUNICHRE RESULTS/ (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Converium says Scor bid weak, open to other offers By Douwe Miedema ZURICH, Feb 28 (Reuters) - Reinsurer Converium (CHRN.S: ) said on Wednesday French rival Scor's (SCOR.PA: ) 3 billion Swiss franc takeover ($2.46 billion) bid was weak, cheap and carried significant risks, but the Swiss company left the door ajar for a better bid from a rival. The company posted a smaller-than-expected drop in 2006 net profit, bringing forward its earnings to flesh out plans to fight the hostile bid by rival Scor, which values its business at some 3 billion Swiss francs ($2.46 billion). "We are not opposed to a consolidation per se, but we strongly believe that Converium's strategy as outlined today will create more value than Scor's approach," Chairman Markus Dennler said on a conference call with analysts and journalists. "Scor offers a weak acquisition currency" as 80 percent of its offer will be paid for by new shares, while the 20 percent cash element "is financed by Converium's excess capital," Dennler said. The deal was also risky as Converium could see important clients and key staff desert it if Scor was successful in its takeover, Dennler warned. France's Scor earlier this week brushed aside Converium's resistance to its 21 francs per-share takeover bid, which Converium has said undervalues its business. Converium and Scor have both had to raise cash and sold their U.S. business in recent years after discovering gaps in claims provisions. Scor regained its A rating and has started buying rivals to boost its size. (Additional reporting by Simon Challis in London) ((Editing by James Cordahi, Paul Bolding ($1=1.224 Swiss Franc) Keywords: CONVERIUM RESULTS/ Keywords: CONVERIUM RESULTS/ (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. January new home sales fall 16.6 percent Wed Feb 28, 2007 10:12AM EST WASHINGTON (Reuters) - Sales of new U.S. homes fell 16.6 percent in January and prices were little changed as the number of new homes on the market decreased slightly, according to a government report on Wednesday showing some weakness in the unsteady housing sector. The monthly decline was the sharpest in 13 years, since a 23.8 percent drop-off in January 1994. New single-family home sales fell to an annualized rate of 937,000 units from an upwardly revised rate of 1.123 million units in December, the Commerce Department said. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. 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
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Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Reaching for Tomorrow, a Grief and Bereavement Resource Guide, Available Free to the Public from the MetLife Mature Market Institute® WESTPORT, Conn.--(BUSINESS WIRE)--The MetLife Mature Market Institute, in conjunction with the MetLife Advice for Beneficiaries…Delivering The Promise®, is making its grief and bereavement resource guide, Reaching for Tomorrow, available free to the public. The publication provides listings and information on nationally known organizations, books, guides and Internet sites with resources helpful to those who have lost a loved one. “While the loss of a loved one is personal and different for everyone, this guide can provide direction for almost anyone to help begin the healing process,” said Sandra Timmermann, Ed.D., director, MetLife Mature Market Institute. “The booklet provides specific resources for children, adolescents, adults, parents, spouses and significant others struggling, emotionally and financially, with a loss that may be devastating.” “In many cases, those who are grieving move through phases of mourning including shock, yearning, despair and, in time, reorganization,” said Paul H. Michael, vice president, MetLife Advice. “This guide offers loved ones resources to move through these phases, often referred to as ‘grief work.’ We encourage people to reach out for help when it is most needed.” For a free copy of Reaching for Tomorrow, please write to the MetLife Mature Market Institute, 57 Greens Farms Road, Westport, CT 06880, call (203) 221-6580 or e-mail: MatureMarketInstitute@metlife.com. This publication and others can also be accessed at http://www.maturemarketinstitute.com/ under "Wew". Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
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21. Fitch Webcast: Credit Derivatives and Structured Credit -- Market Trends & Outlook, 3/6, 11:00 a.m. Fitch Ratings-NY-February 27, 2007: Fitch Ratings will host a Webcast on Tuesday, March 6 at 11:00 a.m. ET to discuss key trends and issues for the global credit derivatives and structured credit markets. Topics to be covered will include: general growth trends for CDS, recent market developments and activity, impact on the cash credit markets and potential risks and challenges. There will also be an update from Derivative Fitch on new developments in the structured credit markets including recent, innovative structures. A link to the Webcast will be available on the Fitch Ratings Web site at www.fitchratings.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Motivano, IHealthCONSUMER and Sanare Ink Landmark Consumer Directed Healthcare Agreement 2007 Prepaid Card Expo LAS VEGAS--(BUSINESS WIRE)--Motivano and IHealthCONSUMER.com announced today they have signed an exclusive agreement to integrate their services to provide a seamless on-demand internet service, providing a pathway to rapid CDH utilization for TPAs, Banks, Consumers, and Insurance Providers. The joint service offers:
For more information on Motivano, please contact Seth Waites at 813 675 2168 or seth.waites@motivano.com. Sanare is a software technology company that provides custom solutions targeted towards business entities with over 100,000 participant lives under administration. These solutions enable administration of self-funded plans, cafeteria plans, HRAs, HSAs and COBRA in a single integrated “personalized” web platform. For more information on Sanare, please contact Gracie Bowers at 734-418-0797 or gracie.bowers@sanarellc.com. IHealthCONSUMER.com is part of Sanare LLC, and is an on-demand internet software service providing a pathway to rapid CDH utilization for TPAs, Banks, Consumers and Insurance Providers. Its TPA Editions offers a complete administration platform for FSAs, HRAs, HSAs and COBRA in addition to online-enrollment, HIPAA EDI and features the cutting-edge reimbursement technology – RapidReimburse, the personal consumer decision making tool – ConsumeRx, and the consumer collaboration platform – MyHealthSpace. For more information on IHealthCONSUMER.com, please contact Vishal Sibal at 734-418-8985 or vishal.sibal@ihealthconsumer.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Prudential Capital Group Acquires GMAC Equipment Finance Portfolio Prudential Hires Team to Expand to Equipment Finance Market NEWARK, N.J.--(BUSINESS WIRE)--Prudential Capital Group, an investment business of Prudential Financial, Inc., (NYSE: PRU), announced today that it has acquired a $607 million portfolio of assets from the Equipment Finance Division (EFD) of GMAC Commercial Finance, a subsidiary of GMAC Financial Services. Prudential has also hired a team of employees from EFD, which will operate as Prudential Capital Group Commercial Asset Finance. “Prudential Capital Group is actively looking to expand its investment platform, and is committed to identifying attractive spread-lending businesses where customers value relationships and a consistent investment approach,” said Allen Weaver, senior managing director and head of Prudential Capital Group. “This transaction gives our investors access to the attractive commercial asset finance market with a seasoned management team.” Prudential Capital Group, which originated $6.9 billion in private debt investments during 2006, has an appetite to invest more than $8 billion during 2007. www.prudential.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Sierra to Incur Loss on Enhanced Medicare Part D Prescription Drug Product Offering Basic Medicare Part D Offering Performing as Expected LAS VEGAS--(BUSINESS WIRE)--Sierra Health Services, Inc. (NYSE:SIE) today announced that it expects to incur a loss in its 2007 fiscal year from the enhanced version of its Medicare Part D Prescription Drug Program (PDP) product offering. Based on its claims experience for the month of January, Sierra expects pharmacy costs on this product to be higher than previously projected. For the month of January, the only month for which full claims data is currently available, the Company has incurred pre-tax losses of approximately $3 million, or $2 million after tax, from the enhanced product. After completing discussions with the Centers for Medicare and Medicaid Services (CMS) and analyzing data, including additional claims history, Sierra expects to develop a best estimate of the losses associated with the enhanced product and record a premium deficiency reserve in the first quarter, for the entire 2007 period. This best estimate is expected to be developed within the next 45 to 60 days. www.sierrahealth.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Nurses Laud Sen. Sheila Kuehl for Reintroducing Bill for Genuine Healthcare Reform OAKLAND, Calif., Feb. 27 /PRNewswire/ -- The California Nurses Association (CNA) enthusiastically supports SB 840, a bill that was reintroduced today to guarantee all Californians access to a "Medicare for All"-style healthcare system, CNA President Deborah Burger, RN said at a Sacramento press conference today. The bill, authored by State Sen. Sheila Kuehl, chair of the Senate Health Committee, made history last year by passing through both houses of the Legislature and landing on the Governor's desk, only to face a veto. CNA is the principal sponsor of SB 840 and pledges to help pass it once again. www.SinglePayer.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. NASHO Approves Policy on Transparency of Healthcare Information WASHINGTON, Feb. 27 /PRNewswire-USNewswire/ -- The National Association of Specialty Health Organizations' (NASHO), board of directors announced that it has approved a position statement supporting increased transparency of health information. NASHO represents specialty health organizations - businesses that facilitate and support the delivery of specialized healthcare services in partnership with insurance carriers and employers. NASHO believes that transparency will ensure consumers have information on quality and cost of health care to support informed decisions about health care. www.aappo.org www.nasho.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. The Hartford shows how the 1040 federal income tax form can serve as a road map for strengthening your financial security With the April 15 deadline only weeks away… The Road to Greater Financial Security Can Start With A Drive Through Your Federal Tax Return SIMSBURY, Conn. – The Internal Revenue Service estimates that it processes more than 135 million 1040 individual income tax returns annually. That cycle will begin anew on April 16 when federal tax returns are due from most Americans. A virtual archive of a person’s financial data from the prior year, each one of those returns holds clues – some obvious and some obscure – about how taxpayers can improve the financial security of their family, business or both. “An individual’s 1040 Form is one of the most comprehensive pieces of financial information available in one place, although few understand its power,” said Patrick Smith, vice president of estate and business planning for The Hartford Financial Services Group, Inc. (NYSE: HIG). “The Hartford recommends that taxpayers work with their financial professionals and use this information to learn more about their financial strengths and vulnerabilities, and their life insurance needs for income protection, business continuation or wealth transfer.” The 1040 Form includes data about each taxpayer’s income from salaries, certain investments and businesses, how much they paid in taxes, contributions to certain retirement savings, and deductible expenses. Smith said the information can be used as a roadmap for millions of taxpayers to help determine whether or not they are protecting their assets adequately. Specific sections of the income tax form are useful for different financial security and life insurance issues, Smith said. He provided tips to deciphering several of the lines of the 1040 and putting its information to best use to increase an individual’s financial protection: • 1040 Form, Lines 1-5 – The “Filing Status” section of the form provides a snapshot of your family and raises several fundamental protection questions that a person needs to answer. o Using the 1040 as a protection roadmap -- Different filing statuses such as “Single,” “Married Filing Jointly,” “Head of a Household” or “Qualifying Widow(er)” all point to potential life insurance needs. If you file jointly, you need to make sure you have enough life insurance to replace lost income for your family to live comfortably if you or your spouse happens to die before having the chance to fully fund an education or retirement plan. • 1040 Form, Lines 7-22 – Taken together, these lines provide the bottom line on your annual income, the benchmark on which you base your annual spending and savings plan. o Using the 1040 as a protection roadmap: This benchmark is what can guide decisions on how much life insurance is needed. Many people with families need life insurance equal to between seven to 10 times their annual income – or more – depending upon their education needs and financial goals. • 1040 Form, Line 13 – The “Capital Gains and Losses” section provides the scoreboard for how some of your investments performed. o Using the 1040 as a protection roadmap: In contrast to the profits from the sale of equities, for example, cash value increases within a life insurance policy or annuity compound on a tax-deferred basis. Transfers of funds between different subaccounts are tax-free. The cash value increases within an annuity are taxable upon withdrawal. Taxable distributions and certain deemed distributions are subject to ordinary income tax, and if taken prior to age 59-1/2, subject to a 10 percent federal income tax penalty. Life insurance, on the other hand, currently allows federal income-tax-free access to the basis in the policy and federal income-tax-free access to cash value increases if they are taken through policy loans.* Both loans and withdrawals from a permanent life insurance policy may be subject to penalties and fees and, along with any accrued loan interest, will reduce the policy’s account value and death benefit. If you are concerned about losses, you might consider purchasing an annuity with a minimum guaranteed withdrawal benefit to help ensure that you enjoy a guaranteed retirement income. All policy guarantees are based upon the claims-paying ability of the issuing insurance company. *Assumes the policy is not a Modified Endowment Contract (MEC). Distributions from MECs are subject to federal income tax to the extent of the gain in the policy and taxable distributions are subject to a 10 percent additional tax, with certain exceptions. • 1040 Form, Lines 12 and 17 – If you report income on this line it means that you own some type of business or are the beneficiary of a trust. o Using the 1040 as a protection roadmap: Life insurance can help accomplish a number of financial objectives in this area, including passing a business interest to heirs or associates, or accumulating enough assets to supplement retirement income. If you are the beneficiary of a trust, life insurance can provide significant tax advantages for estate planning or wealth transfer. • 1040 Form, Line 40 – Itemized deductions such as mortgage interest, state and local income taxes, and charitable contributions may be deductible. o Using the 1040 as a protection roadmap: Clients who wish to enhance their charitable giving might consider donating a life insurance policy and taking a tax deduction in recognition of their generosity. • 1040 Form, Line 63 – This is the bottom line on how much tax you must pay. Do you think you’re paying too much? o Using the 1040 as a protection roadmap: One of the best ways to limit your tax liability is to remember that assets you hold within a life insurance policy or annuity accumulate tax-deferred. This is one way you can use your life insurance policy while you’re alive. The Hartford’s Patrick Smith summarized his views about unlocking the power of the Form 1040. “The 1040 is a highly effective planning tool for life insurance and other financial needs,” Smith said. “Each taxpayer’s circumstances are unique, and The Hartford recommends that you meet at least annually with your financial professional to review your financial picture. Make sure you bring your 1040 Form.” www.thehartford.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. LifeCare® Poll: Employees Cite Greatest Work/Life Challenges for 2007 WESTPORT, Conn., February 28, 2007 -- Asked to identify their greatest work/life challenge for 2007, 31 percent of respondents to a recent LifeCare® poll chose "financial issues" while 24 percent chose "work/life balance," the poll's top two responses. Conducted on LifeCare's private web site throughout the month of January, the poll was open to employees and members of its 1,500 client companies. Following are complete results of the poll: What do you anticipate will be your greatest work/life challenge in 2007? 31% -- financial issues; 24% -- work/life balance; 12% -- health and wellness matters; 10% -- child care issues; 8% -- adult care issues; 3% -- legal issues; 12% -- other. "Finances and work/life balance are the traditional hot-buttons facing employees, which is one of the reasons we continue to expand the array of educational tools and resources we offer to clients in these areas," said LifeCare CEO, Peter G. Burki. "We deliver a tremendous variety of educational materials, seminars, interactive online tools and other resources -- all devoted to helping people with financial challenges and balancing work and family life." www.lifecare.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. Insurance Technologies and Self-Management Group Form Key Distribution Partnership COLORADO SPRINGS, CO (February 20,2007) – Insurance Technologies LLC (IT), the premier provider of point-of-sale management software for the insurance, financial services and brokerage industries, today announced an agreement with the Self-Management Group (SMG) to lead the distribution of SMG’s assessment and training solutions globally. Based in Colorado Springs, Colorado USA Insurance Technologies LLC is a leader in providing point-of-sale illustration software to the insurance, financial services and brokerage industries. Insurance Technologies’ award-winning product, ForeSight™, supports the presentation of Life, Health, Annuities, Mutual funds, Critical Illness, DI and LTC on a single mobile platform. www.insurancetechnologies.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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