Daily Quote: “The soul becomes dyed with the color of its thoughts." - Marcus Aurelius
Starr Foundation clears Greenberg of double-dealing Mon Mar 5, 2007 2:52PM EST - NEW YORK, March 5 (Reuters) - Former American International Group Inc. (AIG.N: ) Chief Executive Maurice "Hank" Greenberg acted in good faith in selling Starr Foundation assets to companies he controls, according to a report from the multibillion-dollar nonprofit group. The report, released on Monday, answers accusations made more than a year ago by former New York Attorney General Eliot Spitzer, who is now the state's governor. "We are not surprised that a foundation controlled by Greenberg issued a report attempting to absolve him from wrongdoing," said John Milgrim, a spokesman for current Attorney General Andrew Cuomo. In December 2005, Spitzer questioned whether Greenberg and other executors of the Starr Foundation had enriched themselves at the organization's expense in the sale, which took place more than 30 years ago. Starr said its executors "prudently performed their duties and there is no basis for the ... contention to the contrary." The foundation was started by AIG founder Cornelius Vander Starr and now has $3.5 billion in assets. After Starr's death in 1968, Greenberg and other executors sold some of the foundation's assets to two companies controlled by Greenberg and others at low prices, Spitzer said. These two companies then sold the Starr assets to AIG at far higher prices, according to a letter Spitzer sent to the foundation. Spitzer, who has filed civil fraud charges against Greenberg for improper accounting, asked the foundation to investigate whether Greenberg and other Starr executors who were on both sides of the transactions "benefited from the Foundation's loss." The Starr Foundation said a committee that included two former judges had decided that Greenberg and other executors had followed Vander Starr's intent in selling the shares and that it would not be in the interest of the foundation to pursue any litigation against them. Greenberg has been waging a battle to save his reputation. While not charged with any crime, he was forced to resign as chairman and chief executive of AIG, the world's largest insurer, in February 2005 after more than 30 years as its head. Before his death, Vander Starr had chosen Greenberg to lead the company and other Starr subsidiaries. In February 2006, AIG paid $1.64 billion in fines and reparations, a record regulatory settlement by a single company, to settle charges of fraud, bid-rigging and improper accounting. The charges, brought by Spitzer and the U.S. Securities and Exchange Commission, stemmed from the period when Greenberg headed the company. ((Reporting by Ed Leefeldt, editing by
Lisa Von Ahn and Jane Baird; edward.leefeldt@reuters.com; Reuters
Messaging: edward.leefeldt.reuters.com@reuters.net; +1 646 223 6315))
Keywords: GREENBERG STARR/ 1. Health care top domestic concern: poll Fri Mar 2, 2007 11:33am ET WASHINGTON (Reuters) - Access to affordable health care is the top domestic concern among Americans and a majority say the U.S. government should guarantee health insurance to every American, according to a New York Times/CBS News poll released on Thursday. While the war in Iraq remains the top overall issue among Americans, health care is the No. 1 concern on the domestic agenda, ranked as far more important than immigration, cutting taxes or promoting traditional values, the poll said. Nearly two-thirds said the federal government should guarantee health insurance for all Americans and half said they would be willing to pay as much as $500 more in taxes a year for universal coverage, it said. Only 24 percent said they were satisfied with President George W. Bush's handling of the issue, despite his recent initiatives, and 62 percent said Democrats -- not Republicans -- were more likely to improve the health-care system. Looking ahead to the 2008 presidential campaign, 36 percent said they had confidence in the ability of Democratic contender Sen. Hillary Rodham Clinton of New York to "make the right decisions on health care," while 49 percent said they were uneasy about it, according to the poll. Clinton retained the confidence of nearly six in 10 Democrats on the issue, despite the politically devastating collapse 13 years ago of the national health initiative she helped develop early in her husband's presidency, it said. Nearly 47 million Americans, or more than 15 percent of the population, go without health insurance, up 6.8 million since 2000. Former Sen. John Edwards of North Carolina, another Democratic presidential candidate, recently unveiled a plan that would require everyone to have insurance and require employers to provide it or pay into a fund that would do so. Nearly four in 10 polled said that was a good idea; nearly half said they were unsure. The nationwide telephone poll was conducted Friday through Tuesday with 1,281 adults, and had a margin of sampling error of plus or minus 3 percentage points. © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. 83 Percent of Bay Area Residents Say Government Should Guarantee Health Insurance, According to New Poll Prefer Reforms in Existing System Rather Than New ``Single-Payer'' Structure SAN FRANCISCO--(BUSINESS WIRE)--Eighty-three percent of Bay Area residents agree that government should guarantee healthcare coverage to all citizens, according to results of the 2007 Bay Area Council Poll of 600 residents released today. A slightly smaller amount, or 79 percent, agree that all Californians should have healthcare coverage, which would include illegal aliens. When asked how the current healthcare system in California should be improved, respondents are most in favor (47 percent) of making reforms in the existing health insurance system, but encouraging shared costs between employers, government and individuals. About a third of residents (34 percent) would like to replace the current framework with a new system administered entirely by the government and covering all residents. A final 11 percent would rather rely on free market competition to improve California’s health insurance system. The large majority of Bay Area residents (87 percent) report that they have healthcare coverage. Ninety-one percent of Santa Clara residents have coverage, the most in the region, and 81 percent of North Bay residents of Marin, Sonoma, Napa and Solano have coverage, the least in the region. Ethnicity appears to be a good predictor of coverage rates. Only 75 percent of Latinos report that they have coverage, but 92 percent of whites (non-Hispanic) have some form of healthcare coverage. Not surprisingly, the counties with the lowest rate of coverage – in the North Bay – were the strongest proponents of universal healthcare, with 89 percent agreeing government should guarantee coverage. “The very high number of respondents who support a government health coverage guarantee indicates that the time for health reform is now,” said Jim Wunderman the president and CEO of the Bay Area Council. “When we ask our member companies the biggest public policy challenges they face, today healthcare is always right near the top. Bay Area residents seem to be as eager as business for change.” Of those with health insurance coverage, 82 percent say they are satisfied with their current coverage, and only 16 percent say they are dissatisfied. www.bayareacouncil.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Unitrin to Acquire Merastar Insurance Company CHICAGO--(BUSINESS WIRE)--Unitrin, Inc. (NYSE:UTR) announced today that its subsidiary, Trinity Universal Insurance Company, has reached an agreement in principle to acquire Merastar Insurance Company (“Merastar Insurance”) and certain of its affiliates in a cash transaction valued at approximately $45 million, subject to certain purchase price adjustments. Merastar Insurance is based in Chattanooga, Tennessee and specializes in the sale of personal automobile and homeowners’ insurance through employer-sponsored voluntary benefit programs. For the year ended December 31, 2006, Merastar Insurance recorded direct written premiums of approximately $54 million. Unitrin said that Merastar Insurance will become part of its Unitrin Direct business segment and plans to keep the Chattanooga operation substantially intact. The transaction is subject to the execution of definitive agreements, approvals by insurance regulators and other third parties and other customary closing conditions, and is expected to close in the second quarter. www.unitrin.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. CNA Announces Agreement to Sell Continental Management Services, Ltd. to Tawa UK, Ltd. CHICAGO--(BUSINESS WIRE)--CNA Financial Corporation (NYSE: CNA) today announced the signing of an agreement to sell Continental Management Services, Limited (CMS) to Tawa UK, Limited. CMS is a wholly-owned United Kingdom subsidiary that is a substantial component of CNA’s discontinued operations. The sale is for cash consideration which is subject to adjustment at the time of closing. The transaction is subject to regulatory approval in the United Kingdom and is expected to be completed by the end of the second quarter of this year. Any gain or loss from the sale, which is not expected to be significant, will be reported as income or loss from discontinued operations. www.cna.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. US property derivatives market set to launch - FT LONDON, March 5 (Reuters) - The first U.S. commercial property derivatives market is set to launch as early as this week, as four of the world's biggest banks team up to create a trading platform, the Financial Times reported on Monday. Credit Suisse (CSGN.VX: ) is one of the four lenders, it said. Goldman Sachs (GS.N: ), Merrill Lynch (MER.N: ) and Bank of America (BAC.N: ) were believed to be the other three, the FT reported. They have signed up to work with the National Council of Real Estate Investment Fiduciaries (NCREIF), which will provide the data from its U.S. property indexes to create the market, according to the newspaper. "The banks are very excited about this as this is a market with tremendous potential," NCREIF Chief Executive Blake Eagle was quoted as saying. "And it won't just be the big banks that trade this. Hedge funds and insurance companies are showing real interest in developing this market." The four banks will be given their licenses to use the NCREIF data, with Eagle saying another three lenders were also close to signing up for licences. The FT said Lehman Brothers (LEH.N: ) and Morgan Stanley (MS.N: ) were thought to be among this group. Last month, Phil Barker of CBRE Melody/GFI in New York said the U.S. commercial property derivatives market was set for take-off again with the "imminent" purchase of key trading licenses by "at least four new banks." Commercial property index contracts have been traded in Britain for more than two years, but have yet to take hold in the United States. Credit Suisse was granted an exclusive NCREIF license two years ago to trade derivatives based on NCREIF's property indexes, but waived those rights in October to build up market liquidity after executing only a handful of trades. © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. TSX, ISE to launch derivatives exchange in 2009 TORONTO, March 5 (Reuters) - TSX Group Inc. (X.TO: ) and International Securities Exchange Holdings Inc. (ISE.N: ) will launch a Canadian derivatives exchange, known as DEX, in March 2009, the companies said in a joint statement on Monday. The exchange, which will be 52-percent owned by TSX Group and 48-percent owned by ISE, will list and trade options, futures and options on futures on a range of Canadian securities. The cost of setting up the exchange will be about C$26 million ($22 million) and will be split between TSX Group and ISE according to share ownership, the companies said. TSX is prevented from offering derivatives in Canada until early 2009 due to a non-competition agreement signed in 1999 with the Montreal Exchange. ($1=$1.18 Canadian) ((Reporting by Frank Pingue and Nicole Mordant, editing by Bernadette Baum; Reuters Messaging: frank.pingue.reuters.com@reuters.net, +1 416 941-8094)) Keywords: TSXGROUP DERIVATIVESEXCHANGE/ © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. BestWeek: Whole Lott of Shakin': Antitrust Bill Makes Industry Quiver OLDWICK, N.J., March 2, 2007—Senate Minority Whip Trent Lott isn't the first to advocate repealing the insurance industry's limited exemption from federal antitrust law. But he must count among the more unlikely candidates to don the hat of insurance antagonist, according to an exclusive article in this week's BestWeek. Not long ago, he generally was regarded an industry ally. But all that changed Aug. 29, 2005. Hurricane Katrina swept ashore and took Lott's $700,000 Pascagoula, Miss., home with it. He collected on a National Flood Insurance Policy, but State Farm Fire & Casualty Co.—the senator's long-time insurer—denied his homeowners claim, claiming the loss was excluded as flood damage. But it is Lott's most recent bill, the Insurance Industry Competition Act, that truly has made the industry stand up and take notice. The measure would amend the McCarran-Ferguson Act's exemption, permitting the Federal Trade Commission to enforce federal antitrust laws and regulations on the insurance industry. www.ambest.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Ernst & Young Quarterly Insurance Industry Outlook Identifies Opportunities for Maximizing and Leveraging Enterprise Risk Management -- Key Trends and Issues Create Challenges but Offer Potential to Build Competitive Advantage -- NEW YORK, March 5, 2007 – The Insurance and Actuarial Advisory Services (IAAS) practice of Ernst & Young LLP today released its quarterly outlook addressing key trends and issues facing insurers, including the need for a formal risk appetite, the impact of principles-based reserves and the urgency for Property/Casualty companies to improve data quality to enhance catastrophe modeling. Setting the ERM Stage… Step One: Formal Risk Appetite There is no question that insurance companies are taking enterprise risk management (ERM) more seriously, particularly as such external pressures as new rating agency criteria increase, but concerns remain around their approach. Unfortunately, many companies have begun implementing ERM programs without doing the necessary upfront legwork of gaining management consensus around the overall risk appetite of the organization. Ernst & Young suggests all insurers develop a formal risk appetite, which it defines as the level of aggregate risk that a company can undertake and successfully manage over an extended period of time, as well as the level of risk and expected returns that will allow the company to meet its mission and financial goals. It is crucial that the risk appetite be meaningful -- focused on value creation, risk and return, as well as value protection. It should be used to define and calibrate the actual risk limits used to manage the business and become a part of the overall business strategy dialogue. At the same time, an organization’s risk appetite must be redefined as the business strategy evolves. By working with management to draft and validate the appetite, circulating it for comment and obtaining buy-in from the board of directors, insurers can formalize their risk appetite so that it can serve as a cornerstone for making both strategic and tactical business decisions around risk. “As companies feel pressure to put ERM in place, many get ahead of themselves,” explains Chris Karow, Partner, Ernst & Young LLP. “It isn’t too late to build a risk appetite even for companies already on the ERM journey. The process of developing a risk appetite can get everyone on the same page, creating the linkage between business strategy, value creation and risk management that can help drive the organization and its ERM programs to the next level. Principles-Based Reserves… Regulatory Changes and New Opportunities Emerging The regulations surrounding principles-based reserves for life products continue to evolve. Although the effective date of the broad-based requirements appears to be several years away, the writing is on the wall, and the time to prepare is now. The integration of enterprise risk management with the valuation process is a cornerstone of the principles-based reserves and capital regime, and there are significant opportunities for insurers who act early. Those who implement the new reserve framework will be able to match reserve levels with risk levels, with potential reserve decreases resulting from effective risk management techniques. “Companies that investigate and address this interplay early will find themselves ahead of the curve when the regulations change and will be able to take better advantage of the ERM processes they already have in place,” adds Tara Hansen, Senior Actuarial Advisor, Ernst & Young IAAS. Raising the Bar on Data Quality… Leaping Ahead of the Competition The 2004 and 2005 hurricane seasons revealed weaknesses in commonly used catastrophe risk modeling techniques. Among the major revelations, it was determined that the quality of exposure data, especially for commercial lines of business, was insufficient. While 2006 was a quiet year, the memory of Katrina has not faded, and a key imperative for 2007 is enhanced data collection. As insurers begin to plan improvements, it is important to fully understand all of the issues surrounding data quality that equally impact exposure to other naturally occurring catastrophes such as earthquakes. In some cases a major reconstruction effort is necessary, and if done properly, it can offer significant competitive advantages with respect to pricing and risk selection as well as reinsurance pricing and capacity. Ernst & Young suggests the following steps for improving data quality: • Define a data governance process addressing who owns data and data quality • Communicate the impacts of data quality on risk measurement, management and reinsurance pricing • Research which exposure data elements are important and how they can be obtained • Evaluate the effectiveness and potential improvement of using third party tools and databases • Design a data collection process and warehouse architecture that positions companies for success now and in the future • Initiate a review protocol to periodically assess the processes and controls surrounding data collection. “Smart companies will recognize that the current lull offers an opportunity to implement necessary changes addressing the way they collect, store and use data,” says Tom Stone, Manager, Ernst & Young IAAS. “Those who invest today will realize significant benefits in the future, as it is only a matter of time before the winds blow again, and the industry has to answer the recurrent question of how its risk management practices performed against the latest hurricane.”www.ey.com/perspectives Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. GlobalOptions Group Announces Acquisition of FACTICON NEW YORK, N.Y. March 1, 2007 – GlobalOptions Group, Inc. (OTCBB: GLOI), a leading provider of domestic and international risk management services, today announced that it has acquired FACTICON, Inc. for $2.8 million, consisting of $1.4 million of cash, $1.4 million of stock, and the assumption of certain liabilities. Established in 1992, FACTICON has become one of the leading investigation and research firms in the United States. The company provides insurance, legal, business and financial solutions for government entities, corporations, and small businesses, with a focus on risk mitigation. FACTICON will expand the existing operations of GlobalOptions’ Fraud & SIU unit, and management will report to GlobalOptions executive Halsey Fischer. In 2006, FACTICON had revenue of $5.5 million. www.globaloptionsgroup.com www.facticon.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. NAMIC Takes TRIA Message to the Heart of Ground Zero WASHINGTON (March 2, 2007) — Business owners across the country could find themselves in dire straits if the Terrorism Risk Insurance Act is allowed to expire this year. That’s the message an insurance industry executive and representative for the National Association of Mutual Insurance Companies (NAMIC) will deliver to members of Congress at a hearing in New York City Monday. Warren Heck, CEO of the Greater New York Mutual Insurance Company, will testify before the House Committee on Financial Services’ Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises as it considers the need to extend TRIA beyond its December expiration date. “I am deeply concerned that if Congress does not adopt a long-term private/public terrorism risk insurance program, many of our citizens who need terrorism coverage to operate their businesses across the nation will be either unable to get insurance or unable to afford the coverage that is available,” Heck says in prepared remarks. NAMIC supports a long-term program to avoid the kind of disruption that occurred when TRIA was scheduled to expire in 2005, with companies scurrying to address the uncertainty, often asking state officials to allow them to provide exclusions in future contracts or possibly withdrawing from certain markets or restrict coverage. www.namic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Guy Carpenter and MMC Securities Publish Fifth Annual Review of Catastrophe Bond Market Momentum of 2004 and 2005 Storm Activity Carries Into 2006 NEW YORK--(BUSINESS WIRE)--Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist and part of the Marsh & McLennan Companies (NYSE: MMC), and MMC Securities Corp.*, an affiliate of Guy Carpenter, today announced the publication of The Catastrophe Bond Market at Year-End 2006: Ripples Into Waves. The report, their fifth annual joint study of natural catastrophe bond transaction activity, trends and market dynamics, found that the market momentum resulting from the record storm activity of 2004 and 2005 continued into 2006, with activity across virtually all measurable dimensions surpassing previous records by a large margin. “When we looked at the catastrophe bond market one year ago, the effects of the record storm activity, led by Hurricane Katrina, were beginning to be felt, with record totals in risk capital issued and total risk capital outstanding, as well as new highs in the number of bonds placed and first-time sponsors,” said Christopher McGhee, head of Guy Carpenter’s Investment Banking Specialty Practice and Managing Director of MMC Securities. “In 2006, these initial ripples grew into a massive wave of market activity. In nearly every measurable way, 2006 was, by some distance, the most active year in the history of the catastrophe bond market, principally driven by the 2004 and 2005 hurricane activity.” According to the report, in two years the total annual catastrophe bond issuance has more than tripled. Total issuance in 2006 stood at $4.69 billion, representing a 136 percent increase over the previous record of $1.99 billion in 2005, and a 311 percent increase over the $1.14 billion issued in 2004. A total of 15 sponsors completed 20 new transactions in 2006, representing a new high in transaction volume. In terms of total risk capital outstanding, the market also saw record growth, with more than $8.48 billion of bond principal outstanding at the end of 2006 – a 74 percent increase over the year-end 2005 total of $4.90 billion. “What this record catastrophe bond activity implies for the long term remains to be seen,” said Mr. McGhee. “The explosive growth we saw in 2006 was driven by a number of factors working in tandem, including a tightening in capacity, increased costs in the traditional market and model changes. All of these trends resulted from the 2004 and 2005 storms. Given the relative lack of U.S. hurricane activity in 2006, it is unclear whether the market momentum will continue into 2007. What is clear, however, is that capital markets will continue to play an increasingly important role in risk transfer.” Among the report’s highlights:
Copies of the full report, The Catastrophe Bond Market at Year-End 2006: Ripples Into Waves, are available for download at www.guycarp.com. For printed copies, please contact Guy Carpenter at marketing@guycarp.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. ACE USA Introduces Errors & Omissions Coverage to Respond to Growing Market Needs of Managed Care Industry; Appoints Tristan A. Gabriel as Vice President, Managed Care PHILADELPHIA--(BUSINESS WIRE)--ACE USA, the U.S.-based retail operating division of the ACE Group of Companies, today announced the launch of a primary and excess product focusing on the managed care industry. This product is offered by ACE Medical Risk, a division of ACE USA, which provides a wide range of liability products and services specifically designed for the healthcare industry worldwide. Additionally, ACE USA announces that Tristan A. Gabriel has joined the ACE Medical Risk team as Vice President, Managed Care, and will lead the overall efforts. www.acemedicalrisk.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Former Drug Czar McCaffrey Asks Congressional Leaders to Assure Health Providers Approve Patient Decisions in Substance Abuse Parity Bill Moving in Congress WASHINGTON, March 5 /PRNewswire-USNewswire/ -- The country's former Drug Czar, Four-Star Gen. Barry McCaffrey (Ret.), who in 2001 led the promulgation of parity rights for substance abuse equal to physical health in insurance for all federal employees, is calling on congressional leaders to assure that health providers, rather than insurance companies, approve patient decisions in the new parity bill for all Americans moving through Congress. Gen. McCaffrey has sent letters to Senators Reid, Domenici, and Kennedy and Representatives Pelosi, Ramstad, and Kennedy, commending the legislation but seeking changes. The Senate Health, Education, Labor and Pensions Committee voted 18-3 to approve a bill (S 558) providing parity for mental illness and substance abuse identical to physical illnesses. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. UnumProvident Corp. Now Unum Group Name change part of larger branding initiative focused on market leadership in group benefits CHATTANOOGA, Tenn.--(BUSINESS WIRE)--UnumProvident Corporation (NYSE: UNM) has officially changed its name to Unum Group, and the company’s shares will be traded publicly as Unum Group going forward. Unum announced in January that it intended to shorten its name as part of a larger branding initiative the company is undertaking to reinforce its commitment to being a leader in the group benefits industry. The new name follows several years of operational and financial restructuring and signals a transition to a period of building and growing the company’s business. “This is a significant event in our company's continued evolution,” said Thomas R. Watjen, president and CEO. “Given the progress we’ve made both operationally and financially in recent years, we are essentially a new company. Our new name signals this in a way that does not lose sight of the tremendous brand equity we’ve built in the marketplace over many years.” The company has already begun using the name Unum in the marketplace and expects to unveil a new corporate logo and creative direction in the coming weeks. The names of Unum’s insurance entities used to market and sell its products, including Unum Life Insurance Company of America, Provident Life and Accident Insurance Company, The Paul Revere Life Insurance Company, and Colonial Life & Accident Insurance Company are not changing. Unum ( www.unum.com ), formerly UnumProvident, is one of the leading providers of employee benefits products and services, and the largest provider of group and individual disability income protection insurance in the United States and the United Kingdom. Through its subsidiaries, Unum Group insures more than 25 million people and provided $6.2 billion in total benefits to customers in 2006. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. MIB Life Index Reports North American Life Insurance Activity Down 7.4% in January WESTWOOD, Mass., March 2 /PRNewswire/ -- North American application activity for individually underwritten life insurance declined -7.4% in January year-over-year, according to the MIB Life Index(SM). Applications were off -3.3% when compared to December 2006. Historically, January activity has lagged that of the previous December in five of the last six years. U.S. application activity declined -6.9% in January year-over-year, all ages combined. Applications were off across all three age groups: ages 0-44 down -7.6%, ages 45-59 down -5.9%, and ages 60+ down -5.7% compared to the same period last year. Applications by age group versus last month's activity (Dec. 2006) show more mild decreases: ages 0-44 down -3.7%, ages 45-59 and 60+ down slightly at -0.8% and -0.5%, respectively. www.mib.com/lifeindex Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. The California Earthquake Authority (CEA) Has Announced Management Changes and a Change in Its Claim-Paying Capacity SACRAMENTO, Calif.--(BUSINESS WIRE)--Newly elected California Insurance Commissioner Steve Poizner and newly elected California Treasurer Bill Lockyer have joined the Governing Board of the CEA, replacing outgoing Insurance Commissioner John Garamendi and outgoing Treasurer Phil Angelides. Chief Executive Officer Elaine Bush is leaving the CEA to serve as the Chief Deputy Director for the California Department of Mental Health, having been asked by Governor Schwarzenegger to take that position, allowing her to return to the health and human services field where she worked for over 20 years. Chief Financial Officer Tim Richison will assume Ms. Bush's duties during the Governing Board's search for her successor. The Governing Board of the CEA, in a regular public meeting on March 1, 2007, has accepted the claim-paying capacity recommended by staff for the year 2008 to allow the CEA to pay, at a minimum, all claims from a 1-in-600-year earthquake or series of earthquakes. The CEA's claim-paying capacity varies over time and is currently 1-in-800. The staff recommendation included an analysis of the cost and availability of reinsurance and concluded that the 1-in-600 level is prudent, enhances capital growth, and would result in a financial structure that would have a 99.833% probability of paying all claims that might arise from an earthquake, or series of earthquakes, during 2008. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Milliman Assists Fitch Ratings Agency to Develop Capital Model - 'Matrix' To Assess Capital Adequacy for Financial Guarantors SEATTLE, March 5 /PRNewswire/ -- Milliman today announced the completion of an extensive consulting project that assisted Fitch Ratings in the development of a stochastic economic capital model known as Matrix. Fitch will use Matrix to provide an assessment of capital adequacy for the global financial guaranty industry. In 2004, Milliman was engaged by Fitch to help design and build a new capital model to address the evolving risk profile in the financial guaranty industry. Milliman played a key role in the development of global model parameters and establishment of the stochastic framework and methodologies used within Matrix. According to Tom Abruzzo, a Managing Director at Fitch Ratings, "Milliman was selected to build the model because of its skills and specialized knowledge in a variety of areas including credit risk modeling, structured finance and securitization, systems programming for stochastic modeling and Monte Carlo simulations." Mr. Abruzzo added, "We are delighted with the results." www.milliman.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. RMS Launches Exam Preparation Program for the Certified Catastrophe Risk Analyst (CCRA) Designation NEWARK, Calif., March 5 /PRNewswire/ -- Risk Management Solutions (RMS), the world's leading provider of products and services for the management of catastrophe risk, has launched the Certified Catastrophe Risk Analyst (CCRA(TM)) Exam Prep program, a comprehensive self-study review program that allows experienced catastrophe risk analysis professionals to prepare for the RMS CCRA exam without attending the six-week Catastrophe Analysis Training (CAT) program. The CCRA Exam Prep program is designed to provide experienced catastrophe risk analysis professionals with the full suite of topics that may be covered on the CCRA exam and helps direct their studies to areas of greatest need given those topics. This program is self-directed by the individual wishing to earn certification as part of one's industry credentials. The program provides an individual with access to the full suite of CAT program course materials, a comprehensive study guide, and a five-hour on-site CCRA exam review session with a senior RMS professional. www.rms.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Opening doors in Latin American Insurance Market Benfield report analyses insurance markets across the region with a focus on Brazil and Mexico Whilst still small - comprising just 2 per cent of the global market and roughly one-fifth the size of the UK - the insurance markets in Latin America have the potential to grow rapidly, according to a new report by Benfield, the world’s leading independent reinsurance and risk intermediary, entitled “Latin America Insurance Market Review: Focus of Brazil and Mexico”. Gross premiums written increased strongly, rising from USD44 billion in 2004 to USD53 billion in 2005, a growth rate of 22 per cent. Brazil and Mexico dominate, accounting for two-thirds of total premiums and two-thirds of the region’s Gross Domestic Product of approximately USD2.4 trillion in 2005. The report notes that the insurance markets in Latin American are characterised by low levels of insurance penetration. Rates are typically under 4 per cent, with Chile the exception at 6 per cent, relative to the established markets where the levels are between 8 and 10 per cent. Life insurance predominates, accounting for 53 per cent of all business written in the region in 2005 reflecting the introduction of numerous economic and tax reforms which have provided a greater incentive to save. In P&C insurance, motor business dominates followed by property insurance. According to the report, the insurance markets in Brazil and Mexico have been profitable in recent years. Combined ratios have been strong, underpinned by a general lack of natural peril risk in the region. Both Brazil and Mexico have posted returns on equity in excess of 10 per cent over the last five years. In Brazil, liberalisation of the reinsurance market took a significant step forward in January 2007 and admittance of international reinsurance companies is seen as a positive factor. A full copy of the report can be viewed online at www.benfieldgroup.com/research. Printed copies can be obtained by contacting IAR@benfieldgroup.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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Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. JupiterResearch Finds That a Third of Online Users Turn to Social and One-to-One Media for Health Information NEW YORK--(BUSINESS WIRE)--JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, has found that 34 percent of adult online users (54 million people) in the U.S. said they have connected to others or to the content others created online about health and wellness issues in the past year. Detailed in a new report, “Online Health: Assessing the Risk and Opportunity of Social and One-to-One Media,” JupiterResearch refers to these adult users as Health Connectors – a population segment that health marketers and stakeholders must reach as the influence of consumer-created content continues to grow. www.jupiterresearch.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Direct General Reaches Agreement to Settle Shareholder Litigation NASHVILLE, Tenn.--(BUSINESS WIRE)--Direct General Corporation (Nasdaq: DRCT) today announced that it entered into a Memorandum of Understanding with other defendants and the plaintiffs to settle a consolidated class action pending in the United States District Court for the Middle District of Tennessee, Nashville Division, entitled In re Direct General Corporation Sec. Litig. The stipulated settlement amount is $14.94 million, which is apportioned to the defendants, and the plaintiffs agree to dismiss with prejudice all claims against all defendants to the action. www.directgeneral.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Two Largest Automotive Glass Companies Finalize Acquisition COLUMBUS, Ohio, March 5 /PRNewswire/ -- As expected, Belron S.A., the world's largest vehicle glass repair and replacement company, has completed its acquisition of Safelite Group Inc., according to Dan Wilson, president and chief executive officer of the new joint organization, Belron US. The closing was effective March 3. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Arrowpoint Capital Finalizes Acquisition of Royal & SunAlliance USA Businesses CHARLOTTE, N.C., March 4 /PRNewswire/ -- Arrowpoint Capital Corp. today announced that it has completed the acquisition of all Royal & SunAlliance USA (R&SA USA) businesses formerly owned by Royal & Sun Alliance Insurance Group plc (the Group) of London. Under the terms of the transaction approved February 20 by Delaware Insurance Commissioner Matthew Denn, Arrowpoint Capital will focus on meeting policyholder obligations through a continuation of current operational, financial and governance guidelines. Arrowpoint Capital Corp. was formed in June 2006 by the senior management and outside directors of Royal & SunAlliance USA. The company is led by former R&SA USA President & CEO John Tighe and his senior management team, who have successfully headed Royal's US operation since 2003. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. AMSA's 57th Annual National Convention Focuses on Health Care Justice Medical students, noted physicians, members of Congress and community partners to join in 'Pursuing the Dream of a Healthy Society' AMSA's 57th Annual National Convention - Wednesday, March 7 - Sunday, March 11, 2007 Hyatt Regency Crystal City, Arlington, VA (2799 Jefferson Davis Highway) For updated information or a full program, visit http://www.amsa.org/conv Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Disclosure of shareholdings pursuant to Art. 20 SESTA Zurich Cantonal Bank reduces its holding of Converium's registered shares to below 5% Zug, Switzerland - March 5, 2007 - Converium Holding Ltd has been notified that Zurich Cantonal Bank, Tessinerplatz 7, 8002 Zurich, Switzerland, has reduced its holding of registered shares of Converium Holding Ltd, Zug to below 5%. www.converium.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. AIG Financial Products Corp. Launches Family of Fully Investable Emerging Markets Foreign Exchange Indices WILTON, Conn.--(BUSINESS WIRE)--AIG Financial Products Corp. (AIG-FP), a member company of American International Group, Inc. (AIG) and the parent company of Banque AIG, today announced the launch of the AIG Emerging Markets Foreign Exchange IndexSM (AIG-EMFXISM), a new family of investable indices. According to AIG-FP, the creation of the AIG-EMFXI is a direct response to the rapid growth of investor interest in emerging markets (EM) and foreign exchange (FX) as asset classes in recent years. AIG-FP is the creator of the Dow Jones – AIG Commodity IndexSM(DJ-AIGCISM), a leading commodity benchmark, and has a strong track record in the development of index-based markets. www.aigfp.com www.banqueaig.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. Rx Processing Corp. Announces Acquisition Phase WILMINGTON, Del.--(BUSINESS WIRE)--Rx Processing Corporation (OTC:RXPC) enhances its operational environment by currently pursuing acquisition of six new geographically dispersed storefronts. This initiative will increase the number of clients over the next year in furtherance of our expected goal of 50,000 new advocates. www.rxprocessingcorp.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. Willis Continues to Focus on Major Commercial Risks in China LONDON--(BUSINESS WIRE)--Willis Group Holdings’ (NYSE: WSH) continued focus on broking major commercial risks in China resulted in a revenue rise of 23 percent in 2006 for its China business, the global broker announced today. This further strengthens Willis Pudong Insurance Brokers Co.’s leading position in the country. Willis Pudong has the largest local network and workforce of all the foreign brokers in China, and this combined with Willis’ unique specialist units makes it the number one global broker in China. In 2004 Willis was granted permission from the CIRC to purchase a 50 percent share in Pudong Insurance Brokers (which was later increased to 51 percent), a 100 percent Chinese owned insurance broker. The name was subsequently changed to Willis Pudong Insurance Brokers Co., Ltd. www.willis.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. Aflac Honors Fallen Soldiers With $1 Million Pledge to National Infantry Museum COLUMBUS, Ga., March 5 /PRNewswire-FirstCall/ -- The Aflac Foundation announced today a $1 million gift toward the development of a new National Infantry Museum and Heritage Park. Built on 200 acres linking Columbus, Ga., and Fort Benning, the world-class facility will honor the 231-year legacy of the Army's largest branch, the Infantry. www.nationalinfantryfoundation.org www.aflac.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 33. Care Support Of America Launches Innovative Health Coordination And Support Services—Producers Can Now Offer Valuable Services (Columbus, Ohio) –- Care Support of America “CSA,” has announced that its new healthcare services, which help patients and their caregivers navigate advancing illness, are available nationwide. A membership in these packaged services, can offer a combined home visit as well as telephonic care support provided by specially trained nurses. These services secure assistance in understanding physician recommendations, and coordinating future care options, as well as emotional support coping with both medical and non-medical issues. www.CareSupportofAmerica.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 34. PIACT supports two consumer-oriented bills HARTFORD, CONN.—The Professional Insurance Agents of Connecticut Inc. recently backed two bills being considered by the General Assembly’s Insurance & Real Estate Committee that it says would benefit and protect consumers. “Professional, independent agents always are interested in legislation will benefit their customers,” said PIACT President John DiMatteo, CFP, CCPS. “For that reason, we have voiced our support for these two bills.” Raised H.B. 7053—Dram shop liability By requiring businesses to submit proof of financial responsibility—in an amount sufficient to cover injuries caused by an intoxicated patron of the establishment—prior to receiving or renewing a liquor permit, raised H.B. 7053 will afford additional protection to the state’s citizens. “Raised H.B. 7053 makes sense because it will prevent a person from obtaining a liquor permit, and basically halt their ability to operate a legal business, unless the person first can demonstrate financial responsibility,” said DiMatteo. Raised H.B. 7056—Single financial responsibility limit for motor vehicle operators PIACT also supported raised H.B. 7056 because of the benefits it could provide the state’s motor vehicle operators. PIACT noted that unlike the current statutory minimum financial responsibility limits for motor vehicle operators, a single $50,000 limit would afford a policyholder greater flexibility in determining how to allocate his or her insurance benefits in the event of an accident. "Freedom from the restraint of the separate limits more frequently would allow an insured’s insurance policy to provide coverage within the policy limits,” said DiMatteo. www.pia.org/CT Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 35. PIACT opposes bill that could prevent agents from giving good advice HARTFORD, CONN.—Looking out for drivers across the state, the Professional Insurance Agents of Connecticut Inc., in written testimony submitted to the Insurance & Real Estate Committee, opposed raised Senate Bill 1101 because it could unintentionally harm the state’s consumers. S.B. 1101 would prohibit an insurance company, agent or adjuster from requesting that their policyholders use a specific person for automobile physical damage repairs. Current law already prohibits a requirement that a policyholder use a specific person. www.pia.org/CT Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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