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1. State Farm(R) Announces $1.25 Billion Mutual Auto Policyholder Dividend Light Hurricane Season Reverses Companywide Net Income Decline BLOOMINGTON, Ill., March 1 /PRNewswire/ -- State Farm Mutual Automobile Insurance Company, the largest insurer of autos in the nation, announced today it will pay $1.25 billion in dividends to its mutual auto insurance policyholders in 46 states, the District of Columbia and the Canadian province of New Brunswick. The record-breaking payment of dividends, approved by the State Farm Mutual board of directors, eclipses the previous high of just over $1 billion in June, 2000. The better-than-expected auto results combined with a $4.1 billion reduction in catastrophe losses in 2006 resulted in an increase in State Farm's companywide net income -- an increase that was almost identical to the previous year's decline. In other words, net income in 2006 was almost identical to that of 2004. The company is reporting an after-tax net income from all sources of $5.32 billion, compared with $5.31 billion in net income reported in 2004 (two years ago). State Farm's net income in the hurricane- laden year of 2005 was $3.24 billion. The three consecutive years of profit follow a three-year period (2001-2003) during which State Farm lost nearly $5 billion. "2006 was a profitable year, but our evaluation of financial success is defined by our accomplishments over a longer period of time than one year," said Michael Tipsord, Vice Chairman, Treasurer and Chief Financial Officer. "Given the potential for volatility in the insurance business, we must avoid the temptation of attributing too much significance to short-term financial results. Our customers expect us to maintain the financial strength necessary to deliver on the promises we make to them over a long period of time." The company is reporting a property-casualty (P-C) underwriting gain in 2006 of $3.0 billion. It is only the third time in the last ten years a P-C underwriting gain has been achieved. The other two years in which that happened are 2004 and 1997. The combined net worth of the State Farm companies increased by $8.0 billion to $58.1 billion. The primary reasons for this improvement were the insurance operating results and the $3.6 billion realized and unrealized gain (net of deferred tax) on P-C companies' unaffiliated stock portfolios. State Farm's net worth was also impacted by a pension contribution of $900 million. The P-C companies reported a pretax operating profit of $6.0 billion in 2006, including investment and other income of $3.0 billion and the underwriting gain of $3.0 billion. This compares with a pretax operating profit of $3.5 billion in 2005, which included investment and other income of $4.3 billion and an underwriting loss of $779 million. The combined net worth of the State Farm companies is also affected by the results of operations of non-P-C affiliates, which resulted in a gain for the year of $586 million, primarily driven by results for State Farm Life Insurance Company. Total revenue, which includes premium revenue, earned investment income and realized capital gains (losses), was $60.5 billion for 2006 compared with the 2005 figure of $59.2 billion. * The following jurisdictions will not receive a dividend: Delaware, Louisiana, Mississippi, New Jersey (New Jersey policyholders insured by State Farm Indemnity received $130 million in dividends in December 2006), Alberta and Ontario. Residual market policies are also excluded. ** Texas dividends are subject to approval by the state Department of Insurance. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Willis Group Statement on Supplemental Compensation NEW YORK--(BUSINESS WIRE)--Willis Group Holdings Limited (NYSE: WSH), the global insurance broker, today issued the following statement regarding supplemental compensation: Willis Group is actively reviewing with our clients, carrier partners and the regulatory agencies, the supplemental compensation arrangements that are currently being proposed in the marketplace by certain carriers. After our preliminary review, it is unclear whether these proposals create perceived conflicts, similar to those created by contingent commissions. In 2004, we were the first industry participant to disavow contingent commissions -- paid on similar parameters -- not because we had to but because we wanted to as it was the right thing to do. While the industry continues to define this compensation, we believe that these new arrangements must be devoid of conflicts, fully transparent to our clients and must not erode the fundamental client-broker relationship. As we review these outlines, we stand behind what we said on October 21, 2004: "Our basic principle and guiding philosophy is that we represent our clients. We're going to do business based on what's best for our clients, and we believe that will also be best for our Associates and our shareholders." www.willis.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Willis Marketplace Realities 2007 “Adaptation, Innovation and the Insurance Marketplace” March 2007 Supplement New York, NY, March 2, 2007 – The US Property/Casualty industry will produce an underwriting profit for the year 2006, with an estimated combined ratio in the low 90s, according to Willis Group’s Marketplace Realities 2007 publication. The mild Atlantic Hurricane Season is cited by industry observers as a major ingredient of that result – along with rates and premiums for natural catastrophe perils that were driven to new heights by the frequent and severe catastrophe losses sustained in the 2004 and 2005 seasons. Marketplace conditions continue to be works-in-progress, with many segments experiencing both “hard” and “soft” elements. This issue of Marketplace Realities 2007 supplements and updates last November’s issue. It features articles by Willis Aviation, Private Client Group (personal property), Real Estate and Specialty Benefits (travel and accident) Practices – profiling headline events, marketplace developments and sector-specific risk management strategies. Included as well are recently published bulletins and marketplace studies by our Executive Risks, Environmental, Property and Construction Practices. The ongoing Marketplace Realities series demonstrates our commitment to providing thought leadership for clients and the insurance industry. Those likely to benefit most from today’s publication include Risk Managers, Treasurers, CFOs, CEOs and other corporate governance executives. The Marketplace Realities 2007
publication can be downloaded at: Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. 2007 Global Reinsurance Outlook Revised to Stable—Solid Earnings, Improved Balance Sheets and Enhanced Risk Management Key Drivers OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co.’s 2007 outlook for the global reinsurance sector is stable, which reflects a change from a negative outlook originally assigned nearly two years ago. This outlook revision implies that the majority of 2007 reinsurer rating actions are likely to be affirmations with stable outlooks and only a modest amount of anticipated rating or outlook changes. However, should price deterioration and competition persist at a faster pace than anticipated, the outlook could be revised back to negative by the end of the year. This revision follows the very strong 2006 full-year financial performance of companies operating in the global reinsurance sector, with many carriers reporting record earnings. Additionally, although mixed, the January 1 renewal set the tone for near-term optimism despite increased competition primarily associated with non-catastrophe exposed business lines. In 2006, adverse development on older casualty years slowed considerably for the majority of carriers, and the only meaningful noise of the year was adverse development relating to the 2005 hurricanes. www.ambest.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Insurers’ Antitrust Exemption Under Attack (Again) – An Advisen QuickNote Essence: Legislation has been introduced in both the House and the Senate that would repeal the insurance industry's limited federal antitrust exemption under the McCarran-Ferguson Act. The proposed legislation appears to be political grandstanding in the wake of the negative publicity from the settlement of 2005 hurricane claims. However, if the bills were to pass, legislation enacted in 1945 to benefit insurance consumers could be repealed, potentially harming insurance buyers. Senator Trent Lott, R-MS, along with Senate Judiciary Committee Chairman Patrick Leahy, DVT, and Sen. Arlen Specter, R-PA on February 15th introduced a bill repealing the insurance industry's limited federal antitrust exemption under the McCarran-Ferguson Act. House members, including Rep. Gene Taylor, D-Bay St. Louis, Rep. Pete DeFazio, D-OR, Rep. Bobby Jindal, R-LA, introduced identical legislation. Coming amid highly publicized lawsuits against State Farm and Allstate over their handling of claims from Hurricane Katrina, with Senator Lott a plaintiff in one such claim, the action appears to be political grandstanding. However, if the bills were to pass, an important piece of legislation enacted in 1945 to benefit insurance consumers could be eviscerated, potentially reducing competition within the insurance industry. The McCarran-Ferguson Act The McCarran-Ferguson Act was adopted in 1945 after extended and heated controversy over the jurisdiction of state governments in regulating the business of insurance. The principal objective of the act was to establish the primacy of the states over the federal government in regulating the insurance industry. Included within the legislation is a narrow and limited exemption from federal antitrust laws for activities that are regulated by a state. These activities include joint development of insurance forms and the sharing of loss data for purposes of policy pricing. The rationale for the sharing of loss data is that insurance premiums are based on the analysis of historical claims, and many smaller insurers do not have sufficient claims statistics for ratemaking purposes. Unless insurers pool claims data, neither they nor regulators can know the cost of insurance products and whether rates are appropriate. The joint development of insurance forms was intended to create uniform insurance products so that consumers would not have to sort out the differences between complex contracts. This QuickNote was written by Dave Bradford, Editor-in-Chief, 212.897.4776 ( dbradford@advisen.com ) Advisen Ltd. provides carriers, brokers, risk managers and other insurance professionals with an integrated analytics and information platform for insight to make key commercial insurance and risk management decisions. Advisen’s over 400 clients access the on-demand, web-based service for research on half a million program transactions representing 75,000 companies, 375,000 claims, 80 industries, 1.7 million companies and organizations, and 40,000 commercial insurance professionals. www.advisen.com or call 212.897.4800 Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
When an insurance company, or broker has a case that requires enrollment assistance, they can arrange for a private communication to be sent to our 4,000+ members. The information is distributed via e-mail, so the opportunity is communicated almost immediately. The enrollers and enrollment firms who think they match the criteria established and may be interested in pursuing the opportunity contact the insurance company, vendor, or broker directly. The Workplace Benefits Association is not a licensed entity and is not involved in the revenue stream in any way, does not receive an override, etc. . Does it work? Absolutely! It connects organizations that want experienced and qualified enrollment assistance with experienced and qualified enrollers and enrollment firms. For more information, call 888-282-1765, send an e-mail to wpodgurski@aol.com or visit www.workplacebenefits.org/el.htm. NOTE TO ENROLLERS: The Workplace Benefits Association sends out approximately 30 ENROLLMENT LINK announcements each year. For more information, visit www.workplacebenefits.org. 6. RAA TESTIFIES BEFORE SENATE BANKING COMMITTEE WASHINGTON, DC (February 28, 2007) – Speaking on behalf of the Reinsurance Association of America (RAA), James H. Veghte, chief executive officer of XL Reinsurance America, Inc., today testified that due to the nature of terrorism peril, “The RAA believes that private market mechanisms are insufficient alone to spread the risk of catastrophic terrorism loss.” He said “Without some form of a long-term federal backdrop, we would expect less coverage available at the policyholder level, increased prices for terrorism coverage, and more limited reinsurance capacity.” Speaking before the Senate Committee on Banking, Housing and Urban Affairs, which is considering legislation for a long-term terrorism program, Veghte said “the Terrorism Risk Insurance Act of 2002, and its extension in 2005, worked well to fill a vacuum in reinsurance capacity for terrorism risk and helped to bring stability to the insurance marketplace and to the economy as a whole.” According to Veghte, subsequent to the terrorist attacks of 2001, the global reinsurance industry committed significant resources and capital to develop a better understanding of terrorism risk. Despite these considerable efforts, the basic facts remain unchanged: terrorism poses great challenges as an insurable risk. Veghte stressed that “Unlike natural catastrophe exposure, where the industry has models and underwriting expertise, the U.S. insurance and reinsurance industry cannot adequately underwrite and model the scale and frequency of potential future terrorist attacks.” Despite the addition of considerable capital to the reinsurance market since Hurricane Katrina in 2005—over $32 billion— little of that has been deployed to terrorism risk. “It is illogical to think the insurance and reinsurance industry can provide significant terrorism coverage for this country without a long-term federal role in terrorism reinsurance,” Veghte warned. Speaking to a second concern of the Committee, Veghte said, “The Terrorism Risk Insurance Act Extension (TRIAE) program has not infringed on the development of the private reinsurance market.” “To the contrary,” Veghte went on to say, “primary insurers seek to buy private reinsurance to help them reduce the large exposure they face from the retentions and loss-sharing provisions under the program.” He maintained the large retention requirements under TRIAE, estimated to be $35 billion industry-wide, have left plenty of room for the private reinsurance market to provide capacity under the program. By establishing definitive loss parameters, TRIAE has provided a defined layer for reinsurers to participate in sharing the retained risk that primary companies face. “Even with this large window to provide capacity, reinsurers have been willing to put only limited capital at risk to manage terror-related losses,” Veghte continued. In concluding his testimony, Veghte strongly urged the Committee to consider legislation that would involve the federal government as part of the long-term solution to terrorism reinsurance. “Without it, we would expect less coverage, increased prices, and more limited reinsurance capacity.” www.reinsurance.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. OneBeacon Launches Government Insurance Business BOSTON, March 1 /PRNewswire-FirstCall/ -- OneBeacon Insurance Group today announced the formation of its newest specialty business that will target public entities. OneBeacon Government Risk Solutions will offer property and casualty products for government entities. Managing this business is Josette Kiel, joined by Jeffrey Richardson and Bradley York, a team of experienced government insurance specialists with decades of experience. OneBeacon Government Risk Solutions is the second new business formed since the Company's IPO in November 2006. Along with its emerging Accident and Health group, other OneBeacon specialty products that serve a variety of niche customer groups include ocean marine, medical malpractice, lawyers' professional liability, media liability, and community banks. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. AHIP Raises Concerns About New MedPAC Report and Its Potential Impact on Beneficiaries WASHINGTON, March 1 /PRNewswire/ -- Millions of seniors and disabled Americans in Medicare could face benefits cuts or risk losing their current coverage entirely should Congress enact changes to the program based on the conclusions of the Medicare Payment Advisory Commission (MedPAC) report released today. The report examines and compares the costs of covering beneficiaries under Medicare fee-for-service and the Medicare Advantage program. Karen Ignagni, President and CEO of America's Health Insurance Plans (AHIP), said the MedPAC report underestimates the costs associated with covering seniors through basic Medicare fee-for-service while not accounting for the better benefits and lower out-of-pocket costs available to seniors who choose Medicare health plans. "Medicare health plans are improving the health and well-being of more than eight million beneficiaries," Ignagni said. "With a nearly 60 percent increase in Medicare Advantage enrollment since 2003, Congress shouldn't take away benefits for seniors who depend on this program." To view the Medicare Advantage data analysis, visit http://www.ahipresearch.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. A.M. Best Revises Outlook to Stable on U.S. Commercial Lines Market OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has completed its assessment of the U.S. commercial market and revised the outlook to stable from negative for 2007. Although there continues to be evidence of pricing deterioration, the level of deterioration thus far has been gradual as irrational pricing has yet to surface. The outlook change also considers the level of rate adequacy in the sector, the record underwriting profits recorded in 2006 and an expectation of stabilized reserve development over the near term. Despite the change, A.M. Best anticipates that there will be few rating upgrades or positive rating outlooks assigned in 2007 as most commercial lines companies will need to demonstrate their so-called underwriting discipline through the next soft market, which A.M. Best believes is inevitable. www.ambest.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Workers With Employment-Based Health Benefits Steady Over Time WASHINGTON, March 1 /PRNewswire-USNewswire/ -- While the overall rate of uninsured Americans has increased in recent years, the percentage of workers offered health insurance and the percentage of workers taking coverage when it was offered have remained relatively steady since the late 1980s, according to a study published today by the nonpartisan Employee Benefit Research Institute (EBRI). "Employment-based health benefits have historically-and continue to be-the most common source of insurance in the United States," says Paul Fronstin, director of the EBRI health research and education program. His study appears in the March 2007 EBRI Issue Brief, available at http://www.ebri.org In the study, Fronstin focuses on key factors that affect the availability of health insurance in the work place. Here is a summary of the findings concerning the factors that Fronstin examined in detail:
A number of reasons explain why workers may not be covered by their own employer's health plan, the study says. In 2005, 50.1 percent of workers were employed at a firm that did not offer health benefits to any workers. Nearly 18 percent worked for an employer that provided benefits, but were not eligible for them; and nearly one-third were offered benefits but chose not to participate. www.ebri.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Consumers Deserve More Choice, Protection When It Comes to Health Care Pharmacy Group Testifies Before State Legislators to Increase Patient Protections, Regulate Giant Pharmacy Benefit Managers ALEXANDRIA, Va. March 1 /PRNewswire-USNewswire/ -- In an effort to establish standards and provide better protection for patients, a representative from the National Community Pharmacists Association (NCPA) testified today before a committee of state legislators in support of model legislation that would force pharmacy benefit managers (PBMs), the largely unregulated corporations that administer the prescription drug benefit portion of health insurance plans for employers and unions, to end their deceptive business practices. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Houston Businesses Commit to National Initiative for Improving Quality and Value in Health Care WASHINGTON, March 1 /PRNewswire-USNewswire/ -- In a meeting today in Houston with HHS Secretary Mike Leavitt, executives from area businesses signed statements of support for a national initiative aimed at improving health care quality, information and cost-effectiveness for employees and their families. Altogether, more than 9 million people will benefit by implementation of this initiative in Texas. Employers signing on in Texas include Aetna, AT&T, Benefit Design Consultants, CenterPoint Energy, CIGNA HealthCare, Diabetes Centers of America, Eustis Benefits - Texas L.L.C., ExxonMobil,Humana, United HealthCare and Valero. In signing statements of support, Texas business and health care executives 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. 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. More information on Value-Driven Health Care is available at http://www.hhs.gov/transparency. For a full list of companies who have signed statements of support, including those signing in Texas today, visit: http://www.hhs.gov/transparency/employers/statements.html. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Alliance HealthCard Completes Merger with Benefit Marketing Solutions ATLANTA--(BUSINESS WIRE)--Alliance HealthCard, Inc. (OTCBB:ALHC) has completed its merger with Benefit Marketing Solutions LLC, (BMS) making it one of the largest marketers of discount medical services in the country. The combined companies will serve over one and a half million consumers in all fifty states. Benefit Marketing Solutions founded in 2002 sells and markets services similar to AHC’s and has in excess of a half million members. These members will convert to AHC’s delivery system of networks, fulfillment, and member services in the near future. The integration of the two companies will result in direct cost savings and the company expects a large impact on the bottom line. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Progressive Gaming International Announces Settlement of Class Action Lawsuit LAS VEGAS--(BUSINESS WIRE)--Progressive Gaming International Corporation (Nasdaq:PGIC) (the Company), a leading provider of systems and technology used in the gaming industry worldwide, announced today that it has reached an agreement to settle the class action securities litigation currently pending in the United States District Court for the District of Nevada. The case, In re Mikohn Gaming Corp. Securities Litigation, has been pending since November 2005. Under the terms of the settlement, the plaintiffs agree to dismiss with prejudice all claims against all defendants, including the Company and its current and former officers and directors, in exchange for a payment in the amount of $2.8 million, virtually all of which is being provided pursuant to the Company's insurance coverage. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Quanta Announces Approval of Pembroke Managing Agency Limited HAMILTON, Bermuda--(BUSINESS WIRE)--Quanta Capital Holdings Ltd. (NASDAQ: QNTA) announced today that it has entered into definitive agreements with Chaucer Holdings PLC, the specialty Lloyd’s insurer, and the senior underwriting team of Syndicate 4000, forming a joint venture called Pembroke JV Limited, which will own Pembroke Managing Agency Limited. Additionally, Pembroke Managing Agency Limited has received authorization from Lloyd’s and the FSA to manage Syndicate 4000. As previously disclosed under the terms of the joint venture agreement, Quanta’s capital remains committed to Syndicate 4000 for underwriting years 2007 through 2009. Additionally, Chaucer and Quanta will work closely together to continue to diversify the provision of capital to the Syndicate to support its presence and profitable growth in the Lloyd’s market. Chaucer has agreed to provide the capital to support 10 percent of the Syndicate’s underwriting in 2007 and to support underwriting in 2008 and 2009. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. National Investment Managers Inc. Closes Acquisition of the Pension Alliance Ninth Acquisition Enhances Presence in Northeast and Mid-Atlantic Markets Approximately 9,000 Administered Plans, $9.0 Billion of Assets under Administration NEW YORK--(BUSINESS WIRE)--National Investment Managers Inc. (OTC BB: NIVM), a nationally-operated and regionally-based retirement plan administration and investment management company, announced today that it has closed on the acquisition of The Pension Alliance, based in Harrisburg, Pennsylvania, with offices in Philadelphia, Baltimore and Boston. The acquisition is valued at $4.6 million, with $3.25 million paid in cash, $675,000 in notes and $675,000 in common stock at a price per share of $0.62, for a total of 1,088,710 shares. Since its inception in 1988, The Pension Alliance has been a prominent third party administration firm providing retirement planning services to small business owners and their associates. The company currently serves approximately 1,000 plans and has $1.0 billion in assets under administration. This brings NIVM totals to approximately 9,000 administered plans and $9.0 billion of assets under administration. www.plrinvest.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Futurethink’s Annual Innovation Tracker Sees Major Changes for 2007 Survey Cites Business Value, Not Creativity, as Key Innovation Driver NEW YORK--(BUSINESS WIRE)--Companies that consistently emphasize “delivering value” over creativity are significantly more effective at innovating, according to a survey conducted by Futurethink, a leading innovation research, tools and service firm. The findings of the 2007 Futurethink Innovation Tracker reinforce a trend first identified in the 2006 annual study. Innovation may no longer be viewed as strictly a creative endeavor. It has become a recognized and effective business strategy. A trend emerged when respondents were asked to identify key attributes of innovation. Greater prominence and attention was given to those that ‘qualified’ ideas. Bodell is quick to advise care not to misinterpret the feedback. “The free flow of ideas and creativity should not be underestimated. However, they should be viewed as a means to an end, not the end result,” she explains. “Innovation is harnessing new ideas, translating them into business opportunities and successfully implementing them to lead an industry trend,” agreed another industry participant. “Innovation is not about creating ideas, but about consistently creating value that translates into sales to positively impact a company’s bottom line,” states Bodell. “It’s exciting to see companies that embody this philosophy have retained their positions but even more strategy-affirming to see which firms are breaking into the Top Ten,” she adds. Complete Innovation Tracker results, including respondent comments, are available at http://www.getfuturethink.com/innovation/index.php?cPath=115_144#a7 Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Redesigned Starmark Website Makes It Easy to Quickly Access Tools and Information Lake Forest, Ill., March 2, 2007 - Star Marketing and Administration Inc. (Starmark) announces the launch of its redesigned website to help clients quickly and easily access the tools and information they seek. The new site features several enhancements, including easy-to-use navigation, with tabs for each audience segment and topic-specific sections that group information into logical categories to help users quickly locate information. "We pride ourselves on providing true personal service to all our clients, and part of that is ensuring that they have access to the tools and information they need online as well," said Kim Croisant, Starmark Second Vice President of Marketing. "We have always been attuned to the requests and suggestions of our website user base, making enhancements and improvements when possible. This is just the next step in the process as we continue to provide our clients with the ease of access and expanded information they deserve." For more information about the redesigned Starmark website or any product in the Starmark portfolio, call 800.522.1246, ext. 33057, or visit www.starmarkinc.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Bank Insurance Brokerage Fee Income Rises to Record $4.1 Billion in 2006 FOR IMMEDIATE RELEASE – Radnor, PA, March 1, 2007 – Banks increased their 2006 insurance brokerage fee income by 3.7 percent to a record $4.08 billion, up from $3.93 billion in 2005, according to The 2007 Michael White-Symetra Bank Fee Income Report™ (Bank-FIR™). The report, compiled by Michael White Associates, LLC (MWA) and sponsored by Symetra Financial, measures and benchmarks the banking industry’s performance in generating insurance, investment, and mutual fund and annuity fee income. It is based on data reported by all 7,837 commercial and FDIC-regulated savings banks. The Bank-FIR reveals that nearly half the banks (46.6 percent) in the United States engaged in activities that produced insurance brokerage revenue. Bank insurance brokerage fee income consists of commissions and fees earned by a bank or its subsidiary from insurance product sales and referrals of credit, life, health, property, casualty, and title insurance as well as annuities not sold by securities brokerage firms. www.BankInsurance.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
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21. Progressive Casualty Insurance Introduces New Privacy Liability & Expense Coverage For Community Banks MAYFIELD VILLAGE, Ohio (March 1, 2007) – Progressive Casualty Insurance Company has added a new coverage to its American Bankers Association (ABA)-sponsored Financial Institution Program. The new coverage, Privacy Liability and Mitigation Expense, is designed to address bankers’ concerns regarding privacy and identity theft issues, and is now available in most states. Covering banks’ liability arising from unauthorized access to confidential customer information, Privacy Liability and Mitigation Expense also provides reimbursement for banks’ post-security breach expenses, including customer notification, account reissuance, credit monitoring services to detect potential fraud and public relations counsel, if needed. www.banks.progressive.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Unum Completes Sale of GENEX CHATTANOOGA, Tenn. (March 1, 2007) – Unum Group (NYSE: UNM) today said it has completed the previously announced sale of its wholly owned subsidiary, GENEX Services, Inc., a leading worker’s compensation and medical cost containment services provider, to Trident IV, L.P., a fund managed by Stone Point Capital LLC, a global private equity firm based in Greenwich, Conn. The terms of the transaction were not disclosed. Unum said the sale will not impact its customers and that it intends to continue to partner with GENEX to address its customer needs. “GENEX is an excellent company that creates value for its clients, and we expect to remain a customer,” said Thomas Watjen, president and chief executive officer. “The outstanding customer relationship we currently have with GENEX will remain unchanged.” www.unum.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Scottish Re holders OK MassMutual, Cerberus deal NEW YORK, March 2 (Reuters) - Scottish Re Group Ltd. (SCT.N: ) said on Friday its shareholders approved an investment by MassMutual Capital Partners and a unit of Cerberus Capital Management that will give them control of the life reinsurance company. The vote was taken at a shareholders meeting in Bermuda. MassMutual, a unit of the insurance company, and Cerberus, a private equity firm, will each invest $300 million in the company and gain a controlling equity interest, Scottish Re said. The sale is expected to close in the second quarter, Scottish Re said, contingent on regulatory approvals. Scottish Re, which buys blocks of life insurance policies from other issuers, got into difficulty last July when it announced that it would have a big second-quarter loss and its chief executive resigned. Its stock lost more than half its value since then. ((Reporting by Ed Leefeldt, editing by Dave Zimmerman; edward.leefeldt@reuters.com; Reuters Messaging: edward.leefeldt.reuters.com@reuters.net; +1 646 223 6315)) Keywords: SCOTTISHRE MASSMUTUAL/ (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Monte Paschi to sell life insurance arm soon ROME, March 2 (Reuters) - Banca Monte dei Paschi di Siena (BMPS.MI: ) will sell its life insurance arm MPS Vita "in the coming days", Chairman Giuseppe Mussari said on Friday. French insurer Axa (AXAF.PA: ) and Dutch rival Aegon (AEGN.AS: ) are shortlisted in the auction of a controlling, 51 percent stake in the Italian bank's life insurance arm with an estimated value of around 1 billion euros ($1.32 billion). "We'll conclude it in the coming days," Mussari said. (Reporting by Stefano Bernabei, editing by Quentin Bryar; Rome newsroom +39 06 8522 4350; fax +39 06 854 0568; rome.newsroom@news.reuters.com). ($1=.7597 Euro) (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. New MyHealthCoach.com Website Helps Employers Control Healthcare Costs and Encourage Healthy Lifestyles CINCINNATI, OHIO, March 1, 2007 – Hummingbird Coaching Services has released a new online health site, www.MyHealthCoach.com, that shows prospective companies how they can harness the Internet to control healthcare costs and encourage healthy lifestyles among employees. The adoption of wellness programs has grown exponentially in the last few years as healthcare costs continue to rise. Hummingbird’s new website provides companies investigating such programs well-documented information and resources to evaluate online coaching for such goals as weight management, blood pressure and cholesterol control, nutrition and smoking cessation. In addition, MyHealthCoach.com provides quick links to key points within the content, videos explaining the online coach system and company philosophy, FAQs, and a detailed walk-through of the typical coaching process. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. TPAA signs Michael Best & Friedrich LLP for Legal Services Atlanta, GA, March 1, 2007 - The Third Party Administrator Alliance—known as the TPAA—has signed an agreement with Wisconsin-based Michael Best & Friedrich LLP to provide legal services for its member TPAs. According to Peggy Wolford, vice president of business development for the TPAA, "Michael Best & Friedrich have significant experience in the employee benefits field and have represented TPAs, brokers, consultants and employers. Their understanding of this industry from every angle makes them a valuable partner for our members." In addition to individual services, TPAA members will have access to a "group legal" purchasing model to cover issues that will likely affect all members. This model should lead to reduced legal expenses for participating members. Also, Michael Best and Friedrich LLP offers teleweb and telephone seminars as well as an "extranet" for housing documents that can be accessed 24/7. "We believe our firm and the TPAA are an excellent fit," says John Barlament, Attorney and Partner with Michael Best & Friedrich LLP. "Most large law firms also have very high hourly billing rates and most small firms do not have the additional resources available in-house when needed. At Michael Best & Friedrich LLP, we can rely on our full-service corporate and litigation departments to assist with various TPA issues such as mergers and acquisitions and litigation. Combined with our dedication to and knowledge of the industry, we will be a great partner for the TPAA members." www.theTPAA.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. U.S. charges 13 in insider trading, bribery cases Thu Mar 1, 2007 3:07PM EST - By Paritosh Bansal NEW YORK (Reuters) - The U.S. government on Thursday charged 13 people, including employees at major Wall Street banks, with securities fraud, wire fraud, bribery and other charges in what authorities are calling one of the most pervasive insider trading rings in years. Michael Garcia, U.S. Attorney for the Southern District of New York, said the insider trading schemes involved a UBS Securities executive who is accused of selling information about upcoming analyst upgrades and downgrades, and a former Morgan Stanley attorney accused of giving out information about mergers and acquisitions. Prosecutors said that two brokers at Assent LLC found out about the scheme involving the UBS executive and blackmailed some of the people involved. In addition, prosecutors charged that a Banc of America Securities representative allocated shares of initial public offerings and secondary offerings to a hedge fund, Q Capital, for cash kickbacks. Prosecutors said that all 13 people had been arrested and four had pleaded guilty. Also on Thursday, the U.S. Securities and Exchange Commission charged 11 people and three companies in a civil suit related to the insider trading schemes. It was "one of the most pervasive Wall Street insider trading rings since the days of Ivan Boesky and Dennis Levine," said Linda Thomsen, director of enforcement with the SEC, at a joint news conference with the U.S. Attorney and the FBI on Thursday. She was referring to major insider trading scandals of the 1980s. The SEC said those involved in the schemes used clandestine meetings, disposable cell phones, secret codes and cash kickbacks to conceal their conduct, making profits of up to $15 million over five years. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. UnitedHealth: filings to be current by March 15 Fri Mar 2, 2007 7:43am ET NEW YORK (Reuters) - UnitedHealth Group Inc. (UNH.N: ) said on Friday it expects to become current with its U.S. financial filings by March 15, which would be a major step as it seeks to recover from a stock options scandal. The largest U.S. health insurer by market value said it requested an automatic two-week extension beyond the March 1 deadline for filing Form 10-K, its annual report, with the U.S. Securities and Exchange Commission. UnitedHealth said it expects to file its 2006 10-K on or before March 15, along with an amended quarterly filing for the first quarter of 2006, and quarterly filings for the second and third quarters. The Minneapolis-based company delayed its second- and third-quarter filings last year as it reviewed its stock option issues, and has yet to file them. William McGuire, UnitedHealth's former longtime chief executive, left last year in the wake of a damaging report by the company's independent counsel that found evidence of backdated stock options. The company has said its financial statements from 1994-2005 and the first three quarters of 2006 should no longer be relied upon because of the options matter. © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. Countrywide non-prime servicing delinquencies jump Thu Mar 1, 2007 1:25PM EST - NEW YORK (Reuters) - Countrywide Financial Corp., (CFC.N: ) the largest U.S. mortgage lender, said on Thursday that 19 percent of the non-prime loans it collects payments for are delinquent. Loans to non-prime borrowers make up about 9 percent of Countrywide's $1.3 trillion servicing portfolio, or the mortgage loans for which Countrywide collects payments on behalf of the loans' owners, the company said in an annual regulatory filing. Delinquencies, or late payments, in the non-prime servicing portfolio rose to 19 percent from 16.9 percent in the third quarter, and 15.2 percent at the end of the 2005. Although home loans of the best credit quality seem to be performing well, loans made to riskier borrowers, such as those with poor credit histories or inadequate documentation, are not performing as well. Lenders ranging from HSBC Holdings Plc (HSBA.L: )(HBC.N: ), Europe's biggest bank, to NovaStar Financial Inc. (NFI.N: ) to New Century Financial Corp. (NEW.N: ) have reported rising delinquencies lately. IndyMac Bancorp Inc. (NDE.N: ), which makes loans including "Alt-A" mortgages, or loans to people without adequate documentation for a "prime" loan, but with superior credit scores to subprime borrowers, warned that 2007's profit will likely be lower than 2006. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. Long Term Care Information Via Web and Phone; New Websites, Manned by State-Licensed Field Underwriters, Will Deliver Facts on a Complex Issue KIRKLAND, Wash., Feb. 28 /PRNewswire/ -- A "web of websites," announced today, will dispense factual information about a form of protection that puzzles many Americans: long term care insurance. Developed by LTC Financial Partners LLC, the nation's most experienced long term care insurance brokerage, the websites will offer the information in textual, graphic, video, and live format. Each website will be manned by a state-licensed field underwriter who is ready to answer questions by phone or email. The "web of websites" will begin with 90 sites covering all parts of the country. "We'll add more sites over the next few months," says Truesdell. "Our total organization has over 250 field underwriters, and we expect most of them to start manning sites by the end of the year."A list of the initial 90 sites, organized by state, is available at http://www.ltcfp.us/websites.html. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. Sovereign Announces Strategic Alliance with U.S.-based Insurer CALGARY, Alberta, Canada and BOSTON, Feb. 27 /PRNewswire/ -- The Sovereign General Insurance Company and OneBeacon Insurance Company are pleased to announce the signing of a Strategic Alliance Agreement.The two companies have formed a strategic alliance regarding the introduction of products to Canada for certain commercial segments. Policies will be written under Sovereign's name and the two companies will share equally in the underwriting results of the policies through a reinsurance arrangement. This strategic alliance does not in itself require any specific revenue or performance targets between the two companies, however both insurers are confident that this venture will prove to be a valuable solution to Canadian market needs. The initial product will target midsized technology businesses. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. AIA Applauds Withdrawal Of Amendment To South Carolina Building Code Affecting Hurricane Resistance ATLANTA, Feb. 28, 2007 - An amendment to the International Residential Code (IRC) that would make newly constructed homes in South Carolina’s coastal counties more susceptible to windstorm damage was withdrawn by proponents and not considered during today’s meeting of the state’s Building Codes Council, a move applauded by the American Insurance Association (AIA). In comments to the Council, AIA opposed an amendment expected to be offered by the SC Home Builders Association and others to weaken the 2006 IRC. The Building Codes Council is in the process of adopting the 2006 editions of both the IRC and the International Building Code for commercial structures. “The IBC and IRC represent the best and most current technical knowledge on building wind resistant structures,” said Raymond G. Farmer, AIA assistant vice president, Southeast Region. “Building codes should not be weakened without strong compelling evidence, especially in a state where homes and businesses are subject to catastrophic hurricanes. We are pleased that the amendment’s supporters reconsidered and withdrew their support.” www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 33. ADP Wilco announces that its Japanese office is moving Automatic Data Processing, Inc. (NYSE: ADP) subsidiary ADP Wilco has announced that due to its ongoing business expansion its Japanese office will be based at the following address, as of 26th February 2007: 10/F Kojimachi KS Square, 5-3-3 Kojimachi, Chiyoda-ku, Tokyo 102-0083 The telephone and fax numbers remain unchanged: Tel +81 3 5212 6311 - Fax +81 3 5212 6312. www.adp.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 34. AIA SUPPORTS STATE INSURANCE LEGISLATORS' EFFORTS TO STRENGTHEN BUILDING CODES Washington, D.C., Feb. 27, 2007– The American Insurance Association (AIA) applauds state lawmakers for taking a forward-looking approach to mitigating losses from natural catastrophes by considering a model law to strengthen building codes during the National Conference of Insurance Legislators (NCOIL) meeting, March 1-4 in Savannah, Georgia. NCOIL’s Subcommittee on Natural Disaster Insurance Legislation could take action on this model act, which would establish structural building requirements in order to minimize losses from wind, flood and earthquake in areas with significant catastrophe exposure. www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 35. AMERICAN INSURANCE ASSOCIATION ANXIOUS TO SEE DETAILS OF GOV. SPITZER’S WORKERS’ COMPENSATION REFORM AGREEMENT ALBANY, NY, Feb. 27, 2007 –The American Insurance Association (AIA) issued the following statement in response to the bipartisan workers’ compensation legislation announced today by New York Gov . Eliot Spitzer (D). This statement can be attributed to Gary Henning, AIA assistant vice president, Northeast Region. “We are pleased that the governor and legislative leaders have tackled this important issue, however the devil is always in the details. We need to carefully review this measure so we know exactly how the cost savings will be generated. AIA is hopeful that this legislation will result in meaningful cost savings. Injured workers, employers and insurers all benefit from a stable, predictable workers’ compensation system and a competitive marketplace.” www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 36. Independent Insurance Agents, Brokers of NY Applaud Spitzer, Legislature on Tentative NYS Workers’ Comp Reform Agreement (DeWitt, New York, Feb. 27, 2007) — An agreement to allow sweeping reforms in New York state’s dysfunctional workers compensation system is underway in Albany, according to Gov. Eliot Spitzer’s office. The long sought-after structural reforms will reduce cost to business while increasing injured workers’ weekly benefits, and was hailed by the Independent Insurance Agents & Brokers of New York, Inc. as a step in the right direction. The 125-year-old IIABNY, whose advocacy led to the last major reform of New York’s workers’ compensation system in 1996, congratulate Spitzer, Senate Majority Leader Joseph L. Bruno (R-Rensselaer), Assembly Speaker Sheldon Silver (D-Manhattan), Senate Minority Leader Malcolm A. Smith (D-Queens) and Assembly Minority Leader James Tedisco (R-Schnectady) in reaching this agreement. IIABNY is a member of the New York Compensation Action Network, a group of businesses and organizations committed to workers’ compensation reform. www.iiabny.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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